Insurance 220 License Guide: Getting a 220 License
If you’re exploring a career in insurance and have come across the term “220 license,” this guide walks you through everything you need to know: what the license typically covers, who needs it, eligibility and prerequisites, the exam format, realistic costs and timelines, study strategies, and what comes after you pass. The tone is practical and relaxed — no jargon-heavy language — so you can get clear, usable steps for moving forward.
What is a 220 License and Who Needs It?
The term “220 license” is commonly used in some states and organizations to refer to a specific class of insurance license, often related to property and casualty lines, or a particular agent/producer designation. Depending on your state, a 220 license may authorize you to sell, solicit, or negotiate specific types of coverages such as homeowners, auto, commercial property, or other P&C products. Because licensing structures vary by state, the exact scope associated with the number “220” may differ. Always check the official state insurance department definitions for the precise legal scope where you plan to work.
Common reasons someone would pursue a 220 license:
- You want to sell property and casualty insurance products or work as an independent agent.
- Your employer requires you to hold a specific producer or agent license to handle certain lines.
- You plan to expand your credentials to work with commercial clients or brokers.
In short, if your role involves quoting, binding, or negotiating P&C policies with consumers on behalf of an insurer or agency, a 220 license may be required — but confirm specifics with your state’s regulator.
Eligibility, Prerequisites, and Background Requirements
Before you begin, make sure you meet the usual eligibility requirements. These are fairly standard across most states, with minor variations:
- Age: Typically 18 years or older.
- Residency: You may need to be a resident of the state where you apply or meet nonresident licensing rules if you are licensed elsewhere.
- Legal status: Must be legally authorized to work in the U.S. (citizen, permanent resident, or work-authorized).
- Background check: Most states require fingerprinting and a background check. Criminal history may affect eligibility depending on the offense.
- Prelicense education: Many states require completion of a prelicensing course (hours vary by state and line of authority).
- Exam: Passing a state-administered exam is usually required.
Documents you may need during the application process:
- Proof of identity (driver’s license, passport).
- SSN or taxpayer ID.
- Proof of completion of prelicense course (certificate).
- Fingerprints or authorization for an electronic background check.
- Fees for the exam and license application.
Tip: If you’re transitioning from another licensed line (for example life & health), check whether reciprocity or credit applies — it can save time and money.
Exam Format, Topics, and Passing Scores
The licensing exam for a 220 license typically includes two parts: a general insurance principles section and a line-specific section (property and casualty). Below are common topic areas you should study, with approximate weightings to guide your focus. Note: exact percentages vary by state.
| Exam Section | Topics Covered | Typical Weight |
|---|---|---|
| General Insurance Principles | Insurance basics, risk management, policy structure, ethics, state insurance laws | 20%–30% |
| Property Insurance | Homeowner policies, dwelling coverage, endorsements, property valuation | 25%–35% |
| Casualty (Liability) Insurance | Auto liability, commercial liability, commercial general liability (CGL) | 20%–30% |
| Commercial Lines | Commercial property, businessowners policies (BOP), workers’ compensation basics | 10%–20% |
| State Law & Regulations | Licensing requirements, continuing education, unfair practices, consumer protections | 5%–15% |
Format and passing score
- Format: Mostly multiple-choice questions, typically 50–150 questions depending on state and whether the exam is combined or separated into sections.
- Time limit: Usually 90–180 minutes total.
- Passing score: Often in the 70%–75% range, though exact passing marks are set by each state.
- Retake policy: If you fail, most states allow multiple retakes with a waiting period (often 24–48 hours) and a retake fee.
Preparation tip: Practice exams are the single most effective study tool. They build familiarity with question style and timing, and highlight weak topics so you can focus study time efficiently.
Costs, Timeline, and Typical Steps
Costs and timeline can vary, but the table below offers realistic figures you can use to budget and plan. These are typical for an individual pursuing a 220-type insurance license in the United States.
| Item | Typical Cost (USD) | Notes / Range |
|---|---|---|
| Prelicensing course | $100 – $400 | Self-study or live online classes; required in most states (10–40 hours). |
| Exam fee | $50 – $150 | Paid to the testing vendor at scheduling. |
| Fingerprinting / background check | $40 – $100 | Some states require electronic submission; employer may cover. |
| License application fee | $30 – $200 | Varies widely by state and by resident vs. nonresident application. |
| Study materials & practice exams | $30 – $200 | Books, flashcards, or subscriptions to online question banks. |
| Continuing education (annual/biannual) | $20 – $150 per cycle | Ongoing cost to renew and maintain the license; varies by state. |
| Estimated total first-year cost | $270 – $1,200 | Low estimate assumes minimal prep costs and state fees; high estimate includes paid courses and higher state fees. |
Typical timeline
- Week 1–2: Decide to apply, enroll in a prelicense course, collect documents for application.
- Week 2–6: Complete prelicensing education (10–40 hours depending on the course and your schedule).
- Week 4–8: Schedule and take the licensing exam; if you pass, submit application and fees to the state; if not, schedule a retake.
- Week 6–10: Background check processing and license issuance. Some states issue within a week; others take several weeks.
