Becoming An Insurance Broker: Steps To Take In Virginia

If you're thinking about becoming an insurance broker in Virginia, you'll need to obtain a Virginia insurance license. This process involves several steps, including deciding on the type of insurance policies you want to sell, completing pre-licensing education, passing the relevant Virginia insurance license exam, submitting your insurance license application, and completing a fingerprint and background check.

The specific requirements for obtaining an insurance license in Virginia are outlined on the StateRequirement website, which provides a detailed guide on how to become a licensed insurance agent in the state. This includes information on the different types of insurance agent licenses available, such as Life & Health, Property & Casualty, and Credit.

Additionally, there are various training courses, study guides, practice tests, and exam prep materials offered by different organizations to help you prepare for the Virginia insurance licensing exam.

Decide on your education

To become an insurance broker in Virginia, you'll need to meet certain educational requirements. While there is little formal education required—in most states, you'll only need a high school diploma or minimal post-secondary coursework—earning a college degree can give you a solid background of knowledge, bolster your resume, and may increase your employment opportunities.

Common degree programs for insurance brokers include business administration and communications. Some educational institutions offer a degree specifically in insurance and risk management, but this is less common. Pursuing a bachelor's degree in accounting, business, finance, or a related field can help you become an expert in the field and attract more clients.

If your program doesn't offer an internship opportunity, you may want to try to arrange one yourself. Many courses are offered both online and in-person, giving you the flexibility to choose a schedule that fits your needs.

In Virginia, you'll need to complete a pre-licensing education course. While this isn't required in most states, it can increase your chances of passing your licensing exam on the first attempt. When choosing a course, consider factors such as flexibility, price, and the course provider's reputation.

To pass your exam, you'll need a minimum overall score of 70%. Your passing score will only be valid for 183 calendar days, so be sure to submit your completed application within this time frame. If you fail your exam, you'll need to wait at least 24 hours before you can make a reservation for re-examination, and at least 30 calendar days before you can retake the exam.

Choose a specialty

There are many different kinds of insurance, also called "lines of authority," that insurance brokers can specialize in. Most states require different licenses for selling different types of insurance, so knowing the line of authority you want to pursue is an important part of the licensing process. Here are some of the most common types of insurance specialties:

• Casualty Insurance: This type of insurance primarily covers areas not covered by life, health, or property insurance. The most common example is workers' compensation.
• Property Insurance: This type of insurance provides coverage for people who own or rent a building, protecting them from damage and theft.
• Liability Insurance: This type of insurance protects you if you are responsible for someone else's injuries or property damage.
• Accident Insurance: This insurance covers injuries resulting from accidents and often specifies the types of accidents covered in the chosen policy.
• Health Insurance: Health insurance covers the costs of medical care and treatments. Different policies specify the types of coverage provided.
• Life Insurance: In this type of insurance, a company agrees to pay a set sum of money to a beneficiary when the policyholder passes away.
• Disability Insurance: Disability insurance provides a set amount of income when a person's disability prevents them from performing the core functions of their regular work.
• Commercial Insurance: This type of insurance is designed for business owners, covering their business assets. For example, it provides coverage for building damage or loss of products due to transportation accidents.
• Automotive Insurance: Automotive insurance covers damages to your vehicle, protects passengers, and covers expenses for damage to other vehicles if you are at fault in an accident.
• Home Insurance: This type of insurance protects homeowners, their properties, and their families from damage, theft, or other events inside the home.
• Pet Insurance: Pet insurance functions similarly to health insurance but for animals instead of people.

Meet pre-licensing requirements

To become an insurance broker in Virginia, you will need to meet the state's pre-licensing requirements. Here is what you need to know and do:

Check Virginia's Pre-Licensing Requirements

Virginia has its own set of rules, laws, and regulations for insurance brokers. You can visit the National Insurance Producer Registry (NIPR) website to check the requirements for Virginia.

Complete Required Coursework

During the pre-licensing phase, you will need to complete a certain number of educational hours in specific insurance fields. The number of hours may vary depending on the type of insurance license you are pursuing. For example, if you are applying for a resident producer Title license in Virginia, you will need to complete a 16-hour pre-licensing study course.

Submit Your Fingerprints

Virginia may require you to submit your fingerprints for a background check as part of the pre-licensing requirements. This is done to ensure that you meet the state's insurance agent regulations.

Take the Qualifying Exam

After completing your pre-licensing education, you will need to take and pass the relevant Virginia insurance license exam. The exam will cover state laws and insurance products, and it will be in a multiple-choice format. If you plan to work in more than one insurance area, you may need to take multiple exams.

Additional Considerations

While not mentioned specifically for Virginia, some states may exempt prospective licensees from the pre-licensing education requirements if they can submit evidence of relevant work experience. Additionally, if you plan to sell multiple types of insurance, most states will require you to hold multiple licenses, each specific to a particular type of insurance.

Pass the exam

To pass the Virginia insurance license exam, you must obtain a minimum of 70% overall. The exam will depend on the line you wish to specialize in. For example, if you want to become a property and casualty insurance agent, you will need to pass the Property and Casualty exam, which has 135 scored questions, 10 pre-test questions, and lasts two and a half hours. All Virginia insurance exams are multiple-choice, administered by Prometric, and cost $35 per attempt. You can choose to take the exam either in-person or remotely using Prometric’s ProProctor application.

You can schedule your insurance exam electronically through Prometric’s Internet Registration Service, which is available 24 hours a day. It is recommended that you avoid sitting for more than one exam at a time, as passing the exam is challenging and there is little to gain and a lot to lose by taking this route. Instead, it is better to study for one exam at a time, averaging between two to six weeks of study time per exam. This will depend on whether you are studying full-time or part-time and how comfortable you feel sitting exams.

If you fail your insurance producer exam, you will need to wait 24 hours before making a reservation for a re-examination. If you need to retake the exam, the waiting period increases to 30 calendar days.

Apply for a license

Once you've passed the licensing exam, you can apply for the insurance broker license in Virginia. This typically entails filling out an application, providing proof of meeting all the pre-licensing requirements, providing proof of passing the licensing exam, and paying an application or processing fee. You can submit your application online through Sircon or the National Insurance Producer Registry (NIPR) for a fee of $15. If done through Sircon, your application will also include a Sircon service fee ($12.50) and a processing fee ($1.45), while those made through NIPR will include an additional filing fee of $5.60.

If you fail to submit all the required documents alongside your application, you’ll need to correct this within 30 calendar days or your application will be canceled. Applications with all the correct documentation typically take between 15 and 30 days to be processed, though this can reach up to 60 days if an applicant has any misdemeanors or felony convictions on their record.

Note that if you’ve passed the licensing exams for multiple lines of authority, you’ll be required to submit an application (and pay a filing fee) for each of these.

After receiving your official license, you can discuss, solicit, negotiate, and transact insurance sales. You can also start to build your own clientele base or apply for jobs with insurance agencies or brokerages. Most states also require the completion of continuing education courses to renew licenses.

Frequently asked questions