Dui's Impact: Getting A Life Insurance License

A DUI conviction can have serious consequences for your professional life, including your ability to obtain certain licences. While a DUI may not always prevent you from getting a life insurance licence, it can make the process more challenging and expensive. The impact of a DUI on your insurance rates and eligibility can vary depending on several factors, including the number of DUIs, the time since your last DUI, and your driving history. Life insurance companies consider DUIs as a risk factor, and they may view it as an indicator of higher mortality risk, potentially affecting their decision to insure you.

How a DUI is classified (misdemeanour or felony)

A DUI, or driving under the influence, is typically classified as a misdemeanour, particularly for first-time offenders. However, it can also be charged as a felony, especially for repeat offenders. The classification of a DUI as a misdemeanour or felony depends on several factors and may vary from state to state.

In most states, a first-time conviction for DUI is considered a misdemeanour. However, certain circumstances can lead to a DUI being charged as a felony, even for a first offence. For example, if the incident involves injuries to others or property damage, it is more likely to be prosecuted as a felony. Additionally, in some states, a DUI may automatically be considered a felony if the blood alcohol concentration (BAC) is above a certain level, such as 0.15%.

Repeat DUI offences are more likely to be classified as felonies. In many states, repeat offenders face increasingly severe penalties, including longer disqualification periods before they can apply for an insurance license. Some states may also impose felony charges for a second or third DUI offence.

The specific conditions and classifications of a DUI vary across different states in the US. While some states may classify a DUI as a misdemeanour for a first offence and a felony for subsequent offences, other states may have different thresholds for when a DUI is considered a felony. Therefore, it is important to refer to the specific laws and regulations of each state to understand how a DUI is classified in that particular jurisdiction.

The classification of a DUI as a misdemeanour or felony has significant implications for individuals seeking an insurance license. A misdemeanour DUI conviction will typically allow an individual to obtain an insurance license, although there may be a waiting period involved. On the other hand, a felony DUI conviction may result in longer disqualification periods or even a permanent bar from obtaining an insurance license, depending on the type of felony and the state's regulations.

State-specific requirements for insurance agents

In most states, the requirements for becoming an insurance producer (commonly known as an insurance agent or broker) also differ depending on whether you are a resident of the state in which you are applying, a resident of a different state, or already licensed but planning to relocate.

Insurance agents must be licensed for each line of authority they sell. It is possible to be licensed for more than one line of authority, but in many states, you must take separate pre-licensing training courses and exams for each line. Some common lines of authority include:

• All types of life insurance, including whole and term life insurance
• Accident and health insurance
• Property insurance, including homeowners insurance and renters insurance
• Casualty insurance, which primarily covers losses caused by liability for the injuries of others

Some states provide licensing options to bundle certain lines of authority together. For example, in some states, you can choose to apply for a license to sell only life insurance, or you can apply for a more comprehensive license that covers health, accident, and life insurance.

In addition to pre-licensing training and exams, many states require applicants to submit to fingerprinting and background checks.

