Question

Which of the following is TRUE regarding the application and renewal of the limited lines automobile insurance agent license?

1. The fees and process are the same as for a personal lines licensee.
2. There are no fees for filing the application or renewal applications for the license.
3. The limited lines agent is ineligible to become a property or casualty broker-agent.
4. The agent must pass an examination on the insurance code and products, but not ethics.

Answer 1

Most states require a fee for the application and renewal of a limited lines automobile insurance agent license, and the process may or may not be similar to that of a personal lines licensee. Limited lines agents can become property or casualty broker-agents with additional qualifications, and ethics are typically included in the examination requirements.

Step-by-step explanation:

To correctly address the question about the limited lines automobile insurance agent license, we should first clarify each point individually, considering that insurance licensing requirements can vary by state:

1. The fees and the process for applying for and renewing a limited line automobile insurance agent license are typically specific to that license type. While they may be similar to those for a personal lines licensee, it is not necessarily a rule that they should be the same. For accurate information, one would need to refer to the licensing body in the specific state they are looking to get licensed.
2. The statement that there are no fees for filing the application or renewal applications for the limited lines license is generally false. Most states require a fee for both the initial application and the renewal process.
3. Being a limited lines agent does not mean one is automatically ineligible to become a property or casualty broker agent. However, additional education, examinations, and licensing processes are typically required to qualify for a broader scope of licensure.
4. Licensing requirements often include passing an examination that covers the insurance code, products, and ethics. So, an agent must typically pass an exam that includes ethics as part of the curriculum.

In conclusion, to fully understand the requirements for the application and renewal of a limited lines automobile insurance agent license, one should consult the regulations specific to their state. Fees, process, and examination content can differ, and it is important to obtain the most current and relevant information for your situation. Being licensed for limited lines does not preclude one from pursuing additional licensure, but it does require following the appropriate steps to do so.