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INSURANCE CAREER ARTICLES
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NAIC ADOPTS BEST INTEREST STANDARD
Best interest standard and fiduciary rules have been the focus of several
regulatory bodies, especially after the Fifth Circuit Court of Appeals struck
down the DOL Fiduciary Rule in 2018. Earlier this year, the National Association
of Insurance Commissioners (NAIC) adopted a best interest rule as a revision to
Suitability in Annuity Transactions Model Regulation (#275), enabling state
regulators and legislatures to take up the rule. This article provides an
overview of best interest rules (including the NAIC best interest rule), who is
adopting them, and what they mean for insurers.
In February 2020, NAIC enacted its own best interest standard as a revision to
its regulation 275. In a press release, NAIC describes it like this: “All
recommendations by agents and insurers must be in the best interest of the
consumer and ... agents and carriers may not place their financial interest
ahead of the consumer’s interest in making the recommendation.” The rule
requires that agents and carriers act with “reasonable diligence, care, and
skill” in making recommendations.
Now that NAIC has approved the revision and issued guidelines, the insurance
regulators in all 50 states and the U.S. territories can take it up in their
respective jurisdictions.
BEST INTEREST STANDARD DEFINITION
Best interest is a term used in a number of situations including the medical and
legal fields. In the financial sector it means setting aside any personal
beliefs or biases and working for the good of the client at all times. It goes
beyond recommending what may be a good fit and finding the best fit.
THE NAIC BEST INTEREST STANDARD PROTECTS ANNUITY CONSUMERS
The updated NAIC Annuity standard requires insurance producers to recommend
annuities that are not only suitable for the client, but are in the clients best
interest. For example, if you are looking for a new car to use for your daily
commute virtually any automobile is suitable for your needs. However not all
automobiles are in your best interest. To determine your best interest the
automobile dealer needs to understand more about you, your needs and your wants.
They would need to document those needs and wants and disclose any conflicts of
interest they may have. This may even require that dealer to recommend an
automobile sold by another dealership.
ABOUT NAIC MODEL REGULATION
Founded in 1871, the National Association of Insurance Commissioners (NAIC)
provides expertise, data, and analysis for insurance commissioners to
effectively regulate the industry and protect consumers. The NAIC is governed by
the chief insurance regulators from the 50 states, the District of Columbia, and
five U.S. territories to coordinate regulation of multistate insurers.
The NAIC promulgates model regulations for many insurance products providing
guidance to state insurance departments. Each individual state regulates their
insurance business and may use the NAIC model regulations to help in that
process.
NAIC MODEL REGULATION FOR SUITABILITY IN ANNUITY TRANSACTIONS
In 2010, the NAIC introduced their Model Regulation 275 - Suitability in Annuity
Transactions. This model regulation outlined an insurance producer’s
responsibilities when recommending an annuity to a client. In 2020 the NAIC
updated that model to require insurance producer’s to work in their client’s
best interests.
According to the NAIC Best Interest standard, to satisfy the best interest
obligation, a producer or an insurer must satisfy the four obligations:
* Care
* Disclosure
* Conflict of interest
* Documentation
To satisfy the four obligations, when making a recommendation, producers must:
* Know the consumer’s financial situation, insurance needs and financial
objectives.
* Understand the available recommendation options.
* Have a reasonable basis to believe the recommended option effectively
addresses the consumer’s financial situation, insurance needs and financial
objectives.
* Communicate the basis of the recommendation to the consumer.
* Disclose their role in the transaction, their compensation, and any material
conflicts of interest.
* Document, in writing, any recommendation and the justification for such
recommendation.
NAIC SUITABILITY IN ANNUITY TRANSACTIONS: MODEL REGULATION TRAINING REQUIREMENTS
The NAIC Annuity model requires insurance producers to successfully complete a
four hour annuity product training course that covers the types of annuities,
uses of annuities, taxation of annuities and more. Importantly the regulation
requires that appropriate sales practices are part of this training.
For those producers who have completed this training already, states who have
adopted the Best Interest standard require a new 4 hour or a supplemental 1 hour
best interest course. These courses ensure the producer understands the best
interest sales practices. For those who have not completed the 4 hour annuity
product course, that new 4 hour course is required.
NAIC STATES’ PLANS
Iowa was the first state to put the new NAIC rule in play. They have been
followed by Alabama, Arizona, Arkansas, Delaware, Idaho, Michigan, North
Dakota,Nebraska, Ohio and Rhode Island. States with rules pending include
Connecticut, Kentucky, Maine, Montana, Nevada, Texas and Virginia.
New York, for example, will not revise Regulation 187 to meet the NAIC best
interest rule because New York wants to hold brokers and agents to a higher
standard. Some states appear to be taking New York’s view. Massachusetts
finalized its own fiduciary standard, although it excluded insurance agents, and
New Jersey, Nevada, and Maryland are pursuing similar rules.
When you look at a best interest rule like New York’s or the NAIC’s and compare
it with the fiduciary standard for CFP® professionals, it’s hard to tell the
difference. After enacting its Regulation Best Interest (BI), the SEC indicated
that it views fiduciary and best interest as the same. Other organizations, most
notably CFP Board, maintain that the fiduciary standard is stricter.
A fiduciary standard, says CFP Board, “should put the interests of the client
first and should include both a duty of care and a duty of loyalty.” Certain
consumer groups and states agree. They don’t feel the “best interest” standard
goes far enough.
Many states prefer the NAIC rule, with 11 adopting the rules already. Another 7
states have Annuity Best Interest rules pending in their legislatures.
STATES ADOPTING AND PROPOSING NAIC REQUIREMENTS AND COURSES
Kaplan will be following the progression of the NAIC Best Interest Rule, along
with any other standards individual states adopt. We encourage you to follow
along. As they become part of each state’s insurance continuing education, we
will also add them to our insurance CE packages.
