Becoming An Auto Insurance Agent In Maryland: A Guide

If you're looking to become an auto insurance agent in Maryland, you'll need to obtain a Maryland insurance license. The process involves four steps: figuring out which insurance license you need, completing a pre-licensing education course, passing the relevant Maryland Insurance License Exam, and submitting your insurance license application. The type of insurance policies you want to sell will dictate the type of license you need. For example, to sell auto insurance, you'll need a Property & Casualty (P&C) license. Once you've determined the type of license, you'll need to complete a pre-licensing education course, which will increase your chances of passing the licensing exam on your first attempt. After passing the exam, you can submit your license application through the National Insurance Producer Registry (NIPR) and pay the associated fees.

Complete a pre-licensing course

To become an auto insurance agent in Maryland, you'll need to complete a pre-licensing course. This is a mandatory step before you can take the state licensing exam. The pre-licensing course will cover various insurance concepts, definitions, insurance laws, and agent regulations. It is designed to give you a strong foundation to prepare for and pass your pre-licensing exam.

When choosing a pre-licensing course, look for one that is approved by the Maryland Insurance Administration. The duration of these courses can vary, but typically they require 20 hours of study. For example, the National Online Insurance School offers a Maryland pre-licensing insurance course that covers all the necessary topics for the exam. Their course includes instructional videos, interactive illustrations, practice exams, and student support.

Some providers, such as XCEL, offer different package options for their pre-licensing courses. Their basic package includes an online self-study course that satisfies state requirements, exam simulators, and printable review notes. On the other hand, their premium package includes additional resources such as a recorded exam review class and flashcards.

It's important to note that pre-licensing courses are specific to the type of insurance license you're pursuing. For example, if you're planning to sell auto insurance, you'll likely need a Property & Casualty (P&C) license. So, make sure to choose a pre-licensing course that aligns with the type of insurance license you intend to obtain.

Additionally, consider factors such as course flexibility, price, and provider reputation when making your decision. Completing a pre-licensing course will significantly increase your chances of passing the state licensing exam on your first attempt, so choose a course that best fits your needs and learning style.

Pass the Maryland Insurance Licensing Exam

To pass the Maryland Insurance Licensing Exam, you must first complete a pre-licensing course that is certified by the Maryland Insurance Administration. This course will cover various insurance concepts, definitions, insurance laws, and agent regulations that will be tested on the exam. The course will culminate in a final exam, which you must pass to receive a Certificate of Course Completion. This certificate is valid for six months, so you must take the state licensing exam within this period.

The Maryland Insurance Licensing Exam is administered by Prometric. The exam costs $62, and you can register for it online or over the phone. The exam is offered at various locations throughout the state, typically during weekdays and certain weekends. When registering, ensure that your demographics, including your SSN, are correct. You will need to bring a current form of photo identification (e.g., driver's license, passport) that matches the name on your exam registration.

Arrive at least 30 minutes before your scheduled appointment to allow time for check-in procedures. If you arrive late, you will not be permitted to take the exam, and you will forfeit your exam fee. The exam has a passing score of 70%. If you fail one portion of a two-part exam, you only need to retake and pass that specific portion within six months. If you fail the exam, you must wait four days before retaking it.

Submit an insurance license application

To submit an insurance license application in Maryland, you must first complete a pre-licensing course and pass the relevant state licensing exam. Once you have done this, you can begin the application process.

The application process is completed online through the National Insurance Producer Registry (NIPR) and requires a $54 filing fee. To apply, you will need to complete and submit the NAIC Uniform Application via the NIPR electronic licensing system. You will also need to address each background question on the application. If you answer "yes" to any of these questions, you will need to include a detailed written statement and any relevant official court documents.

Any other documents required as part of your application should be submitted through the NIPR Attachments Warehouse. It is important to note that misdemeanors or felonies may affect the outcome of your application. If you have any concerns about this, you can contact the Producer Licensing Unit of the Maryland Insurance Administration for guidance.

After submitting your application, the review process typically takes three to five weeks. However, if there are any issues with your background check, the process may take longer. Once the review is complete, the state will send you an email regarding the status of your license.

Plan to complete required insurance continuing education credits

To become an auto insurance agent in Maryland, you must complete required insurance continuing education credits. These credits are necessary to keep your insurance license active and must be completed every two years. The specific requirements for these credits are as follows:

• Producers in Maryland must take 24 hours of continuing education every 2-year license term, with 3 of those hours dedicated to ethics.
• If you have held a license continually for 25 years or are 70 or older, you may be eligible for a waiver and only need to complete 8 hours (including 3 ethics hours) every license term.
• The last day of your birth month every 2 years is the deadline for completion, and it must be finished 15 days prior to the license expiration date.
• Courses may not be repeated within the same 2-year license term or within 6 months of initial completion.
• There is a $1.15 per credit hour reporting fee, and the state requires reporting within 10 days of completion.
• For multiline Life/Health and Property/Casualty licenses, 6 hours must be completed in each line, with the remaining hours satisfied by either line.
• In addition to these general requirements, there are specific training requirements for Long-Term Care, Annuity, and Flood Insurance.

It is important to stay on top of your continuing education credits and plan to complete them within the given time frame to maintain your insurance license in Maryland.

Choose a means of selling

Once you have passed all required exams and your license application is approved, you will be a licensed insurance agent in Maryland. At this point, you will need to choose a means of selling. This means deciding whether you prefer working as a captive agent employed by one company or running your own business as an independent agent.

Working as a captive agent means you will be employed by a single insurance company and will only be able to sell that company's products. This option can provide more stability and security, as you will likely have access to more resources, training, and support from the company. You may also benefit from a steady salary and benefits package.

On the other hand, choosing to work as an independent agent means you will be running your own business. You will have the freedom to sell products from multiple insurance companies and can offer a wider range of options to your clients. As an independent agent, you will also have more flexibility and control over your business practices and may have higher earning potential. However, this option may require more initial investment and comes with additional responsibilities such as managing your own business operations and expenses.

Both options have their advantages and considerations, so it is essential to carefully evaluate your preferences, goals, and resources before making a decision.

Frequently asked questions