How to Start an Insurance Agency in Indiana: Producer License and Agency Setup

If you plan to sell insurance through a business in Indiana, you will usually need two separate licenses. The first is an individual producer license for each person who sells or solicits insurance. The second is an agency license for the business entity that employs or contracts with those producers. The Indiana Department of Insurance (IDOI) licenses producers under IC 27-1-15.6. This guide walks through how to get an Indiana insurance license as an individual, how to set up the business that will hold an agency license, and which costs and requirements you should confirm directly with IDOI before you file.

Informational content only. This article is not legal, tax, or insurance regulatory advice. Requirements and fees change, and the figures below reflect the sources reviewed for this page. Confirm current rules with the Indiana Department of Insurance, and consult a qualified attorney or CPA before you form your entity or file an application, especially if your situation is complex.

What You Need Before You Start

Gather these items before you open any application. A missing item usually does not cost you money, but it does add days or weeks to the process.

• A decision on your lines of authority, such as life, health, property and casualty, personal lines, or title
• A business name you have checked against the Indiana Secretary of State business records
• A registered office street address in Indiana and a registered agent who can receive legal papers (a P.O. Box alone is not sufficient)
• A federal Employer Identification Number (EIN) from the IRS, which most business bank accounts require
• A Designated Responsible Licensed Producer (DRLP) who holds the same lines of authority as the agency
• Certified articles from the formation jurisdiction if your entity was formed outside Indiana
• A budget that covers state filing fees, individual and agency application fees, pre-licensing courses, and exam costs

Costs at a Glance

The table below lists the fees verified for this article. Items marked as confirm are not published in the sources reviewed, so do not budget for them until IDOI or the testing provider confirms the amount.

Item	Amount	Where it is paid
Formation filing, LLC or corporation	$95 online	INBiz (Secretary of State)
Name reservation (holds name 120 days)	$10	INBiz
Individual producer application (resident)	$40 for life, health, property and casualty, personal lines, consultant, and title	IDOI
Agency license application	$40 plus an online processing fee, nonrefundable	IDOI (Sircon or NIPR)
Assumed business name (DBA), optional	$20 per name online	INBiz (Secretary of State)
Business Entity Report	$32, due every other year	Secretary of State
State exam fee, fingerprints, background check	Confirm with IDOI	IDOI or testing provider

Step-by-Step: Getting Your Indiana Insurance License and Agency Set Up

Step 1: Choose Your Lines of Authority

Your lines of authority decide how many pre-licensing hours you need, whether you must pass a state exam, and what qualifications your DRLP must hold. Pick the lines you will actually sell. Adding lines later requires additional education and sometimes another exam.

The IDOI materials reviewed list the following example pre-licensing figures. Confirm the hours for your exact lines before you enroll in a course.

Line of authority	Example pre-licensing hours	State exam required
Life	20	Yes
Health	20	Yes
Life and health	40	Yes
Property and casualty (personal and commercial)	40	Yes
Personal lines	Confirm with IDOI	Yes
Surplus lines	Confirm with IDOI	Yes
Title	10	No
Limited line credit, travel, portable electronics	Confirm with IDOI	No

Step 2: Pick a Business Structure

You can hold an agency license through a corporation, partnership, or LLC. A sole proprietor can hold one only with a tax ID other than a Social Security number. Most agencies that plan to hire producers or take on a partner choose an LLC or corporation, because the entity separates business obligations from personal ones.

Indiana has no franchise tax. An LLC's income passes through to its owners, who pay the individual adjusted gross income tax (2.95 percent for 2026, scheduled to fall to 2.90 percent in 2027) plus their county local income tax. An LLC that elects corporate treatment pays the corporate adjusted gross income tax of 4.9 percent. Your CPA should confirm which treatment fits your situation.

Step 3: Form the Entity Through INBiz

Form the business with the Indiana Secretary of State before you apply for the agency license, because IDOI requires that the entity be registered with the state. File online through INBiz at inbiz.in.gov. The Articles of Organization for a domestic LLC (State Form 49459) cost $95 online. A corporation files Articles of Incorporation (State Form 4159) for the same $95.

Name rules matter here. An LLC name must include the words Limited Liability Company or an abbreviation of them. The name must also be distinguishable from other names on Secretary of State records. Inc., LLC, the articles the, a and an, punctuation, capitalization, and plurals do not make a name distinguishable. If you need time to finalize the name, a reservation costs $10 and holds the name for 120 days. Search existing names on the Indiana Business Search before you pay.

Your registered agent must be maintained continuously. The agent may be an Indiana resident whose business office matches the registered office, or a business entity authorized to do business in Indiana. The registered office must be a street address. Your business cannot serve as its own registered agent, and the entity may have only one agent. The Secretary of State does not publish a processing time for formations and offers no expedited option, so plan for an open-ended wait.

The first Business Entity Report costs $32 and is due two years after formation. After that, it is due every other year on the anniversary of the date the business was formed or registered (confirm the exact date on the entity's Business Details page). Paper filing costs $50.