STATES ADOPTING NAIC REQUIREMENTS
* Alabama
* Arizona
* Arkansas
* Connecticut
* Delaware
* Idaho
* Iowa
* Kentucky
* Maine
* Michigan
* Mississippi
* Montana
* Nebraska
* New Mexico
* North Dakota
* Ohio
* Pennsylvania
* Rhode Island
* Texas
* Virginia
STATES PROPOSING NAIC REQUIREMENTS
* Maryland
* Nevada
* South Carolina
* South Dakota
* Wisconsin
STATES WITH NAIC COURSES RELEASED
* Alabama
* Arizona
* Arkansas
* Connecticut
* Delaware
* Idaho
* Iowa
* Kentucky
* Maine
* Michigan
* Mississippi
* Montana
* Nebraska
* North Dakota
* Ohio
* Rhode Island
* Texas
* Virginia
STATES WITH NAIC COURSES PENDING
* Pennsylvania
* New Mexico
BEST INTEREST STANDARD TRAINING COURSES FOR ANNUITY AGENTS
If you are ready for a Best Interest Standard Training Course, you can get
started with Kaplan’s 1-Hour Training Course, or dive right into our 4-Hour
Training Course. Learn more about training course options in your state.
Read More
Posted by Randy Kemnitz, Ph.D., CFP® - January 14, 2022
VIDEO SERIES: ESG & SOCIALLY RESPONSIBLE INVESTING
Our experts discuss emerging topics in socially responsible and ESG investing.
As investment practices shift toward sustainability and the generation of
positive social and environmental impacts, Jennifer Coombs, Associate Professor
at the College for Financial Planning®—a Kaplan Company and Michael Young,
Manager of Education Programs, from The Forum for Sustainable and Responsible
Investment (US SIF) address questions important to financial professionals.
Read More
Posted by CFFP, a Kaplan Company - June 14, 2021
VIDEO: INSURANCE EXAM STUDY TIPS
Join Kaplan Financial Education experts Julie Ramsey and Mary Orn as they
discuss some key insurance license exam study tips. Mary and Julie have helped
thousands of students pass their insurance licensing exams and they have put
together these exam study tips to help you succeed too. By following their eight
tips, you will be able to put together an efficient study plan to pass the exam
the first time.
Mary: Hello, my name is Mary Orn.
Julie: Hi, I'm Julie Ramsey. And welcome to our studio. We want to give you the
inside track, so welcome. Mary and I are here today, and we wanted to show you
the studio. What we've done here is lots of insurance videos, and these are to
help people who are going through the licensing process, because a lot of times,
insurance seems like a different language, doesn't it? And so, these are just to
break down the concepts and make it simple. So welcome.
Mary: As instructors, we've helped thousands of students pass their exam, and
we've put together some study tips to help you as you prepare for your state
exam. Our number one recommendation is that you print the state exam outline.
You can get it from one of two spots...either the website of your department of
insurance or from the testing provider.
Julie: That's really good information, Mary, because one of the biggest mistakes
that students make is they treat all of the information the same. This is just
as important as this, and it's not when you're studying for your exam. You want
to prioritize the most heavily tested, down to the least heavily tested.
Prioritize those...so the state the exam outline does that. So study those first
five sections really well. Know them inside and out, and then you can just go
down by priority.
Mary: Yes, it's important because there's a weighting to the exam. Certain
topics are questioned more than others. Another tip is to utilize the practice
exams. This is a good chance to practice reading the full question.
Julie: Absolutely, that's really important. And when you're taking these
practice exams, your goal is to score an 80% or better, and consistently. Don't
just take one exam, do well on it, and say, "Okay, good, I'm done studying."
Because if I'm scoring consistently in every session, if I'm scoring 80% or
better, I should pass the first time.
Mary: And take notes when you're going through the practice exams. Jot down what
it is you got wrong. Don't rewrite the whole question, but just make sure you
understand why you got a particular question wrong.
Julie: That's a really good point. It also helps you find efficiencies. "Gosh,
I'm really having a hard time understanding annuities," or "I'm really having a
hard time understanding this." So you're right...I could learn where I need to
hone in on. Mary, I've got another test taking tip.
Mary: Let me hear it.
Julie: Okay. It is time management. How should I best utilize my time, so that
I'm prepared and can pass the test the first time?
Mary: So what you're saying is, don't cram the night before?
Julie: Pretty much.
Mary: No all-nighters. Here's what you need to do. After you complete your
prelicensing course, spend two to three days studying for your exam. As Julie
mentioned, there's a priority that you want to put into place. There's a
weighting to the exam. Study the most difficult items first, study the areas
where you're weaker first. Get a good night's sleep, and then the morning of the
exam, give yourself a little mental vacation, a little break.
Julie: You deserve it. Another test taking tip is scratch paper. When you go
take that exam, they're going to give you a piece of scratch paper. And you want
to best utilize that scratch paper. Mary, do you have any thoughts for that?
Mary: I do. I love this one because this allows you to do a memory dump. You
walk into the test with your piece of paper before you do anything related to
the exam. Put everything from your brain down onto the paper. Formulas,
acronyms, charts, anything you want to make sure you remember, and then you set
it aside. When you come to that question, you can quickly take a peek at the
notes that you've written.
Julie: Now that's a really good idea, and it also helps with problem areas. We
see a lot of folks that have problems with homeowners. And in one of our taping
sessions, we have an instructor who goes through the different areas of
homeowners, and we have this homeowners chart. And if I know I'm having problems
in that area, then I can memorize that chart. I can write that down on the
scratch paper when I go take my test and be successful.
Mary: Perfect. Read the full question. That is really important when you are
taking your exam. There will be a lot of information in there, and chances are,
what the question is really getting at is that last sentence.
Julie: That's a really good point. A lot of times when people take the test,
it's not what you know, but it's can you take a test? So you really want to
break down that question and know what it's asking. So here's our
recommendation. The first time, read the question. The second time...yes, you do
have to look at twice...read the question and then answer it, and then look over
it a third time. So you're going to read the question, you see your answer, and
then you say, "Yeah, you know what? I got this right." And you want to do that
with every question, not just one, but all of them. So, each question you're
looking at three times. You're confident, and you're ready to move on.
