Jeffrey Wade
Becoming a licensed insurance agent requires a combination of education, licensing, ongoing training, and networking. The requirements to become an insurance agent vary depending on the state and the type of insurance you plan to sell. Most states require insurance agents to be licensed to discuss insurance products or complete sales, and those who operate without a license may face penalties or legal action. The first step to becoming a licensed insurance agent is to decide which line of authority you will be selling, such as commercial, personal, or surplus lines of insurance. Once you have decided on your area of emphasis, you can begin the process of obtaining your license, which typically involves completing an education program and passing an exam.
| Characteristics | Values |
|---|---|
| Education | Requirements vary by state and type of insurance. |
| Exams | Required in most states. |
| Age | 18+ |
| Licensing fees | Varies by state and type of insurance. |
| License duration | Temporary licenses are issued for 6 months and can be extended in 3-month intervals for a maximum of 15 months. |
| License types | General lines (life, accident, and health), general lines (property and casualty), all lines adjuster, etc. |
| License requirements | A sponsor with an insurance license, citizenship affidavit, acceptable ID, etc. |
| License renewal | Continuing education requirements, which may be waived for people over 70 years of age with 30 years of continuous licensing in California. |
| Career options | Independent agent (representing multiple companies) or captive agent (working for a single company). |
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What You'll Learn
Check state-specific requirements
The requirements to become a licensed insurance agent vary across different US states. While some states, such as California, Georgia, and Texas, have specific websites and handbooks outlining the requirements, other states may require you to search for this information.
In general, you will need to meet the specific requirements for the category or class of insurance you wish to sell. For example, in Texas, the General Lines – Life, Accident, and Health license allows you to sell life and health insurance, including annuities, with just one license. On the other hand, the General Lines – Property and Casualty license enables you to sell home, auto, commercial, liability, and other types of personal and limited lines property and casualty insurance with a single license.
Some states, like Georgia, require you to complete a Citizenship Affidavit and submit a copy of an acceptable form of identification. Additionally, you may need to complete a Sponsoring Insurer/Agent Certification Form. Certain states may also require you to pass an exam to obtain a license. For instance, Texas mandates passing an exam for most licenses, such as the General Lines – Life, Accident, and Health license.
It is important to note that some states offer temporary licenses, which are typically valid for 180 days or six months and may be extended in three-month intervals for a maximum period of 15 months. These temporary licenses provide an opportunity to gain practical experience while completing the necessary steps to obtain a regular license.
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Choose a licence type
The type of insurance licence you choose will depend on the type of insurance you want to sell. The most common types of insurance sold by agents are car or home insurance, but you might also sell insurance with an investment element, or personal lines insurance, such as auto insurance, homeowners insurance, or policies for boats and motorcycles.
In Texas, the three most common types of insurance licences are:
- General lines – life, accident, and health: This licence allows you to sell life and health insurance, including annuities, with just one licence.
- General lines – property and casualty: This licence allows you to sell home, auto, commercial, liability, and other types of personal and limited lines property and casualty insurance with one licence.
- All lines adjuster: This is the most common licence for adjusters. It covers catastrophe, property and casualty, workers’ compensation, and other types of insurance.
In Georgia, you will need to meet specific requirements, which vary depending on the category, or class, of insurance you wish to sell. You will need to complete a Citizenship Affidavit and provide a copy of an acceptable form of ID.
In North Carolina, you will need to pay for your own licensing. You will pay to apply to the state, and you will need to cover your living expenses while you grow your business.
You may also be able to get a temporary licence, which is good for 180 days and can be extended in three-month intervals, up to a maximum of 15 months. To get a temporary licence, you will need a sponsor who already has an insurance licence.
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Get a sponsor
To become a licensed insurance agent, you will need a sponsor who already has an insurance license. This is a requirement for obtaining a temporary license, which is typically valid for 180 days or six months and can be extended for up to 15 months from the original issue date.
A temporary license cannot be renewed or extended indefinitely, and you will need to pass the licensing exam during the validity period of your temporary license to obtain a regular license.
