Orlando Harmon
A career as a life insurance agent can be a lucrative and stable career choice. However, for felons with a criminal background, the path to becoming a licensed agent can be challenging and is dependent on the state in which they reside. In the state of Michigan, it is possible for a felon to obtain a life insurance license, but this depends on the nature of the felony committed. The state insurance department takes into account the circumstances and severity of the crime before making a decision. While there may be limitations, a felony conviction does not automatically disqualify an applicant.
| Characteristics | Values |
|---|---|
| Can a felon become a life insurance agent in Michigan? | Yes, but it depends on the nature of the felony. |
| What is the eligibility criteria to become a life insurance agent? | 1. The felon should be 18 years or above. 2. The felon must be a US citizen. 3. The felon must be a high school graduate. 4. The felon must reside in the state where they want to become an agent. 5. A specific degree is not required. 6. A college degree is preferred by some companies. 7. A professional degree in business, management, marketing, or finance is recommended. 8. The felon must appear for a pre-licensing life insurance exam. 9. The total number of study hours is 20 to 50 depending on the state requirement. 10. The life insurance program must be completed from a recognized institute or university, or through distance learning. 11. All new insurance agents receive adequate on-the-job training from an organization before being hired. |
| What is the process to become a life insurance agent in Michigan? | 1. Complete a Michigan Life Insurance License Application. 2. Complete a Michigan Insurance Pre-license Course. 3. Take the Michigan Life Insurance Licensing Exam. 4. Watch for your application results. |
| What are the requirements to get a life insurance license in Michigan? | 1. Application Fee: $10 application fee + $5.60 transaction fee via the NIPR. 2. Insurance Pre-license Education Course Fee: $149+ via Kaplan Education Company. 3. Exam Fee: $41 via PSI Exams. |
| What are the felonies that disqualify a felon to become a life insurance agent? | 1. Felonies that are permanently barred include first-degree felony, capital felony, felony involving money laundering, fraud, or felony directly related to financial services. 2. For other felonies, there is a 15-year disqualification period if they involve moral turpitude and a 7-year disqualification period otherwise. 3. A 7-year disqualification period also exists for all misdemeanors related to financial services. 4. Individuals who have been convicted of a crime involving dishonesty or breach of trust are prohibited from engaging in the insurance business and may face imprisonment and a fine. |
What You'll Learn
What is a life insurance agent?
A life insurance agent is a licensed professional who sells insurance policies to clients on behalf of one or more insurance companies. They are specialists in selling insurance policies that pay beneficiaries a substantial amount when the policyholder dies. They also sell annuities that promise a retirement income and various types of life insurance plans.
Life insurance agents meet with potential clients and gather information about their personal life, such as marital status, occupation, and income. They analyse expenses, savings, and income to provide a quote on a life insurance policy. An agent is typically paid a percentage of the premium on the policy purchased.
Life insurance agents must pass a licensing exam that covers state insurance laws and category-specific insurance concepts. Each state has different licensing requirements for insurance agents, and these requirements depend on the type of insurance being sold. For example, life and health insurance agents must pass a licensing exam covering life insurance, health insurance, and annuities. Some types of life insurance may also require agents to hold a Series 6 or Series 7 securities registration.
While there are no specific degree requirements to become a life insurance agent, some employers in the insurance industry prefer a college degree. Degrees in business, management, marketing, or finance are recommended as they provide a background in relevant areas such as marketing, economics, and finance.
Life insurance agents must also complete pre-licensing education, which varies from state to state, typically ranging from 20 to 50 classroom hours. This education can be obtained through accredited school insurance programs offered by community or public technical colleges, or private education providers. New insurance agents often receive on-the-job training from employers prior to being hired.
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Eligibility criteria to become a life insurance agent in Michigan
To become a life insurance agent in Michigan, you must meet the following eligibility criteria:
- Age: You must be 18 years old or above.
- Citizenship: You must be a US citizen.
- Education: You must have at least a high school diploma. A college degree is not required, but some companies in the insurance sector prefer it. A degree in business, management, marketing, or finance is recommended.
- Residency: You must reside in Michigan, the state in which you intend to become an agent.
- Pre-licensing education: You must complete a pre-licensing life insurance course, which varies from state to state. In Michigan, this involves 20 hours of pre-license education for life/limited life producers.
- Licensing exam: You must pass the Michigan Life Insurance Licensing Exam.
- Background check: You must pass a background check, which may include fingerprinting. The background check will consider the nature and severity of any felony convictions, as well as the time lapsed since the conviction. Good moral character is a requirement, so violent crimes, financial crimes, or crimes of dishonest nature can disqualify an individual.
- Honesty and trustworthiness: You must disclose your criminal history on the insurance license application. Failure to do so may result in the denial of your application or legal consequences.
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Does a life insurance agent require a license in Michigan?
Yes, a life insurance agent is required to have a license in Michigan. Here is a step-by-step guide on how to obtain a Michigan life insurance license:
Step 1: Complete a Michigan Life Insurance License Application
You can apply for your Michigan life insurance license by submitting a Michigan Life Insurance License Application through the National Insurance Producer Registry (NIPR). The application fee is $10, plus a $5.60 transaction fee, and you must be at least 18 years old. Your application will be valid for six months from the submission date.