Mary: It's important to weed out extra information. As I mentioned, there's
going to be a lot of stuff in that question. Use the answers to help tip you
off. Many times, some of the answers, two or three, might be similar. They might
contain some of the same information, so you can read through those and go, "Oh
yeah, that's what they're talking about." Now, I'm going to go back into the
question and read it again as part of that three-step process. Caution…after
you’ve read through everything and answered your question, move on. Don't sit
and think about it, don't go back and change your answer. Chances are the first
one you put down is the correct one.
Julie: That's a very good point. I've got another one.
Mary: Let's hear it.
Julie: Pace yourself. You know, it's not a race. You don't get an award at the
end if you're the first one done.
Mary: Don't spend too long on one question. Get yourself into a nice, steady
rhythm so that you're reading the question and the answers. You go through your
three-step process, you answer, you move on. If you're not sure, mark it. If you
have time at the end of your test, you can come back and do a quick little
review.
Julie: That's a really good idea. And, you know, I have a hard time sitting down
when I'm taking an exam for that long of a period of time. It's not like when I
was studying, where I can get up and go make popcorn or get a candy bar. And so
I have a hard time sometimes focusing, and a lot of students find that too. So
what we recommend is taking a break. How do you take a break? I'm there, I have
to take the test. Every 30 questions, maybe just put your head down. Just rest,
kind of clear your mind, so then you're fresh and you're ready to go. Just do
that every 30 questions and pace yourself.
Mary: And it can be very stressful to take this test, so you want to make sure
you stay relaxed and give yourself that mental break.
Julie: Absolutely.
Mary: Watch out for the “except” questions...questions that end in the word
"except."
Julie: That's a really good point. The words "except," "never," "always," a lot
of times throw students off. So we want to talk about turning that “except”
question into a direct question. Now we're not asking you to rewrite the
question...that would be way too hard. But what you can do is take the word
"except" and just put it up on a shelf. Just ignore it for a minute.
Mary: Perfect. So the question may be, "All of the following are agent
responsibilities except…." And as Julie mentioned, you're going to take that
word out and put it on the shelf. And now what you're looking at is a question
that says, "All of the following are agent responsibilities." You've just turned
that into a true-false question. Now, you can read through the four answers,
decide which are true, which are false, and you get to your one exception.
Julie: So you're saying the eeny, meeny, miny, moe game doesn't work with this?
Mary: No more eeny, meeny, miny, moe.
Julie: Okay, all right. Well, I've got one more.
Mary: Go.
Julie: The testing site. Now you're going to schedule your test ahead of time.
But the day of the test, know where you're going. Leave early. There could be
construction, there could be traffic, and you're sitting there, and you're
freaking out for your test. Additionally, schedule the exam in the morning if
you can. I mean, it doesn't have to be at 7 am, by no means, but schedule it in
the first part of the day. That way, you're confident, you're ready to go,
you're fresh, and ready to take the test.
Mary: The last thing you want to do is go through an entire day of work, or
family life, or things that are taking your mind away from the exam, and then
have to go in to take the test.
Julie: Absolutely.
Mary: Now, it's okay to be nervous. It's good to be nervous, but also have
confidence in yourself. You have prepared for this exam!
____
Need more help getting ready for the insurance licensing exam? Check out
Kaplan's Insurance Licensing exam prep programs , which are available in all 50
states.
Read More
Posted by Kaplan Financial Education - August 14, 2020
HOW HARD IS THE LIFE AND HEALTH INSURANCE EXAM?
If you've learned what a life insurance agent does and are now considering a
career in the life and health insurance field, you are probably wondering, “Is
the life and health insurance exam hard?” Each state has their own insurance
exams, so the tests and requirements vary, making this question more complicated
to answer. However, the overarching topics covered on the exam, as well as the
passing scores, are similar for all states. If you have a good understanding of
the topics and how the exam works, you are well on your way to passing the life
and health insurance exam.
For life and health insurance exams, you will be tested on the following general
topics:
* Life insurance general knowledge
* Life insurance policies
* Policy riders and options in life insurance coverage
* Life insurance tax issues
* Annuities
* Annuity policy tax issues
* Health insurance general knowledge
* Dental, individual, and group policies
* Medical plans
* Disability income
* Special needs individual insurance
* Health Maintenance Organizations (HMOs)
* Health insurance tax issues
You will want to print out the State Exam Outline so you understand what
material will be covered under each of these topics and how it will be weighted
on the exam. The State Exam Outline tells you how many questions are included in
each section of the test. We advise you to focus more of your study time on
sections that have more exam questions.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
PASS RATES AND RECOMMENDED STUDY TIME
From what we know, insurance exam pass rates fluctuate considerably by state.
Some states publish their pass rates while others do not, making it impossible
to offer an accurate national pass rate for any exam. Nevertheless, the passing
score for all exams is 70%, and utilizing exam study tools can help you gauge
whether or not you are on target to pass on the first try.
The average exam-taker should expect to spend about 35 to 40 hours studying to
pass the life and health insurance exam. It is recommended that you do your
studying over the course of a few weeks (an insurance certification study
package can help with this), rather than trying to cram the week of or night
before the exam. We recommend spending 2 to 3 days studying after your licensing
course to keep the information fresh in your mind.
STUDY TIPS
When studying, try to remove distractions around you. It can be easy to get
distracted by your phone, TV, or the Internet. For your brain to absorb new
information, it is important that you do your best to avoid multitasking and
stay focused on what you’re studying. You may find that setting a study schedule
over a period of a few weeks will help you carve out time where you can solely
focus on preparing for the exam.
Once you have a good handle on the material, be sure to utilize practice exams.
These will help you gauge how well you have absorbed the information in your
studies and what areas you still need to work on. It is a good idea to take at
least one practice exam while mimicking testing conditions. This will help you
determine whether your pacing is right to get through the exam in the allotted
time.
