Becoming An Insurance Broker: Minnesota Requirements And Steps

Becoming an insurance broker in Minnesota requires a specific set of steps to be followed. These include educational and licensure requirements that allow you to practice as an insurance broker. The process involves completing pre-licensing requirements, such as taking an insurance prelicensing course, passing a background check, and getting fingerprinted. After fulfilling these prerequisites, individuals must pass the licensing exam and apply for their insurance license. Additionally, it is important to be aware of the required insurance continuing education (CE) credits and complete them to maintain the license.

Check Minnesota's pre-licensing requirements

Minnesota requires those seeking an insurance license to complete prelicensing before taking the state licensing exam. This includes 20 hours of pre-licensing training for all major insurance lines of authority, including Personal Lines, Property, Casualty, Life, and Accident and Health.

The state also requires candidates to take and complete a state-approved prelicensing course. You will also need to apply to your license with the state insurance department and register for the state licensing exam. Make sure to register for all three (prelicensing course, license application, and state exam) using the personally identifiable information that appears on your government-issued ID. Discrepancies will delay the licensing process.

You must complete your prelicensing course and receive a certificate of completion before taking the state examination. If you take the state exam before completing the prelicensing education, your exam results will be invalidated, and you will have to retake it.

After completing your prelicensing course, you will need to take (and pass) the relevant Minnesota insurance license exam. The cost of your exam will be either $25 or $45, depending on the insurance line in question.

You may be exempt from the prelicensing education requirement if you have:

• A two-year Minnesota vocational school degree in insurance
• A four-year college degree in business with an emphasis on insurance
• Specific qualifications (e.g., ChFC, CIC, CFP, CEBS, CLU, etc.) and are applying for a Life insurance license
• Specific qualifications (e.g., AAI, ARM, CIC, CPCU, etc.) and are applying for a Property, Casualty, or Personal Lines insurance license

However, even if you are exempt, completing a course is highly recommended as it can increase your chances of passing the licensing exam on your first attempt.

Submit fingerprints and pass a background check

To become an insurance broker in Minnesota, you must submit your fingerprints and pass a background check. This is a necessary step to obtaining your insurance license.

Fingerprinting services are available at various locations across the state, including police departments, sheriff's offices, and other government agencies. Some private companies also offer fingerprinting services.

When choosing a fingerprinting location, you may want to consider whether they offer electronic submission of fingerprints or if they use fingerprint cards. Electronic submission, often referred to as Live Scan, transmits your fingerprints directly to the relevant background check organization, such as National Background Information. This method provides faster service.

On the other hand, some locations will provide you with a standard fingerprint card, typically the FD-258 card, which you will then need to submit to the organization conducting the background check. This process may take longer.

It is important to note that pricing and services may vary by location. Some locations may charge additional fees for fingerprint rolling or submission (electronic or mail).

Before visiting a fingerprinting location, it is recommended to contact them in advance to confirm their services, hours of operation, and any applicable fees. This will ensure that you are well-prepared and aware of the requirements specific to that location.

By completing the fingerprinting process and passing the background check, you will be one step closer to obtaining your insurance broker license in Minnesota.

Take the broker exam

To become an insurance broker in Minnesota, you must pass the broker exam. This is also known as the Minnesota Licensing Exam.

The broker exam is a state licensing exam that you must pass to become an insurance broker in Minnesota. The exam is designed to test your knowledge of insurance laws, regulations, and practices specific to the state. It is important to note that Minnesota requires those seeking an insurance license to complete prelicensing before taking the state licensing exam. Prelicensing courses are offered by various educational institutions, such as Kaplan Financial Education, and are designed to prepare you for the broker exam. These courses cover topics such as insurance basics, accident and health insurance, and personal lines insurance.

Once you have completed the required prelicensing education, you can schedule your broker exam. The exam is administered by PSI Services, and you can find more information on their website or by calling them. There are several PSI Services Examination Centers located across Minnesota, including in Rochester, St. Paul, Willmar, Woodbury, Blaine, Brainerd, Duluth, Eagan, and Mankato.

On the day of the exam, make sure to arrive early and bring all the necessary identification and documentation. The exam will test your knowledge of various insurance topics, and it is important to be prepared and well-rested. The broker exam typically covers a range of topics, including insurance laws, regulations, ethics, and specific insurance products. It is important to familiarize yourself with the format and content of the exam beforehand.

After completing the broker exam, you will receive your results. If you have passed, congratulations! You are one step closer to becoming a licensed insurance broker in Minnesota. If you did not pass, don't worry; you can retake the exam after a certain period. Check with the PSI Services or the Minnesota Department of Commerce for specific guidelines and requirements for retaking the exam.

Remember, the broker exam is a crucial step in obtaining your insurance broker license in Minnesota. By preparing thoroughly and understanding the exam process, you can increase your chances of success and embark on a rewarding career in the insurance industry.

Submit your application

Once you have passed your state licensing exam, you are ready to apply for an insurance license. You can apply for a license through the National Insurance Producer Registry (NIPR) website. You will need to fill out an application form and provide proof of meeting all the pre-licensing requirements, as well as proof of passing the licensing exam. There may also be an application or processing fee, so be sure to check the requirements for your state.

After receiving your official license, you can begin discussing, soliciting, negotiating, and transacting insurance sales. You can also start building your own client base or apply for jobs with insurance agencies or brokerages.

It is important to note that most states also require the completion of continuing education courses to renew licenses. Be sure to check the requirements for your state and stay up to date with any changes to maintain compliance with insurance laws and regulations.

Get an insurance broker bond

To become an insurance broker in Minnesota, you must obtain an insurance broker bond. This is a crucial step in the process, as it serves as a commitment to the state to operate with integrity and protect your clients' interests.

An insurance broker bond is a type of surety bond that insurance brokers must purchase before they can start their practice. It is a legal agreement between the broker and the state, ensuring that the broker will conduct business ethically and in compliance with relevant laws and regulations. The bond protects the clients of the insurance broker by safeguarding their financial and personal well-being.

The cost of an insurance broker bond can vary depending on the state and the broker's financial strength. Typically, these bonds cost between 1-15% of the required bond amount, which is assessed based on factors such as personal credit history and business financials. Obtaining a bond with bad credit is possible, but it may result in higher rates.

When applying for an insurance broker bond, it is essential to select a reputable company that offers competitive rates and provides excellent customer service. One such company is JW Surety Bonds, which claims to be the nation's largest volume bond producer and offers a 100% money-back guarantee if your bond is not accepted.

To summarize, getting an insurance broker bond is a critical step in becoming an insurance broker in Minnesota. It ensures that brokers operate with integrity and in the best interests of their clients. By purchasing this bond, brokers can protect their clients' financial and personal information and comply with state regulations.

Frequently asked questions