• Alabama: 20 hours of pre-exam training for life, health, property, casualty, and personal lines; 40 hours for life and health, property, and casualty
• Alaska: no pre-exam training hours required; fingerprinting required for first-time insurance exam takers
• Arizona: no fingerprinting or background check required, but two forms of identification must be provided at the exam; pre-exam training hours vary depending on the line of authority
• Arkansas: 20 hours of pre-exam training for life, accident, health, property, casualty, and personal lines
• California: 12 hours of ethics training, plus varying hours of pre-exam training depending on the line of authority
• Colorado: 50 hours of pre-exam training for life, accident, health, property, casualty, property and casualty, and personal lines
• Connecticut: 40 hours of pre-exam training for life, accident, and health, property, and casualty
• Delaware: no fingerprinting required, but a State and FBI criminal history report must be submitted; varying hours of pre-exam training depending on the line of authority
• District of Columbia: no fingerprinting required, but two forms of identification must be provided at the exam; no pre-exam training hours required
• Florida: varying hours of pre-exam training depending on the line of authority
• Georgia: 8 hours of pre-exam training for variable products, 10 hours for navigators, and 20 hours for other lines of authority
• Hawaii: no pre-exam training hours required
• Idaho: no fingerprinting required, but two forms of identification must be provided at the exam; no pre-exam training hours required
• Illinois: 10 hours of pre-exam training for title, 20 hours for other lines of authority, and 40 hours for life and health, personal and commercial property, and casualty
• Indiana: no fingerprinting required, but two forms of identification must be provided at the exam; varying hours of pre-exam training depending on the line of authority
• Iowa: no pre-exam training hours required
• Kansas: no fingerprinting required, but applicants must apply for a criminal background report; 20 hours of pre-exam training for life, health, property, casualty, and personal lines
• Kentucky: 20 hours of pre-exam training for each line of authority
• Louisiana: 8 hours of pre-exam training for bail bonds, 20 hours for other lines of authority, and 40 hours for life, health, and accident, property, and casualty
• Maine: no fingerprinting required, but two forms of identification must be provided at the exam; varying hours of pre-exam training depending on the line of authority
• Maryland: no fingerprinting required, but background questions must be answered in the license application; 20 hours of pre-exam training for each line of authority
• Massachusetts: no fingerprinting required, but two forms of identification must be provided at the exam; no pre-exam training hours required
• Michigan: 20 hours of pre-exam training for each line of authority
• Minnesota: 20 hours of pre-exam training for each line of authority
• Mississippi: 20 hours of pre-exam training for life, accident, health, property, casualty, and personal lines, and 40 hours for bail agents
• Missouri: no pre-exam training hours required
• Montana: 6 hours of pre-exam training for crop, 20 hours for other lines of authority, and 40 hours for life and annuities, accident, health, property, and casualty
• Nebraska: 20 hours of pre-exam training for each line of authority; fingerprinting services provided at the test site
• Nevada: 20 hours of pre-exam training for each line of authority
• New Hampshire: 20 hours of pre-exam training for each line of authority
• New Jersey: 20 hours of pre-exam training for each line of authority
• New Mexico: 20 hours of pre-exam training for life and accident and health, 40 hours for life, accident, and health, personal lines, and public adjuster, and 90 hours for property and casualty
• New York: 10 hours of pre-exam training for Medicare supplement/Long-Term Care, 20 hours for other lines of authority, and 40 hours for life, accident, and health, property, and casualty
• North Carolina: 20 hours of pre-exam training for each line of authority
• North Dakota: 20 hours of pre-exam training for each line of authority
• Ohio: 20 hours of pre-exam training for each line of authority
• Oklahoma: 20 hours of pre-exam training for each line of authority
• Oregon: 24 hours of pre-exam training for each line of authority
• Pennsylvania: 20 hours of pre-exam training for each line of authority
• Rhode Island: no pre-exam training hours required
• South Carolina: no pre-exam training hours required
• South Dakota: 20 hours of pre-exam training for life, accident, and health, property, and casualty, and 30 hours for personal lines
• Tennessee: 20 hours of pre-exam training for life, accident, and health, property, and casualty
• Texas: varying hours of pre-exam training depending on the line of authority
• Utah: no pre-exam training hours required
• Vermont: 20 hours of pre-exam training for each line of authority
• Virginia: 20 hours of pre-exam training for each major line of authority
• Washington: fingerprinting required after passing the exam; 20 hours of pre-exam training for each line of authority

The impact of a DUI on insurance rates

A DUI conviction can have serious consequences for your insurance rates and your ability to get insurance. While it is still possible to get insurance with a DUI on your record, insurance companies view drivers with a DUI as riskier to insure. This means that your insurance rates will increase, and you may even be refused coverage.

The increase in insurance rates varies depending on the company and state. On average, insurance rates go up by about $124 a month, or $1,495 a year, after a DUI. However, some companies increase rates more than others. For example, Progressive's rates increase by $43 per month on average, while State Farm's rates rise by $243 per month on average. The cheapest companies for insurance after a DUI include Progressive, State Farm, American Family, Auto-Owners, and USAA.

The number of DUIs on your record, the time since your last DUI, your age, driving history, and location will all factor into the amount of increase in your insurance rates. For instance, insurance for an 18-year-old with a DUI is about 47% more expensive than coverage for an older driver. Additionally, multiple DUIs on your record will significantly impact your insurance rates and may even result in you being denied coverage.

