Becoming An Auto Insurance Broker: The New York Guide

If you're considering becoming an auto insurance broker in New York, there are several requirements you must meet. One of the most important is obtaining the proper licenses. Each state imposes different licensure requirements, which can make the process a little complicated. In New York, you must obtain a license from the state's Department of Financial Services (DFS). This guide will take you through the steps to becoming an auto insurance broker in the state.

Complete high school or university

While it is not a requirement to have a high school or university degree to become an insurance broker in New York, completing high school and pursuing further education can help develop important skills necessary for a career as an insurance broker. Courses in communication, business, finance, and accounting can all be helpful for this profession. Degrees in business administration, marketing, and finance are also great options to consider for this career.

Communication courses can help you develop the skills needed to interact with clients and understand their needs. Courses in business, finance, and accounting can provide a strong foundation for understanding the financial aspects of insurance and the business world in general.

If you are still in high school and planning for a career as an insurance broker, consider taking relevant courses that will provide a solid base of knowledge and skills for your future endeavours. This might include classes in economics, mathematics, or business studies. Building a strong foundation in these areas can make it easier to pursue further education in related fields, such as a degree in business administration or marketing, which are highly relevant to a career as an insurance broker.

Pursuing a university degree is not necessary but can be advantageous. A degree in business administration, for example, can provide a comprehensive understanding of business principles, management, and marketing strategies. This knowledge will be directly applicable to your work as an insurance broker, where you will be helping clients make informed choices about their insurance coverage. Similarly, a degree in marketing can enhance your understanding of consumer behaviour and effective communication strategies, which are crucial skills when working with clients.

In addition to the knowledge gained, completing a university degree demonstrates dedication, work ethic, and a capacity for higher-level critical thinking. These soft skills are highly valued by employers and can set you apart from other candidates when applying for insurance broker positions.

Take a pre-licensing course

To become an auto insurance broker in New York, you must complete a pre-licensing course. This is a requirement in New York before you can apply for your broker's license.

The pre-licensing course will prepare you for the insurance agent licensing examination. It will give you exposure to the kinds of questions and topics that will appear on the exam, helping you feel more confident when taking it. Pre-licensing courses may include practice tests, presentations on exam materials, and private tutoring sessions.

Pre-licensing courses can be taken online or in a traditional classroom setting. They come with minimum hour requirements, which vary depending on the line of authority you wish to pursue. For example, a Property/Casualty Broker license requires 90 hours of pre-licensing education, whereas a Life Broker license only requires 20 hours.

It's important to note that not everyone needs to complete pre-licensing education to obtain an insurance broker license in New York. If you have certain designations, such as Chartered Life Underwriter (CLU) or Chartered Property Casualty Underwriter (CPCU), you may be exempt from the pre-licensing course requirement and only need to take specific exams.

Make sure to choose an accredited pre-licensing course provider and check the specific hour requirements for your desired line of authority to ensure you meet the necessary qualifications for your New York insurance broker license.

Pass the New York insurance licensing exam

The New York insurance licensing exam is administered by PSI Services, and you can register and book all your licensing examinations through the PSI website. The exam can be carried out online or in person at PSI testing centers located in various cities across New York State.

The exam costs $33 per attempt and consists of 150 multiple-choice questions that must be completed in 2.5 hours. The tests are divided into Life, Accident, & Health (LA&H) and Property & Casualty (P&C). If you wish to practice in both combined lines, you must pass both exams. Otherwise, you only need to take the test for the line you plan to specialize in.

To pass the exam, you need a score of at least 70%. Your score will be shown to you upon completion. If you pass, the overall score will be displayed. If you fail, a diagnostic report showing your strengths and weaknesses will also be provided. The test results are valid for two years, and you must apply for your New York insurance license within this timeframe.

Before taking the test, you will be asked to present one valid signature-bearing ID with your photo and the original copy of your pre-licensing education certificate. Here is a list of valid identification documents:

• State-issued driver's license
• State-issued identification card
• US military identification card
• US-issued alien registration card
• Canada-issued government ID

If you can't provide the required documents, you will not be allowed to take the test and will forfeit your payment.

To increase your chances of passing the exam on your first attempt, it is recommended to take a pre-licensing education course. This will give you exposure to the types of questions and topics covered in the exam. Pre-licensing courses may include practice tests, presentations on exam materials, and private tutoring sessions.

• Make sure you allocate enough time to study. It is recommended to allocate around one to two weeks to prepare, allowing you to go through the material at least twice.
• Control your test anxiety by establishing a consistent pre-test routine and getting plenty of sleep in the week leading up to the exam.
• Arrive early on exam day to get used to your surroundings and check in with the center's administrator.

Apply for a New York insurance license

Once you have passed the New York Insurance Licensing Exam, you can apply for a New York insurance license. This application must be submitted within two years of passing the exam.

The application must be submitted to the New York Department of Financial Services (DFS). There is a $40 fee for individual licenses, and separate fees for multiple licenses. Non-residents must submit a non-resident application form and pay the relevant fees, which vary depending on the state in which they live.

You will need to wait at least 48 hours after passing the exam before applying for a license, to give the department time to process the exam results.

You can check if your application has been approved or rejected through the NY Insurance License Lookup Tool. If your application is approved, you can use the DFS portal to request a PDF copy of your license. The department does not mail printed licenses, so you will need to print your own copy.

The DFS reviews all applications, and there is no specific timetable for this process. If something comes up in your background check, the DFS may contact you to clarify, which can slow down the process. If you suspect there is a delay or error, you can contact the licensing department on 518-474-6630 or email [email protected].

Additional Steps to Becoming an Auto Insurance Broker in New York

In addition to the steps outlined above, there are a few other requirements to consider when becoming an insurance broker in New York.

Firstly, it is important to complete high school or university. Although this is not a requirement, formal education can help develop important skills necessary for the role. Courses in communication, business, finance, and accounting can be particularly helpful. Degrees in business administration, marketing, and finance are also great options.

Secondly, you should gain some entry-level work experience in the insurance industry. This could involve working as an assistant insurance agent, where you can observe agents and brokers giving customers guidance on insurance policies.

Finally, you can look for broker positions in both large and small insurance agencies. It is important to find out how much experience is required for the position, as some companies may hire brokers with limited insurance experience if they possess relevant skills and some sales or customer service experience.

Look for auto insurance broker positions

Once you have your license, you can start looking for auto insurance broker positions in New York. You can find these positions in both large and small insurance agencies.

When starting your search, it is important to find out how much experience is required to qualify for the position. Some companies may hire auto insurance brokers with limited insurance experience if they possess relevant skills and some sales or customer service experience.

If you're seeking employment at a large agency with many branches, consider researching the largest firms and visiting their websites to look for open positions for auto insurance brokers in your area. You can also use job search websites like Indeed or Yelp to find auto insurance broker positions in New York. For example, a quick search on Yelp for "auto insurance broker in New York, NY" yields results for the "Top 10 Best Auto Insurance Broker" options in the city, including:

• Allstate Insurance: Kelly Qu Agency
• Three Star Brokerage
• David J. Louie - General Insurance Agency
• Steve Fay - State Farm Insurance Agent
• No 1 Insurance Brokerage
• Brock Barrett - State Farm Insurance Agent
• Sky Capital Group
• Allstate Insurance: Earl Coy
• New York Choice Insurance Agency

In addition to searching for open positions, you can also consider reaching out to your network or attending industry events to showcase your interpersonal skills and make connections that could lead to potential job opportunities.

Frequently asked questions