Becoming An Auto Insurance Agent In Kentucky: A Guide

If you're interested in becoming an auto insurance agent in Kentucky, the first step is to obtain a Kentucky insurance license. To do this, you'll need to complete a few key steps, including figuring out which insurance license you need, completing a pre-licensing education course, applying for a criminal background report, submitting your insurance license application, and passing the relevant Kentucky insurance license exam. Obtaining a Property and Casualty (P&C) license will allow you to sell auto insurance, among other types of insurance. Completing a pre-licensing education course with a reputable provider like Kaplan can increase your chances of passing your exam on the first try and getting licensed as soon as possible.

Complete a pre-licensing course

To become an auto insurance agent in Kentucky, you'll need to complete a pre-licensing course. This is a crucial step as it will dramatically increase your chances of passing your exam on the first attempt, which will save you time and money in the long run.

Kentucky law requires you to complete 20 hours of study for each major line of authority you wish to be licensed in. For example, if you want to sell auto insurance, you'll need a Property & Casualty (P&C) license, which is one of the most common types of licenses for insurance agents in the state.

When choosing a pre-licensing course, consider factors such as flexibility, price, and the course's reputation. Online courses are a popular option, and Kentucky has specific requirements for these, including time tracking and forced progression. This means you must complete each page of the course before moving on to the next.

Once you've completed your course, the provider will notify the Kentucky Department of Insurance electronically. However, it's a good idea to confirm that the Department has received this notification. If they haven't, you'll need to submit a signed and dated Certificate of Completion (Form CPL-01) to the Kentucky Department of Insurance.

Apply for a criminal background check

To become an auto insurance agent in Kentucky, you will need to apply for a criminal background check. This is a necessary step to obtaining your insurance license. Here is a detailed, step-by-step guide on how to apply for your criminal background check:

Step 1: Visit the AOC Website

Go to the KY Administrative Office of the Courts (AOC) website. From there, click on the "Apply for Criminal Background Report" option to initiate your application process. This is where you will begin the process of obtaining your criminal background report.

Step 2: Choose Your Request Type

Opt for the "One-Time Request" option. This will allow you to place a single order and receive your report by mail. You will then be able to submit this report directly to the Kentucky Department of Insurance. This is a crucial step to ensure your report is sent to the correct authority.

Step 3: Select the Necessary Details

On the record request page, specify the following:

• Category: Licensing
• Group: Dept of Insurance (DOI)
• Reason: Licensing

These selections will ensure that your criminal background report is tailored to the specific requirements of obtaining your insurance license in Kentucky.

Step 4: Submit and Pay for Your Request

Finally, submit your request and pay the associated fees. The criminal background check costs $25 plus a small transaction fee (2.25% or $2.50, whichever is greater). The fee must be paid via credit card or electronic check and is non-refundable. Please note that the results of your criminal background report will not be emailed directly to you or the Department of Insurance (DOI). Instead, all results for online requests can be found on the Kentucky Court of Justice's website.

Once your report is ready, you will receive an email notification with a link to access and view your report on the Kentucky Court of Justice website. You will then need to submit the report to the DOI either via email at [email protected] or through your KY eServices account.

It is important to note that your AOC criminal background report is valid for 60 days. If your licensing process takes longer, you will be required to apply for a new report.

Submit an insurance license application

Once you have completed your pre-licensing education and passed your criminal background check, you can submit your insurance license application. This can be done by visiting the National Insurance Producer Registry (NIPR) website and submitting your application. The application process incurs a fee of $40 per line of authority for which you are applying.

Remember to double-check all the information for accuracy and completeness before submitting your application. Incomplete or inaccurate applications can lead to serious delays in the licensing process.

After submitting your application, you will need to wait for it to be processed. This typically occurs within three to five business days. Once your application has been processed, you can schedule your examination through a secure eServices account.

To set up a new account, go to the Kentucky Department of Insurance's eServices portal and create an account, which will allow you to schedule your examination at a time and location that suits your personal needs.

Additional Information

• It is important to note that all insurance licensing examinations in the state of Kentucky cost $50.
• You can sit for more than one exam at a time, but it is recommended to avoid this route as passing the exam is challenging, and there is little to gain and a lot to lose by confusing separate line materials.
• It typically takes around three to five weeks to get an insurance license in Kentucky, depending on how long it takes to prepare for and pass the required exam and complete all the required procedures.

Pass the Kentucky insurance licensing exam

To pass the Kentucky insurance licensing exam, you must score 70% or higher. The exam is pivotal to becoming a licensed insurance agent in the state of Kentucky.

The exam is made up of multiple-choice questions, which cover both general and state-specific material. The general questions test your federal insurance product and agent knowledge, while the state-specific questions cover Kentucky insurance regulations and laws.

You can take the exam online or in person, and you must register and book it through the Kentucky Department of Insurance's website. The exam costs $50, and you can retake it as many times as you need, but you must pay the fee each time.

• Take a pre-licensing course: This will familiarise you with the large amount of content that will be on the exam. It is also a legal requirement in Kentucky. Kaplan offers a pre-licensing course with high pass rates.
• Make enough time to study: Not leaving enough time to prepare is a sure-fire way to fail the exam. Allocate one to two weeks to prepare, so you can go through the material at least twice.
• Control test anxiety: Establish a consistent pre-test routine, get plenty of sleep, study effectively, and arrive early to familiarise yourself with your surroundings.

You can also take a practice exam to prepare. Tests.com offers a free Life and Health Insurance Agent Practice Exam.

Plan for continuing education

To maintain your insurance license in Kentucky, you must complete 24 hours of continuing education every two years. This should include three hours of ethics training and at least six credit hours related to the line of authority for which you are licensed.

There are various course providers approved by the Kentucky Department of Insurance, such as eInsuranceTraining and Kaplan Financial Education, that offer online courses to help you renew your insurance license. These courses can be completed at your own pace and cover different types of insurance, such as life and health insurance, property and casualty insurance, and flood insurance.

It is important to plan ahead and complete the required number of credit hours before the license expiration date, which is typically the last day of your birth month every two years. Additionally, keep in mind that non-resident producers who have satisfied the continuing education requirements in their home state may be exempt from completing further education in Kentucky, as long as their home state's requirements are substantially similar.

Frequently asked questions