Becoming A Life Insurance Agent In Montana: A Guide

Becoming a life insurance agent in Montana requires a license, which can be obtained by completing a five-step process. This includes taking a pre-licensing course, passing the relevant exam, completing a fingerprint and background check, submitting an application, and planning for continuing education. While the process is straightforward, it's important to be aware of the specific requirements and steps to ensure a smooth journey towards becoming a licensed life insurance agent in the state of Montana.

Complete a pre-licensing course

To become a life insurance agent in Montana, you must complete a pre-licensing course. This step is highly recommended as it will help you pass your licensing exam on the first try, saving you time and money. While Montana doesn't mandate a certain number of pre-licensing education hours, most aspiring insurance agents opt for an online course.

When choosing a pre-licensing course, consider the following:

• Course flexibility: Look for a course that suits your schedule and learning preferences.
• Price: Avoid choosing a course that seems too inexpensive, as quality may be compromised.
• Course reputation: Ensure you select a reliable course provider to guarantee comprehensive and accurate resources for your exam preparation.

Kaplan's online courses, for example, are a popular choice, with an impressive 93% pass rate. Other options include ExamFX and A.D. Banker, which offer online courses supplemented with webinars, flashcards, and study manuals.

Pre-licensing courses will equip you with industry-specific knowledge that will be invaluable during your exams and your career as a life insurance agent. The courses are self-paced and typically include study materials such as practice exams and flashcards.

Pass the state licensing exam

To pass the state licensing exam and become a life insurance agent in Montana, there are several steps you need to follow. Firstly, it is highly recommended that you complete a pre-licensing course to prepare for the exam. While this is not a mandatory requirement in Montana, it will give you a solid understanding of your future duties and greatly increase your chances of passing the exam on the first try. There are various online courses available, such as those offered by ExamFX, Kaplan, and A.D. Banker, which include learning tools like flashcards and study manuals.

Once you feel prepared, you can schedule your state licensing exam. The exam is administered by Pearson VUE, and you must schedule it at least 24 hours in advance. There is an examination fee, which varies depending on the source, but is generally stated as \$59. The Life Producer exam consists of 96 questions and has a time limit of 2 hours. To pass, you need to achieve a score of 75% or higher. The exam is multiple-choice and covers both general insurance product knowledge and Montana-specific insurance laws, rules, regulations, and practices.

On the day of your exam, arrive at the test centre 30 minutes early for check-in. Bring two forms of personal ID, both with your signature, and one with your photo. You will not be permitted to take the exam without these. During the exam, you are not allowed to have any personal items, and food, chewing gum, and tobacco products are prohibited. You are, however, allowed to have a beverage. The exam is proctored, meaning an official proctor will closely monitor you.

If you are unsuccessful in your first attempt, you can reschedule the exam as soon as 24 hours later. There is no limit to the number of times you can retake the exam, but you will be charged an additional exam fee each time, so it is important to try to pass on the first try.

Apply for a license

After passing the exam, you are now ready to submit your license application. You can apply for your license through Sircon or the National Insurance Producer Registry (NIPR). You must apply for your license within 12 months of passing the exam, or you will be required to retake it.

Unlike most states, Montana does not charge a processing fee for insurance producer applications, meaning you’ll only need to pay NIPR’s small transaction charge of around $5.60 to complete this step.

Be aware that if you’ve passed the licensing exams for multiple lines of authority, you’ll be required to submit an application for each one of these.

Application Review

After satisfying all the other requirements and submitting a license application via NIPR, all that’s left to do is wait.

If everything on your application has been filled out correctly, your license should be issued within a couple of weeks—which is the amount of time it typically takes for a license application and background check to be reviewed.

It’s important to be aware that the issuance of your insurance license can take a bit longer than this if there are any items from your background check that need to be looked over. However, the state will likely get in touch with you to give some context if they run into any issues.

In any case, the state will send you an email regarding the status of your license once this review has been completed, so keep an eye out for that!

Plan for continuing education

To maintain your license, you will need to plan for continuing education. All resident and non-resident insurance producers, adjusters, and consultants licensed in Montana must complete continuing education every 2 years. This means that you must complete 24 hours of approved courses every 2 years, including 1 hour on legislative changes in Montana insurance statutes and administrative rules, and 3 hours approved as ethics. There is no license renewal fee, but there is a late fee of $100.

If you are selling certain products, such as long-term care and annuities, there are additional CE requirements. For example, if you are selling annuities, you must complete a one-time, 4-credit training course approved by the CSI and provided by a CSI-approved education provider. If you are selling flood insurance, you must complete a one-time 3-hour course approved for National Flood Insurance Program training, or such later requirements as are published by FEMA.

If you are licensed to sell only limited lines credit insurance, prepaid legal insurance, or surety bail bonds, you must complete 5 credit hours of continuing education every 2 years, including a minimum of 1 hour of Montana statutes and administrative rules. The remaining hours must be in approved ethics courses.

Choose a means of selling

Once you have your license, you'll need to decide how you want to sell insurance. This means choosing between working as a captive agent for a single company or becoming an independent agent and running your own business.

If you're just starting out, it may be beneficial to work as a captive agent to gain experience and build your client base. However, if you have entrepreneurial aspirations and want more freedom in the products you offer, running your own business as an independent agent could be a better option.

As an independent agent, you'll have the flexibility to offer a wider range of products from different companies, but you'll also need to manage additional business responsibilities such as marketing, sales, and administration.

Consider your personal and professional goals when deciding which path to take. Both options have their advantages and can be rewarding, depending on your preferences and opportunities.

Frequently asked questions