Insurance sales representative job description templates for small agencies: 6 role variants with licensing, classification, and pay guidance. Free DOCX.
6 free templates for agencies hiring without an HR department: multiline, personal lines, commercial producer, inside sales, Medicare and benefits, and a licensed account manager. Copy or download as DOCX.
The first agency owner I helped with a hiring problem had been running the same four-line job posting for five months. It named the agency, asked for sales experience, promised uncapped earning potential, and closed with a line about being self-motivated. He had interviewed nine people. Two of them did not know they would need a producer license.
That posting was not lazy. It was written by someone who sells insurance for a living and had no reason to know that a job description is the cheapest filter in hiring. Insurance sales is a large small-business occupation: the Bureau of Labor Statistics counted about 568,800 insurance sales agents in 2024 and projects roughly 47,000 openings a year through 2034, and a large share of that hiring happens in offices with no HR department at all.
At FirstHR we write hiring templates for exactly that owner. The six below cover a multiline agency hire, a personal lines desk, a commercial field producer, a phone sales representative, a Medicare and benefits role, and a licensed account manager with a production goal, each with the licensing and classification language the generic versions leave out. Browse the rest in our hiring templates library.
TL;DR
An insurance sales representative job description has to settle four things a generic template skips: which lines you sell, whether the producer license is required at hire or sponsored after, whether the role is W-2 or 1099 and exempt or non-exempt, and the commission rate on new and renewal business. Median pay is $62,280 (BLS OEWS, May 2025). Six templates below.
What the Role Actually Covers
An insurance sales representative sells coverage to individuals or businesses: working leads, reviewing what the client needs to protect, quoting through appointed carriers, explaining limits and exclusions, binding the policy, and servicing what they wrote. That much is constant. Almost nothing else is.
The job title covers four channels that share a name and little else. A commercial producer spends the week in the field with business owners. A personal lines representative works inbound quote requests from a desk. A phone representative runs a dialer on a fixed schedule. A Medicare specialist works a season. Different licenses, different pay, different overtime rules.
Captive agency office
One carrier, one brand
You sell one carrier suite, the brand does part of the selling for you, and the carrier sets product training and appointment rules. Your hiring question is coachability, because the product is fixed and the process is prescribed.
Independent multiline agency
Several carriers, your process
You choose markets, you own the book, and nobody hands you a script. A producer here needs market judgment as well as sales ability, and the posting has to say which lines and which carriers so candidates can picture the day.
Phone-based sales team
Provided leads, fixed shifts
Leads arrive, the dialer sets the pace, and the schedule is fixed. This is inside sales, which settles the overtime question before you write a word: hourly, tracked, and overtime-eligible on commission-inclusive rates.
Health and benefits practice
Seasonal, certification-heavy
Medicare and group benefits run on an annual calendar with carrier certifications gating who may sell what. Hiring is seasonal, onboarding is documentation-heavy, and the crunch arrives on a known date every year.
Write the Posting for the Channel, Not the Title
Before you write a line, answer three questions: which lines of business, field or desk, and where the leads come from. Those three answers determine the license you require, the compensation structure that makes sense, and whether the role is exempt or non-exempt. A posting that leaves them unstated attracts applicants from all four channels, and you spend the first interview explaining a job the candidate already decided they wanted.
What Belongs in an Insurance Sales Posting
A good posting does four jobs at once: it describes the actual day, it filters out applicants who cannot be licensed or appointed, it records the classification decision, and it closes the candidate on the economics. Most agency postings do none of the four. Here is the full inventory.
The parts candidates read first
Lines of business, named exactly
Where the leads come from and how many
Captive or independent, and which carriers
Territory, schedule, and whether it is field or desk
The parts that filter applicants
License required at hire, or sponsored after
Which license: property and casualty, life and health, or both
Non-resident licenses for multi-state selling
Written activity and production standards
The parts that protect you
W-2 or 1099, stated plainly
Exempt or non-exempt, with the reason
Background check contingency for licensing and appointment
Equal opportunity statement
The parts that close the hire
Base or draw, and the commission rate on new and renewal
Whether the producer owns or shares the book
Who pays for pre-licensing, continuing education, and E&O
A named person to apply to and a real deadline
The most common omission is the lead source. Producers have been burned by uncapped earning potential attached to a phone book and no leads, so a specific answer, whether that is inbound quote requests, purchased leads, a service book to round out, or pure self-generation, does more to attract strong candidates than any adjective. Our general guide to writing a job description covers the shared structure in more depth.