To apply for a temporary license, you will need to complete the Sponsoring Insurer/Agent Certification Form, which must be uploaded along with your application. This form confirms that you have a sponsor who is licensed and appointed with the sponsoring insurance company.
It is important to note that the requirements for obtaining a license may vary depending on the state and the category or class of insurance you wish to sell. Therefore, it is recommended to check with your state's department of insurance or the company you plan to represent to understand the specific requirements, qualifications, and fees for the license you need.
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Pass the exam
To become a licensed insurance agent, you will need to pass an exam. The requirements to become a licensed insurance agent vary by state, so it is important to check the specific requirements for your location. Most state insurance websites provide information on the exam, including handbooks that outline the number of education hours needed, how to register and where to take the exam.
In Georgia, for example, you will need to complete a pre-licensing course and pass an exam to become a licensed insurance agent. You will need to complete a Citizenship Affidavit and provide a copy of an acceptable form of ID. A waiver for the pre-licensing course and examination can be granted if you hold a CLU or FLMI designation or if you are licensed in the same field in your previous home state.
In Texas, there are three common types of licenses: General lines – life, accident, and health; General lines – property and casualty; and All lines adjuster. To obtain these licenses, you will need to pass an exam.
Some states, like California, may offer exemptions from the continuing education requirement for individuals over 70 years of age who have been licensed for 30 continuous years and are in good standing.
It is important to note that you will likely need to pay for your licensing and application fees, so ensure you have the necessary funds before beginning the process.
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Start prospecting
Now that you've obtained your license, it's time to start prospecting for clients. Here are some strategies to help you get started:
Begin with your inner circle:
Writing your own insurance policy and prospecting to friends and family is a great way to get comfortable with quoting new coverage and understanding how the systems work. You can also ask for referrals from people within your trusted circle, including friends, family, and past colleagues.
Identify your target audience:
Create targeted, up-to-date lead lists related to your offerings. Prioritize prospects with a high potential to become clients. Use tools like CRMs to track call history and notes, and always listen actively to identify needs that align with your offerings.
Craft a compelling narrative:
Focus on how your product or service can help prospects solve their problems. Inject creativity and personality into your letters and communications. Avoid robotic sales pitches and rigid sales scripts. Instead, use a guide to ensure an effective flow and hit all the necessary steps.
Build a referral system:
Encourage clients to refer others by providing them with the tools they need, such as email templates or digital assets they can forward. Highlight client stories and testimonials on your website and social media to build credibility. Surprise top referrers with small gifts or personalized notes of appreciation.
Collaborate with professionals:
Partner with professionals who may share a similar clientele, such as financial planners, mortgage brokers, or real estate agents. You can send potential clients their way, and they can do the same for you. This collaborative approach can generate quality leads, as customers will already have a level of trust in your partners.
Establish an online presence:
Create a website that reflects your brand identity and showcases your products. Use social media sites like LinkedIn to promote yourself as an expert in the field and connect with other industry professionals. Share helpful advice and information to establish your credibility.
Remember, prospecting is an ongoing process, and you may need to adapt your approach based on trial and error. By combining these strategies with dedication to your clients and ongoing learning, you'll be well on your way to a successful career as an insurance agent.
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Frequently asked questions
Most people can become licensed insurance agents in a few weeks. However, the time it takes to get licensed depends on the number of study hours required by the online education course you choose. There may also be a week or two of waiting for the license to be issued once your exam and background checks are complete.
The requirements to become a licensed insurance agent vary depending on the state and type of insurance you plan on servicing. Most states require you to be at least 18 years old and pass an exam. Some states, like Georgia, require you to complete a Citizenship Affidavit and provide a copy of an acceptable form of ID.
The type of license you need depends on the line of authority you will be selling. For example, a property and casualty license is for agents who plan to serve clients who need auto, home, and business casualty insurance. A life, accident, and health license is for agents who plan to serve individuals who need insurance related to life events, such as life insurance, accidents, or health insurance.
After getting your license, you can start prospecting for clients. Many agents begin by writing their own insurance and prospecting to friends and family. You can also start marketing your agency by joining the local chamber of commerce, creating a website, or exploring local advertising options.