Real-world example: If you complete a 24-hour online prelicensing course in two weeks, take a practice exam, then sit for the test in week three, you may have a license in hand by week five to eight, assuming no delays in background checks.
Study Plan, Resources, and Time Management
Consistency beats cramming. Build a study plan that fits your schedule and uses a mix of reading, practice questions, and review. Here’s a realistic 6-week plan for someone studying part-time while working full-time. Adjust the hours and pacing to fit your availability.
| Week | Target Hours | Focus Areas | Milestone |
|---|---|---|---|
| Week 1 | 6–8 hours | Overview of insurance principles; read general insurance chapters | Complete 25% of prelicense course |
| Week 2 | 8–10 hours | Property coverage: homeowner & dwelling policies; property valuation | Take chapter quizzes on property |
| Week 3 | 8–10 hours | Casualty coverage: auto, liability, CGL basics | Complete practice exam #1 (timed) |
| Week 4 | 6–8 hours | Commercial lines and endorsements; state law review | Score 75%+ on practice sections for commercial topics |
| Week 5 | 6–8 hours | Intensive practice tests; review weak areas; flashcards | Take full-length practice exam (pass simulated test) |
| Week 6 | 4–6 hours | Final review, ethics, and test-taking strategies | Schedule and take the state exam |
Recommended study resources
- State-approved prelicensing course (online or classroom) — required in many states.
- Official candidate handbook from your state insurance department — contains exam topics and policies.
- Question banks and full-length practice exams — mimic test timing and format.
- Flashcards for definitions, policy parts, and state law points.
- Study groups or accountability partners — meetings once a week help retention.
Exam-day tips
- Read each question carefully; watch for absolutes like “always” or “never.”
- Answer the question in your head before looking at choices to avoid being led astray.
- Manage your time: don’t spend too long on one question — mark and return if allowed.
- Breathe and stay hydrated; arrive early at the test center or log in early for online proctoring.
After You Pass: Application, Maintaining the License, and Career Outlook
Once you pass the exam, the steps to finalize your license are straightforward but must be followed carefully:
- Submit your state application and fees (if not already submitted).
- Complete fingerprinting or background check if required.
- Designate your employer or appointing insurer on the license application if you will be working for a carrier or agency.
- Verify license issuance via the state’s license lookup tool.
License maintenance
- Continuing education (CE): Most states require CE hours every 1–2 years (e.g., 12–24 hours). Keep a calendar for renewal deadlines.
- License renewal fees: Expect to pay renewal fees that range from $20 to $200 depending on your state and whether you’re a resident or nonresident.
- Stay current with law changes: New regulations, forms, or product changes can be part of CE requirements.
Career and earning potential
Having a 220-type license opens several career paths: independent agent, captive agent (working for a single insurer), broker, claims representative, or commercial lines specialist. Earnings vary based on role, location, and whether compensation is salary, commission, or a combination.
- Entry-level agent: $35,000 – $50,000 base earnings is common, often with commission upside.
- Experienced agent/producer: $60,000 – $120,000+ depending on book of business, specialty, and territory.
- Commercial lines broker or account manager: $70,000 – $150,000+ in larger markets.
- Claims adjuster: $50,000 – $90,000+, with experienced adjusters or field adjusters sometimes earning six figures in busy regions or catastrophe seasons.
Realistic example: An agent who builds a modest book of business (150–300 clients) with average commissions and renewal income can expect to earn $70,000–$100,000 within a few years if they focus on retention and cross-selling.
Common Questions and Practical Tips
Here are quick answers to common questions and helpful practical tips to smooth your path to a 220 license.
- Can I study for the exam without a prelicense course? Some states allow self-study, but many require a state-approved prelicense course. Even when not required, a course speeds learning and provides focused material.
- How many practice exams should I take? Aim for at least 5–10 timed, full-length practice exams with scores in the passing range before attempting the real test. Use additional targeted quizzes for weak areas.
- How long does my license stay active? Licenses usually need to be renewed every 1–2 years. Check your state’s insurance department for exact periods and CE requirements.
- What if I move to another state? Look into reciprocity and nonresident licensing. Many states have reciprocity agreements that simplify the process, but additional steps or fees may be required.
- Should I get errors & omissions (E&O) insurance? E&O is highly recommended for agents and brokers who advise clients; some firms require it. Costs can be a few hundred dollars per year for typical coverage levels, depending on risk exposure and revenue.
Final practical tips
- Create a checklist for the entire process so you don’t miss documents, fees, or deadlines.
- Keep digital copies of certificates, practice scores, and the application until the license verification appears online.
- Network with experienced colleagues or mentors who can offer subject-matter insights and real-world examples beyond exam theory.
- Plan financially for the first year — licensing costs are modest, but building a book of business often takes time.
Moving forward: use this guide as a roadmap — confirm state-specific details early on, invest in a solid prelicensing course and question bank, and treat the process as the first step in a long-term career in insurance. Whether you plan to be a local independent agent, a commercial lines specialist, or a claims professional, a 220 license (or its state-equivalent) can be the credential that opens doors.
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