The life and health insurance exam can be challenging; however, you can pass
with flying colors on your first try by following our recommendations. Now that
you have a better understanding of the life and health insurance exam and how
you can successfully prepare for it, check out this video from Kaplan’s Julie
Ramsey and Mary Orn with more insurance exam study tips.
__
Ensure you are prepared for the life and health insurance licensing exam with
Kaplan's insurance license exam prep solutions. We have study options to suit
all learning styles. Get started today.
Read More
Posted by Kaplan Financial Education - July 31, 2020
5 REASONS INSURANCE SALES IS A GOOD CAREER
If you are thinking of a career change or you recently graduated college, there
are a lot of good reasons to to pursue a career in insurance. Read on to learn 5
reasons why many of our insurance students choose insurance sales.
1. UNLIMITED EARNING POTENTIAL
Many people are drawn to the insurance industry because of the unlimited
potential it offers to those in sales. Agents with limited experience can
achieve financial success relatively quickly. While it can take time to build a
book of clients, and we tell agents to count on the first few years not being
lucrative, there is endless potential to make money in the long term. If you can
start a good referral program, your current clients can help you continue to
build your book of business.
Independent agents are paid solely on commission, while captive agents will
often get a combination of salary and commission. Either way, you’ve got plenty
of opportunity to grow your income.
2. GREAT FLEXIBILITY
If the 9 to 5 lifestyle isn’t for you, you will like the flexibility that a
career in insurance sales offers. Whether you become an independent agent or a
captive agent, you can often vary your appointment times with some evenings and
weekends, not only to accommodate clients but your own life as well. You can
have a free weekday to schedule personal appointments, enjoy activities, and run
errands.
If you go the independent agent route, you also have the flexibility to sell a
larger variety of products. This will allow you to better match your clients’
needs with the best fitting products and gradually earn their trust.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
3. MAKE A DIFFERENCE
Insurance policies protect people from financial loss because of unexpected
events and circumstances. As an insurance agent, you get to guide your clients’
decisions on what insurance policy plans best suit their needs. The research you
do and recommendations you provide have a real impact on a client’s financial
well-being down the road.
Insurance agents help people prepare for the future. From helping clients save
for retirement and college for their kids to financing a large purchase like a
house or car, insurance agents have the potential to help people achieve their
financial and personal goals. They also prepare clients for unfortunate events
and provide a measure of comfort to clients during such events.
4. FEW BARRIERS TO ENTRY
Due to the low barriers of entry, insurance sales is a good career choice for
people who are transitioning into a new career following a major life change. It
only takes a few weeks or months to study for the state licensing exam, pass the
exam, and start selling insurance.
A college degree is preferred but is not required in many insurance firms.
Unlike many other finance-related positions, prior experience is also not
required.
5. VARIETY OF WORK
If the monotony of doing the same work over and over is unappealing, a career in
insurance sales is definitely a good option for you. Many insurance agents agree
they love the variety of work insurance sales provides. There are some tasks
that need to be done on a regular basis, but for the most part, agents are
constantly meeting new people and helping them achieve their financial goals.
Insurance agents often have to do a lot more besides sell insurance. They have
to grow their business, do marketing, respond to inquiries via email or phone,
and be proficient in social media platforms. They also maintain records and
research prospects. In addition, it is important that insurance agents keep up
with industry news, trends, and government regulations. For this reason,
continuing education is required for insurance agents in all states (education
requirements vary by state). Having these 10 traits can help, as well.
__
Think a career in insurance sales is the right one for you? Learn the process
for becoming an insurance agent now. If you are ready to start insurance
licensing exam prep , choose your state to get started with Kaplan’s exam prep
packages.
Read More
Posted by Kaplan Financial Education - July 31, 2020
HOW TO PASS THE PROPERTY AND CASUALTY EXAM
To sell property and casualty insurance, you need a Property and Casualty
license. But first, you must first pass the licensing exam in the state in which
you want to sell insurance. The licensing process varies by state, as does the
passing score and pass rate. However, the exam structure and content topics are
generally the same across states. We recommend you follow these best practices
for studying in order to pass your Property and Casualty exam.
START STUDYING EARLY/SET A STUDY CALENDAR
The average insurance exam-taker should expect to spend about 35 to 40 hours
studying to pass the Property and Casualty exam. It is recommended that you
study for the exam over the course of a few weeks, rather than trying to cram
the week of the exam. The best way to avoid cramming is to set a study plan and
stick to it. If you take a course with Kaplan, you can simply plug in your exam
date into our study calendar tool, and we’ll set a study plan to keep you on
track.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
FOCUS ON THE STATE EXAM OUTLINE
You will want to print out the State Exam Outline for General Lines Property and
Casualty Agent so you understand what material will be covered under each of
these topics, as well as how it will be weighted on the exam. The State Exam
Outline explains how many questions are included in each section of the test. We
recommend that you concentrate on the sections with the most questions so you
can attain mastery of the key topics.
REMOVE DISTRACTIONS
For your brain to absorb new information, it is important that you do your best
to avoid multitasking and stay focused on what you’re studying. This can be much
easier said than done. You may find that setting a study schedule over a period
of a few weeks will help you carve out time where you can solely focus on
preparing for the exam. Try to remove distractions around you, such as your
phone, TV, or the Internet whenever possible. Some people find the Pomodoro
technique helps them focus better—this is where you set a timer for a 25-minute
interval to focus on one specific task, followed by a 5-minute break.
UTILIZE PRACTICE EXAMS
Be sure to utilize Property and Casualty practice exams in your studies. These
will help you gauge how well you have absorbed the information you’ve read and
figure out which areas still need your attention. It is a good idea to take at
least one practice exam while mimicking testing conditions. This will help you
determine whether your pacing is right to get through the exam in the allotted
time.
