What is considered limited lines insurance?

Limited lines insurance refers to a category of insurance authority that is restricted or narrowed down to specific lines of business, as designated by the regulatory authority in the insurance producer’s home state. This means that an adjuster or producer is authorized to sell or manage only certain types of insurance, rather than all major lines. This limitation typically allows for specialized expertise and more focused training in those specific areas, ensuring that consumers receive knowledgeable service.

In the context of insurance licensing, having limited lines authority can be beneficial for both the provider and the consumer, as it allows for specialization in niches such as health insurance, life insurance, or specific types of property and casualty coverage, without extending to all possible categories of insurance. This approach helps to ensure that the insurance agent or adjuster is well-versed in the necessary details and regulations pertinent to the limited lines of insurance they are authorized to handle.