Download all six as one file or copy them individually. Each follows the same structure: agency overview, position summary, key responsibilities, required qualifications, a classification and compliance note, an equal opportunity statement, and how to apply. The bracketed fields are the only parts you need to change.
Download All 6 Insurance Sales Job Description Templates
Multiline, personal lines, commercial producer, inside sales, health and Medicare, and licensed account manager. All in one download.
Multiline Sales Representative
The general W-2 hire
The universal base for an independent or captive agency: needs analysis, quoting, binding, cross-selling, and a written production target.
Personal Lines Representative
Auto, home, umbrella
For an in-office personal lines desk working inbound leads and account rounding, written as the non-exempt hourly plus commission role it usually is.
Commercial Lines Producer
Field sales, book ownership
For business insurance sold in person: prospecting, submissions, underwriter negotiation, and the outside sales exemption stated honestly.
Inside Sales Representative
Phone-based, hourly
For a call center or phone sales team, with dial standards, script and recording compliance, and non-exempt classification spelled out.
Health and Medicare Sales
Seasonal, certification-gated
For Medicare and benefits practices, with carrier certifications, scope of appointment documentation, and the enrollment season built in.
Licensed Account Manager
Service plus production goal
For the hybrid hire small agencies actually need: servicing the book while writing new business from it, with a realistic classification call.
The universal base for an independent or captive agency: needs analysis, quoting, binding, cross-selling, and a written production target. Start here if the role touches more than one line.
FLSA status: [Exempt under outside sales / Non-exempt: choose per the note below]
Compensation: $_ base plus commission
ABOUT [AGENCY NAME]
[Agency Name] is an [independent / captive] insurance agency in [City, State]
writing [personal lines, commercial lines, life, health] for about [number]
households and businesses. We are hiring a sales representative to grow new
business and take care of the clients they write.
POSITION SUMMARY
The Insurance Sales Representative develops new business across our lines,
completes needs analysis and risk review for each prospect, quotes and binds
coverage with our appointed carriers, and keeps the book they build.
KEY RESPONSIBILITIES
•Work assigned leads, referrals, and self-generated prospects to a written
activity standard: [number] contacts and [number] quotes per week
•Complete a needs analysis and document coverage recommendations for each
prospect, including declined coverages
•Quote, present, and bind policies through our appointed carriers in
[carrier portals / agency management system]
•Cross-sell existing clients into [auto, home, umbrella, life, commercial]
•Meet or exceed a written monthly production target of $________ in
[new premium / policies / items]
•Keep the agency management system current: contacts, activity notes,
quotes, and renewal dates
•Handle policy changes and service requests on your own book
•Complete continuing education and carrier product training on schedule
REQUIRED QUALIFICATIONS
•Active [state] [Property and Casualty / Life and Health] producer license,
or ability to obtain it within [number] days of hire ([we sponsor and pay for
pre-licensing / candidate obtains it independently])
•[Number] years in insurance sales, or comparable consultative sales
experience with a documented record
•Comfort with quoting platforms and an agency management system
•Clean background check as required for licensing and carrier appointment
•Clear written and verbal communication with clients and underwriters
CLASSIFICATION AND COMPLIANCE NOTE (read before posting)
Decide three things in writing before this job is posted. First, W-2 or 1099: a
producer whose schedule, territory, leads, pricing, and method the agency
controls is an employee, and calling the role 1099 does not change that. Second,
exempt or non-exempt: the FLSA outside sales exemption applies only when making
sales is the primary duty and the producer is customarily and regularly away
from the agency office. A producer who sells from a desk does not qualify and is
non-exempt, meaning hourly, timekeeping, and overtime past 40 hours in a week.
Third, whether commission counts toward the regular rate for any non-exempt
producer, because it usually does and it raises the overtime rate. This is
general information, not legal advice.
