Are There Licenses for Long-Term Disability Insurance in Washington?

When it comes to protecting your income during life’s unexpected curveballs, long-term disability (LTD) insurance plays a crucial role. If you live in Washington and are either considering selling LTD insurance or purchasing a policy, you might be wondering: Are licenses required for long-term disability insurance in Washington? The short answer: Yes, absolutely. And no, you can’t just wing it.

In this blog, we’ll break down the licensing requirements, who needs them, why they matter, and how they impact consumers and professionals alike.

What Is Long-Term Disability Insurance?

Long-term disability insurance is designed to replace a portion of your income if you become unable to work due to a serious injury or illness. Policies often kick in after short-term disability benefits are exhausted, providing coverage that can last for years—sometimes until retirement age.

Typical LTD policies cover:

A percentage of your pre-disability income (usually 50% to 70%)
Illnesses, accidents, or chronic conditions
Long-term recovery periods, including surgeries, cancer treatments, or mental health disorders

Licensing Requirements in Washington State

In Washington, insurance professionals must be licensed by the Office of the Insurance Commissioner (OIC) to sell, solicit, or negotiate disability insurance, including long-term disability policies.

Who Needs a License?

Insurance agents and brokers selling LTD insurance
Insurance agencies employing licensed producers
Adjusters or consultants handling claims or advising on policies

Types of Licenses Related to LTD:

Disability/Life Producer License: This is the most common license for those who want to sell LTD insurance.
Business Entity License: Agencies must register as licensed entities with appropriately licensed staff.

Key Requirements:

Completion of pre-licensing education (typically 20+ hours)
Passing a state licensing exam
Submitting fingerprints for a background check
Paying all applicable licensing fees

Why Licensing Matters

Licensing ensures that:

Insurance professionals understand policy terms, legal requirements, and ethical practices
Consumers are protected from fraud or misrepresentation
Professionals are held accountable by state regulators

Without a license, any attempt to sell or advise on LTD insurance is considered illegal in Washington and may result in penalties, license revocation (if previously licensed), or legal action.

How Consumers Can Verify Licensing

If you’re purchasing long-term disability insurance, it’s smart to verify your agent or broker’s credentials. Here’s how:

Visit the Washington State Office of the Insurance Commissioner’s Licensee Look-Up Tool
Enter the agent’s name or license number
Confirm active status, license type, and any disciplinary actions

Do Employers Need a License to Offer LTD Insurance?

Not necessarily. Employers can offer group LTD policies to their employees through a licensed insurance provider. However, the insurance company and broker facilitating the group plan must be properly licensed.

Employers should:

Vet their insurance partners
Understand the basics of the plan they’re offering
Ensure that all communications about the plan are handled by licensed professionals

Licensing Renewal and Continuing Education

In Washington:

Insurance licenses must be renewed every 2 years
Agents must complete 24 hours of continuing education (CE), including 3 hours of ethics training
Renewal can be completed online through the National Insurance Producer Registry (NIPR)

Staying current isn’t optional—it’s part of maintaining professional credibility and legal compliance.

Consequences of Operating Without a License

Operating as an insurance producer without a valid license in Washington can lead to:

Civil fines (often thousands of dollars)
Cease and desist orders
Legal liability for misrepresentation
Ineligibility for future licensing

Conclusion

So, are licenses required for long-term disability insurance in Washington? Yes, 100%. Whether you’re a professional looking to sell LTD policies or a consumer seeking coverage, licensing is a fundamental piece of the puzzle.

For professionals, getting licensed isn’t just a box to check—it’s a signal to clients that you know what you’re doing. For consumers, working with a licensed provider is the first step in making sure your income protection is legit, reliable, and legally sound.

Frequently Asked Questions (FAQ)

Q1: Do I need a license to sell long-term disability insurance in Washington?

A: Yes. You must hold a valid Disability/Life Producer License issued by the Washington State Office of the Insurance Commissioner (OIC) to legally sell, solicit, or negotiate long-term disability (LTD) insurance.

Q2: What type of license is required to sell LTD insurance?

A: A Disability/Life Producer License covers the sale of both life and disability insurance products, including long-term disability policies.

Q3: What are the steps to get licensed in Washington?

A: To become licensed, you must:

Complete a pre-licensing education course
Pass the state licensing exam
Submit fingerprints for a background check
Apply for your license and pay the applicable fees

Q4: How can I verify if an insurance agent is licensed in Washington?

A: You can search for and verify licenses using the Washington State OIC’s Licensee Look-Up Tool. It provides details on license status, type, and any disciplinary actions.

Q5: Can an employer offer LTD insurance without being licensed?

A: Employers can offer LTD policies through a licensed insurer or broker. The employer doesn’t need to be licensed personally, but the provider and agents managing the plan must hold appropriate licenses.

Q6: Do insurance licenses expire in Washington?

A: Yes. Insurance licenses must be renewed every 2 years. Agents are also required to complete 24 hours of continuing education (CE), including 3 hours in ethics, to maintain their license.

Q7: What happens if someone sells LTD insurance without a license?

A: Selling insurance without a license is illegal and can result in civil fines, cease-and-desist orders, potential lawsuits, and disqualification from future licensing.