Becoming An Insurance Broker: Arizona Requirements And Steps

If you're looking to become an insurance broker in Arizona, you'll need to get licensed. In Arizona, insurance brokers are known as insurance producers, and they are individuals or business entities authorized to sell, solicit, or negotiate insurance on behalf of the client. Here's a step-by-step guide to help you get started on your journey to becoming an insurance broker in the Grand Canyon State.

Enroll in a pre-licensing course

Enrolling in a pre-licensing course is a crucial step in your journey to becoming an insurance broker in Arizona. While Arizona does not require you to take an exam prep course, it is highly recommended. This is because it significantly increases your chances of passing your insurance exam on the first try.

A pre-licensing course will help you make sense of complex insurance concepts and terms. You will be taught everything you need to know for the exam, such as what a "loss payable clause" is and how personal injury protection coverage works. These courses are designed to ensure you are well-versed in all the topics that will be covered in your licensing exam.

When choosing a pre-licensing course, it is important to consider the course's flexibility, price, and reputation. You should opt for a course that allows flexible learning and does not require completion within a short time frame. While cost is an important factor, it is also true that you get what you pay for. Therefore, it is advisable to invest in a course that will provide you with comprehensive preparation for your exam.

America's Professor is one reputable provider that offers exam prep courses. Their courses include a hardcopy textbook, 24/7 access to online streaming lectures, and world-class customer service until you pass. ExamFX is another popular choice, with over 81% of readers using their online courses, which come with a money-back guarantee.

Enrolling in a pre-licensing course is a significant investment in your future career as an insurance broker. It will provide you with the knowledge and confidence to pass your licensing exam and set you on the path to success in the lucrative insurance industry.

Register for the Arizona insurance exam

Registering for the Arizona insurance exam is a straightforward process. Firstly, it is important to note that Arizona insurance exams are administered by Prometric, and can be taken either in-person at a registered test centre or remotely via Prometric's ProProctor Application. To register, you must sign up through Prometric. It is recommended that you take the exam as soon as possible after completing your pre-licensing course, while the information is still fresh in your mind.

There are a number of different insurance exams available, depending on the type of insurance you wish to sell. For example, if you want to become a Life and Health insurance producer, you will need to pass the Life, Accident, and Health (13-33) insurance exam, which consists of 150 scored multiple-choice questions and must be completed within 2.5 hours.

It is important to be aware that, according to Arizona law, you are limited to four attempts to pass an exam for a particular line of authority within a one-year period. Therefore, it is crucial to prepare thoroughly for the exam. While Arizona does not require you to take an exam prep course, it is highly recommended to increase your chances of passing. These courses can help you understand complex insurance concepts and terms, and teach you everything you need to know to pass your exam.

After completing your exam, you will see your score on the computer screen, and the test centre staff will provide you with a printed score report. If you have failed the exam, you must retake the entire exam. You cannot just retake the sections on which you scored poorly. Therefore, it is important to focus your studies on the sections with the most questions and the areas in which you performed poorly.

Pass the exam and apply for a license

Once you've passed your exam, you'll need to get fingerprinted and apply for your Arizona insurance producer license. You can start selling or discussing insurance as soon as you receive your license.

To apply for a license, you must submit your application to the National Insurance Producer Registry (NIPR) online or send a paper application by mail. The NIPR online applications are processed more quickly than paper applications. You can pay the required non-refundable fees with a credit card if you apply online, or by check or money order if you apply by mail.

Your license will be available from the License Search option on the Arizona Department of Insurance website as soon as they verify you meet all the license requirements. You will not receive a printed license certificate. The application process can take up to one month, and you must not conduct any insurance business until you are licensed.

If your application is approved, you can use the License Search to view your license and ensure your license information is correct. You can use the NIPR to correct or update your information.

If your renewal application is denied, you will be informed of the reason and provided with instructions on your right to appeal the decision. If your application is deficient, you will be notified by email and must provide any additional materials identified. If you do not cure all the identified deficiencies, your application may be denied, and you will forfeit the fees you paid.

