Decide what types of insurance you want to provide. Separate licenses are required for different types of insurance---an insurer licensed only to write automobile insurance, for example, cannot sell life insurance products. If you want to sell multiple types of insurance, you will need to obtain multiple company licenses.

Determine your target niche market. For example, if you are opening an automobile insurance company, decide if you want to attract young drivers, senior citizens, high-risk drivers or another type of customer. Knowing your target niche will help you more effectively attract customers to build your insurance business.

Check with your state's insurance department to find required forms, exhibits and other information required for licensure. Although the National Association of Insurance Commissioners (NAIC) has taken many measures to encourage uniform licensing processes, application procedures vary significantly by state.

Choose company officers who have strong backgrounds in insurance operations. State insurance departments typically require new companies to demonstrate that their key management personnel can successfully operate an insurance company.

Deposit any necessary paid-in capital with the financial institution designated by your state's insurance department. This amount can range from $1 million to $5 million. You will also need to demonstrate to the insurance department that your company has sufficient financial reserves to pay for insurance claims while your company is growing.

Develop a marketing strategy for your business. In most cases, you will provide the insurance department with a detailed description of the advertising methods you will use to attract customers. Some states, such as Texas, must approve print, radio and television advertising.

Once you have satisfied the insurance department's requirements and obtained your company's licenses, hire and appoint insurance agents. If you hire unlicensed agents, you must have the agents pass licensing tests before they can legally discuss coverages or sell policies. The agents will need to possess valid licenses for the types of insurance offered by your company. In some states, you will also have to license claims adjusters and customer service representatives.