Obtaining Your Auto Insurance Resale License: A Comprehensive Guide

To sell auto insurance, you'll need a property and casualty insurance license. The requirements for this license vary from state to state, so you'll need to check with your state's department of insurance. However, there are some general steps you'll need to take to get your license. First, you'll need to complete a pre-licensing education course. Then, you'll need to pass an exam and complete a fingerprint and background check. Finally, you'll need to submit your license application.

Check your state's requirements

The requirements for an auto insurance resale license vary from state to state. It is important to check the specific requirements for your state before initiating the process. Here are some general steps and guidelines to help you get started:

Step 1: Check Your State's Department of Insurance or Insurance Commissioner

Each state has its own department of insurance or insurance commissioner that governs the licensing process. Contact them to determine the exact requirements, including the number of pre-licensing education hours needed, exam details, and registration fees. Some states may also have reciprocity agreements, allowing you to sell insurance across state lines without additional exams or education requirements.

Step 2: Complete a Pre-Licensing Education Course

While this step is mandatory in some states, it is highly recommended even if your state does not require it. Pre-licensing education courses increase your chances of passing the licensing exam on your first attempt, saving you time and money. These courses can be taken in a classroom or online, and typically cover general insurance and ethics. The duration of these courses varies by state, ranging from 24 to 40 hours of class time.

Step 3: Pass the Relevant State Exam

After completing your pre-licensing education, you will need to pass the state exam specific to the type of insurance you intend to sell. These exams are usually proctored and administered at test centers. The passing score and exam format can differ by state, so be sure to prepare accordingly.

Step 4: Complete a Fingerprint and Background Check

Most states require fingerprinting and a background check as part of the licensing process. This step ensures that you meet the state's requirements to serve as an insurance agent. Be aware that certain felonies or misdemeanors may impact your eligibility for licensure.

Step 5: Submit Your Insurance License Application

Once you have completed the necessary education, passed the exam, and fulfilled the background check requirements, you can submit your insurance license application. This is typically done through the National Insurance Producer Registry (NIPR) and may include additional documents and fees.

Remember, the exact steps and requirements may vary depending on your state, so be sure to consult your state's Department of Insurance for comprehensive information.

Complete a pre-licensing course

To obtain an auto insurance resale license, you will need to complete a pre-licensing course. This is a crucial step in the process and will dramatically increase your chances of passing the licensing exam on your first attempt.

Pre-licensing course work can be completed in a classroom setting or online. The number of course hours required varies by state. For example, in California, you need 40 hours of pre-licensing class time and an additional 12 hours of ethics. In Hawaii, the requirement is 24 hours of coursework plus 12 hours of ethics.

When choosing a pre-licensing course, consider the course's flexibility, price, and the provider's reputation. The course should also be pre-approved by the relevant authority. In California, the pre-approved vendor is the Kaplan Education Company.

The pre-licensing course will cover the material you need to know for your licensing exam. It will also provide you with the necessary education hours to meet the state's requirements. In California, for example, you must complete a total of 32 hours of pre-licensing education, including 20 hours focused on general insurance and 12 hours dedicated to ethics training.

Completing a pre-licensing course will give you the knowledge and confidence to pass your state exam and obtain your auto insurance resale license.

Pass the relevant exam

Passing the relevant exam is a crucial step in obtaining your auto insurance resale license. Here are some detailed instructions and tips to help you prepare for and pass the exam successfully:

Understand the Exam Structure:

The insurance license exam is a timed, proctored, multiple-choice test, typically consisting of around 50 to 180 questions. The exam is administered by third-party testing companies such as Pearson VUE or Prometric, and you will take it in a standardized testing facility on a computer. A proctor will be present during the exam to ensure a fair and distraction-free environment.

Pre-Licensing Education:

Completing a pre-licensing education course is highly recommended and dramatically increases your chances of passing the exam on your first attempt. These courses can be taken in a classroom setting or online, and the duration varies by state. For example, California requires 40 hours of pre-licensing class time, including 12 hours of ethics, while Hawaii mandates only 24 hours of coursework plus 12 hours of ethics.

Exam Content:

The content of the exam will depend on the type of insurance license you are pursuing. For auto insurance resale, you will likely need a Property & Casualty (P&C) license. The exam will cover various topics, including policy types, policy riders, provisions, options, and exclusions, application and underwriting, state-specific regulations, and more.