EEO STATEMENT
[Agency Name] is an equal opportunity employer and provides reasonable
accommodations for the essential functions of this role.
COMPENSATION AND HOW TO APPLY
Compensation: $_ base plus [new business commission rate], [renewal or
service commission], [bonus structure], [benefits summary]
To apply, email __ with your resume and license status.
Template 2: Personal Lines Insurance Sales Representative
For an in-office auto and home desk working inbound leads and rounding out accounts, written as the non-exempt hourly plus commission role it usually is. If the desk is mostly service, compare it against the customer service representative templates.
Personal Lines Insurance Sales Representative Job Description (Auto and Home)
PERSONAL LINES INSURANCE SALES REPRESENTATIVE JOB DESCRIPTION
Agency: __ ([City, State])
Reports to: [Agency Owner / Office Manager]
Employment type: Full-time, W-2
FLSA status: Non-exempt (in-office sales; hourly plus commission)
Compensation: $_ per hour plus commission
ABOUT THIS ROLE
[Agency Name] writes personal auto, home, renters, and umbrella coverage for
families in [City, State]. This role sells to inbound leads, referrals, and our
existing book, mostly from the office and mostly by phone and email.
POSITION SUMMARY
The Personal Lines Sales Representative quotes and writes auto, home, renters,
and umbrella policies, rounds out existing accounts, and keeps retention high
by reviewing coverage before renewal rather than after a claim.
KEY RESPONSIBILITIES
•Respond to inbound quote requests within [number] minutes during business
hours and follow the written follow-up sequence
•Quote personal auto, home, renters, and umbrella through our carriers
•Explain coverage, limits, deductibles, and exclusions in plain language, and
document what the client declined
•Round out monoline accounts: add [home, umbrella, life] to auto clients
•Run pre-renewal reviews on assigned accounts each month
•Process endorsements, payment questions, and certificate requests
•Maintain accurate records in the agency management system
•Hit a monthly target of [number] items or $________ in new premium
REQUIRED QUALIFICATIONS
•Active [state] Property and Casualty producer license, or ability to obtain
it within [number] days ([we pay for pre-licensing and the exam fee])
•[Number] year(s) in personal lines, retail sales, or a call center
•Accuracy with numbers and comfort with several carrier portals at once
•Clean background check as required for licensing and appointment
•Patience on the phone and a service instinct, since renewals pay the rent
CLASSIFICATION AND COMPLIANCE NOTE
Treat this as a non-exempt role unless the facts clearly say otherwise. An
in-office personal lines producer is not an outside sales employee, and the
administrative exemption is a poor fit for someone whose primary duty is selling.
Non-exempt means tracked hours, overtime past 40 hours in a week, and a regular
rate that includes non-discretionary commission and production bonuses, which
raises the overtime rate above straight base pay. If you pay a draw against
commission, put the recovery terms in writing and make sure pay never falls below
minimum wage for hours worked in any workweek. This is general information, not
legal advice.
EEO STATEMENT
[Agency Name] is an equal opportunity employer and provides reasonable
accommodations for the essential functions of this role.
COMPENSATION AND HOW TO APPLY
Compensation: $_ per hour plus [commission per item / percentage of
new premium], [monthly bonus], [benefits summary]
To apply, email __ with your resume and license status.
Still Using Spreadsheets for Onboarding?
Automate documents, training assignments, task management, and track onboarding progress in real time.
For business insurance sold in person: prospecting, submissions, underwriter negotiation, and the outside sales exemption stated honestly. The general field sales version is in our outside sales representative templates.
To apply, email __ with your resume and a summary of the
classes of business you have written.
Template 4: Inside Sales Insurance Representative
For a call center or phone sales team, with dial standards, script and recording compliance, and non-exempt classification spelled out. Pair it with the inside sales templates if you hire across industries.
[Employer Name] sells [auto, home, health, final expense] insurance by phone to
consumers who have requested a quote. This is a phone-based sales role on a set
schedule, with provided leads and a dialer, [on site in City, State / remote].
