What are the main types of insurance?

Insurance splits into two broad families: life and health, and property and casualty. The NAIC producer licensing model defines the major lines of authority as Life (coverage on human lives, including endowments and annuities), Accident and Health or Sickness (sickness, bodily injury, accidental death, and disability income), Property (loss or damage to property of every kind), Casualty (legal liability for death, injury, disability, or damage), and Personal Lines (property and casualty coverage sold to individuals and families).

Insurance divides into two broad license groups in the United States: life and health, and property and casualty. Within those groups, states license lines of authority such as Life, Accident and Health or Sickness, Property, Casualty, and Personal Lines, plus specialized lines like Variable Life and Variable Annuity, Crop, and Travel. Arizona requires an exam for the major lines, including Life, Property, Casualty, Personal Lines, and Crop.

Delaware law organizes insurance into major lines of authority: Life; Accident and health or sickness; Property; Casualty; Variable life and variable annuity products; Personal lines (property and casualty coverage sold to individuals and families for noncommercial purposes); Fidelity and surety; Marine and transportation; and Title. The state also issues limited lines licenses, including Credit, Travel, Bail agent, Automobile club, and Self-service storage.

Georgia's main agent lines of authority are Life, Accident and Sickness, Property, Casualty, and Personal Lines. The state licenses Property and Casualty together; it does not license just Property or just Casualty. Other lines include Variable Products (which also requires a Life license), Credit, Title, Travel Accident & Sickness, and Travel Ticket. Nationally, agents need separate licenses to sell life and health insurance versus property and casualty insurance.

Illinois licenses producers by line of authority, and the major lines are Life, Accident and Health, Property, Casualty, Personal Lines, and Motor Vehicle. Life covers life insurance and annuities; Accident and Health covers health products, including long-term care; Property and Casualty cover home, auto, and liability risks; Personal Lines combines Fire (Property) and Casualty for personal (non-commercial) customers. Illinois also issues limited lines licenses for narrower products, such as travel insurance, credit insurance, and self-service storage facility coverage.

The main types of insurance agents sell are life, health, property, and casualty, along with long-term care products. Most states, including Iowa, require separate licenses to sell life and health insurance versus property and casualty insurance. Iowa also licenses personal lines, variable products, crop, surety, and credit lines.

Kansas licenses producers by line of authority. The major lines are Life, Accident and Health or Sickness, Property, Casualty, Personal Lines, and Variable Life and Variable Annuity products. Limited lines include Credit, Crop, Title, Travel, Pre-Need, Bail Bond, and Self-Service Storage insurance. Life and health lines require separate licenses from property and casualty lines, and variable products also require Financial Industry Regulatory Authority (FINRA) registration.

Kentucky law defines the lines of authority an insurance agent may hold: Life, Health, Property, Casualty, Variable Life and Variable Annuity Products, Personal Lines, and limited lines such as preneed funeral, travel, credit, crop, rental vehicle, and self-service storage. Life covers insurance on human lives, including endowments and annuities; Health covers sickness, bodily injury, and accidental death; Property covers loss or damage to property; Casualty covers legal liability.

Maine issues producer licenses for Life, Variable Contracts, Health, Property, Casualty, Personal Lines, and Surplus Lines, plus limited lines. The limited lines are auto rental, credit, mechanical breakdown, title, and travel/baggage. The state also licenses adjusters and consultants, each with its own exam and fee.

Insurance is commonly grouped into life, health, and property and casualty coverage. Life insurance pays beneficiaries on a policyholder's death; health insurance covers medical expenses; property and casualty insurance covers homes, autos, and liability. Agents also commonly sell long-term care, annuity, and flood products. Agents may be captive (one company) or independent (several companies), while brokers represent clients rather than insurers.

Insurance in the United States generally falls into life and health coverage on one side and property and casualty coverage on the other. Michigan's Department of Insurance and Financial Services (DIFS) licenses producers by line of authority, including Life, Accident and Health, Property, Casualty, Variable Annuities, and Personal Lines, plus limited lines such as Title, Travel, and Credit Products. A producer may sell only the lines listed on the license.

Minnesota licenses insurance producers by line of authority, and the major lines are Life, Accident & Health, Property, Casualty, and Personal Lines. Variable life and variable annuity products require an active Minnesota Life license, and surplus lines requires a Property and Casualty license. Limited lines, such as credit, title, travel, and bail bond, require an application only, with no exam or prelicensing education.

New Jersey licenses producers by line of authority. The major lines are Life; Accident and health or sickness; Property; Casualty; Surplus Lines; Title; Variable life and variable annuity; and Personal Lines. The state also issues limited-line licenses for narrower products, including bail bonds, credit insurance, travel insurance, pet insurance, car rental insurance, legal expense insurance, and portable electronics insurance. Variable authority additionally requires a securities license under state or federal law.

Oregon divides insurance into lines of authority, and the main producer lines are life, health, property, casualty, and personal lines. Surety is included in the casualty line, and marine and transportation insurance can sit in either property or casualty. Other lines include title, credit, travel, crop, and surplus lines, which requires a property and casualty license first.

Rhode Island recognizes five major lines of insurance for producer licensing: Life, Accident & Health or Sickness, Property, Casualty, and Personal Lines. The state also licenses limited lines, including Car Rental, Credit, Crop, Travel, Pet, Life Settlement Broker, and Surety. Separate licenses exist for title insurance, claim adjusting, motor vehicle damage appraising, and surplus lines brokering.

Texas licenses insurance agents by line of authority. The main categories are General Lines Life, Accident, and Health; General Lines Property and Casualty; Personal Lines Property and Casualty; the standalone Life Agent license; and Limited Lines, which covers narrow products such as credit, travel, and rental car insurance. The two General Lines licenses cover the widest range of products.

In West Virginia's licensing system, the main insurance lines are the major lines (Life; Accident and Sickness; Property; Casualty; and Personal Lines) and limited lines such as Title, Travel, Surety, Credit, Car Rental, and Self Storage. Each major line requires 20 hours of pre-licensing education per line and a Pearson VUE exam. Limited lines require no examination.

Wisconsin divides insurance authority into major lines and limited lines. The major lines are accident and health or sickness, casualty, life, personal lines, property, and variable life and variable annuity. Limited lines include credit, crop, legal expense, surety, title, attorney title, and travel. To sell auto or homeowners insurance, an agent must hold both the property and casualty lines; personal lines alone covers only personal auto and homeowners.