Final answer:
The main purpose of requiring a license for persons who transact insurance is to regulate the industry and protect consumers by ensuring professionals have the necessary knowledge and skills. Licensing also helps maintain industry integrity and build trust between providers and consumers.
Step-by-step explanation:
The main purpose of requiring a license for persons who transact insurance is to regulate the insurance industry and protect consumers. By obtaining a license, insurance professionals are required to adhere to certain standards and regulations set by the state.
Licensing ensures that individuals have the necessary knowledge and skills to provide accurate and reliable insurance services to clients. It also helps maintain the integrity of the insurance industry by preventing unqualified individuals from engaging in fraudulent or unethical practices.
Furthermore, licensing helps build trust between insurance providers and consumers, as it demonstrates a commitment to professionalism and accountability. It gives consumers confidence in the knowledge and expertise of the insurance professionals they are working with.