Different activities require different licensing levels. This page explains what your licensed agents, unlicensed representatives, and customer service reps can do — and how to stay compliant.

Who Needs a License?

State law determines which activities require a state-licensed insurance agent or broker. Most sales and enrollment activities require a license, but not all. Check with your state's Department of Insurance for your specific state rules.

What Licensed Agents Can Do

Licensed sales agents and brokers can:

Make individual plan recommendations
Conduct enrollment applications
Discuss plan benefits and coverage
Schedule and conduct scope appointments
Provide marketing materials that mention benefits

Licensed agents must clearly identify themselves as licensed when they begin a sales call.

What Unlicensed Representatives Can Do

Unless your state law requires a license, unlicensed representatives may:

Provide factual information about plans (e.g., "Plan A has dental coverage")
Fulfill requests for materials (e.g., sending a brochure when asked)
Take demographic information to complete an enrollment application (e.g., name, address, date of birth)

What Unlicensed Representatives Cannot Do

Unlicensed representatives cannot:

Make plan recommendations (e.g., "I think Plan B is better for you")
Conduct enrollment (even if they collect information)
Discuss benefits as part of a sales pitch
Influence a beneficiary's plan choice

The Role-Change Rule

If an agent or rep wears two hats — customer service AND sales — they must clearly tell the beneficiary when their role changes.

Example:

Customer Service Rep to Beneficiary: "This is Sarah from customer service. [answers question about current plan]. Now I'm going to switch to my sales role. I'd like to tell you about Plan X, which might work better for you. Is that okay?"

This makes it clear the agent is no longer in customer service mode and is now selling.

Licensed Agents in Customer Service

Licensed agents who also work in customer service cannot act as both at the same time. They must switch roles explicitly and get permission to discuss sales.

They cannot answer a customer service question and then slip into a sales pitch without clearly stating the role change.

Common Mistakes

Unlicensed reps recommending plans to beneficiaries (not allowed without a license)
Agents moving from customer service to sales without telling the beneficiary
Not clearly identifying whether an agent is licensed at the start of a call
Treating "taking demographic info" as equivalent to "conducting enrollment" (only licensed agents can enroll)

Check Your State's Rules

Licensing requirements vary by state. Contact your state's Department of Insurance to confirm:

Which activities require a license in your state
What your licensed agents must do to stay compliant
Whether you need separate unlicensed and licensed scripts

How to Stay Compliant

Train your team on licensing rules for your state
Separate your scripts — have one for licensed agents and one for unlicensed reps
Document roles — make it clear in call recordings who is licensed and who is not
Get permission before moving from customer service to sales
Keep training records on file — we'll ask to see them