Becoming A Life Insurance Agent: New York Requirements

Becoming a life insurance agent in New York requires a license, and there are several steps to obtaining one. The first step is to decide which insurance license you need, as there are several types of licenses available, such as Life, Accident, and Health, Property and Casualty, and Limited Lines. The next step is to complete a pre-licensing education course, which must be approved by the Superintendent of Insurance and be a specific minimum number of hours in length, depending on the type of license. After that, you need to pass the relevant New York Insurance License Exam and complete a fingerprint and background check. Finally, you need to submit your insurance license application, which can be done through the National Insurance Producer Registry (NIPR) or directly through the Department of Financial Services website.

Complete a pre-licensing education course

To become a life insurance agent in New York, you'll need to complete a pre-licensing education course. This is a requirement for all applicants before they can take the state licensing exam. The course must be approved by the Superintendent of Insurance and meet a minimum number of instruction hours.

For a Life, Accident and Health Agent license, the course must be at least 40 hours long. If you're only interested in a Life Agent license, you'll need to complete a minimum of 20 hours of instruction.

When choosing a pre-licensing course, consider factors like flexibility, price, and the course provider's reputation. It's normal to feel overwhelmed by the number of courses available, but doing some research will help you make an informed decision.

Kaplan's online courses are a popular choice, with over 81% of readers using them to prepare for their insurance license exams. These courses have a 93% pass rate and offer comprehensive study packages.

Pass the relevant New York insurance license exam

To pass the relevant New York insurance license exam, you must complete a pre-licensing education course first. This is a requirement for all applicants. The course must be approved by the Superintendent of Insurance and meet a minimum number of hours. The minimum hour requirement varies depending on the insurance license you are applying for:

• Life, Accident, and Health Agent: 40 hours
• Life Agent: 20 hours
• Accident and Health Agent: 20 hours
• Personal Lines Agent: 40 hours
• Property and Casualty Agent: 90 hours
• Title Insurance Agent: 20 hours

The next step is to take and pass the relevant New York insurance license exam. This will depend on the line you wish to specialize in. For example, if you plan to sell life, health, and accident policies, you will need to pass the Life, Accident, and Health exam, which has 150 scored questions. All insurance exams in New York are proctored and administered by PSI. The cost to apply for the exam is $33, and there is an optional Cancellation Protection fee of $6.60 that allows you to cancel your exam up to 24 hours beforehand.

It is recommended to study for one exam at a time, averaging between two to six weeks of study time per exam, depending on whether you are studying full-time or part-time and your comfort level with taking proctored exams. To pass the exam, you will need a grade of at least 70% overall. Your score will be valid for two years, after which it will expire, and you will need to re-take the exam.

Get fingerprinted and pass a background check

To become a life insurance agent in New York, you'll need to complete a fingerprinting process and pass a background check. This is the final step before you can submit your insurance agent license application. The fingerprinting process is completed through IdentoGO and will trigger a background check on your past conduct. This process ensures that you meet the New York State insurance agent regulations.

To book your fingerprinting appointment, visit the IdentoGO website or call (877) 472-6915. It's important to note that not all IdentoGO sites offer fingerprinting services, so be sure to select a New York State Authorized IdentoGO Center. When booking, you'll need to use one of the following Service Codes:

• Employee Applicant: 1544H9
• Life Settlement Intermediaries: 1544K7
• Licensing of Life Settlement Providers: 1544NR
• Principal, Executive, Director of Life Settlement Providers: 1544Q5

Using the correct Service Code is crucial, as using the wrong one will invalidate your fingerprints, and you'll have to restart the process, including paying the fee again. If you're unsure about which Service Code applies to you, you can contact the New York State Department of Financial Services (DFS) at (800) 342-3736.

After your fingerprinting appointment, you'll receive two receipts. One of these receipts needs to be attached to your insurance license application that will be sent to the DFS, and the other is for your records. It's important to act quickly after your appointment, as the DFS will discard any scanned fingerprints if they don't receive a related application within 10 days.

Once you've completed the fingerprinting and background check process, you'll be ready to submit your insurance license application.

Submit your insurance license application

Once you've completed your pre-licensing education course, passed your exams, and had your fingerprinting appointment, you'll be ready to submit your application.

In New York, you can apply for your insurance license either through the National Insurance Producer Registry (NIPR) or directly through the Department of Financial Services (DFS) website.

For most insurance licenses, submitting this application will cost $80 (plus a small transaction charge). However, the fee for excess lines will depend on the county you're based in. If you're located in a county with a population of fewer than 100,000, the fee is $50. For counties with a population of more than 100,000, the fee is $400.

If you've passed the New York licensing exam for multiple lines of authority, you'll need to submit a separate application (and pay a filing fee for each of these).

Don't forget to include the fingerprint receipt you received from IdentoGO. The New York Department of Financial Services will not accept your application without it.

After you've submitted your application, the final step is to wait for it to be processed. If everything on your application is correct, 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.

Keep in mind that the issuance of your insurance license may take longer if there are any items from your background check that require further examination. In such cases, 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.

Choose a means of selling

Once you've passed your exams and your licensing application has been approved, you'll officially be a qualified insurance agent in New York. Now, you'll need to decide how you want to sell insurance.

You have two main options: you can either work as a captive agent employed by a single company, or you can run your own business as an independent agent.

If you choose to work as a captive agent, you'll be employed by a single insurance company and will only sell their products. This option can provide more stability and structure, as the company will often provide resources and support for its agents. The company may also handle some of the administrative tasks and provide leads, allowing you to focus primarily on sales.

On the other hand, becoming an independent agent means running your own business. You'll have the freedom to sell products from multiple insurance companies and create your own schedule. However, this option also comes with more responsibilities, as you'll need to manage your own business operations, including marketing, customer service, and administrative tasks.

Ultimately, the choice between becoming a captive agent or an independent agent depends on your personal preferences, work style, and career goals. Both options have their own advantages and can be rewarding in different ways.

Frequently asked questions