POSITION SUMMARY
The Inside Sales Representative calls provided leads, qualifies the prospect,
quotes coverage, and closes the sale by phone while following the licensing,
recording, and disclosure rules that apply to telephone insurance sales.
KEY RESPONSIBILITIES
•Handle [number] outbound dials and [number] inbound calls per day from the
provided lead flow
•Qualify prospects and quote [lines] using our rating platform
•Close to a written target of [number] policies per [week / month]
•Follow the approved script, disclosures, and call recording policy on every
call
•Document every contact in the CRM before the next call
•Follow all do-not-call, consent, and state telemarketing requirements
•Complete carrier product training and continuing education on schedule
•Meet quality assurance standards on monitored calls
REQUIRED QUALIFICATIONS
•Active [state] [Property and Casualty / Life and Health] license, or ability
to obtain it within [number] days ([we sponsor pre-licensing and pay exam
fees]); non-resident licenses in [states] required or reimbursed
•[Number] year(s) of phone sales, call center, or retail sales experience
•Reliable attendance on a fixed schedule, including [evening / weekend] shifts
•Quiet, secure work area and stable internet if working remotely
•Clean background check as required for licensing and appointment
CLASSIFICATION AND COMPLIANCE NOTE
This role is non-exempt. Telephone sales are inside sales, so the outside sales
exemption does not apply, and no other white-collar exemption fits a primary duty
of selling by phone. That means recorded hours, overtime past 40 hours in a
week, and an overtime rate calculated on the regular rate, which includes
non-discretionary commission and production bonuses. Two traps to avoid: unpaid
pre-shift time spent booting systems and logging into the dialer is generally
compensable, and remote representatives still need real timekeeping rather than
an assumed 8-hour day. Confirm state rules on call recording consent and on any
required licensing before the first dial. This is general information, not legal
advice.
EEO STATEMENT
[Employer Name] is an equal opportunity employer and provides reasonable
accommodations for the essential functions of this role.
COMPENSATION AND HOW TO APPLY
Compensation: $_ per hour plus [commission per policy], [monthly bonus
tiers], [paid licensing], [benefits summary]
To apply, email __ with your resume and license status.
Template 5: Health and Medicare Insurance Sales Representative
For Medicare and employee benefits practices, with carrier certifications, scope of appointment documentation, and the enrollment season built into the responsibilities. If the hire will sell life and annuities specifically, use the life insurance agent templates instead.
Health and Medicare Insurance Sales Representative Job Description
HEALTH AND MEDICARE INSURANCE SALES REPRESENTATIVE JOB DESCRIPTION
Agency: __ ([City, State])
Reports to: [Agency Owner / Benefits Practice Lead]
Employment type: [Full-time / Seasonal, W-2]
FLSA status: [Exempt under outside sales / Non-exempt: choose per the note]
Compensation: $_ plus commission
ABOUT THIS ROLE
[Agency Name] helps [seniors / small employers] in [City, State] choose health
coverage: [Medicare Advantage, Medicare Supplement, Part D, individual health,
small group medical, dental, vision, ancillary]. Our year has a season, and this
role carries it.
POSITION SUMMARY
The Health and Medicare Sales Representative meets with prospects, compares plan
options against their doctors, prescriptions, and budget, enrolls them in
compliance with carrier and regulatory rules, and services the account through
the plan year.
KEY RESPONSIBILITIES
•Meet with prospects [in home, in office, by phone, at community events] and
document the scope of appointment where required
•Compare plan options against the client providers, prescriptions, and budget,
and record the comparison
•Enroll clients through carrier portals and confirm effective dates
•Carry the annual enrollment period: [number] appointments per week during
[season], with extended hours
•Service the book through the year: claims questions, plan changes, life
events, and eligibility issues
•For group business, run [renewal analysis, open enrollment meetings, benefit
administration handoff] with the employer
•Complete carrier certifications and required annual training before selling
•Keep every client record and consent form filed and retrievable
REQUIRED QUALIFICATIONS
•Active [state] Life and Health producer license
•Current [carrier certifications / annual Medicare training] or ability to
complete them before the season opens
•[Number] year(s) in health, Medicare, or employee benefits sales
•Patience and clarity with clients making a decision they find stressful
•Clean background check as required for licensing and appointment
CLASSIFICATION AND COMPLIANCE NOTE
Medicare and health sales are heavily regulated at the carrier and regulator
level, and marketing rules, scope of appointment requirements, call recording
requirements, and annual certification requirements change. Confirm the current
rules with each carrier and with your state department of insurance before the
season opens, and keep the certification records. On classification: a
representative who sells in the field is a candidate for the outside sales
exemption, while one who enrolls by phone from the office is non-exempt.