TAKE AN EXAM PREP COURSE
While not all states require it, it is a good idea to take an insurance
certification course for your Property and Casualty licensing exam. Not only
will it help you make sense of the material, but it will help you prioritize and
stay on track with your study calendar. With Kaplan, you can choose from live
online classes, OnDemand courses, or printed books for self-study. No matter
which study option you choose, you’ll receive the License Exam Manual (LEM),
State Law Supplement, a QBank containing hundreds of practice questions, and
access to an expert instructor.
The Property and Casualty insurance licensing exam is challenging. It requires
hard work and effort to prepare, but by following these study tips, you should
be well on your way to passing the exam on the first try. It's also helpful to
learn what to expect on exam day.
__
If you are interested in Property and Casualty exam prep from Kaplan, you can
choose from our exam prep options here. We have a study package for every type
of learner!
Read More
Posted by Kaplan Financial Education - July 31, 2020
HOW TO SELL INSURANCE
How to sell insurance is top of mind for anyone who is considering this
rewarding career. Insurance sales requires hard work, determination, networking,
marketing, followup, and a genuine interest in people’s lives, plans, and
future. It means working on commission (in most cases) and having at least one
insurance license. This article describes the steps to follow for selling
insurance.
1. DECIDE WHAT TYPE OF INSURANCE TO SELL AND EARN YOUR LICENSE.
Insurance sales is a broad category, and one insurance license doesn’t cover all
the different types. So, you should choose what kind of insurance you’d like to
sell. The common options are life, health, property, and casualty insurance. Two
other types that are fairly common are surplus line insurance, which covers
unusual situations with risks not addressed by standard insurance, and variable
products insurance, which have an investment element.
To earn an insurance license for everything except variable products insurance
(you need a FINRA Series 6 license for that), you need to be at least 18 years
old. You will have to pass an exam administered by the state where you want to
sell insurance. Many states require you to complete prelicensing education
before taking the exam. You must also pass a background check that can include
fingerprinting.
2. CHOOSE HOW YOU WANT TO SELL INSURANCE.
There are two ways you can sell insurance after you earn your license. You can
be a “captive” or an independent agent. Captive agents work for a specific
insurance carrier and can only sell its insurance products to prospects and
clients. Typically, their office expenses are paid for, and they receive
benefits and continuing education training.
Independent agents work for themselves and sell the products of different
insurers. They use their own resources to start and market their business, but
they typically earn larger commissions than captive agents. By offering products
from different carriers, they can tailor solutions specifically for their
prospects and clients.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
3. GENERATE LEADS.
After earning your license and choosing how you want to sell insurance, you’re
ready to start selling. You know you need to help clients understand differences
in insurance policies so they can choose the plan that’s right for them, but
first you need to get those clients. So, how do you do that? You will have to
generate leads.
If you’re working as a captive agent, your employer may provide you with leads,
usually by selling them to you. If you’re working independently, you will need
to generate leads in other ways. Many independent agents purchase lists and some
even engage insurance marketing organizations or field marketing organizations
to help them with marketing and lead generation.
Even with help from another party, it’s always a good policy to make sure you
also get leads the old-fashioned way—by networking and using referrals.
Encourage family and friends to refer you. Participate in insurance and other
community events to get the word out that you’re an insurance agent. Remember to
create a website and profiles on Facebook, LinkedIn, Twitter, Instagram, and
Snapchat and keep up with them regularly, engaging as much as you can.
4. MAKE YOUR PITCH.
Selling insurance to your leads is all about the pitch. You need to present
yourself well, speak in the language your prospects understand (no slang or
jargon), and demonstrate empathy with their situations. When you put yourself in
their shoes, you can better explain how your insurance products will benefit
them.
Potential clients are looking for a solution and benefits, not a list of
features. Therefore, you should examine and understand how the features you
offer solve problems so you can make appropriate solution recommendations. This
is called solution selling, and it is more effective than just listing features
like a 24x7 helpline or a one-click accounting report.
Many leads might think they don’t need insurance or are reluctant to commit to
the best policy, fearing the cost. Or, they might be required by a bank or law
to purchase insurance and want the lowest-price option. In those cases, you
should ask questions that will get them to focus on what could happen without
the proper amount or type of insurance:
* What’s the most valuable thing in your house?
* What happens if it is stolen?
* What kind of serious weather events—such as floods, hurricanes, blizzards, or
storms—have happened near your house?
* If you passed away, how long would your family be able to live on your
savings?
* How much do you think a funeral costs?
* What would happen to your job if you were permanently injured?
* If you’re injured or hospitalized for a long period of time, how would you
and your family be supported?
After you get answers to those questions, you can explain how the insurance
solutions you provide can help them safeguard for those situations.
STEP 5. FOLLOW THESE TIPS.
Here are some additional tips that can help you get new clients and keep them:
* Create sales goals to keep you on track throughout the year.
* Find something in common with prospects and clients to put them (and
yourself) at ease.
* Find opportunities to learn from experienced coworkers or, if you’re
independent, from other independent agents.
* Keep up with the markets and insurance trends so you can introduce new
solutions to prospects and existing clients.
* Listen to your prospects and clients more than you talk to them.
* Never miss an opportunity to network.
* Partner with other professionals, like lawyers and accountants, who can
answer client questions that you can’t. Then, offer to answer insurance
questions that they can’t as a way to get referrals.
THINK SELLING INSURANCE IS RIGHT FOR YOU?
If you’re excited about helping people plan for the future with the right
insurance products, your first step is earning your license. Exam preparation
packages can help increase your chances of passing, so you can start your
exciting new career.
Read More
Posted by Kaplan Financial Education - July 31, 2020
IS SELLING LIFE INSURANCE A GOOD CAREER OPPORTUNITY?
Is selling life insurance a good career opportunity? For those who like helping
people and don’t mind hard work, the answer is yes. Life insurance agents sell
policies and annuities. They work with all kinds of clients and beneficiaries,
and most agree that it is a rewarding career. So, if you are interested in
financial planning, or you have a sales background and are pondering a career
change, life insurance sales is definitely worth considering. This article lists
the main reasons why.
