Can I sell insurance without a license?

No: Texas, California and Pennsylvania law each bar you from soliciting insurance without a state license.¹²³ Each state also requires an insurer to appoint you before you act as its agent.¹⁴⁵ The exceptions include some office staff who don’t solicit or negotiate insurance and aren’t paid commissions.¹⁶³

What needs a license

This page covers the three states StudyWren covers.

• Texas. Without a TDI license or certificate of authority, you may not solicit or receive insurance applications or aid in transacting an insurer’s business.¹ Nor may you act as an agent, which includes soliciting, negotiating, procuring or collecting a premium on an insurance or annuity contract.¹ TDI says it is illegal to sell insurance in Texas without a license.⁷
• California. Unless an exemption applies, you may not solicit, negotiate or effect insurance contracts without a valid license from the commissioner.² The license must authorize the capacity you act in.²
• Pennsylvania. You may not sell, solicit or negotiate an insurance contract unless you’re licensed as a producer for the line of authority it’s issued under.³ Soliciting includes asking or urging someone to apply for a particular kind of insurance from a particular insurer.⁸

For each state’s exam, fingerprints and fees, see the Texas insurance license guide, the California insurance license guide and the Pennsylvania insurance license guide.

A license isn’t enough to act for an insurer

• Texas. A license holder may not engage in business as an agent until an insurer authorized in Texas appoints them.¹
• California. A licensee can’t act as an insurer’s agent unless that insurer has filed a notice of appointment with the commissioner.⁴
• Pennsylvania. A producer can’t act for or represent an insurer unless that insurer appoints them.⁵ A producer who isn’t representing an insurer doesn’t need an appointment.⁵

Some exceptions

Office staff:

• Texas. The Insurance Code’s licensing title doesn’t apply to a salaried employee in an agent’s office who isn’t involved in soliciting or negotiating insurance.¹ The employee must work full time on clerical and administrative services, which can include incidentally taking customer information and receiving premiums.¹ They can’t receive commissions, and their pay can’t vary with the volume of premiums taken.¹
• California. A licensed property or casualty broker-agent’s regularly salaried clerical or administrative employee needs no license if they don’t solicit, negotiate or effect insurance.⁶ Like the section’s other exemptions, it applies only if no commission is paid or allowed.⁶
• Pennsylvania. An insurer’s or producer’s employee, officer or director needs no license for clerical, administrative, managerial or executive work only indirectly related to sales.³ The person must earn no commission on policies covering Pennsylvania risks.³ The work can include answering insurance questions without recommending specific coverages, products or rates, or helping complete applications at the licensee’s place of business.³

Referrals:

• Texas. An unlicensed person’s referral of a customer or prospect to an agent isn’t an agent’s act, unless they discuss specific policy terms or conditions.¹
• Pennsylvania. Someone who’s never been licensed can accept a fee for referring people to a licensee if they don’t discuss specific contract terms and conditions.⁹ For personal, family or household insurance, it must be a one-time, nominal, fixed-dollar fee per referral that doesn’t depend on a sale.⁹ Otherwise, they may not accept pay from an insurer or licensee for activities related to selling, soliciting or negotiating insurance.⁹

Penalties for selling without a license

• California. Transacting insurance without a valid license is a misdemeanor.¹⁰ The penalty is a fine of up to $50,000, up to a year in county jail, or both.¹⁰ Transacting includes soliciting and negotiating.¹¹
• Pennsylvania. A 2013 Insurance Department notice says unlicensed producer activity can bring civil and criminal penalties, depending on the circumstances and whether it was knowing.¹² After a hearing, the commissioner can impose a civil penalty of up to $5,000 for each action that violates the Insurance Department Act.¹³ The commissioner can also order you to cease and desist, on top of any penalty a court imposes.¹³
• Texas. TDI says its Fraud Unit investigates insurance crimes, including selling insurance without a license, and hands them to local district attorneys for prosecution.¹⁴ It says selling insurance illegally in Texas is a third-degree felony.¹⁴

StudyWren is an independent study tool and isn’t affiliated with TDI, the California Department of Insurance, the Pennsylvania Insurance Department or any insurer.

