Paul Sanchez
Becoming an insurance agent offers a relatively easy entry into the field, the ability to choose your work environment, and high earning potential. To become an insurance agent, you must be at least 18 years old and have a high school diploma or GED. You will also need to obtain a license, which involves fulfilling specific requirements, qualifications, and fees that vary by state and type of insurance. This may include pre-licensing education, classroom training, exams, and background checks. Some states offer temporary licenses for those who haven't passed the exam yet, provided they have a sponsor with an insurance license. Once licensed, you can decide on your specialization, such as life insurance, health insurance, property insurance, or casualty insurance. You can either be an independent agent representing multiple insurance companies or a captive agent working exclusively for one company.
| Characteristics | Values |
|---|---|
| Education | A high school diploma or GED is the minimum requirement, but most companies prefer a college degree with courses in business, economics, or finance. |
| Licensing | Required in most states, with specific requirements varying by state and type of insurance sold. May include pre-licensing education, exams, fees, and background checks. |
| Training | Ongoing training is often necessary to stay up-to-date with industry changes and to develop sales and product knowledge. |
| Specialization | Options include life, health, property, casualty, personal lines, commercial lines, disability, and long-term care insurance. |
| Employment Type | Captive agents represent a single company, while independent agents work with multiple companies and are often referred to as brokers. |
| Earnings | Earnings vary based on sales performance and can be solely commission-based or a combination of commission and salary. The average salary is $79,938 per year, ranging from $18,000 to $186,000. |
| Job Market | High demand for licensed agents, with potential for quick career progression and high earnings without extensive upfront education or experience. |
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What You'll Learn
Education and licensing
To become an insurance agent, you must be at least 18 years old and have a high school diploma or GED. While a high school diploma is the minimum requirement, most companies prefer candidates with a college degree. Helpful college majors include risk management and insurance, business, economics, or finance.
Before you can obtain your license, you must complete pre-licensing education. The number of hours of pre-licensing education required varies by state. In Georgia, for example, you must complete a self-study course and obtain a Credit Agent Pre-licensing Education Certificate. You may also be required to submit fingerprints and undergo a background check.
After completing your pre-licensing education, you must pass a state licensing exam. Each state has its own exam, and you must pass the exam for the state in which you plan to work. Some states, like Texas, have different exams for different types of insurance. For example, in Texas, there is a General Lines – Life, Accident, and Health exam and a General Lines – Property and Casualty exam.
If you haven't passed the exam yet, you may be able to obtain a temporary license. To obtain a temporary license, you need a sponsor who already has an insurance license. A temporary license is typically valid for 6 months and may be extended in 3-month intervals for up to 15 months.
Once you have passed the exam, you will receive your license and can start working as an insurance agent. However, you may need to obtain additional licenses if you want to sell multiple types of insurance. For example, if you want to sell both health and life insurance, you will need two different licenses.
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Specialisation
- Life insurance: This involves selling policies and annuities that provide financial protection for beneficiaries upon the death of the insured.
- Health insurance: Health insurance agents sell medical, disability, Medicare supplement, and long-term care policies.
- Property insurance: Property insurance agents sell policies that protect against damage or loss to property, including homes, businesses, and commercial property.
- Casualty insurance: Casualty insurance involves selling policies that cover auto, workers' compensation, crime coverage, and professional liability.
- Surplus line insurance: This is a specialised field that deals with unique or unusual risks not typically covered by standard insurance policies, such as daycare insurance or special events.
- Personal lines insurance: This involves helping individuals find coverage for their personal items, including cars, homes, and life insurance.
- Commercial lines insurance: Commercial lines agents work with businesses to find coverage options for their specific needs, including buildings, workers' compensation, and liability insurance.
It's important to note that you don't have to choose just one specialisation. Some insurance agents combine certain lines, such as property and casualty insurance, to offer a broader range of services to their clients.
Once you've decided on your specialisation(s), the next step is to understand the specific licensing and education requirements. Most states require prelicensing education and for you to pass a state insurance licensing exam for your chosen line(s) of authority. The number of hours and cost of prelicensing education can vary by state and specialisation.
Some states may also require you to complete classroom training, self-study, or obtain a certain number of hours of experience. Background checks and fingerprinting may also be necessary. It's important to carefully review the requirements for your specific state and chosen specialisation to ensure you meet all the necessary criteria.
With the right specialisation and licensing, you'll be well on your way to becoming a successful insurance agent.
