Becoming An Insurance Pro: A Step-By-Step Guide

An insurance sales representative is a professional who sells insurance policies to clients. They are responsible for implementing marketing strategies to sell new insurance contracts or modify existing ones. They must be able to explain different policies and recommend the best options based on a client's needs. To become an insurance sales representative, a bachelor's degree is beneficial but not always necessary. However, a high school diploma is typically required, and agents must be licensed in the states where they work. Strong communication skills and knowledge of insurance policies are also essential for success in this role.

Decide on your insurance type: property, casualty, life, health, or auto

When it comes to insurance adjusting, there are several types of insurance you can choose to specialize in. These include property, casualty, life, health, and auto insurance. Here is a detailed overview of each type to help you decide which path to pursue:

Property Insurance Adjusters

Property insurance adjusters handle physical damage claims for buildings, homes, and personal property. They evaluate damage caused by various perils such as fire, wind, hail, lightning, hurricanes, earthquakes, floods, theft, or explosions. They work to determine the cause of the damage, assess the extent of the loss, and decide on the appropriate payout amount under the insurance policy. Property adjusters can work as inside adjusters, field adjusters, or a combination of both. They play a crucial role in helping individuals and businesses recover from property-related losses.

Casualty Insurance Adjusters

Casualty insurance is a broad category that includes vehicle insurance, liability insurance, and theft insurance. It covers individuals, employers, and businesses against loss of property, damage, or other liabilities. Casualty insurance adjusters handle liability claims, which often involve personal injuries or third-party property damage. They investigate facts, determine legal liability, assess damages, and engage in negotiations and settlements. Casualty insurance is essential for homeowners and car owners, as it provides financial protection in the event of accidents or mishaps.

Life Insurance Adjusters

Life insurance adjusters focus on insurance claims related to life insurance policies. They review the causes of death and pay close attention to accidents, as most life insurance companies offer additional benefits for accidental deaths. Life insurance adjusters also review new applications and assess whether applicants have any serious illnesses that could make them high-risk individuals. This specialization involves a detailed understanding of life insurance policies and the ability to evaluate and settle claims related to them.

Health Insurance Adjusters

Health insurance adjusters work with health-related claims to determine if the costs are reasonable given the diagnosis. They authorize appropriate payments, deny claims, or refer them for further investigation. Health insurance adjusters need to stay updated on medical procedures, treatments, and prescription drugs to make informed decisions. They play a vital role in ensuring that individuals receive the benefits they are entitled to under their health insurance policies.

Auto Insurance Adjusters

Auto insurance adjusters specialize in handling claims related to automobile physical damage. They verify coverage, investigate the facts of the loss, determine legal responsibilities, and assess the cost of repairs. Auto insurance is mandatory in many jurisdictions, and adjusters in this field work closely with policyholders to resolve claims efficiently. Auto insurance adjusters often work with body shops and repair services to estimate repair costs accurately.

Remember, you can always start with one specialization and gain experience before transitioning to another field or becoming a Multi-Line Adjuster, who handles a diverse range of claims. Each type of insurance adjusting has its unique challenges and opportunities, so consider your interests, skills, and the specific licensing requirements in your state to make an informed decision.

Understand the general requirements: age, pre-licensing education, exams, and background checks

To become an insurance agent, you must meet several general requirements. These include age, pre-licensing education, exams, and background checks.

Firstly, you must be at least 18 years old to become an insurance agent.

Secondly, you need to complete pre-licensing education for your line of authority. This requirement is determined by each state and can be completed online or in-person. The number of hours and the cost of pre-licensing education vary by state. For example, in California, you need to complete 52 hours of pre-licensing study, including 12 hours of Ethics and the California Insurance Code.

Thirdly, you need to pass the state insurance licensing exam relevant to your line or lines of authority. These exams are proctored and typically consist of multiple-choice questions, with a duration of approximately two hours. The number of questions varies depending on the type of insurance license, ranging from 75 to 150 questions.

Finally, you need to pass a background check, which may include fingerprinting. The background check process varies by state, and some states require fingerprint data to be taken prior to licensing. This step ensures that you have a relatively clean background and is a standard part of the license application process.

