Becoming An Insurance Broker: The Massachusetts Guide

If you're looking to become an insurance broker in Massachusetts, there are a few key steps you need to follow. First and foremost, you'll need to obtain a license from the state's Department of Insurance. This involves completing an insurance pre-licensing course and passing a licensing examination. The pre-licensing course can be done through different formats, including classroom learning, web classes, online courses, or self-study. After your pre-licensing education, you'll need to register and pass the licensing examination, which is administered by Prometric. It's important to note that there are specific identification requirements for taking the exam, and you cannot apply if you've had an insurance license revoked or suspended in the past. So make sure you meet all the eligibility criteria before applying!

Meet the basic requirements

To become an insurance broker in Massachusetts, you must meet several basic requirements. Here are the key prerequisites you need to fulfil:

Age

You must be at least 18 years old to become an insurance broker in Massachusetts. This is a mandatory requirement and proof of age will be needed when applying for a license.

Education

Although it is not a requirement in Massachusetts to undertake pre-licensing education, it is highly recommended by sources that you complete an exam preparation course. These courses are designed to give you the best chance of passing the state licensing exam. The state of Massachusetts requires that you complete 40 hours of education before applying for your broker's license. This education can be completed in various formats, including classroom learning, web classes, online courses, or self-study.

Licensing Exam

After completing your pre-licensing education, you must pass the state licensing exam. The exam is administered by Prometric and consists of 100 multiple-choice questions, with a pass mark of 70%. The exam will cover both general and state-specific insurance topics and will be 2.5 hours long.

Identification

You will need to provide a current, signed form of identification that is government-issued and includes a photograph, signature, and an exact name match to the name used to register for the exam. Acceptable forms of identification include a driver's license, state-issued ID card, or military ID card.

Experience

To become an insurance broker in Massachusetts, you must have prior experience as a licensed insurance salesperson. This experience must be current, and you must have been affiliated with an active licensed insurance broker in the state. Additionally, you must have a minimum of three years of experience as a salesperson, working at least 25 hours per week during that time.

A $5,000 surety bond is required to become an insurance broker in Massachusetts. This bond must be completed, signed by an insurance agent, and signed by the principal candidate/examinee.

References

You will need three personal character references from individuals who are not related to you and are not classmates from your real estate classes. These references will vouch for your trustworthiness and competency, which are essential qualities for insurance brokers.

Taxes

Ensure that you have filed and paid all your state taxes as required by law. This is an important part of the application process and demonstrates your financial responsibility.

Meeting these basic requirements is the first step towards becoming a licensed insurance broker in Massachusetts. It is important to refer to the official Massachusetts government websites for the most up-to-date and accurate information, as requirements may change over time.

Take a pre-licensing course

To become an insurance broker in Massachusetts, you must take a pre-licensing course. This is a requirement for all candidates, as stated by the Massachusetts government website. The pre-licensing course will prepare you for the adviser licensing examination, which is necessary for obtaining your license.

There are different formats for completing the pre-licensing course, including classroom learning, web classes, online courses, or self-study. You can choose the format that best suits your learning style and preferences. The duration of the course may vary, but it typically covers all the essential topics you need to know for the exam.

During the course, you will learn about the fundamentals of insurance, the different types of insurance products, regulations, and ethical guidelines. You will also gain practical knowledge about the insurance industry, such as understanding policies, assessing risks, handling claims, and providing customer service. The course will equip you with the skills and knowledge to confidently sell or advise on insurance products.

The pre-licensing course will cover the topics outlined in the adviser licensing examination. This exam is administered by Prometric and consists of 100 multiple-choice questions, with a passing score of 70%. The exam will cover both general insurance concepts and Massachusetts-specific regulations. It is important to note that there may also be experimental questions on the exam that are not directly covered in the pre-licensing course.

By enrolling in a reputable pre-licensing course, you will increase your chances of passing the licensing examination on your first attempt. This step is crucial in your journey to becoming a licensed insurance broker in Massachusetts, as it provides the foundation for your future career in the insurance industry.