Sources

1. Texas Insurance Code, Chapter 4001, Sections 4001.002(b)(5), 4001.003(1), 4001.051(d), 4001.101 and 4001.201, Texas Constitution and Statutes. https://tcss.legis.texas.gov/resources/IN/htm/IN.4001.htm#4001.101 Accessed 2026-10-28. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰

2. California Insurance Code section 1631 (last amended by Stats. 2000, ch. 321, effective 2001-01-01, operative 2002-01-01), California Legislative Information. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1631.&lawCode=INS Accessed 2026-10-28. ↩ ↩² ↩³

3. The Insurance Department Act of 1921, Section 603-A(a) and (b)(3) (40 P.S. § 310.3), “License required,” Pennsylvania General Assembly. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&yr=1921&sessInd=0&smthLwInd=0&act=285&chpt=6A&sctn=3&subsctn=0 Accessed 2026-10-28. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

4. California Insurance Code section 1704(a) (last amended by Stats. 2012, ch. 786 (AB 2303), effective 2013-01-01), California Legislative Information. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1704.&lawCode=INS Accessed 2026-10-28. ↩ ↩²

5. The Insurance Department Act of 1921, Section 671-A(a) (40 P.S. § 310.71), “Appointments,” Pennsylvania General Assembly. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&yr=1921&sessInd=0&smthLwInd=0&act=285&chpt=6A&sctn=71&subsctn=0 Accessed 2026-10-28. ↩ ↩² ↩³

6. California Insurance Code section 1635, introductory clause and subdivision (i)(1) (last amended by Stats. 2021, ch. 133 (SB 272), effective 2021-07-23), California Legislative Information. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1635.&lawCode=INS Accessed 2026-10-28. ↩ ↩² ↩³

7. Texas Department of Insurance, “Types of fraud” (page last updated 2022-08-09). https://www.tdi.texas.gov/fraud/types-of-fraud.html Accessed 2026-10-28. ↩

8. The Insurance Department Act of 1921, Section 601-A (40 P.S. § 310.1), “Definitions,” Pennsylvania General Assembly. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&yr=1921&sessInd=0&smthLwInd=0&act=285&chpt=6A&sctn=1&subsctn=0 Accessed 2026-10-28. ↩

9. The Insurance Department Act of 1921, Section 673-A, “Receipt of commissions,” Pennsylvania General Assembly. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&yr=1921&sessInd=0&smthLwInd=0&act=285&chpt=6A&sctn=73&subsctn=0 Accessed 2026-10-28. ↩ ↩² ↩³

10. California Insurance Code section 1633 (last amended by Stats. 2004, ch. 279, effective 2005-01-01), California Legislative Information. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1633.&lawCode=INS Accessed 2026-10-28. ↩ ↩²

11. California Insurance Code section 35 (enacted by Stats. 1935, ch. 145), California Legislative Information. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=35.&lawCode=INS Accessed 2026-10-28. ↩

12. Pennsylvania Insurance Department, “Sale, Solicitation and Negotiation of Insurance; Department Notice 2013-09,” 43 Pa.B. 6740 (2013-11-09), Pennsylvania Bulletin. https://www.pacodeandbulletin.gov/Display/pabull?file=%2Fsecure%2Fpabulletin%2Fdata%2Fvol43%2F43-45%2F2127.html Accessed 2026-10-28. ↩

13. The Insurance Department Act of 1921, Section 691-A(d) (40 P.S. § 310.91), “Enforcement by department,” Pennsylvania General Assembly. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&yr=1921&sessInd=0&smthLwInd=0&act=285&chpt=6A&sctn=91&subsctn=0 Accessed 2026-10-28. ↩ ↩²

14. Texas Department of Insurance, “How TDI enforces the insurance code and protects consumers” (podcast page dated 2026-06-11). https://www.tdi.texas.gov/podcast/how-tdi-enforces-insurance-code.html Accessed 2026-10-28. ↩ ↩²