What is a defining characteristic of limited lines insurance?

Limited lines insurance is defined by its restriction on the authority of the insurance license to specific types of insurance products. This means that a person holding a limited lines license is qualified to sell or service only certain categories of insurance, rather than being authorized to manage the full spectrum of insurance lines that a general agent might handle.

This characteristic is significant as it allows for specialization within the insurance industry, enabling agents to focus on particular products such as health, auto, or travel insurance, without needing the broader experience or knowledge required for all lines of insurance. Such a structure can lead to enhanced expertise and better service in the areas that the agent is authorized to operate.

By contrast, the other choices do not accurately reflect the concept. The notion that it encompasses all major insurance lines is incorrect, as limited lines specifically imply a restriction. Similarly, limited lines insurance is not inherently only available online, and the licensing process for limited lines does not fundamentally differ from traditional licensing processes beyond the scope of what is covered.