Seasonal hires are employees like any other; a seasonal label does not remove
overtime obligations during the enrollment crunch, which is exactly when the
hours run long. This is general information, not legal advice.
EEO STATEMENT
[Agency Name] is an equal opportunity employer and provides reasonable
accommodations for the essential functions of this role.
COMPENSATION AND HOW TO APPLY
Compensation: $_ [base / hourly] plus [per-enrollment commission],
To apply, email __ with your resume, license status, and
current carrier certifications.
Template 6: Licensed Account Manager (Service Plus Production)
For the hybrid role most small agencies actually need: servicing the existing book while writing new business from it, with a classification call that survives scrutiny. The claims-side equivalent is our claims adjuster templates.
Licensed Account Manager Job Description (Service Plus Production Goal)
LICENSED ACCOUNT MANAGER JOB DESCRIPTION (SERVICE PLUS PRODUCTION)
To apply, email __ with your resume and license status.
License, Appointment, and E&O Come First
A producer cannot solicit or sell insurance without an active state license in the correct line, and cannot sell a specific carrier’s products until that carrier appointment is in place. Those are two separate gates, both take time, and neither can be backdated after a sale.
The practical consequence for a small agency is that hiring has a compliance track running alongside the interview track, and it starts at the offer rather than at the start date. Put every requirement in the posting so candidates self-select, then verify rather than assume.
Requirement
How to handle it in the posting and the hire
State producer license
Name the exact line (property and casualty, life and health, or both) and whether it is required at hire or sponsored after, with a deadline
Non-resident licenses
Required to solicit in another state; name the states and say who pays the fees
Carrier appointments
A separate step after hire; state that the producer cannot sell a carrier’s products before the appointment is active
Errors and omissions coverage
Say whether the agency covers producers or the producer carries their own policy
Continuing education
Name the credit hours and who pays; at a small agency this reads as a real benefit
Product and AML training
Required for annuities and certain life and health products; complete and document it before the first sale
Background check
Standard for licensing and appointment; state that the offer is contingent on clearing it
Classification
State W-2 or 1099 and exempt or non-exempt in the posting so it is not renegotiated at offer
Requirements are set state by state and carrier by carrier, so verify with your state department of insurance rather than assuming the rules match wherever you last worked. Keep the posting neutral and inclusive as well, since the EEOC prohibits job advertisements that express a preference based on a protected characteristic.
Classification and Overtime
Two classification questions decide how this role is paid, and both get answered wrong routinely in insurance. The first is W-2 versus 1099. The second is exempt versus non-exempt, which for sales roles turns almost entirely on whether the selling happens in the field or at a desk.
The Department of Labor fact sheet on the outside sales exemption sets the test: the primary duty must be making sales, and the employee must be customarily and regularly engaged away from the employer’s place of business. Unusually, there is no salary minimum attached to it, so a commission-only field producer can be properly exempt while an identically paid inside producer cannot.
Outside sales is the only exemption that usually fits
The FLSA outside sales exemption covers an employee whose primary duty is making sales and who is customarily and regularly engaged away from the employer’s place of business. It is the one white-collar exemption with no salary minimum, which is why a commission-only field producer can be properly exempt while a commission-only inside producer cannot. The test is where the selling happens, not the job title and not the pay structure. Work done at the office in support of the producer’s own field sales counts as exempt work, so an occasional day of quoting does not break the exemption. A schedule that has quietly drifted to four desk days and one field day does. Review the actual pattern every year, because territory changes and remote quoting tools move roles across the line without anyone deciding to.