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Resume and job search
A well-written resume is key to securing a job as an insurance agent. It is important to understand the layout, keywords, and industry standards to increase your chances of landing the job.
Resume
Your resume should include your full name and contact information, such as your phone number, professional email address, and the city and state where you live. If you have a professional website, you can include the link. A one-to-two sentence summary of your credentials should be placed at the top, followed by a skills section. This should be a concise overview of your education, years of experience, and role-related skills.
For each position you have held, include the job title, employer, location, and start and end dates. Below each role, list three to five key duties and explain their positive impact on the company. Include any relevant skills, such as sales strengths, and showcase these with numbers where possible.
If you have any relevant certifications or qualifications, such as a license to sell insurance, be sure to list them. You should also include your high school diploma or equivalent, and any higher education details if they are relevant to the role.
Job Search
Once you have a strong resume, you can begin your job search. Online job boards such as Monster allow you to search for insurance agent roles nationwide, or you can narrow your search by location.
It is important to review the job description for each role and tailor your resume accordingly. You should also consider the specific keywords used in the job listing and try to incorporate these into your resume. This will help your resume pass recruiter scanning software and increase your chances of being selected for an interview.
Remember that the insurance industry is highly competitive, so it is important to make your resume stand out. Use a clear and professional format, with a dedicated header and a modern font.
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Background checks
The type of background check may vary depending on the type of insurance and the specific policy. However, a criminal record check is one of the most common types of checks performed by insurance companies. This is because insurance agents are held in a fiduciary responsibility with clients and insurance companies, meaning they handle customers' money and sensitive information, and so insurance companies require that agents be trustworthy and competent to handle such monies and data. Most states have regulations that specifically disqualify persons with convictions involving crimes of moral turpitude, such as fraud, dishonesty, or breach of trust, from licensure. As such, applicants must disclose any previous convictions, including any in an applicant's adult life that are believed to have been expunged, deferred, or are currently pending.
In addition to criminal record checks, some insurance companies may also perform credit checks, employment verification, and education verification. Some companies may also require drug tests and driving history records.
The NAIC has standards for fingerprinting and background checks, which can be found in their model on the "Authorization for Criminal History Record Check". However, while many states have some form of legislation addressing fingerprinting or background check requirements, few have adopted the NAIC model. Similarly, while there is no single standard for insurance stakeholders to follow, the Securities and Insurance Licensing Association (SILA)'s Best Practices Handbook reflects the accepted industry status quo.
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Temporary licenses
A temporary insurance agent is an individual who sells, solicits, or negotiates insurance through one specific insurer. Temporary licenses are issued on behalf of an insurer and require sponsorship from an insurance company. A temporary license is valid for 180 days and cannot be renewed. During this time, you can obtain a regular license by passing the state exam.
To obtain a temporary license, you must complete the Sponsoring Insurer/Agent Certification Form, which must be uploaded for your application to be processed. You will also need to complete the Citizenship Affidavit and upload a copy of your ID. In Texas, you must scan and attach the Appointment certification for a temporary license (Form FIN700) to the Sircon application. The agent, insurance company, or agency that you will work for (sponsor) must complete the Appointment certification for a temporary license (Form FIN700). By signing the appointment certification form, the sponsor confirms that you are being considered for appointment as a full-time agent, they would like you to have a temporary license, and they will supervise your training. You must take at least 40 hours of training, which must be given by the appointing company and take place no later than 30 days after the application, application fee, and certificate are delivered.
In Georgia, a waiver of the prelicensing course and examination can be granted if you are licensed for the same lines in your previous home state. In this case, you must attach the original clearance letter from your prior home state and apply for licensure within 90 days of moving to Georgia.
Temporary agents can only hold the same lines of authority as the supervising agent. The eligible lines of authority for temporary agent licenses include life, accident and sickness, property, casualty, and personal lines.
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Frequently asked questions
You need to be at least 18 years old, have a high school diploma or GED, and obtain a license from your state.
First, complete prelicensing education for your line of authority, which is determined by each state. Next, pass your state's licensing exam. You may also need to pass a background check and submit fingerprints.
Captive agents sell insurance for one specific company, while independent agents sell insurance for different companies and can offer a range of rates.
Common lines of authority include life insurance, health insurance, property insurance, and casualty insurance.
Yes, you can obtain a temporary license if you have a sponsor who already has an insurance license. This license is typically valid for 6 months and can be extended in 3-month intervals, up to a maximum of 15 months.
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