Pass the licensing exam

To become an insurance broker in Massachusetts, you must pass the licensing exam. This is a requirement for anyone wanting to work as an insurance broker in the state.

The Exam

The exam is administered by Prometric and consists of 100 multiple-choice questions. Of these, some are experimental and will be mixed in with the graded questions. These experimental questions might cover topics that weren't explicitly covered during pre-licensing educational courses, and they won't affect your final score. The pass mark for the exam is 70%.

Exam Codes

The relevant examination codes include:

• 16-53 Producer’s exam for property insurance (2 hours)
• 16-54 Producer’s exam for casualty insurance (2 hours)
• 16-57 Adviser’s exam for property & casualty insurance (2.5 hours)
• 16-58 Exam for public adjuster (2 hours)
• 16-61 Producer’s exam for personal lines (2 hours)

Exam Day

On the day of your exam, you must bring a current, signed form of government-issued identification with a photograph, signature, and an exact name match to the name you registered for the exam under. Examples include a driver's license or a military ID card.

Arrive at the test centre at least 30 minutes before the exam is due to start. You will need to verify your identification and be photographed. You cannot bring any personal items into the test centre, including phones, watches, and purses.

Results

Once you have completed the exam, your score will be shown on the screen, and you will receive a printed score report. This will include whether you passed or failed, your overall percentage score, and the percentage correct for each of the major sections of the exam. If you don't pass, you can schedule the exam again with no waiting period.

Apply for a license

To apply for a license to become an insurance broker in Massachusetts, there are a few key steps you need to follow. Here is a detailed guide to help you through the process:

Education Requirements:

Before applying for your license, it is important to ensure you meet the necessary educational requirements. The state of Massachusetts mandates that aspiring insurance brokers complete 40 hours of pre-licensing education. This can be done through classroom learning, web classes, online courses, or self-study. While pre-licensing education is not mandatory, enrolling in a study course is highly recommended due to the difficulty of the licensing exam.

Licensing Exam:

Once you have completed the required pre-licensing education, you must pass the state licensing exam. This exam is administered by Prometric and consists of 100 multiple-choice questions, with a passing score of 70% or higher. The exam will cover various insurance topics, including property insurance, casualty insurance, and insurance regulations specific to Massachusetts.

Application Process:

After successfully passing the licensing exam, you can proceed to apply for your insurance license. The application process typically involves submitting an application form, paying the associated fees, and providing any additional documentation or requirements specified by the state of Massachusetts. It is important to carefully review the application guidelines and ensure you meet all the eligibility criteria before submitting your application.

Maintain Your License:

To maintain your insurance broker license in Massachusetts, you will need to renew it periodically. This typically involves completing continuing education credits or courses to stay up-to-date with industry developments and changes in insurance regulations. Staying compliant with continuing education requirements is essential to keep your license active and avoid any lapses in your ability to practice as an insurance broker.

Additional Requirements:

In addition to the educational and examination components, there are a few other requirements you must meet to obtain your insurance broker license in Massachusetts. These may include age requirements (typically 18 years or older), residency status, and a clean professional record. Additionally, you may need to undergo a background check and provide character references to ensure you meet the state's standards for trustworthiness and competency in the insurance industry.

Complete required insurance continuing education

To become a Massachusetts insurance broker, you must complete required insurance continuing education. Every insurance producer must adhere to their home state's CE requirements. You can stay on top of your CE requirements and get ahead of the competition with 365 days of unlimited course access when you enrol in a CE library with Kaplan.

Kaplan offers Live Online, Live & OnDemand, and Self-Study Online insurance licensing solutions that provide a safe and convenient learning environment for students, customers, and the community. Their courses are based directly on the Massachusetts licensing exams, so you will be prepared to pass the first time.

Kaplan's exam prep courses cover the following topics:

• Life and health insurance products
• Financial protection from damage or injury
• Selling a variety of insurance plans directly to consumers
• Investigating and adjusting any claim in connection with an insurance policy

In addition to completing the required insurance continuing education, you must also pass a state licensing exam, apply for a Massachusetts insurance license, and meet other requirements as stated by the Massachusetts Division of Insurance.

Frequently asked questions