If you are studying for your insurance licensing exam or exploring an insurance career, you have probably seen the abbreviation "LOA" without a clear explanation of what it means. Here is the simple answer:
LOA stands for Lines of Authority. It refers to the specific categories of insurance products you are licensed to sell. Your LOA determines what you can legally quote, sell, and service — and what is off-limits.
Choosing the right lines of authority is one of the first decisions you make in an insurance career, and it directly affects your income potential, the clients you can serve, and the carriers you can get appointed with.
What Are Lines of Authority?
Insurance is divided into categories — or "lines" — based on the type of coverage. Each line of authority requires its own pre-licensing education, state exam, and ongoing continuing education. When you pass an exam for a specific line, that line of authority is added to your producer license.
Think of your producer license as a base credential, and each LOA as a specific permission added to it. You can hold one LOA or several — each one you add expands the products you can sell.
Common Lines of Authority
Property & Casualty (P&C)
This is the most common starting point for independent agents. A P&C license authorizes you to sell:
- Auto insurance
- Homeowners and renters insurance
- Commercial property insurance
- General liability insurance
- Workers compensation
- Commercial auto
- Umbrella and excess liability
- Business owners policies (BOPs)
- Flood and specialty property
In some states, Property and Casualty are separate lines that require separate exams. In most states, they are combined into a single P&C license.
Life Insurance
A Life LOA authorizes you to sell:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Final expense / burial insurance
- Annuities (fixed, in most states)
Life insurance has a completely different commission structure than P&C — first-year commissions can be 50–100%+ of annual premium, making it highly lucrative but with a longer sales cycle.
Health Insurance
A Health LOA covers:
- Major medical / ACA plans
- Medicare supplements and Medicare Advantage
- Group health insurance
- Dental and vision plans
- Short-term health insurance
- Long-term care insurance
In most states, Life and Health are bundled into a single L&H exam and license. Some states keep them separate.
Personal Lines
Some states offer a Personal Lines LOA that is more limited than full P&C. It typically covers:
- Personal auto
- Homeowners
- Renters
- Personal umbrella
Personal Lines does not include commercial coverage. If you want to write commercial business, you need the full P&C license.
Surplus Lines
A Surplus Lines LOA authorizes you to place coverage with non-admitted (surplus lines) carriers. These are carriers that are not licensed in the state but are approved to write business through surplus lines brokers. This line is typically added after you have experience — surplus lines business is more complex and involves specialized risks that standard carriers will not write.
Other Lines
- Title insurance: Separate license for selling title insurance in real estate transactions
- Variable life/annuities: Requires both an insurance license AND a FINRA securities license (Series 6 or 7)
- Crop insurance: Specialized line available in agricultural states
- Bail bonds: Available as a separate LOA in some states
Which Lines of Authority Should You Get?
The answer depends on your career goals and the market you want to serve:
Starting Out? Get P&C
If you are launching an independent agency, the Property & Casualty license is the most versatile starting point. It covers both personal and commercial lines, giving you the widest range of products to sell. Most independent agents start here.
Want Maximum Flexibility? Add Life & Health
Holding both P&C and L&H gives you access to virtually every insurance product. You can serve a client's complete insurance needs — auto, home, business, life, and health — without referring them to another agent. This cross-selling ability significantly increases revenue per client.
Focused on a Niche? Choose Accordingly
If you want to specialize in Medicare, you only need the Health LOA. If you want to focus on commercial insurance, a P&C license is sufficient. Match your LOA to your business plan.
How to Add a Line of Authority
If you already hold a producer license and want to add a new LOA:
- Complete pre-licensing education for the new line (separate coursework from your existing LOA)
- Pass the state exam for that line of authority
- Apply to add the line through your state's Department of Insurance or through NIPR
- Update your carrier appointments — your existing carriers may need to add the new line to your appointment
You do not need a new license — the additional LOA is added to your existing producer license.
Lines of Authority and Carrier Appointments
Your LOA determines which carriers will appoint you. A carrier that only writes P&C will not appoint an agent who only holds a Life & Health license — and vice versa.
When joining an aggregator like IPA, your carrier access is based on your active LOA. IPA primarily serves P&C agents with access to 50+ carriers for personal and commercial lines. If you add a Life & Health LOA, additional carrier options may become available.
Continuing Education and LOA Maintenance
Each LOA comes with its own continuing education (CE) requirements. Most states require 24 hours of CE per renewal cycle (typically every 2 years), with a portion dedicated to ethics.
If you hold multiple LOAs, CE requirements may overlap — but check your state's specific rules. Some states require separate CE hours for each line. Others accept combined coursework that covers multiple lines.
For more on CE requirements, see our continuing education guide.
LOA and Your Insurance Career
Your lines of authority are the foundation of your insurance career. They determine what you can sell, who you can serve, and how much you can earn. Start with the LOA that matches your immediate goals — P&C for most independent agents — and add lines as your business grows and your market demands.
Ready to put your license to work? Learn how to become an independent insurance agent or book a discovery call to explore how IPA can give you carrier access for your lines of authority.