Study Strategies and Tips:

• Allow yourself enough time to study, typically at least one week for each exam.
• Take practice exams to familiarize yourself with the test format and identify areas that need improvement.
• Organize your study space to ensure a comfortable and distraction-free environment.
• Use visual aids, such as flow charts and diagrams, to help with revision.
• Explain the concepts to others to reinforce your understanding.
• Take care of your physical and mental health by exercising, getting enough sleep, and taking regular breaks during study sessions.
• Stay hydrated and eat nutritious foods that aid concentration and memory.
• Plan your exam day in advance, including gathering all required documents and materials.

Exam Day Tips:

• Be aware of what to bring on exam day, such as identification and any required completion forms.
• Read the last sentence of each question first to understand what it is specifically asking.
• Predict your answer before looking at the choices, and then carefully read all the options before selecting your final answer.
• Eliminate answers you are sure are incorrect, and trust your intuition when choosing between the remaining options.
• Remember that you can always come back to a difficult question and move on to the next one to manage your time effectively.

Passing Score:

To pass the insurance license exam, you typically need a scaled score of at least 70. This does not necessarily mean answering 70% of the questions correctly, as the scoring takes into account the difficulty of the exam version.

Retaking the Exam:

If you don't pass on your first attempt, don't be discouraged. Many people take the exam multiple times before succeeding. Review the sections you struggled with and give yourself enough time to study before scheduling another attempt.

Remember, preparation is key to passing the relevant exam for your auto insurance resale license. Good luck with your studies and exam!

Complete a background check

To obtain a license to sell auto insurance, you will need to complete a background check as part of the licensing process. This is a necessary step to ensure you meet the requirements to sell insurance in your state. Here is a detailed guide on what to expect and how to complete the background check:

Understanding the Background Check Process

The background check is a standard procedure for anyone seeking a license to sell auto insurance. The check is conducted by the relevant state department of insurance, such as the California Department of Insurance (CDI). They will review your criminal record, driving history, and other relevant information to assess your suitability for an insurance license. This process helps protect consumers and maintain the integrity of the insurance industry.

Providing Accurate Information

It is crucial to be truthful and accurate when disclosing information for your background check. Carefully review and answer all background screening questions on the license application. Failure to disclose relevant information, such as criminal convictions or disciplinary actions, can result in delays or even denial of your license application. Be thorough and provide explanations or supporting documents if needed.

Submitting Fingerprints for Verification

As part of the background check, you will be required to submit your fingerprints. This is typically done when you sit for your licensing exam or at designated locations, such as the state department of insurance's examination sites or test centers. Your fingerprints will be used to verify your identity and conduct a comprehensive criminal background check.

Common Information Required for the Background Check

The background check will generally cover a range of topics, including but not limited to:

• Criminal convictions: Disclose any criminal convictions, except for juvenile offenses. This includes DUIs, reckless driving, misdemeanors, felonies, and military offenses.
• Disciplinary actions: Report any disciplinary actions taken against professional licenses.
• Pending criminal charges: Disclose any criminal charges pending at the time of your application.
• Driving history: Provide information on your driving record, including suspensions, accidents, and traffic violations.
• Education and employment history: Be prepared to share details about your educational background and employment history, including any relevant insurance-related experience.

Handling Convictions or Disciplinary Issues

If you have a criminal conviction or disciplinary action on your record, don't panic. Each application is reviewed on a case-by-case basis. Be transparent and provide explanations or supporting documents to demonstrate rehabilitation or mitigating circumstances. Contact the state department of insurance for guidance if you are concerned about how your record may impact your application.

Timeline for Background Check Completion

The timeline for completing the background check can vary. In some states, such as California, the entire licensing application process, including the background check, typically takes around three to five weeks. However, if there are items from your background check that require further review, the process may take longer. The state will usually notify you if there are any issues or delays.

Submit your application

Once you have completed your exams and fingerprinting, you can submit your application for your auto insurance resale license.

To begin this process, you will need to visit Sircon and submit your application online. If additional documents are required, you can attach them directly to your electronic application. Alternatively, you can submit these documents to the National Insurance Producer Registry's Attachments Warehouse.

If you prefer, you can also send documents directly to the California Department of Insurance via traditional mail, although this is not recommended.

After you have submitted your application, all that's left to do is wait for it to be reviewed. If everything on your application has been filled out correctly, your license should be issued within three to five weeks. This is the typical amount of time it takes for a license application and background check to be reviewed.

However, it's important to note that the issuance of your license may take longer if there are any items from your background check that need to be looked into further. In this case, the state will likely contact you to provide more context.

Once the review is complete, the state will send you an email regarding the status of your license.

Frequently asked questions