Licensee

What Does Licensee Mean?

A licensee is an individual who has been granted a license by an organization or agency authorized to issue such licenses.

In the context of insurance, individuals who wish to sell insurance products legally are generally required to become licensees by obtaining insurance agent licenses.

Insuranceopedia Explains Licensee

To obtain a license to sell insurance, prospective agents typically must pass an exam and complete the required training. This process helps the government ensure that those selling insurance are qualified and capable of doing so in a professional and knowledgeable manner. Licensed agents who sell insurance often run their own businesses, and many carry insurance agent business insurance to cover claims tied to bad advice or mistakes when selling a policy.

Licensees are not limited to the insurance industry. Anyone who obtains a license for any activity qualifies as a licensee. Perhaps the most common type of licensee is someone who has obtained a driver’s license. In most states, drivers with that license also have to carry auto insurance, and rates can differ quite a bit across car insurance companies.