Step 4: Complete Pre-Licensing Education

Complete the education hours for each line you selected. Use a course provider that IDOI recognizes, and confirm the provider is approved before you pay for the course. Keep the completion certificate. It is valid for six months, so do not finish a course months before you intend to test. Plan your exam date inside that window, and confirm with IDOI how the window applies to your exam and application dates.

Step 5: Pass the State Exam

A state exam is required for life, health, property and casualty, personal lines, and surplus lines. It is not required for title, limited line credit, travel, or portable electronics lines. IDOI no longer offers remote proctored exams, so plan to test at an in-person location. Confirm the exam fee, scheduling process, and testing location with IDOI or the testing provider it designates before you register.

Step 6: Complete Fingerprints and the Background Check

Individual producer applicants should expect a background review. The fingerprint and background fees and the exact procedure were not confirmed in the sources reviewed for this article. Ask IDOI for the current fee, the approved fingerprint method, and how long the review takes before you schedule other steps around it.

Step 7: File the Individual Producer Application

The resident application fee for an individual producer is $40 for life, health, property and casualty, personal lines, consultant, and title licenses. Confirm the current online portal for individual applications with IDOI. Answer every background and disclosure question completely. Inconsistent or incomplete answers are a common reason applications stall, even when the applicant is qualified.

Step 8: Name Your DRLP and File the Agency License

The DRLP is the licensed producer responsible for the agency's compliance with Indiana insurance law. This person must hold the same lines of authority the agency will use. Choose the DRLP before filing, and confirm that the individual license is in place or will be issued in time.

The agency application requires your registration with the Secretary of State and certified articles from the formation jurisdiction. The application fee is $40 plus an online processing fee, and both are nonrefundable. File through Sircon or NIPR, following the IDOI business entity guidelines. A sole proprietor files with a federal tax ID other than a Social Security number.

Step 9: Set Up the Operation

Once licensed, the agency must be appointed by insurance carriers before it can place business with them. Each carrier has its own appointment process, so contact the carriers you intend to represent early.

If you will operate under a trade name that differs from your legal name, file an assumed business name (DBA) through INBiz for $20 per name. Indiana does not issue one comprehensive business license, so check with your city or county about any local permits or zoning approval that apply to your office.

Step 10: Decide on Errors and Omissions Coverage

Errors and omissions (E&O) coverage was not listed as a state requirement on the IDOI pages reviewed for this article. Treat it as a business protection to discuss with an insurance professional and your attorney, not as a licensing condition. Coverage terms vary, and a claim that falls outside your policy can be costly.

Step 11: Calendar Your Renewals

Set reminders for the Business Entity Report, which is due every other year. Confirm the renewal rules for individual producer and agency licenses with IDOI, because those rules were not confirmed in the sources reviewed. Missing a renewal deadline can interrupt your ability to sell, so do not rely on memory.

Tips and Common Mistakes to Avoid

• Forming the entity after the agency application. IDOI expects the business to be registered first. Form it through INBiz at the start.
• Using a Social Security number as the tax ID for a sole proprietor. That path requires a different federal tax ID, so get an EIN before filing.
• Choosing a DRLP who does not hold the same lines. A mismatch between the DRLP and the agency's lines is a common reason for delay.
• Letting the completion certificate expire. The certificate is valid for six months. Schedule your exam before it lapses.
• Using a P.O. Box as the registered office. The registered office must be a street address.
• Assuming an exam is required for every line. Title, limited line credit, travel, and portable electronics do not require one.
• Planning for remote testing. IDOI no longer offers remote proctored exams, so book an in-person seat.
• Treating E&O coverage as optional without a conversation. It is not a stated state mandate, but it is worth a professional review before you write policies.
• Budgeting only the listed fees. Exam, fingerprint, and background fees are not confirmed here, so ask IDOI for them up front.

What to Expect From the Process

Results depend on how quickly you finish each step, and no timeline is guaranteed. Entity formation may take longer than you expect because the Secretary of State does not publish a processing standard and offers no expedited service. Your education and exam schedule will also set the pace. Many applicants may find that the education and exam steps take the most calendar time, so start them early if you have a launch date.

A complete, accurate file is more likely to move without delay. Applicants who confirm the open items with IDOI before filing may also avoid rework. Since specific processing times for IDOI were not published in the sources reviewed, ask IDOI for current estimates before you commit to a launch date with clients or carriers.

Official Resources

• Indiana Secretary of State, Business Services Division: www.in.gov/sos/business
• INBiz online filing: inbiz.in.gov
• Name reservation: INBiz step one
• Indiana Business Search: bsd.sos.in.gov/publicbusinesssearch
• Indiana Department of Insurance: search for IDOI on in.gov for licensing guidance, fee confirmation, and exam information
• Indiana Department of Revenue: www.in.gov/dor
• Indiana Small Business Development Center: isbdc.org

Before you file anything, call or write IDOI to confirm the exam fee, fingerprint and background costs, individual and agency renewal rules, and the current portal for each application. A short call now prevents a rejected application later. For entity questions, a qualified attorney or CPA can review your structure, and an insurance professional can help you decide on coverage.