You cannot sell insurance without a license. Selling — which means quoting, advising, soliciting, or placing coverage — requires a state-issued producer license in every U.S. state.
You can earn referral income without a license. Making an introduction to a national partner and receiving a flat fee when a policy is placed is permitted in virtually all states for unlicensed individuals, provided specific rules are followed. IPA's referral partner program is built around this distinction.
The Legal Boundary: What You Can and Cannot Do
Permitted (unlicensed referral activity):
- Tell a client: "I work with an insurance agency that shops top-rated national carriers. Want me to connect you?"
- Share your personalized IPA referral link via text, email, or in person
- Receive a written referral compensation after the client places a policy
Not permitted (requires a license):
- Quoting insurance rates or ranges
- Discussing or recommending coverage options or limits
- Comparing carrier options with the client
- Helping a client fill out an insurance application
- Answering questions about specific policy terms or exclusions
How IPA Keeps You Compliant
IPA provides state-specific referral agreements that define the scope of your referral activity, specify the fee structure, and document the arrangement in a way that satisfies state insurance department requirements. Partners sign the agreement during onboarding and don't need to worry about compliance after that — IPA manages the regulatory piece.