It's important to note that a DUI will typically stay on your driving record for three to five years, but it can be longer in some states, like California, where it remains for ten years. During this time, your insurance rates will be affected, and you may need to keep an SR-22 form on file, which proves that your insurance meets the state's minimum requirements.

Furthermore, a DUI may remain on your criminal record permanently, and insurance companies may consider this when assessing your risk. Therefore, it's crucial to be honest when applying for insurance and disclose any DUI convictions. While a DUI can impact your insurance rates and ability to get insurance, taking proactive steps towards a healthier lifestyle and demonstrating positive changes can help mitigate these effects over time.

The impact of a DUI on insurance coverage

A DUI conviction can have serious consequences for your insurance coverage and rates. Here's a breakdown of the impact:

Auto Insurance

When it comes to auto insurance, a DUI can lead to significant challenges. Many insurance companies view drivers with a DUI as high-risk and may refuse to provide coverage. The phrase "DUI insurance" is often used, but there is no official policy by that name. However, some companies, like Progressive, do offer insurance to drivers with a DUI on their record.

If you have a DUI, you may need to obtain an SR-22 form, which certifies that your auto liability insurance meets the minimum coverage limits required by your state. This form is typically required to reinstate or maintain your driving privileges after a DUI.

Life Insurance

While a DUI on your record may not prevent you from securing life insurance coverage, it can make the process more complicated. Life insurance companies assess risk, and driving under the influence is considered a major risk factor. The number of DUIs, the time since your last DUI, your drinking and drug use habits, and evidence of positive life changes will all be considered. Some companies may require a waiting period of several years before offering coverage after a DUI.

Insurance Rates

A DUI will almost certainly increase your insurance rates. For auto insurance, rates can go up by as much as 148% in some cases, with an average increase of around 84%, which translates to an additional $138 per month for full coverage insurance. The increase in rates typically lasts for three to five years, although in some states, like California, it can remain on your record for up to ten years.

The impact of a DUI on life insurance rates is more variable, as each applicant is unique. However, a DUI history can make it challenging to obtain traditional coverage, and you may need to explore alternative options like guaranteed issue life insurance.

Professional Impact

A DUI can also impact your ability to obtain certain professional licenses, including insurance licenses. Whether it is classified as a misdemeanor or felony, a DUI is a criminal conviction that can affect your professional life. While a misdemeanor DUI may only require a waiting period before applying for an insurance license, a felony DUI may result in long disqualification periods or even a complete bar to licensure.

The consequences of not disclosing a DUI conviction

While a DUI conviction does not automatically prevent you from getting a life insurance license, it is crucial that you disclose it when applying for your license. Non-disclosure can have serious consequences and may result in the denial or delay of your license application.

• Denial of license application: Failure to disclose a DUI conviction can be considered an attempt to obtain a license by fraud or misrepresentation, which is grounds for denying your application. Providing false or incomplete information on your application can lead to automatic rejection.
• Delays in processing: Even if the DUI conviction occurred long ago or was dismissed, failing to disclose it will cause substantial delays in the processing of your application. The licensing authority may need to conduct additional reviews or investigations, prolonging the process.
• Negative impact on trustworthiness: In the life insurance field, honesty, integrity, and trustworthiness are paramount. Non-disclosure of a DUI conviction may raise questions about your character and trustworthiness, which are essential for working with clients on matters involving their finances.
• Potential disciplinary action: In some cases, non-disclosure of a criminal conviction, including a DUI, may result in disciplinary action, such as a period of probation or restrictions on your license. This can affect your ability to practice and may require additional steps for removal of restrictions.
• Ineligibility for certain carriers: Different insurance carriers have varying stipulations regarding DUI convictions. By not disclosing your DUI, you may miss out on the opportunity to work with carriers that are more flexible or understanding of such convictions.
• Legal consequences: Depending on the jurisdiction, non-disclosure of a DUI conviction on a license application may have legal repercussions. It could be considered perjury or a similar offense, leading to potential legal troubles.

Remember, each state has its own insurance agent licensing requirements, and it is essential to refer to your specific state's guidelines. While a DUI conviction may not always be an insurmountable obstacle, being honest and forthcoming during the application process is crucial to maintaining your integrity and trustworthiness as a life insurance professional.

Frequently asked questions