Complete a fingerprint and background check

To become an insurance broker in Arizona, you'll need to complete a fingerprint and background check. This is a necessary step to ensure that you, as an applicant, do not have a criminal or social services background that would prevent you from becoming a licensed insurance broker. Here's a detailed guide on how to complete this process:

Step 1: Understand the Requirements

Before initiating the fingerprinting process, it's important to determine if you need to submit your fingerprints. According to ARS §§ 20-142(E) and 41-1750(G)(2), you must provide fingerprints if any of the following apply:

• You are an Arizona resident and do not already hold an Arizona insurance license that required fingerprint submission.
• You are relocating to Arizona from another state.
• You are a resident of a state that does not issue the type of insurance license you're seeking in Arizona.

Step 2: Log in to the Department of Public Safety Public Service Portal

To initiate the fingerprinting process, log in to the Department of Public Safety Public Service Portal. If you don't already have an account, you'll need to create one as an "Individual."

Step 3: Enter the Fingerprinting Code

Once logged in, enter the appropriate fingerprinting code. For life, health, property, or casualty insurance broker licenses, the code is INS-055.A.

Step 4: Follow the Prompts and Pay the Processing Fee

Follow the remaining prompts on the portal to schedule your fingerprinting appointment. During this process, you'll be required to pay a processing fee. The fee for fingerprint card processing is $22.44.

Step 5: Attend Your Fingerprinting Appointment

During your fingerprinting appointment, you will be fingerprinted and provided with a reference number starting with the letter "A." Keep this reference number safely, as you'll need it for the next steps.

Step 6: Access the Fieldprint Arizona Site

After your fingerprinting appointment, visit the Fieldprint Arizona site to complete the livescan portion of the fingerprinting process.

Step 7: Schedule Your Appointment

On the Fieldprint Arizona site, click on "Schedule Appointment." Then, select the options "Don't have a Fieldprint Code" and "Continue with this Reason."

Step 8: Enter Your Reference Number

Enter the reference number you received during your fingerprinting appointment. Follow the remaining prompts and pay the required processing fee of $8.25.

Step 9: Obtain Criminal History Records (Optional)

You have the right to obtain copies of your state and federal criminal history records. If you choose to do so, contact the Arizona Department of Public Safety's Criminal History Records Unit at (602) 223-2222 for your Arizona criminal history record. For your federal criminal history record, submit a written request to the FBI's Criminal Justice Information Services Division via mail. There is an $18 fee for this service.

Step 10: Review and Challenge Criminal History Records (If Necessary)

If there are any discrepancies or issues with your criminal history records, you have the right to review and challenge them. For Arizona records, refer to the ADPS website for information on the review and challenge process. For FBI records, information on how to review and challenge your record is available on the FBI website.

By following these steps, you will complete the fingerprinting and background check portion of your insurance broker license application in Arizona. Remember to keep all necessary documentation organized and safely stored.

Submit your application

Once you have passed your exam and got fingerprinted, you can apply for your Arizona license. You can start selling or discussing insurance as soon as you receive your license.

You can submit your application either online or via mail. To apply online, go to the National Insurance Producer Registry (NIPR). Online applications are processed more quickly than paper applications. If you prefer to submit a paper application, you can download the NAIC Uniform Application for Individual Producer License form and submit it to the following address:

> Insurance Licensing Section SUITE 102 100 NORTH 15TH AVENUE PHOENIX, AZ 85007-2624

The fee for new insurance producer applications is $120, plus a $22 FBI background check fee. You can pay with a credit card if you apply online, or by debit/credit card, check, or money order if you submit your application by mail.

After you submit your application, the Arizona Department of Insurance will review it. You will then receive one of the following notices:

• Your application was approved. You can view your license on the License Search option on the Arizona Department of Insurance website.
• Your renewal application was denied. The notice will include the reason for the denial and instructions for appealing the decision.
• Your renewal application was deficient. You will be notified by email and must provide any additional materials identified in the notice. If you do not cure all identified deficiencies, your license may be denied and you will forfeit the fees you paid.

Please note that the Arizona Department of Insurance does not produce paper license certificates. You will be able to access your license online through the License Search option on the website. It can take up to one month to process your application, and you must not conduct insurance business until you are licensed.

Frequently asked questions