The perpetually changing laws and regulations, that can turn initial licensing into a maze of problems, don't stop there. Renewing licenses can be just as painful, and sometimes more so, if multi-state licensing is involved. When agents fail or forget to renew their licenses they face a varying degree of penalty fees; some states will revoke your insurance license. When your license comes up for renewal there is no grace period, and for at least one state, you have to reinstate your license by retaking the test and reapplying for your license. Sound like fun? Probably not.