What is necessary for an insurance license to be valid?

For an insurance license to be valid, it must be approved by the state insurance commissioner. This signifies that the individual has met all the necessary requirements set forth by the state, including completion of pre-licensing education, passing the relevant examination, and undergoing any background checks necessary for licensure. The state insurance commissioner holds the authority to ensure that all agents and brokers are qualified to operate within the legal and regulatory framework of the state.

While other factors, such as training programs and compliance with specific financial obligations, may be part of the overall licensing process, the essential element of an active and valid insurance license hinges on the official approval by the state regulator. This approval establishes the agent's or broker's ability to legally transact insurance business and provides assurance to consumers of the agent’s qualifications.

Thus, the answer correctly emphasizes the role of state oversight in ensuring that the licensing process is rigorous and that only qualified individuals are permitted to engage in the insurance industry.