State insurance regulators agree that unlicensed individuals should not provide pet insurance, but the level of licensure is still up for debate.
To conduct pet insurance business, most states require a full property and casualty (PC) license.
To earn a full PC license, the individual may be required to complete insurance prelicensing courses and pass a state exam in their native state.
Once licensed, the producer must complete all requirements for retaining his or her license, including continuing education requirements.
Consumer protection is an advantage of having comprehensive PC license requirements since producers are regarded competent and eligible to sell to customers.
Prelicensing classes and state tests, on the other hand, do not cover topics related to pets or pet insurance.
As a result, a small number of states have embraced the limited lines concept. Idaho, New Jersey, Rhode Island, and Virginia are the only states that allow restricted lines licenses to be used to conduct pet insurance business.
A limited line of insurance is a type of insurance that exclusively covers a single topic. Unlike major lines licensing, limited lines producer applicants can obtain a license by submitting the appropriate application form and paying all applicable fees, as well as receiving a program of instruction or training on the specific subject matter, which is subject to insurance department review.
They do not need to pass a state exam, and there are no requirements for ongoing education to keep their restricted lines license.