Phone sales are inside sales, and the math changes
A representative who sells by phone is non-exempt: hourly, timekeeping, and overtime past 40 hours in a workweek. The part small agencies miss is the overtime rate. Non-discretionary commission and production bonuses go into the regular rate, so the overtime hour is worth more than 1.5 times base pay, and the extra owed on commission has to be recalculated and paid once the commission is known. A promised bonus for hitting a target is non-discretionary even when you call it discretionary in the plan document. Add two habits that survive an audit: pay for pre-shift system and dialer login time, and give remote representatives real timekeeping instead of an assumed 8-hour day.
W-2 or 1099 is decided by control, not preference
Agencies love the 1099 producer because it feels cheap, and it is the single most expensive habit in the industry. If you set the schedule, assign the leads, require office hours, dictate the sales process, control pricing, and hold the book, you are directing an employee no matter what the agreement says. The IRS treats a full-time life insurance sales agent selling primarily for one carrier as a statutory employee for Social Security and Medicare tax purposes when the standard conditions are met, which is its own category and worth reading before you decide. A genuinely independent producer runs their own operation, carries their own errors and omissions coverage, works multiple markets, and controls how the work gets done. Write the classification into the posting so nobody negotiates it at the offer stage.
License, appointment, and E&O come before the first sale
A producer cannot legally solicit or sell insurance in a state without an active license in the right line, and cannot sell a specific carrier’s products until that carrier appointment is in place. Those are two separate gates and both take time. Build the sequence into hiring rather than discovering it in week two: confirm the license number and status with the state department of insurance, submit appointment paperwork the day the offer is accepted, confirm errors and omissions coverage, complete anti-money-laundering and carrier product training where the products require it, and record every continuing education deadline. Requirements are set state by state and carrier by carrier, so verify with your state department of insurance rather than assuming the rules match the state you last worked in.
On the contractor question, the IRS treats a full-time life insurance sales agent selling primarily for one carrier as a statutory employee for Social Security and Medicare tax purposes when the standard conditions are met, a category that sits between employee and contractor and catches many captive agency hires. Our breakdown of 1099 versus W-2 classification works through the control test, and the exempt versus non-exempt guide covers the duties tests for everyone who stays inside.
What to Pay an Insurance Sales Representative
National wage data for this occupation is unusually spread out, because commission does most of the work. Treat the median as a midpoint between a first-year desk hire and an established producer with a mature renewal book rather than as a target for either.
Median $62,280, With a Very Wide Spread
According to the Bureau of Labor Statistics Occupational Employment and Wage Statistics survey (May 2025), insurance sales agents had a median annual wage of $62,280. The 10th percentile earned $37,330, the 25th percentile $46,870, the 75th percentile $96,950, and the 90th percentile $138,140 (U.S. Bureau of Labor Statistics, OEWS). OEWS estimates exclude self-employed workers, so an independent agency owner writing their own book is not in these numbers.
Percentile (BLS OEWS, May 2025)
Annual wage
What it usually looks like in an agency
10th percentile
$37,330
First-year hire, hourly plus small commission, still building
25th percentile
$46,870
Personal lines desk or licensed service role with a production goal
Median (50th)
$62,280
Established multiline producer, or a strong second-year phone representative
75th percentile
$96,950
Commercial producer or benefits specialist with renewal income
90th percentile
$138,140
Senior commercial producer with a large owned book
Total pay is the number that matters to a candidate, so publish the structure rather than the base alone: hourly or base, the commission rate on new business, whether renewals pay, and what the realistic first-year total looks like for someone who hits target. Publish a good-faith range where pay transparency laws apply, and remember that a range without a commission rate tells a producer nothing.
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Write the commission plan into the offer, not into a conversation. The plan needs five terms: the rate on new business, the rate on renewals, when commission is earned versus paid, what happens on cancellation or chargeback, and what happens to the book if the producer leaves.
Vagueness on any of the five turns into a dispute within a year, and the dispute always arrives at the worst moment: a cancelled policy, a chargeback, or a departure with a book attached. Our guide to commission pay covers the mechanics and the wage-and-hour side.
