Insurance Licensing Laws Changing Across the Country

The landscape of insurance licensing is shifting—and states across the country are taking different approaches. While some states are rolling back pre-licensing education requirements to ease entry into the profession, others are strengthening consumer protections through new licensing standards and continuing education mandates. 

We’ve broken down the latest regulatory changes from Pennsylvania, New Jersey, Georgia, North Carolina, and Florida to explore how these reforms could reshape licensing for insurance producers. Whether you're navigating new requirements or watching industry trends, staying informed is key to staying compliant. 

Pennsylvania Changes Insurance Pre-Licensing & Continuing Education Requirements

The biggest changes in insurance licensing requirements are happening in Pennsylvania, where pre-licensing and continuing education are undergoing major changes.  

Pennsylvania has passed Act 142, previously known as Senate Bill 1241 that has removed the insurance pre-licensing requirement for obtaining an insurance producer license. This change goes into effect on April 29, 2025. Passing an insurance licensing exam is still required to qualify for most licenses issued by the Pennsylvania Insurance Department.   

Pennsylvania Act 142 also introduced changes to insurance continuing education requirements, including: 

• New 3-hour ethics continuing education requirement for all licensed resident insurance producers and resident/non-resident title insurance agents 

• New 2-hour flood insurance continuing education requirements for all property, casualty, and personal lines licensees—even if they do not sell flood insurance  

These new insurance CE requirements must be completed within 12 months (by April 29, 2026) or by the end of the license period existing at the time of the effective date (April 29, 2025), whichever is longer. Those licensed on or after April 29, 2025, must complete these new requirements before the end of their first license period. 

New Jersey Becomes 50th State to Adopts Annuity Best-Interest Rules

New Jersey has officially become the 50th state to adopt the annuity best interest standard established by the National Association of Insurance Commissioners (NAIC), marking a significant milestone in nationwide consumer protection for annuity sales. The regulation requires insurance producers to act in the best interest of consumers when recommending annuity products, ensuring that financial advice aligns with the needs and objectives of clients preparing for retirement.

“This ensures people will get professional financial guidance they can trust on products that provide a reliable lifetime stream of income in retirement,” said David Chavern, President and CEO of the American Council of Life Insurers (ACLI), and Dennis Cuccinelli, Trustee of the National Association of Insurance and Financial Advisors (NAIFA), in a joint statement. “At a time when millions of workers are nearing retirement without a pension, this kind of certainty matters more than ever.”

The NAIC’s best interest model regulation, first adopted in 2020, was designed to align closely with the Securities and Exchange Commission’s Regulation Best Interest (Reg BI), creating consistent standards for financial professionals across insurance and securities industries. 

Georgia Reforms Insurance Licensing Requirements

In February, the Georgia House of Representatives introduced House Bill 408, which introduces numerous changes to the qualifications and requirements for issuing an insurance license in the state. The bill aims to strengthen protections for Georgia’s insurance consumers by demanding higher qualifications and firm residency requirements for applicants—and removes the pre-licensing requirement altogether. 

Here’s a look at all the changes HB 408 could bring: 

• A full repeal of insurance pre-licensing education requirements 

• Provides a 3-day maximum waiting period for reexamination  

• Applicants must reside and be present in Georgia for at least 6 months each year 

• Applicants for a property and casualty license cannot use their licenses to obtain rebates or commissions from controlled business and limits the volume of insurance they can effect from such business to no more than 25% of their total annual volume 

The bill has been read twice in the House and is currently pending in the House Insurance Committee. 

North Carolina Bill to Remove Insurance Pre-Licensing Advances in House

This month, North Carolina’s legislative push to eliminate insurance pre-licensing education requirements gained momentum as House Bill 737 was unanimously approved by the House Insurance Committee. The bill would remove the 40-hour mandatory pre-licensing coursework currently required before taking the state licensing exam.

The Senate companion, Senate Bill 377, identical in language and intent to HB 737, has not yet moved beyond its initial referral to the Senate Rules and Operations Committee. While the House bill is advancing, SB 377 remains inactive, a common occurrence to streamline the legislative process. 

Both HB 737 and SB 377 seek to modernize the state’s licensing process and, proponents argue, could ease barriers to entry and help address the state’s shortage of licensed agents.

“The industry is seeing a shortage of agents right now, so this would remove that barrier and make it easier for individuals to get a license,” said Rep. Chris Humphrey, HB 737’s sponsor and co-chair of the House Insurance Committee.

HB 737 will now head to the House Finance Committee. 

Florida’s Controversial Insurance Licensing Reform

Florida lawmakers are currently considering HB 1047, a bill that proposes reducing insurance licensing requirements from 200 hours to 60 hours.  

However, HB 1047 does not have the same industry support as North Carolina. The Florida Association of Insurance Agents (FAIA) strongly opposes the bill, citing Florida’s ever-changing and crisis-prone property insurance market. The FAIA also noted current regulations already allow exemptions to the 200-hour rule for those with experience working at an insurance agency. The Florida Insurance Council also opposes HB 1047. 

The bill has passed a Florida House subcommittee and is now awaiting action from the Commerce Committee. 

Keeping Pace with Industry Change

Insurance licensing requirements are evolving rapidly, with each state taking its own approach. Whether reducing barriers to entry or adding new continuing education mandates, these changes reflect shifting priorities across the industry. Staying informed on regulatory updates is essential for maintaining compliance and protecting clients in a dynamic environment.

At WebCE, our in-house compliance team and network of industry experts stay closely connected to regulatory bodies and professional associations. This ensures that the professionals we serve have access to timely, accurate updates and the resources needed to stay ahead in their careers.