Get Certified To Issue Insurance: Steps To Success

Becoming certified to issue insurance requires several steps, and the process can vary depending on the state. The first step is to choose the type of insurance you want to sell, such as property and casualty or health and life insurance. The next step is to complete a pre-licensing education course, which is mandatory in some states and helps prepare for the state insurance licensing exam. Following this, a background check and fingerprinting are required in almost all states. The fourth step is to pass the state insurance exam, which covers general insurance and state-specific knowledge. Finally, an application and fee are submitted to the state's Department of Insurance to obtain the license.

Choose your insurance specialism

The first step to becoming a certified insurance professional is to choose your specialism. This is an important decision, as it will determine the type of license you need and the clients you will be able to serve.

There are a wide variety of insurance specialisms to choose from, each with its own unique set of skills and knowledge requirements. Here are some of the most common broad areas:

• Health insurance
• Life insurance
• Property and casualty insurance

Within these broad areas, there are also more niche specialisms that you can pursue. For example, you could become a certified expert in workers' compensation, flood insurance, or marine insurance.

When choosing your specialism, consider your own interests, skills, and expertise. For example, if you have a background in healthcare, you might want to consider specializing in healthcare insurance.

You should also think about the demand for different types of insurance in your area. For instance, if you live in a region prone to flooding, there may be a high demand for flood insurance specialists.

Another factor to consider is the level of competition in the market. While there are many generalized agencies, there is a unique opportunity to become a specialized agency and stand out from the crowd.

Specializing in a particular industry or line of business can bring numerous benefits, including improved industry relationships, stronger carrier relationships, increased productivity, and more efficient operations.

Keep in mind that you don't have to choose just one specialty. Agencies can find success by combining a few niches and building a reputation as a trusted advisor in multiple areas.

Whatever path you choose, make sure to do your research and understand the specific needs and risks of the industry or niche you plan to specialize in. This will allow you to provide tailored advice and solutions to your clients.

Complete a pre-licensing course

Completing a pre-licensing course is an essential step towards becoming a licensed insurance agent. While this is a mandatory requirement in some states, it is beneficial to complete one of these courses regardless of your home state.

Pre-licensing education courses are designed to provide you with the knowledge and skills necessary to succeed as an insurance agent. They cover essential topics such as general insurance and state-specific knowledge, equipping you with a strong foundation to pass the licensing exam. The duration of these courses varies, with most states requiring between 20 and 40 credit hours of education.

It is important to choose an approved course provider to ensure your completion certificate is recognised. Over 81% of individuals preparing for their insurance license exam use Kaplan's online courses, which offer a 93% pass rate. These comprehensive study packages are a popular choice for those seeking to enter the insurance industry.

The exact requirements and structure of pre-licensing courses can differ depending on your state and chosen insurance line. For example, the pre-licensing education requirement for Alabama is 20 hours of general education plus 12 hours of ethics, while other states may have different mandates. Therefore, it is essential to familiarise yourself with the specific requirements of your state and chosen insurance line before enrolling in a pre-licensing course.

By completing a pre-licensing education course, you will gain valuable insights into the insurance industry, enhance your understanding of relevant topics, and boost your preparation for the licensing exam. This step is crucial in your journey towards becoming a licensed insurance agent, ensuring you have the necessary knowledge and skills to provide expert advice and services to your future clients.

Pass the relevant exam

Passing the relevant exam is a crucial step in obtaining an insurance license. Here are some detailed instructions and tips to help you prepare for and pass the insurance exam:

Understand the Exam Format

The insurance exam is typically a timed, proctored, multiple-choice test, consisting of around 50 to 180 questions. The exam is administered on a computer, and a proctor is present to ensure the integrity of the testing process. The duration and specific content of the exam will depend on the state you are testing in and the type of license you are seeking.

Choose a Reputable Education Course

Enrolling in a pre-licensing education course is highly recommended to prepare for the insurance exam effectively. Reputable insurance education companies, such as ExamFX and Kaplan, offer comprehensive study packages that cover the material you need to know. These courses can enhance your understanding of insurance concepts and improve your chances of passing the exam.

Allow Sufficient Time to Study

Give yourself ample time to study for the exam. Avoid cramming and instead, create a structured study plan that allows you to gradually absorb and retain the information. It is recommended to study for at least a week for each exam you need to take.

Take Practice Exams

Practising with sample questions and mock exams is an excellent way to familiarise yourself with the exam format and identify areas that require further revision. Websites like PassPen offer practice tests that can help you prepare.

Organise Your Study Space

Create a conducive study environment that is comfortable, well-lit, and free from distractions. Consider your personal preferences—some people prefer complete silence, while others benefit from background music. Ensure you have all the necessary study materials readily available.

