How Much Does Property And Casualty License Cost

Selling can be very lucrative if you have the right skills, the right tools, and, of course, the right license. Property insurance deals with managing risk and providing financial safeguards to common types of property, such as a house, vehicle, and even jewelry. On the other hand, casualty insurance deals with the legal liability for unforeseeable future damage.

Most of the time, property and casualty insurance go hand in hand, especially in securing a license. The question is, how much does property and casualty license cost?

Average Cost of Property and Casualty License

The property and casualty license cost for individual insurance brokers and agents ranges from $0 to $300, depending on which state you are doing business in.

The following is the complete list of the P&C license fees per state that are valid for two years:

State	License Fees	Exam Fee	Fingerprint/ Background Check	Other Fees (Subject to change)
Alabama	$80	$75	$48.25	Amendment fee $80
Alaska	$75.00	$89	$63.25	Reinstatement fee-$100.00: If < or = 60 days, $200.00 if 61 days or more
Arizona	$120	$56	$42	Amendment fee $120
Arkansas	$20	$24	$24	Reinstatement fee $70
California	$188	$55	$59-$68.95	Renewal late fees $255 / reinstatement $170
Colorado	$89.00	$48	Not Required	Amendment fee $57.00
Connecticut	$140	$105	Not Required	Reinstatement fee – $130
Delaware	$100	$90	$75	$275.00 ($200 reinstatement fee + $75 license fee) if inactive for >1 year
District of Columbia	$100	$75	$50	$80 reinstatement fee
Florida	$55.00	$44	$48.05	Reinstatement fee $55.00
Georgia	$120	$63	$53	Reinstatement $100 / Amendment fee $100
Hawaii	$150 to $200	$75	$67	Please see schedule
Idaho	$80	$60	$70	Reinstatement fee – $200.00
Illinois	$180	$103		$360.00 reinstatement fee
Indiana	$40	$69	$7 mail/$15 online	$40.00 LOA addition fee
Iowa	$50	$69	$0	$50.00 reinstatement fee
Kansas	$30	$64	$60	$50.00 reinstatement fee
Kentucky	$40	$50	$25	$40.00 LOA Fee
Louisiana	$75	$65	$58	Amendment -$75 / reinstatement-$70
Maine	$25	$77	$0	Reinstatement-$25.00, Amendment fee – $25.00
Maryland	$54	$70	$0	$54.00 reinstatement
Massachusetts	$300	$49	$0
Michigan	$15	$40	$0	Reinstatement $10 / Amendment fee $10
Minnesota	$80	$39	$67.25	Amendment fee – $50.00 per LOA + $10.00 Technology Fee
Mississippi	$100	$54	$0	$100 amendment fee
Missouri	$100	$49	$0	$100 amendment fee
Montana	No fee	$68	$54	No fee for reinstatement
Nebraska	$50	$49	Not Required	$40.00 reinstatement fee
Nevada	$185	$49	$60	$125 Reinstatement Fee
New Hampshire	$210	$65	Not Required	$50.00 amendment fee/ $90.00 reinstatement fee
New Jersey	$170	$45	$66.05	$20 Processing fee
New Mexico	$30	$75	$44	LOA Addition fee – $30.00
New York	$40	$33	Not Required	$80 per sub-licensee
North Carolina	$38	$45	$38	Amendment Fee – $44.00 + $50.00 per LOA
North Dakota	$100	$49	$69.25	$0.00 Amendment fee
Ohio	$10	$42	$72.25	$0.00 Amendment fee
Oklahoma	$60	$41	Not Required	Reinstatement fee – $120.00
Oregon	$75	$55	$61.25	LOA addition fee $75.00
Pennsylvania	$55	$53	$23.85	Amendment fee – $25.00/ Reinstatement fee $55.00
Rhode Island	$120	$80	$5	Reinstatement – $120.00
South Carolina	$25	$45	$50.50	Reinstatement fee-$400.00
South Dakota	$25	$95	$0	Reinstatement – $25.00
Tennessee	$50	$59	$42	Amendment fee $50.00
Texas	$50	$62	$30.25	Renewal – $50 / late fee – $25
Utah	$75	$44	$34.25	Processing fee – $20
Vermont	$65	$65	Not Required	$30.00 Amendment fee
Virginia	$15	$51	$15	LOA Addition Fee – $25.00
Washington	$60	$66	$49.25
West Virginia	$50	$88	$45.75
Wisconsin	$75	$75	$39.25	Amendment fee $10
Wyoming	$100	$113	$39	Amendment fee $100

Additional Costs

Apparently, beside the actual license fees, there are additional costs when obtaining a license as a property and casualty insurance broker or agent, as shown in the table above. Below are some brief explanations of what they are for:

• Examination fees – prior to the license application, you will be required to pass the examination, and this cost also varies depending on the state.
• Reinstatement fees – these are fees imposed for expired licenses that were not renewed on time.
• Line of Authority – this is the exact type of insurance that you are allowed to sell.
• Retaliatory Fees – Some states impose a retaliatory fee in addition to the P&C license cost. By definition, retaliatory law means “that another state will be treated in the same terms that the home state is treated by the foreign state in dealings with insurance.” 

Other miscellaneous fees that may be imposed in connection with your license application include fingerprinting and amendment fees.

Factors Affecting Property and Casualty License Cost

Like almost all types of insurance license, the price of the property and casualty license will be based on a number of factors, such as the following:

• State – license fees for insurance brokers and agents vary per state, as each has its own regulations. In addition, some states impose additional fees beside the actual license cost, while others do not or those fees are already included in the license cost.
• The validity of license – as previously pointed out, the license fees indicated above have a validity period of two years. Nevertheless, a license can be applied for a year or less, thereby cutting down the cost. But the rest of the fees, if any, remain the same regardless of the validity of the license.

• Number of Sub-licensees – this is applicable to agents and brokers other than individuals, as some states charge license fees to companies and partnerships according to the number of sub-licensees. On the other hand, others charge per sub-licensee as an additional cost on top of the property and casualty license fees.

Additional Information

License validity for two years pertains to applications to be issued for a period greater than one year, which is computed by adding the licensing fee and any retaliatory fee if there is. To compute for an application to be issued for one year or less, add half of the licensing fee plus the whole amount of the retaliatory fee.

The main difference between an insurance agent and an insurance broker is that an insurance agent sells insurance coverage and represents a particular company, whereas a broker represents the public and is allowed to sell insurance for any insurance company.

You do not need a college degree to obtain a Property and Casualty license. A high school diploma is enough.

Some of the job responsibilities of a Property and Casualty agent include the following:

• To analyze a prospective client’s current insurance policies and advise them whether they fit their needs or if some updates and changes are necessary.
• Every individual’s needs are unique, and the agent’s responsibility is to tailor-make the coverage according to those needs and also their preferences after educating them about the different options and benefits of each insurance plan.
• After-sales service activities such as collecting, listing, maintaining, and updating records of each client as well as assisting clients in settling their claims.