LIFE INSURANCE SALES OFFERS EXCELLENT EARNING POTENTIAL
A career in life insurance sales has unlimited earning potential. Life insurance
agents do a lot of selling, and life insurance policy commission percentages are
high compared to those of other types of insurance. In addition, life insurance
agents get paid commission renewals for as long as a sold policy is in force.
You should not expect financial success right away, however. It takes a few
years of hard work and networking to acquire clients. You also must be
interested in marketing and have a knack for it. Once you have a solid list of
policyholders and put effort into a referral program, you can continue building
your book of business and grow your income.
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THIS FREE LAUNCHING YOUR INSURANCE CAREER EBOOK.
LIFE INSURANCE AGENTS HAVE FLEXIBLE HOURS
Life insurance agents have the option of following a schedule that is not a
traditional 9-to-5 workday. A career in life insurance sales offers you the
opportunity to vary your appointment times with some evenings and weekends. This
schedule can not only accommodate client availability but yours as well. You can
have a free weekday to schedule personal appointments, enjoy activities, and run
errands. More importantly, your clients will get the attention they need at
times that are convenient for them.
LIFE INSURANCE AGENTS HELP PEOPLE
Life insurance policies let people make sure their loved ones are provided for
after they’re gone. As a life insurance agent, you get to help people make
decisions on what insurance policy plans will work best for their beneficiaries.
Your research and recommendations can make a big difference for a client’s
family down the road while offering them peace of mind. And, should an
unfortunate event occur, you can provide a measure of comfort to those dealing
with loss.
GETTING STARTED IN LIFE INSURANCE SALES IS EASY
Life insurance sales jobs are abundant and easy to find. It’s a good choice for
people who want to change careers or for anyone who wants to get started in a
career quickly after high school or college. It only takes a few weeks or months
to study for the state licensing exam, pass the exam, and start selling life
insurance. A college degree is preferred but is not required in many insurance
firms. Unlike many other finance-related positions, no prior experience is
needed.
SELLING LIFE INSURANCE IS INTERESTING
If the monotony of doing the same work over and over is unappealing, a career in
life insurance sales is definitely a good option for you. Many life insurance
agents agree they love the variety of work. There are some tasks that need to be
done regularly, but, for the most part, agents are constantly meeting new people
and helping them take care of their families and loved ones.
Life insurance agents also do a lot more than just sell insurance. They are
often educators, explaining the ins and outs of all the products they sell in a
way that is easy to understand. They must grow their businesses, market
themselves, respond to inquiries via email or phone, and be proficient in social
media platforms. They also maintain records and research prospects while keeping
up with industry news, trends, and government regulations.
READY TO PURSUE A CAREER SELLING LIFE INSURANCE?
If life insurance sales appeals to you, this article explains more about what
your work will be like. To get started, you must have a life insurance license.
To earn an insurance certification, you might need to complete prelicensing
education for the state where you plan to work (26 states require prelicensing
education). In addition, you must pass either a life insurance or a life and
health insurance exam.
Read More
Posted by Kaplan Financial Education - July 30, 2020
HOW TO PASS THE LIFE INSURANCE EXAM
To sell life insurance, there are several paths you can take, but all of them
include passing at least one exam. You can earn a life insurance license, which,
depending on the state you want to work, can be either be held separately from a
health insurance license or together. If you want to sell certain forms of life
insurance as part of selling securities, you’ll need to pass exams from FINRA
and NASAA that include other types of investments.
This article shows you the steps to passing the life insurance exam and earning
your license.
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INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 1: LEARN YOUR STATE’S REQUIREMENTS AND GET THE EXAM OUTLINE
Each state has different requirements and different types of exams. So, the
first thing you should do is check with the department of insurance in your
state (or the state where you’ll be working) for the requirements. For example,
some states require their licensing candidates to complete prelicensing
education before they take the exam. So, before you sign up for the exam, you’ll
want to make sure you’ve fulfilled that requirement. You should also verify
whether you need a sponsor to take an exam—some states won’t let you take the
exam without one. And, finally, be sure to print the exam outline for your
state.
STEP 2: SCHEDULE YOUR EXAM
You can choose the date and time of your exam in most states. Scheduling options
are usually on the respective state’s department of insurance website. To give
yourself time to study, schedule your exam at least two weeks in advance. The
cost to take the exam varies from state to state, but expect it to range from
$40 to $150.
STEP 3: HAVE A STUDY PLAN TO PASS THE LIFE INSURANCE EXAM
You’ll need to devote about 35 to 40 hours of studying if you expect to pass.
Cramming is not recommended. Instead, plan to study for the exam over the course
of several weeks. Have a realistic plan that’s easy for you to stick to,
dividing your study time into study sessions that give you plenty of time to
absorb material. Setting up a study calendar can help you follow your plan. A
insurance certification study package can help you stay on track so you don't
cram at the last minute.
STEP 4: FOLLOW THE STATE EXAM OUTLINE
The state outline for the exam has a list of the topics that will be covered and
how they are weighted. These are the life insurance topics you are most likely
to be tested on:
* Life insurance general knowledge
* Life insurance policies
* Policy riders and options in life insurance coverage
* Life insurance tax issues
* Annuities
* Annuity policy tax issues
If you are taking a combined exam, there will be health insurance topics as
well. The exam outline also tells you the number of questions included in each
section of the exam. You should concentrate on the sections with the most
questions and the topics with the most weights so that you master what’s most
important first. You have a better chance of success if you follow that plan.
STEP 5: PREPARE AND PRACTICE
Taking an exam preparation review course can increase your chances of passing.
You can choose between live classes, online courses, or printed books for
self-study. You should also take practice exams. These will help you determine
how well you have absorbed the material and what still needs your attention. A
mock or practice exam that mimics test conditions enables you to judge whether
your pacing is right for finishing the exam in the allotted time.
