Jeffrey Wade
If you're interested in becoming an insurance agent in Colorado, there are a few key steps you need to follow. First, you must complete an approved prelicensing education course, which will provide you with the fundamental knowledge and skills needed to sell insurance. This includes a combination of self-study and instructor-led training, covering topics such as property and casualty, legal concepts, and ethics. After completing the required number of training hours, you'll need to pass a certification exam monitored by an unbiased third party. Obtaining your license typically involves passing a state exam and meeting specific requirements, such as providing a surety bond and a power of attorney. Additionally, certain companies may have their own application processes, including interviews and background checks, to ensure that their agents possess strong entrepreneurial skills and a relationship-oriented mindset.
| Characteristics | Values |
|---|---|
| License | Required to sell insurance in Colorado |
| License type | Property/Casualty & Life/Health |
| Prelicensing education | 50 hours for each line of authority |
| Prelicensing course providers | AD Banker, XCEL, Insurance Licensing Schools |
| Certification exam | Monitored by a disinterested third party, passing score of 70% or greater |
| State exam | Passing score of 70% or higher |
| License renewal | Every two years |
| Additional requirements | $20,000 signed Surety Bond from an insurance company, Power of Attorney |
| Application process | Background check, interview with Agency Manager and sales management team |
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What You'll Learn
Choose a line of authority: health, life, property and casualty, personal, etc
When becoming an insurance agent in Colorado, you will need to choose a line of authority that reflects the insurance products you intend to sell. This is an important decision, as it will determine the specific training and education you will need to complete.
The first step is to understand the different lines of authority available. The six major lines of authority, according to the NAIC's Producer Licensing Model Act (PLMA), are:
- Health: Health insurance covers medical expenses such as doctor visits, hospital stays, and prescription medications. Health insurance agents help clients find the right plan for their healthcare needs, whether individual or group policies. Accident and health insurance is also available, which covers accidents and illnesses not typically included in traditional health insurance plans.
- Life: Life insurance provides financial protection to the beneficiaries of the policyholder in the event of their death. Life insurance agents assist clients in selecting the most suitable policy type (e.g., term life, whole life) based on their personal circumstances.
- Property and Casualty: This line covers a wide range of policies, including automobile, homeowner's, renters, and commercial insurance. P&C insurance agents help clients protect their property and assets from damage, loss, or liability.
- Personal: Personal lines refer to property and casualty insurance sold to individuals and families for primarily non-commercial purposes.
In addition to these common lines of authority, there are other options that insurance agents can be licensed to sell, such as travel insurance, pet insurance, and specialty insurance products. Title insurance, for instance, protects property owners and lenders from financial losses due to defects in the title.
It is worth noting that most states, including Colorado, bundle property and casualty insurance into a single LOA, and personal lines are often included in this bundle. However, a few states offer these as separate LOAs, so it is important to check the specific requirements of your state.
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Complete pre-licensing education
To become an insurance agent in Colorado, you must complete an approved prelicensing education course. The Colorado Division of Insurance (CDI) requires potential agents to complete 50 hours of prelicensing education for each line of authority. The lines of authority include health insurance, life insurance, property and casualty insurance, and personal lines insurance. You can choose to be licensed in one or a combination of these lines.
There are various pre-licensing courses available online that can help you prepare for the Colorado insurance licensing exam. These courses provide access to exam simulators and study materials such as flashcards and recorded review classes. Some courses offer a standard package, while others offer a premier package with additional resources. It is important to select a course that covers all the topics included in the exam.
The pre-licensing education requirement for Colorado typically includes a certain number of hours of instruction in property, casualty, principles of insurance, legal concepts, and regulations and ethics. If you are already licensed in one line of authority, the hours required for principles, regulations, and ethics may be waived for the second line.
After completing your prelicensing course, you will need to take a certification exam monitored by a disinterested third party, who has no financial or personal connection to you. Passing the exam with a score of 70% or higher will earn you a Certificate of Completion, which is valid for one year. This certificate will be reported to the state by the training provider.
Within the year of obtaining your Certificate of Completion, you must take and pass the state exam and apply for your license. The Colorado insurance licensing exams also require a passing score of 70% or higher. There is an additional fee if you need to retake the exam, so it is advisable to pass on the first try.
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Pass the certification exam
To become a licensed insurance agent in Colorado, you must pass a certification exam. This is a requirement for all individuals who want to sell insurance in the state. The certification exam must be monitored by a disinterested third party, meaning someone who is not a friend, family member, or financial connection to you. An example of a disinterested third party is a librarian or test center employee.
