Becoming An Insurance Broker: Maryland Requirements And Steps

Becoming an insurance broker in Maryland involves several steps, including educational and licensure requirements. While a college degree is not mandatory, earning one can enhance your knowledge, improve your resume, and increase your job prospects. Common degree choices include business, economics, or finance. The next step is to choose a specialty, such as casualty, property, liability, accident, health, life, disability, commercial, automotive, or home insurance. Most states, including Maryland, require insurance brokers to obtain a license, and Maryland has specific pre-licensing requirements that must be met. These include completing an approved prelicensing course, such as those offered by Kaplan, and passing a state licensing exam. After successfully passing the exam, you can apply for a Maryland insurance license through the National Insurance Producer Registry (NIPR) website. It is important to stay informed about the specific rules and regulations for insurance brokers in Maryland, as outlined by the Maryland Insurance Administration.

Check Maryland's specific requirements

Each state has its own set of rules, laws, and regulations for brokers. Maryland requires insurance brokers to have a license. To obtain a license, you must complete a pre-licensing course and pass a state licensing exam. The Prelicensing Education Waiver Application form can be found on the Maryland Insurance Administration (MIA) website.

Maryland offers different types of licenses, including:

• Accident and Health
• Personal Lines
• Adjuster Licensing
• Life and Health
• Property and Casualty
• Personal Lines
• Adjuster

The specific requirements for each license vary, but all require a minimum number of prelicensing education hours. For example, Accident and Health and Personal Lines each require 20 hours of prelicensing education.

After completing the required prelicensing education, you must pass the Maryland licensing exam. The exam is administered by Prometric, and you can find more information on their website. Once you have passed the exam, you can apply for your license through the National Insurance Producer Registry (NIPR) website.

In addition to the prelicensing education and exam, most states also require a background check and fingerprints. Some states may also require an insurance bond, which is a type of surety bond that guarantees the financial capability of the broker.

Complete pre-licensing requirements

To become an insurance broker in Maryland, you must complete the pre-licensing requirements. This involves taking courses from the state's licensing board or an approved organisation, such as Kaplan Financial Education, and then passing an exam to qualify. The standard pre-licensing requirements are a minimum number of hours of coursework in specific insurance fields, such as Accident and Health, and Personal Lines. However, some states, including Maryland, may exempt prospective licensees from such requirements if they can submit evidence of relevant work experience.

During the pre-licensing phase, you will learn the basic job duties of an insurance broker, which will prepare you for passing your licensing exam. In Maryland, you will need to complete an insurance prelicensing course, which will give you a significantly higher chance of passing your licensing exam. The prelicensing education hour requirements for Accident and Health, and Personal Lines, are both 20 hours.

Some states require you to submit your fingerprints for a background check as part of the pre-licensing requirements.

Pass the licensing exam

To pass the licensing exam for becoming an insurance broker in Maryland, you must first meet the pre-licensing requirements. This includes completing the required coursework, which will teach you the fundamentals of being an insurance broker. You will also need to submit your fingerprints for a background check in most states.

The broker exam covers state laws and insurance products, and you may need to take multiple exams if you plan to work in more than one insurance area. For example, if you want to sell health insurance in Maryland, you will need to complete 20 hours of prelicensing education in accident and health.

Most states offer short-term courses to help you prepare for the insurance broker exam. The exam is typically in a multiple-choice format and taken on a computer. You will usually find out immediately whether you have passed. If you don't pass on your first attempt, you can reschedule and take the test again.

Apply for a license

Once you've passed the licensing exam, you can apply for a license to operate as an insurance broker in Maryland. This typically involves filling out an application form, providing proof of meeting all the pre-licensing requirements, and submitting proof of passing the licensing exam, along with paying an application or processing fee.

The application process for a Maryland insurance license involves submitting your application to the National Insurance Producer Registry (NIPR). The NIPR website provides detailed information on the requirements and guidelines for obtaining a resident insurance license in Maryland. It is important to note that the requirements and guidelines may be subject to change, so it is recommended to refer to the official sources for the most up-to-date information.