Pick a state and research its requirements: each state has different rules and regulations

Alabama

To become an insurance adjuster in Alabama, you must be a U.S. citizen or legal alien with work authorization, be at least 18 years old, and be a bona fide resident of Alabama. Alabama offers multiple lines of authority for insurance claims adjusters, including Property & Casualty (P&C), Workers' Comp, and Crop Adjuster. It is highly recommended to obtain a P, WC, and Crop Adjuster license, as it certifies you to handle more lines of insurance and makes you a more attractive hire. While Alabama does not require a pre-licensing course, taking one can better prepare you for your state exam. After passing the exam, you must submit an application for your license, including proof of citizenship and a fingerprint background check. To maintain your license, resident Alabama adjusters must complete 24 hours of continuing education every 2 years.

Oregon

To obtain an insurance adjuster license in Oregon, you must be at least 18 years old. While Oregon does not require a pre-licensing course, taking one can increase your chances of passing the state exam. After passing the exam, you must process and submit fingerprints according to Oregon PSI Fingerprint Instructions and submit your application through NIPR Oregon. Beginning January 1, 2020, both resident and non-resident adjusters must complete 24 hours of continuing education prior to renewal, including 3 hours of Oregon law.

New York and California

New York and California are known for their stringent requirements for insurance adjusters. Neither state offers reciprocity, so you must complete all their requirements to process claims in these states. Additionally, both states require adjusters to get bonded. As a result, few non-residents hold licenses in New York or California.

Research agencies and their additional requirements

Each state has its own set of requirements for obtaining an insurance adjuster licence. For example, in Alabama, you must be a U.S. citizen or legal alien with work authorization, be at least 18 years old, and be a resident of the state. Similarly, Oregon requires applicants to be at least 18 years old, have a valid mailing address, and provide a valid email address and phone number.

In addition to meeting the basic requirements, it is recommended that you take an exam prep course to increase your chances of passing the state exam. These courses are designed to help you thoroughly understand the material and feel confident when taking the exam. The courses offered by AdjusterPro, for instance, include interactive question banks, unlimited practice exams, printable PDFs, flashcards, and more.

After passing the state exam, you will need to submit your application for an insurance adjuster licence. This typically involves providing proof of citizenship, a fingerprint background check, and paying the associated fees. It is important to note that each state has different requirements and fees, so be sure to check the specific guidelines for your state.

To maintain your licence, you will need to complete continuing education credits and regularly renew your licence. The number of continuing education hours required varies by state, so be sure to stay up to date on your local guidelines.

Pass your state exam and apply for licenses and jobs

Passing your state exam and applying for your license are crucial steps in becoming an insurance adjuster. The specific requirements vary by state, so it's important to familiarise yourself with the process in your state. Here is a detailed guide to help you through this process:

Study for Your Exam:

The first step is to prepare for your state insurance adjuster exam. Enrolling in a test prep course is highly recommended as it will help you pass on your first attempt. Create a study plan that suits your habits, commitments, and goals. Dedicate time to studying the ins and outs of insurance claims, damage assessment, and the responsibilities of an insurance adjuster. Make flashcards and sample questions, and don't hesitate to seek clarification from your instructor if needed.

Take Practice Exams:

Taking practice exams is essential to gauge your understanding and identify areas that need further review. Treat these practice exams like the real thing by creating a similar environment without distractions. This will help you develop test-taking strategies and manage your time effectively during the actual exam.

Register for Your State Exam:

After you feel confident in your preparation, it's time to register for the state insurance adjuster exam. Each state has its own registration process, so be sure to follow the guidelines specific to your state. Remember to schedule your exam with enough time to prepare adequately.

Take the State Exam:

On the day of the exam, arrive at the testing centre early to ensure you are admitted on time. Bring the required identification and any necessary documentation, such as completion of a pre-licensing course. Leave prohibited items at home or in your vehicle, as listed in the guidelines provided by the testing centre. Focus on remaining calm and confident during the exam.

Apply for Your License:

Once you have successfully passed the state exam, it's time to apply for your insurance adjuster license. Each state has its own application process and requirements, so be sure to review the specific guidelines for your state. Submit the necessary documentation, including proof of citizenship and a fingerprint background check, if applicable. There may be application fees associated with obtaining your license, so be prepared to cover those costs.

Explore Job Opportunities:

With your license in hand, you can now actively seek employment as an insurance adjuster. Explore job postings, attend career fairs, and network within the industry to find suitable opportunities. Having a license demonstrates your credibility and expertise in the field, making you a competitive candidate for insurance adjuster positions.

Remember that continuing education and license renewal may be required to maintain your license, so be sure to stay up to date with any ongoing requirements specific to your state.

Frequently asked questions