Pennsylvania Outlines Temporary Licensure Process for Insurers During COVID-19

April 24, 2020

The Pennsylvania Insurance Department has submitted a notice to all state insurance companies and agencies outlining the process for issuing temporary licenses for Pennsylvania resident insurance producers during the COVID-19 pandemic.

“The COVID-19 pandemic is impacting the operations of businesses in every industry, which has created an increased need for flexibility, digital options and thoughtful guidance from regulators and state agencies,” Altman said in a department press release. “All producer examination testing centers are closed in Pennsylvania, creating a hurdle for those seeking an insurance producer license, so the department was tasked with creating a temporary pathway to licensure in order to assure the continuity of certain vital insurance services and address the disruption caused by the virus.”

Temporary licenses will only be permitted for producers sponsored by an insurance company that hold an active certificate of authority in Pennsylvania and are authorized to write the lines of insurance for which they are applying. All applicants are required to complete the 24 credit hours of pre-licensing education before the sponsoring insurer can submit their application, and they are required to complete the fingerprinting and background check process through the department.

Guidance details include:

  • An application fee of $55 must be paid to the department. If a temporary licensee takes and passes the appropriate producer licensing exam prior to the expiration of the temporary license, the department will waive the application fee to become a fully-licensed resident producer without requiring an additional application or fingerprinting/background check.
  • The temporary license is valid for no more than 180 days from the date of issuance. This temporary license is nontransferable and cannot be renewed.
  • Any active temporary producer license issued by the department may be converted to a regular producer license by completion of all prerequisites of a license for the desired lines of authority, including meeting all examination and fingerprint requirements pursuant to Pennsylvania statute.

In response to the COVID-19 pandemic, the department is currently working with its examination vendor to make remote electronic testing available and anticipates possible implementation in late summer or early fall.

Last month, a notice was issued to insurance licensees to temporarily suspend all in-person classroom education approved by the Pennsylvania Insurance Department and encourage all classroom courses to be offered via internet-based webinar format instead.

Source: Pennsylvania Insurance Department

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