Use Visual Aids and Diagrams

Visual aids, such as flow charts and diagrams, can be incredibly helpful for understanding and retaining complex information. Create visual summaries of key concepts and topics to make your revision more engaging and effective.

Explain Concepts to Others

Teaching and explaining concepts to others is a powerful way to reinforce your understanding. Find a willing listener and try to articulate the topics you've learned. This will help you identify areas where your understanding may be lacking and reinforce your knowledge.

Take Care of Your Physical and Mental Wellbeing

Maintain a healthy lifestyle while preparing for the exam. Regular exercise, a balanced diet, and adequate sleep are essential for keeping your mind sharp and focused. Take breaks during your study sessions, go for short walks, and stay hydrated by drinking plenty of water.

Manage Test Anxiety

If you experience test anxiety, establish a consistent pre-test routine and learn relaxation techniques to stay calm and confident during the exam. Remember to eat and drink adequately before and during the exam, and don't hesitate to reach out for support if needed.

Know What to Expect on Exam Day

Be well-prepared for the exam day by gathering all the required identification and documents in advance. Arrive at the testing centre early, and ensure you understand the instructions and format of the exam. Stay focused and composed during the exam, and carefully read and answer each question.

Utilise Exam Strategies

When answering multiple-choice questions, read the last sentence of the question first to understand what is being asked. Predict your answer before looking at the choices, and eliminate options that you are sure are incorrect. Trust your intuition, and manage your time effectively by skipping difficult questions and returning to them later.

Be Prepared for the Next Steps

Congratulations on passing your insurance exam! After passing, you will need to follow the specific guidelines provided by your state's Department of Insurance to obtain your license. This may include registering with the state, providing additional documentation, and meeting any minimum requirements. Stay informed about the process to ensure a smooth transition into your new career as an insurance agent.

Complete a background check

To become certified to issue insurance, you'll need to complete a background check. This is a crucial step in the process, as it ensures that you are eligible and qualified to provide insurance services to clients. Here's a detailed guide on what to expect and how to complete the background check:

Types of Background Checks:

The background check for issuing insurance typically includes a range of verifications to assess your credibility and trustworthiness. These checks are necessary to protect clients and ensure they receive knowledgeable and reliable services. The specific checks may vary depending on your location and the company's policies, but here are some common types of background checks:

• Criminal Record Check: This is a standard part of the background check process. It involves verifying your criminal history, including any convictions, to assess your trustworthiness and integrity when handling client information and finances.
• Employment and Education Verification: Insurance companies often verify your employment history and educational qualifications. This helps assess your professionalism, financial stability, and overall responsibility when dealing with clients.
• Credit Check: Checking your credit score and financial history is essential for insurance companies to evaluate your financial responsibility. It provides insight into your ability to manage finances effectively, which is crucial when handling client funds.
• Motor Vehicle Record (MVR) Check: If you are issuing auto insurance, expect a check on your driving record. This assessment helps determine your risk level regarding car accidents or traffic violations.
• Medical History Check: For life or health insurance providers, a review of your medical history may be conducted to evaluate your health status and potential risks.
• Drug and Alcohol Testing: In some cases, insurance companies may require drug and alcohol screening to assess your overall health and the potential impact on your work performance.

Protecting Your Information:

During the background check process, it is essential to provide accurate and honest information. If there are any discrepancies or concerns, be prepared to address them directly. In some cases, you may need to provide additional documentation or explanations. For instance, if you have a previous employer who is no longer in business, be ready to supply contact information for the previous owners or any available documentation, such as old emails or personal contacts.

Compliance and Regulations:

It is important to note that background checks are subject to various regulations, such as FCRA and state laws. Non-compliance with these regulations can result in legal consequences. Therefore, it is crucial to work with a reputable background check company that follows all applicable laws and maintains confidentiality.

Timeframe and Efficiency:

While the background check process is thorough, it should also be efficient. Working with a reputable background check company can help expedite the process, allowing you to receive certification promptly and start serving your clients with the necessary qualifications and trustworthiness.

Submit your application

Once you've completed your pre-licensing education and passed the relevant state insurance exam, you can submit your insurance license application. This is usually done through the National Insurance Producer Registry (NIPR) and is typically accompanied by a filing fee that can range between $20 and $150, depending on the state and the lines of authority you're applying for.

Be aware that the application process may differ depending on your state. For example, in Florida and Michigan, applications are submitted much earlier in the insurance licensing process.

After submitting your application, all that's left to do is wait. Processing times vary from state to state, ranging from a few weeks to a few months. Once your application has been processed, the state will send you an email containing your license number and National Producer Number (NPN).

It's important to always have your state insurance license on hand and be able to show it if asked. When applying for a new job in the insurance industry, your employer will ask for your license number and NPN.

Frequently asked questions