Becoming An Insurance Broker: Louisiana Requirements And Steps

Becoming an insurance broker in Louisiana involves several steps, from obtaining a license to completing pre-licensing education and passing the relevant exams. To begin, individuals must decide on the type of insurance license they need, such as Property and Casualty or Life and Health, as this will dictate the specific license requirements. Completing a pre-licensing education course is highly recommended, as it increases the chances of passing the licensing exam on the first attempt. The next step is to pass the relevant Louisiana Insurance License Exam, which is administered by PSI, and achieve a minimum score of 70%. Following this, applicants must undergo a fingerprinting and background check process, which is mandatory for all Louisiana resident insurance producer license applicants. Finally, individuals can submit their insurance license application through the National Insurance Producer Registry (NIPR), along with the required processing fee.

Decide on your education

To become an insurance broker in Louisiana, you'll need to decide on your education. While there is little formal education required, most states mandate a high school diploma or minimal post-secondary coursework. A post-secondary education can give you a solid background of knowledge, enhance your resume, and potentially increase your employment opportunities.

You could pursue an associate degree, a bachelor's degree, or another training program. Common degree programs for insurance brokers include business administration and communications. Some educational institutions also offer a degree in insurance and risk management, though these are less common.

If you decide to pursue a bachelor's degree, consider majoring in accounting, business, finance, or a related field. By pursuing advanced education, you can become an expert in the field and gain more qualifications, which may help attract clients.

Additionally, consider taking advantage of internship opportunities during your education. An internship with an insurance firm can provide valuable experience and allow you to apply your knowledge in a professional environment.

Remember, while the educational requirements for becoming an insurance broker are minimal, furthering your education can give you a competitive edge and enhance your career prospects.

Choose a specialty

The type of insurance license you pursue will dictate the types of insurance policies you can sell. For example, a Property & Casualty (P&C) license is required to sell auto, home, or business insurance. Other types of insurance licenses available in Louisiana include Health and Accident or Sickness, Life, Health and Accident or Sickness, and Property and Casualty.

Most insurance agents obtain either a Property and Casualty (P&C) or Life and Health license. Many agents obtain both licenses to offer clients a wider range of insurance products. However, if you want to specialize in one particular type of policy, you can focus on the specific license that is relevant to that insurance type.

If you plan on selling advanced life insurance products, you will need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses (e.g., Series 6, 7, and 63).

• Accident and Health Insurance: This insurance helps cover medical costs such as medicine and procedures.
• Homeowners Insurance: This insurance protects residences and items inside the home, such as appliances.
• Automobile Insurance: This insurance provides coverage for vehicles and helps replace them in case of damage.
• Life Insurance: This insurance pays a certain amount to beneficiaries in the event of a policyholder's death.
• Flood Insurance: This insurance is important for people living in areas prone to flooding, as it covers damages to property caused by flooding.
• Professional Liability Insurance: This insurance protects employees from losses and damages that may occur in their business due to errors.
• Cyber Insurance: This type of insurance protects against damages caused by cyber-attacks and is useful for anyone using computers as part of a business.
• Workers' Compensation Insurance: This type of insurance provides coverage for employees who are harmed or injured in the course of their regular work duties.
• Errors and Omissions (E&O) Insurance: E&O insurance protects against claims beyond those covered by professional liability insurance.
• Commercial Automobile Insurance: This insurance protects vehicles used for business purposes, such as completing work-related duties.

Meet pre-licensure requirements

To become an insurance broker in Louisiana, you must meet the state's pre-licensure requirements. While the pre-licensing education course is not mandatory in Louisiana, it is highly recommended. These courses are designed to prepare you for the licensing exam and provide a comprehensive overview of the industry and its regulations. By enrolling in pre-licensing training, you will increase your chances of passing the exam on your first attempt, saving you both time and money. The courses cover various topics, including the different types of insurance licenses, such as Health and Accident, Life, Health and Accident, and Property and Casualty.

When choosing a pre-licensing education course, consider factors such as flexibility, price, and the course's reputation. The cost of these courses typically ranges from $100 to $300. It is important to note that the Bail Bond producer license is the only license in Louisiana that requires pre-licensing education.

After completing your pre-licensing education, you will need to pass the relevant Louisiana insurance license exam. The exam you take will depend on the type of insurance you plan to sell. For example, if you want to become a property and casualty insurance agent, you will need to pass the Property and Casualty producer exam, which consists of 150 scored questions. The cost of the exam ranges from $15 to $53, and a minimum score of 70% is required to pass.

In addition to the exam, you will also need to complete a fingerprinting and background check process. This is mandatory for all applicants for the Louisiana resident insurance producer license. Your fingerprints will be electronically submitted to the Louisiana Department of Insurance, and the processing fee for this service is $39.25. The background check ensures that all candidates meet the required legal standards for licensure.

Once you have completed your pre-licensing education, passed the exam, and cleared the background check, you can submit your insurance license application through the National Insurance Producer Registry (NIPR). The processing fee for each insurance producer license application is $75, with an increased fee of $250 for the surplus lines authority.

Pass the licensing exam

To pass the licensing exam for insurance brokering in Louisiana, you must first meet the exam qualifications. You must be at least 18 years old, be a resident of Louisiana, and not have committed any act that is grounds for denial, suspension, or revocation of an insurance license.

Next, you should prepare for your state exam by taking an insurance course from a Louisiana insurance school. This will give you a comprehensive overview of the industry and its regulations and prepare you for the licensing examination. The cost of these courses generally ranges from $100 to $300.

Once you have completed your pre-licensing course, you can schedule your state licensing exam online or by phone. The exam is administered by PSI, and the cost ranges from $15 to $53 depending on the specific license you are pursuing. The exam will be taken on a computer, and you will need to bring two valid forms of government-issued identification, one of which must contain your name and photograph.

The exam experience will depend on the line of authority you are testing for. For example, the Louisiana Life Insurance Examination has 100 questions with a 2-hour time limit and a passing score of 70%. On the other hand, the Louisiana Property and Casualty Insurance Examination has 150 questions with a 3-hour time limit and the same passing score of 70%.

Apply for a license

To apply for a license as a Louisiana resident, you must fulfill the following requirements:

Complete Pre-Licensing Education and Exam

Although not mandatory, it is highly recommended to complete a pre-licensing education course. These courses are designed to prepare you for the licensing examination and provide a comprehensive overview of the industry and its regulations. The cost of these courses varies, but it is generally between $100 and $300.

Submit All Forms and Fees

You will need to submit your application through the National Insurance Producer Registry (NIPR) and pay a processing fee of $75 per insurance producer license application. If you are applying for a surplus lines authority, the fee is increased to $250.

Pass a Background Check

All applicants for the Louisiana resident insurance producer license must submit to fingerprinting, which is then used to conduct a comprehensive background check. You can have your fingerprints taken on the day of your examination at the designated PSI testing center for a $39.25 state processing fee. The processing of your fingerprints may take up to four weeks.

Frequently asked questions