STEP 6: KNOW THE EXAM CENTER PROCESS
Often what trips students up is not knowing what to expect on exam day, even if
they are otherwise prepared. Try visiting the test center before the exam—see
how long it takes to get there and get a feel for the testing area. Find out
what forms of identification are needed to take the exam so you can have them
ready on exam day; each state has its own requirements. On the day of the exam,
try to arrive at least 30 minutes early. You should expect to put all of your
belongings in a locker before you get assigned to a testing cubicle. When you
get to your assigned test spot, an employee will explain the expected conduct to
you.
STEP 7: STAY CALM AND TAKE THE EXAM
Here are some tips for how to handle questions on the exam:
* Read each question carefully and thoroughly before answering it. Most
questions will have a lot of detail and qualifying information in them. Try
to focus only on the information in the question and avoid making assumptions
just to fill in the blanks.
* Find the questions you know the answer to and answer them first. If you find
yourself stuck, move on and come back to it later.
* Don’t leave any questions blank. Guessing the answer still gives you a 25%
chance of getting it right. And, If you can eliminate any of the
multiple-choice options that you know to be incorrect, you will have any even
better chance at guessing the correct answer.
Once you complete the exam, you will get the results. If you pass, you will
receive instructions on how to apply for your license with the state. You may
have to wait a few days for the testing center to report that you passed before
you can apply for your license. If you fail, you will get a diagnostic report so
you know what areas to focus on the next time.
READY TO PASS TO YOUR LIFE INSURANCE EXAM?
Although pass rates are about 70% in most states, the life insurance licensing
exam is still no walk in the park. You can Increase your odds of passing the
life insurance exam by following these steps. And to give you even more of an
advantage, try an insurance licensing exam prep package.
Read More
Posted by Kaplan Financial Education - July 9, 2020
FREQUENTLY ASKED QUESTIONS ABOUT THE LIFE INSURANCE LICENSE
To get your life insurance license, you must pass an exam and meet other
requirements. The questions most frequently asked about life insurance licensing
and the exam—such as license requirements, exam difficulty, passing score, pass
rates, questions, and topics—are answered in this article. Read on to get
information that can help you plan for a successful career as a life insurance
agent.
HOW DO I EARN A LIFE INSURANCE LICENSE?
You need to be at least 18 years old to earn your life insurance license, and in
some states, you’ll be earning a joint life and health insurance license. Here
are the steps to follow:
1. Complete any prelicensing education required by the state you want to become
licensed in. The number of hours you’ll have to complete and the cost vary
by state. Note: A few states do not require prelicensing education, so
before you start the process for your state, check with the state’s
insurance organization.
2. Pass the state insurance licensing exam for life insurance or life and
health insurance. An insurance license exam preparation can help.
3. Pass a background check. The process varies by state and, in some cases,
includes fingerprinting.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
What is the difference between a life insurance license and a life and health
insurance license?
A life insurance license permits you to sell annuities, term, and cash value
(commonly called whole or universal) life insurance. A life and health insurance
license enables you to sell these life insurance products, plus policies that
provide protection for medical expenses, loss of income due to a disability, and
the need for long-term care.
Some states, like Alabama and Florida, offer the options of earning a life
insurance license, a health insurance license, and a life and health insurance
license. Each of the three types require passing a separate exam. Others, like
North Carolina, have separate licenses for life and health but not a
combination, and each requires passing a separate exam. Still others, like
Missouri, have a combined life and health insurance license only.
WHAT JOBS CAN I GET WITH A LIFE INSURANCE LICENSE?
A life insurance license enables you to become a life insurance agent. Life
insurance agents sell life insurance policies and annuities and work with
clients and beneficiaries to process claims.
Life insurance agents do a lot of selling, so it’s important to be interested in
marketing and have a knack for it. Excellent interpersonal and communication
skills are also required because life insurance agents have to explain the ins
and outs of all the products they sell in a way that is easy to understand. Life
insurance agents can either be “captive” and work exclusively for one insurance
company, or they can be “independent,” selling products from multiple companies.
HOW HARD IS THE LIFE INSURANCE EXAM?
Each state has its own insurance exam, so the tests vary, making this question
complicated to answer. However, the overarching topics covered on the exam, as
well as the passing scores, are similar for all states. No matter where you take
it, the test is not a walk in the park. But if you have a good understanding of
the topics, you have a good chance of passing the life insurance exam.
WHAT ARE THE LIFE INSURANCE EXAM TOPICS?
The life insurance exam tests you on specific topics, and these topics are
weighted. These are the life insurance topics you are most likely to be tested
on in most states:
* Life insurance general knowledge
* Life insurance policies
* Policy riders and options in life insurance coverage
* Life insurance tax issues
* Annuities
* Annuity policy tax issues
If you are taking a combined exam, there will be health insurance topics as
well.
WHAT ARE THE REQUIREMENTS FOR TAKING THE LIFE INSURANCE EXAM?
To take the life insurance exam, you must:
1. Have a high school diploma or an equivalent.
2. Know where you want to sell insurance and what the state requires. If it’s
not the state where you currently reside, check to see if you are required
to be a resident for a certain amount of time before taking the exam. The
bodies of government that regulate insurance have different names, depending
on the state, so a good way to find out is to go to the official website of
the state and search for the insurance licensing rules.
3. Meet the specific state exam requirements. In many states, you must complete
a specified amount of prelicensing education hours. Visit the official
website of the state insurance department or commission and search for the
insurance licensing rules.
4. Register for the exam, which includes paying a registration fee determined
by each state.
WHEN IS THE LIFE INSURANCE EXAM?
You can choose the date and time of your life insurance exam in most states.
Scheduling options are usually on the respective state’s department of insurance
website. To give yourself time to study, schedule your exam at least two weeks
in advance.
IS THE LIFE INSURANCE EXAM PAPER- OR COMPUTER-BASED?
The life insurance exam is computer-based in all states.
HOW MANY QUESTIONS ARE ON THE LIFE INSURANCE EXAM?
The life insurance exam consists of between 105–150 multiple-choice questions,
depending on the state, and whether it is a separate exam or combined with
health.
HOW MUCH TIME DOES IT TAKE TO STUDY FOR THE LIFE INSURANCE EXAM?