Draws and Minimum Wage Do Not Mix Casually
A draw against commission is a common structure and a common violation. For a non-exempt producer, pay in any workweek still has to meet minimum wage for hours actually worked, and a recoverable draw cannot pull a week below that floor. Put the recovery terms in writing, cap the recovery, and check the weekly math rather than the monthly total. If the producer is exempt under the outside sales rule the minimum wage question falls away, which is one more reason the exemption call has to be made deliberately.
Hiring a Producer Without an HR Department
Agency hiring fails in three predictable places: the posting is generic, the license or appointment stalls the start date, and the onboarding paperwork lives in one person’s inbox. Each has a fix that costs an afternoon once.
The posting says nothing, so the applicants know nothing
The typical small agency posting names the agency, says sales experience preferred, and ends with a line about being self-motivated. It does not say which lines, whether the license is required at hire, where leads come from, what the commission rate is, or whether the job is field or desk. Candidates cannot tell a captive personal lines desk from a commercial field producer role, so you get volume without fit and you spend the first interview explaining the job. Fix it once. Write the lines, the license expectation, the lead source, the compensation structure, and the classification into a template you reuse, and the only part you rewrite next time is the target class of business.
You hire a licensed producer and discover the license does not cover your business
Insurance licensing is state by state and line by line, and it is the fastest way for a small agency hire to stall. A property and casualty license does not authorize life and health sales. A resident license in one state does not authorize solicitation in the state next door, which matters the moment you sell across a metro line. Carrier appointments are a separate step from licensing, and an unappointed producer cannot sell that carrier’s products on day one regardless of how good their license is. State the exact license and line in the posting, verify the license number with the state department of insurance before the offer, and start the appointment paperwork the day the offer is signed.
Onboarding a producer is a compliance project and it lives in someone’s inbox
An insurance hire carries more paperwork than almost any other small business role: the offer and commission plan, the classification acknowledgment, license verification, non-resident license applications, carrier appointment confirmations, errors and omissions certificates, anti-money-laundering training records, carrier product certifications, continuing education deadlines, and the usual payroll and handbook forms. At most agencies that lives in a folder and an inbox, and the renewal dates are remembered by one person. FirstHR runs the same onboarding sequence for every producer, with e-signature for the offer and the commission plan, document management for licenses, appointments, and E&O certificates with renewal dates attached to each employee profile, and training modules for the product and compliance training you have to prove happened. Applicant tracking is coming soon to FirstHR. FirstHR is an onboarding and HR platform, not a payroll provider or an agency management system, so connect those separately.
Insurance sales covers four different jobs under one title, so write the posting for the channel: field commercial production, a personal lines desk, phone sales, or a seasonal health and Medicare practice.
Name the exact license and line, say whether it is required at hire or sponsored after, and remember that carrier appointment is a separate gate before the first sale.
The outside sales exemption is the only one that usually fits, it has no salary minimum, and it requires selling to happen away from the office; desk and phone sales are non-exempt.
For any non-exempt producer, non-discretionary commission and production bonuses go into the regular rate, so the overtime hour costs more than 1.5 times base pay.
Insurance sales agents had a median annual wage of $62,280 (BLS OEWS, May 2025), with a spread from $37,330 at the 10th percentile to $138,140 at the 90th.
Put the commission plan in the offer: new business rate, renewal rate, when it is earned, chargeback terms, and what happens to the book if the producer leaves.
An insurance hire is a compliance project before it is a sales hire. FirstHR runs the same onboarding sequence for every producer, with e-signature for the offer and commission plan, document storage for licenses, appointments, and E&O certificates, and renewal dates tracked so nothing expires quietly. Applicant tracking is coming soon to FirstHR.
Frequently Asked Questions
What does an insurance sales representative do?
An insurance sales representative sells insurance policies to individuals or businesses: they prospect and work leads, review what the client needs to protect, quote coverage through the carriers the agency is appointed with, explain limits and exclusions, bind the policy, and service or renew the accounts they write. The lines vary by agency, covering personal auto and home, commercial property and liability, life, health, Medicare, or a mix. The daily shape of the job varies more than the title suggests. A commercial producer spends the week in the field with business owners, a personal lines representative works inbound leads from a desk, and a phone-based representative runs a dialer on a fixed schedule. Those three versions carry different licenses, different pay structures, and different overtime rules, which is why one generic posting does not work for all of them.