After receiving your official license, you can begin discussing, soliciting, and negotiating insurance sales. You can also start building your own client base or apply for positions with insurance agencies or brokerages. It is worth noting that most states, including Maryland, require the completion of continuing education courses to renew licenses periodically. This ensures that insurance brokers stay up-to-date with industry changes and maintain their knowledge and skills.

In addition to the standard license, Maryland offers different types of licenses depending on the specific line of authority you intend to practice. These include:

• Life and Health insurance license
• Property and Casualty insurance license
• Personal Lines insurance license
• Adjuster license

Each of these licenses has its own set of requirements and qualifications that you must meet to obtain them. It is important to carefully review the specific guidelines provided by the Maryland Insurance Administration to ensure you are applying for the correct license and fulfilling all the necessary criteria.

Pursue optional certifications

While a college degree in a related field and a license via the National Insurance Producer Registry are the main qualifications to become an insurance broker, there are several optional certifications you can pursue to give your job applications a boost and increase your potential salary. These certifications demonstrate your competency as an insurance broker to employers.

Certified Professional, Life and Health Insurance Program (CPLHI)

The Certified Professional, Life and Health Insurance Program (CPLHI) is a three-course education program in Bahasa Indonesia. It is specifically designed to meet the industry education requirements of professionals in Indonesia and is recognised by the Insurance Directorate, Ministry of Finance and the Life Assurance Association of Indonesia (AAJI). This certification does not require more than two years of work experience and there is no renewal requirement.

Certified Insurance Examiner (CIE)

A Certified Insurance Examiner (CIE) is awarded to insurance regulatory professionals who have attained the AIE in one field and cross-trained in the other field. To earn a CIE, applicants must have previously earned (or meet the educational requirements to earn an AIE) under either the Property-Casualty Educational Path or a Life-Health Educational Path. They must also complete the required coursework following the same path, as well as meet certain employment and experience requirements. The CIE certification requires more than two years of education or work experience after high school, but it does not require an oral or written exam. Renewal of this certification is required every year.

Certified Sales Professional (CSP)

The Certified Sales Professional (CSP) program offers a comprehensive understanding of consultative selling. It covers various topics, including business creation, time and territory management, goal-setting, and prospecting. The CSP certification requires more than two years of education or training after high school and more than two years of work experience. It also requires passing an oral or written exam. Renewal of this certification is required every three years.

Certified Management Accountant (CMA)

The Certified Management Accountant (CMA) is an advanced professional certification that measures accounting and financial management skills relevant to driving business performance. This certification is designed for individuals with more than two years of education or training after high school and more than two years of work experience. It requires passing an oral or written exam, and renewal is required annually.

Health Insurance Associate (HIA)

The Health Insurance Associate (HIA) designation is a comprehensive program that provides a thorough knowledge of the marketing, administration, and evaluation of various kinds of insurance coverage. It covers principles, contracts, underwriting, and marketing. More than 20,000 professionals have earned this designation. This certification requires more than two years of education or training after high school, but it does not require work experience. Passing an oral or written exam is necessary to earn this certification.

International Accredited Business Accountant (IABA)

The International Accredited Business Accountant (IABA) accreditation is awarded by the Accreditation Council for Accountancy (ACAT). Candidates for this accreditation must satisfy an experience requirement, including three years of related work experience in accounting, financial services, or other fields requiring practical and theoretical knowledge. Passing the ACAT Comprehensive Examination is also required. This certification does not require more than two years of education or training after high school, but it does require work experience. There is no renewal requirement for this certification.

Associate in General Insurance (AINS)

The Associate in General Insurance (AINS) designation provides a comprehensive knowledge of insurance principles, practices, policies, and coverages. It includes optional electives that allow individuals to focus on areas relevant to their professional goals. This certification does not require more than two years of education or training after high school or work experience. Passing an oral or written exam is required to earn this designation.

Chartered Property Casualty Underwriter (CPCU)

The Chartered Property Casualty Underwriter (CPCU) is a respected designation in property-casualty insurance. Holding this designation identifies individuals as knowledgeable and dedicated professionals. It is designed for individuals with more than two years of education or training after high school and more than two years of work experience. Passing an oral or written exam is required. This certification is widely recognised and can enhance career opportunities.

Frequently asked questions