What must an agent do to avoid acting without a license?

To avoid acting without a license, it is essential for an agent to obtain the necessary licensing. In the insurance industry, licensing is a legal requirement that ensures agents have met specific training and education criteria, understand regulations, and are equipped to protect consumers. Each state has its own requirements for obtaining a license, and operating without it can lead to severe penalties, including fines and revocation of the ability to engage in business within that state.

While being employed part-time, working under a senior agent, or having adequate training could theoretically support an agent's effectiveness, these factors do not substitute for the legal requirement of having a proper license. Proper licensing holds an agent accountable and confirms their qualification to provide insurance products and advice to clients, ensuring compliance with state laws and protecting public trust in the insurance industry.