Step 2: Complete a Michigan Insurance Pre-license Course
Before taking the licensing exam, you must complete a pre-license education course. This course will provide you with the necessary knowledge to pass the exam. In Michigan, 20 hours of pre-license education are required for life/limited life producers. After completing the course, you will receive a Course Completion Certificate, which is valid for 12 months.
Step 3: Take the Michigan Life Insurance Licensing Exam
After completing the pre-license course, you can schedule and take the Michigan Life Insurance Licensing Exam. The exam is administered by PSI Exams and costs $41. It consists of 100 scored questions covering various topics, and you will have 120 minutes to complete it.
Step 4: Wait for Your Application Results
Once you have completed the above steps, the Michigan Department of Insurance and Financial Services (DIFS) will review your application. This process typically takes up to 14 business days. During this time, they may request additional information or documents. If your application is approved, they will issue your license and send a hard copy to the mailing address provided.
Maintaining Your License
To maintain your life insurance license in Michigan, you must complete 24 hours of continuing education (CE) every two years, including three hours focusing on ethics. You can find a list of approved CE courses on the Michigan DIFS Insurance Education page, and there is no fee for license renewal if you fulfill these requirements.
Background Checks and Criminal History
As part of the licensing process, the DIFS will conduct background checks, including criminal history checks. While a felony conviction does not automatically disqualify you, certain types of felonies will bar you from obtaining a license. These include felonies involving violence, criminal sexual conduct, or financial crimes such as fraud or embezzlement. If you have a criminal history, it is essential to disclose it accurately and completely on your application. Failure to do so may result in your application being denied.
Additionally, some states, like California, have implemented the Ban the Box movement, which removes criminal history questions from the initial application. However, this does not eliminate the background check and fingerprinting requirements.
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What felonies disqualify a felon from becoming a life insurance agent?
While it is possible for a felon to become a life insurance agent, certain felonies will disqualify them from obtaining a license. Licensing requirements vary from state to state, but generally, felonies that involve financial matters or fraud tend to result in a permanent bar from applying for an insurance license. This includes money laundering, fraud, embezzlement, or any felony directly related to financial services. These types of crimes are seen as particularly disqualifying because insurance agents are expected to uphold fiduciary responsibilities and handle clients' money. As such, insurance companies require that their agents be trustworthy and competent in handling finances.
Additionally, there are other felonies that may require a waiting period before applying for a license. This includes a 15-year disqualification for all felonies involving moral turpitude that are not included in the permanent bar, and a seven-year disqualification for all other felonies and misdemeanors related to financial services. It's important to note that individual insurance companies will make the final decision on hiring, and each state may have its own specific regulations and background check procedures.
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How does a felon earn a required qualification?
To become a life insurance agent in Michigan, a felon must meet the eligibility criteria and pass a licensing exam. While it is possible for a felon to become a licensed insurance agent, certain types of felonies will permanently disqualify a person from obtaining a license.
To become a life insurance agent in Michigan, a felon must:
- Be 18 years or older
- Be a US citizen
- Have a high school diploma or GED
- Reside in Michigan
- Complete a pre-licensing life insurance education course
In Michigan, a felon must pass a licensing exam that covers state insurance laws and insurance concepts for each category. The licensing requirements depend on the type of insurance being sold. Life and health insurance agents, for example, must pass an exam that covers life insurance, health insurance, and annuities.
Felonies that will permanently bar a person from obtaining a license include:
- First-degree felony
- Capital felony
- Felony involving money laundering, fraud, or embezzlement
- Felony directly related to financial services
After the disqualification period, the burden is on the applicant to demonstrate that they have been rehabilitated and are trustworthy. A felon must obtain a 1033 waiver along with a career offer. The state insurance commission will conduct a waiver review to determine suitability for licensure. The waiver review will consider:
- Documentation related to the felony
- Nature and severity of the felony
- Time period since the felony
- Number of felonies or other similar incidents
- Circumstances surrounding the crime and its relationship to the practice of insurance sales
- Evidence of rehabilitation, including participation in treatment, payment of restitution, and other rehabilitation activities
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Frequently asked questions
Yes, a felon in Michigan can become a life insurance agent, but it depends on the nature of the felony. The state's Department of Insurance and Financial Services (DIFS) will consider the type and severity of the crime, as well as the time lapsed since the conviction. Good moral character is a requirement, so violent crimes, financial crimes, or crimes of dishonest nature may disqualify an individual.
To become a life insurance agent, applicants must be at least 18 years old, be a U.S. citizen, have a high school diploma or equivalent, and reside in the state where they plan to work. While a specific degree is not required, some companies in the insurance sector prefer candidates with a college degree, ideally in business, management, marketing, or finance.
Yes, a license is required to become a life insurance agent. Each state has its own licensing requirements, which may include background checks and fingerprinting. In Michigan, the DIFS requires applicants to pass a licensing exam that covers state insurance laws and insurance concepts.
Background verification checks vary between states. Most states will conduct a background check for the past seven years and may include fingerprinting to identify records of felony convictions.
Felonies that permanently disqualify an individual from becoming a life insurance agent include first-degree felonies, capital felonies, and any felonies involving money laundering, fraud, or damage to financial services. Other felonies may require a waiting period before applying for a license.