The certification exam will cover in-depth product knowledge, industry terms, and insurance concepts relating to the specific license you are pursuing. This is known as the "general section". There is also a "state section" that covers rules and regulations found in the Colorado Revised Statutes (CRS) and the state of Colorado's licensing requirements.
To prepare for the exam, you can enroll in pre-licensing courses that are offered online and in-person. These courses will cover the topics outlined on the exam and help you develop a strong understanding of the material. It is important to choose a reputable provider that is approved by the Colorado Department of Higher Education, such as Kaplan Financial Education or AD Banker.
Once you have completed your pre-licensing education, you will be ready to take the certification exam. The passing score for the exam is 70% or higher. If you do not pass on your first attempt, you will need to pay an additional fee to retake the exam. Therefore, it is important to adequately prepare and aim to pass on your first try.
After passing the certification exam, you will receive a Certificate of Completion, which is valid for one year. This certificate will be reported to the state by the training provider. You will then need to take and pass the state exam and apply for your insurance license within the validity period of the Certificate of Completion.
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Pass the state exam
To pass the state exam, you must first complete an approved prelicensing education course. The Colorado Division of Insurance (CDI) requires potential agents to complete 50 hours of prelicensing education for each line of authority. You will need to choose which line of authority you want to be licensed in: health insurance, life insurance, property and casualty insurance, personal lines insurance, or any combination of those lines.
The prelicensing course will prepare you for the state exam, covering all the topics included in the exam. The exam will cover in-depth product knowledge, industry terms, and insurance concepts relating to the license you are pursuing. There will also be a section covering rules and regulations found in the Colorado Revised Statutes (CRS) and the State of Colorado’s licensing requirements.
You will need to achieve a passing score of 70% or higher for all Colorado insurance licensing exams. There is an additional fee if you need to retake the exam, so it is important to pass the test the first time. The Certification Exam must be monitored by a disinterested third party (someone who is not a friend, family member, or financial connection to you).
Kaplan Financial Education offers an in-class graded exam to test your readiness for the state exam. This exam must be passed with a score of 70% or greater in order to receive a certificate of completion. XCEL also offers pre-licensing courses and exam simulators to help prepare you for the state exam.
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Submit an application
To submit an application to become an insurance agent in Colorado, you must first complete an approved prelicensing education course. The Colorado Division of Insurance (CDI) requires potential agents to complete 50 hours of prelicensing education for each line of authority. You will need to choose which line of authority you want to be licensed in: health insurance, life insurance, property and casualty insurance, personal lines insurance, or any combination of those lines.
Once you have completed the required prelicensing education, you will need to take and pass the Certification Exam, which must be monitored by a disinterested third party (someone who is not a friend, family member, or financial connection to you). A passing score is 70% or higher for all Colorado insurance licensing exams. After passing the Certification Exam, you will receive a Certificate of Completion, which will be valid for 1 year.
Within this 1-year period, you will need to take and pass the state exam and submit your license application. You can use either Sircon/Vertifore or NIPR to apply for your license. Pursuant to §10-2-417(2), C.R.S. and Colorado Insurance Regulation 1-2-19, you must provide a $20,000 signed Surety Bond from an insurance company and a Power of Attorney in the format defined in the regulation.
In addition, some companies may have their own application processes. For example, Farm Bureau® Insurance has a thorough application process that includes an interview with your prospective Agency Manager and other members of the sales management team. Following the interview, you will need to obtain your insurance licenses by taking the necessary exams and applying for your license through the state.
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Frequently asked questions
To become an insurance agent in Colorado, you must complete an approved prelicensing education course. You will need to choose which line of authority you want to be licensed in: health insurance, life insurance, property and casualty insurance, personal lines insurance, or any combination of those lines. Each line of authority requires 50 hours of prelicensing education. You will then need to pass a state exam and apply for your license.
First, you must complete the required prelicensing education for your desired line of authority. Then, you will need to pass the state exam with a score of 70% or higher. After passing the exam, you will need to apply for your license within one year. Your license will need to be renewed every two years.
Farm Bureau Insurance is a top-rated company with state and national brand recognition that hires insurance agents in Colorado. They offer the flexibility of running your own business and commission-based compensation.
AD Banker, Kaplan Financial Education, and XCEL Solutions all offer online pre-licensing courses and resources to help you prepare for the Colorado insurance licensing exam. These courses cover the fundamentals and satisfy any state requirements.
