Becoming An Insurance Broker: Navigating The Ny Pathway

If you're considering becoming an insurance broker in New York, there are several key requirements to consider. These include education, experience, and training. The process of becoming a licensed insurance professional in New York is relatively straightforward, but it's important to understand the necessary steps to succeed in this career. In this competitive industry, it's crucial to have the right combination of skills, knowledge, and qualifications to stand out and effectively serve your clients.

Complete a pre-licensing course

To become an insurance broker in New York, you must complete a pre-licensing course. This is a requirement in New York before you can apply for a broker's license. The pre-licensing course will give you exposure to the kinds of questions and topics that will appear on the licensing exam. It will also help you feel more confident when taking the exam. Pre-licensing courses may include practice tests, presentations on exam materials, and private tutoring sessions.

The number of hours required for the pre-licensing course depends on the type of insurance license you are seeking. For example, a Life, Accident, and Health Agent license requires 40 hours, while a Life Agent license or an Accident and Health Agent license requires only 20 hours. A Property/Casualty Agent or Broker license requires 90 hours, while a Personal Lines Agent or Broker license requires 40 hours.

When choosing a pre-licensing course, consider the course's flexibility, price, and reputation. It is important to select a course that is approved by the Superintendent of Insurance and meets the specific minimum number of hours required for your desired license.

After completing your pre-licensing course, you will be prepared to take the state licensing exam. In New York, the licensing exam is administered by PSI, and the cost to apply for the exam is $33. It is important to note that your exam score is valid for two years, after which you will need to re-take the exam if you have not applied for your license.

Pass the New York Insurance Licensing Exam

To pass the New York Insurance Licensing Exam, you must first complete a pre-licensing course. This is a requirement in New York, and it will give you exposure to the kinds of questions and topics that will appear on the exam. Pre-licensing courses may include practice tests, presentations on exam materials, and private tutoring sessions.

The minimum hour requirements for pre-licensing courses vary depending on the type of insurance license you are seeking. For example, a Life Agent license requires 20 hours, while a Property/Casualty Agent license requires 90 hours.

After completing your pre-licensing course, you can schedule a time to take the New York Insurance Licensing Exam. The exam is administered by PSI Services, and there are testing centers located across New York State. To pass the exam, you must score above 70%.

If you plan to sell life, health, and accident policies, you will need to pass the Life, Accident, and Health exam, which consists of 150 scored questions. If you want to apply for multiple types of licenses, you can sit for more than one exam at a time. However, it is recommended to study for one exam at a time to increase your chances of passing.

It is important to note that your exam score is only valid for two years. If you do not apply for your license within two years of passing the exam, you will need to retake the exam.

Apply for a New York insurance license

Once you've passed your New York insurance licensing exam, you'll need to apply for your license. You must do this within two years of passing the exam.

All individuals applying for an insurance license must apply online via NY LINX. Non-resident licensing is available to first-time non-resident applicants applying for an individual license through the National Insurance Producer Registry (NIPR) website.

To apply for a license, you must:

• Be 18 years of age or older.
• Have completed prelicensing education requirements.
• Have passed the applicable New York State examination within two years of applying for the license.
• Submit a completed license application to the Department within two years of passing the exam. You may apply for multiple classes of licenses simultaneously, if qualified, but you cannot apply for a class of license you previously held.
• Pay the licensing fee. Payment options are credit card, electronic funds transfer (e-check), or paper check.

To apply for your insurance license, fill out the application on the New York DFS License Application page.

Complete a fingerprint and background check

To become an insurance broker in New York, you must complete a fingerprinting and background check process. This is the final step before you can submit your insurance agent license application. The process is completed through IdentoGO and will initiate a background check into your past conduct to confirm that you meet New York State's insurance agent regulations. To organise a fingerprinting appointment, you can visit the IdentoGO website or call (877) 472-6915. It is important to note that not all IdentoGO sites can be used for fingerprinting, only New York State Authorised IdentoGO Centres.

To get started with reserving your fingerprinting, you will need to use one of the following Service Codes:

• Employee Applicant: 1544H9
• Life Settlement Intermediaries: 1544K7
• Licensing of Life Settlement Providers: 1544NR
• Principal, Executive, Director of Life Settlement Providers: 1544Q5

It is important to use the Service Code that is relevant to your situation when scheduling your appointment. Using the incorrect one will invalidate your fingerprints and require the whole process to be restarted, including paying the fee again. If you are unsure which Service Code applies to you, you can contact the New York State Department of Financial Services (DFS) by calling (800) 342-3736.

After your fingerprinting appointment, you will be given two receipts. One of these needs to be attached to your insurance license application sent to the DFS, and the other is for your records. It is important to submit your application quickly, as the DFS will discard any scanned fingerprints if they do not receive a related application within 10 days.

Gain entry-level work experience

To gain entry-level work experience as an insurance broker in New York, you can start by working in an entry-level insurance position, such as an assistant insurance agent. In these positions, you will be able to observe agents and brokers as they guide customers on the types of policies they can purchase to protect themselves and their assets. This experience will help you decide if you enjoy the work and want to continue on the path to becoming a broker.

While not a requirement, having a formal education can help develop important skills necessary for a career as an insurance broker. Courses in communication, business, finance, and accounting can be particularly helpful. Degrees in business administration, marketing, and finance are also great options.

In addition to education and experience, training is also an important factor to consider when pursuing a career as an insurance broker in New York. Carriers such as Aflac offer training programs that provide new insurance agents with the tools and knowledge needed to succeed in the industry. These programs can include resources, support, and tools to help you get started in your career.

It is also worth noting that some firms offer job training programs that introduce new insurance agents to the firm's products and policies. This can be a great way to gain broad knowledge about an agency's offerings without having to directly interact with customers.

Furthermore, gaining sales or customer service experience can also be beneficial when pursuing a career as an insurance broker. Some companies may hire insurance brokers with limited insurance experience if they possess strong sales or customer service skills.

Frequently asked questions