Does an insurance sales representative need a license?
Yes. Selling or soliciting insurance requires an active producer license issued by the state where the client is located, and the license is specific to the line: a property and casualty license does not authorize life and health sales. Beyond the license, a producer needs a carrier appointment before selling that carrier’s products, which is a separate step that the agency initiates after hire. Many agencies hire unlicensed candidates and sponsor pre-licensing education and the exam, which is a legitimate strategy for widening a thin candidate pool, but the posting has to say so explicitly and set a deadline. If you sell across a state line, the producer also needs a non-resident license in that state. Verify license status with your state department of insurance before the offer, not after the start date.
How much does an insurance sales representative make?
According to the Bureau of Labor Statistics Occupational Employment and Wage Statistics survey (May 2025), insurance sales agents had a median annual wage of $62,280. The spread is wide because so much of the pay is commission: the 10th percentile earned $37,330, the 25th percentile $46,870, the 75th percentile $96,950, and the 90th percentile $138,140. That range is the real story for an employer. A first-year personal lines hire on hourly plus commission and an established commercial producer with a mature renewal book are both in this occupation, and they sit at opposite ends of it. Benchmark to the structure you are actually offering, publish a good-faith range where pay transparency rules require one, and state the commission rate rather than hiding behind uncapped earning potential.
Are insurance sales representatives exempt from overtime?
It depends on where the selling happens. The FLSA outside sales exemption applies to an employee whose primary duty is making sales and who is customarily and regularly engaged away from the employer’s place of business, and it is the only white-collar exemption with no salary minimum, so a commission-only field producer can be properly exempt. A representative who sells from a desk or by phone is inside sales and non-exempt: hourly, tracked, and owed overtime past 40 hours in a workweek. The overtime rate then has to include non-discretionary commission and production bonuses in the regular rate, which makes the overtime hour worth more than 1.5 times base pay. Review the actual work pattern annually, because remote quoting tools move field roles to the desk without anyone formally changing the job. This is general information, not legal advice.
Can I hire an insurance producer as a 1099 contractor?
Sometimes, but far less often than agencies assume, and misclassification here is expensive. If you set the schedule, assign the leads, require office hours, dictate the sales process, control pricing, and own the book, you are directing an employee regardless of what the agreement says. A genuinely independent producer runs their own operation, carries their own errors and omissions coverage, works multiple markets, and controls how the work is done. There is also a middle category worth knowing: the IRS treats a full-time life insurance sales agent whose principal business is selling for one carrier as a statutory employee for Social Security and Medicare tax purposes when the standard conditions are met. Decide the classification before you write the posting, state it in the posting, and confirm it in the offer letter.
What should an insurance sales job description include?
Nine things: the lines of business named exactly, whether the role is field or desk, where the leads come from and roughly how many, the license required and whether you sponsor pre-licensing, any non-resident licenses needed, the written activity and production standards, the compensation structure with the commission rate on new and renewal business, the classification as W-2 or 1099 and exempt or non-exempt, and the background check contingency tied to licensing and carrier appointment. Add the equal opportunity statement, name a real person to apply to, and set a deadline. Everything else is decoration. The six templates on this page follow that structure, so the only parts you rewrite each time are your lines, your carriers, and your targets.
How do I hire a producer for a small agency with no HR department?
Run a fixed sequence and keep the compliance steps in front of the sales steps. Post a specific job description with lines, license expectation, lead source, pay structure, and classification stated up front. Screen for license status first, then for a documented sales record with real numbers rather than adjectives, then interview for how the candidate handles a coverage conversation with someone who wants the cheapest possible policy. Verify the license with your state department of insurance and check references before the offer. On acceptance, start carrier appointments immediately, confirm errors and omissions coverage, and schedule product and compliance training before the first sale. Then run onboarding as a tracked checklist rather than a folder, with renewal dates on every license, appointment, and certification. FirstHR handles that sequence with e-signature, document management, and training modules. Applicant tracking is coming soon to FirstHR.