Most candidates study for the life insurance exam for about 35 to 40 hours.
HOW MUCH DOES IT COST TO TAKE THE LIFE INSURANCE EXAM?
The cost to take the exam ranges from $43–$150, depending on your state. You can
find the fee on your state’s insurance licensing website. Note that license
application fees are separate.
WHAT IS THE PASSING SCORE FOR THE LIFE INSURANCE EXAM?
The passing score is 70 percent in all states.
WHAT IS THE PASSING RATE FOR THE LIFE INSURANCE EXAM?
According to a 2016 NAIC document, the passing rate is broad. The lowest passing
rate was in Maryland at 40 percent, and the highest was in Wyoming at 87
percent. The majority of states recorded passing rates in the range of 60–67
percent.
HOW DO I PASS THE LIFE INSURANCE EXAM?
Follow these steps to increase your chances of passing the exam:
1. Learn your state’s requirements and get the exam outline. Check with the
department of insurance in your state (or the state where you’ll be working)
for the requirements and the outline and print it out.
2. Have a study plan. Cramming for the life insurance exam is not recommended.
Instead, have a realistic plan that spreads your study time over several
weeks and is easy for you to stick to. An insurance certification study
package can help you stay on track so you don't cram at the last minute.
3. Follow the state exam outline, which has a list of the topics that will be
covered and how they are weighted.
4. Prepare and practice. Review courses and reading can help you prepare.
However, you should also take practice exams. These will help you determine
how well you have absorbed the material and what still needs your attention.
5. Know the exam center process. Visit the test center before the exam—see how
long it takes to get there and get a feel for the testing area. Find out
what forms of identification are needed.
6. Stay calm while taking the exam. Read each question carefully and thoroughly
before answering it. Find the questions you know the answer to, and answer
them first. If you find yourself stuck on any question, move on and come
back to it later.
IF I FAIL THE LIFE INSURANCE EXAM, WHAT IS THE WAIT TIME BEFORE I CAN RETAKE IT?
You will find out if you passed or failed the exam at the testing center.
However, you cannot register to take it again at that time. Instead, you must
wait 24 hours before you can register again. You can take the exam three times
in one year. If you fail it all three times, you will have to complete
prelicensing education again before you can take it for a fourth time the
following year. This process may vary by state.
READY TO EARN YOUR LIFE INSURANCE LICENSE?
We hope this article answers your pressing questions about the life insurance
exam and license. If you’re interested in taking the exam, we have life and
health exam preparation packages.
Read More
Posted by Kaplan Financial Education - March 18, 2020
WHAT IS AN INSURANCE PRODUCER?
An insurance producer sells insurance products to clients on behalf of an
insurance company. It is a rewarding career with amazing growth potential.
Becoming an insurance producer is also a great way to get started in finance or
to make a much-needed career change. This article explains what an insurance
producer does, shows you the differences between an insurance producer, agent,
and broker, and describes how you can become a producer.
WHAT AN INSURANCE PRODUCER DOES
Insurance producers are licensed to sell and negotiate life, health, property,
or other types of insurance offered by an insurance company. As an insurance
producer, you may work for one insurance company only or represent multiple
carriers.
Being a producer includes finding new clients and maintaining relationships with
those you already have. Insurance producers need to be a reliable first point of
contact when a client needs to file a claim or increase coverage due to major
life events, like purchasing a new car or having a child. Other responsibilities
include:
* Calculating premiums and establishing payment methods
* Monitoring insurance claims and helping clients settle them
* Fulfilling all policy requirements
* Customizing insurance programs to suit individual customer needs
* Inspecting property to examine its overall condition and decide its insurance
risk
* Acting as an intermediary between a customer and the insurance company
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INSURANCE CAREER EBOOK.
WHAT’S THE DIFFERENCE BETWEEN AN INSURANCE PRODUCER AND AN INSURANCE AGENT?
There is no difference. The two terms are used interchangeably to describe
selling insurance on behalf of a company or multiple carriers. “Insurance agent”
is the term used most often in the industry, but “insurance producer” is often
the official title that states use for licensing. No matter which term you use,
you will have the same responsibilities.
WHAT’S THE DIFFERENCE BETWEEN AN INSURANCE PRODUCER AND AN INSURANCE BROKER?
Insurance producers or agents represent insurance companies. By contrast,
insurance brokers represent insurance buyers. In other words, producers look for
clients who will buy insurance products, while brokers look for insurance
products that will meet their clients’ needs. In addition, an insurance producer
can bind a client to a policy whereas an insurance broker cannot. Once a broker
has found a product for a buyer, a producer must complete the transaction.
HOW TO BECOME AN INSURANCE PRODUCER
Before you can become an insurance producer (or agent), you must have a high
school diploma and be 18 years of age or older. If you meet these requirements,
here are your next steps:
1. Decide what kind of insurance you want to sell. Examples include life and
health, property and casualty, auto, and workers’ compensation.
2. Learn your state’s prelicensing requirements. Many states require you to
complete a specific number of hours of prelicensing education for each type
of insurance.
3. Pass your state’s insurance licensing exam.
You can get all the details on these steps in this article.
READY TO GET STARTED?
Learn more about what an insurance agent does.
Read More
Posted by Kaplan Financial Education - January 13, 2020
POPULAR CAREERS IN THE INSURANCE INDUSTRY: WHAT YOU CAN DO WITH YOUR LICENSE
What are the most popular insurance careers? If you’re getting ready to graduate
or you’re considering a more exciting career alternative, you might be wondering
what you can do if you earn your insurance license. To help you decide which
license to earn and how to use it, this article describes the most popular types
of insurance agents and other top jobs you can get with an insurance license.
LIFE INSURANCE AGENT: ONE OF THE MOST POPULAR INSURANCE CAREERS
Life insurance agents sell life insurance policies and annuities and work with
clients and beneficiaries to process insurance claims. Life insurance agents do
a lot of selling, so it’s important to be interested in marketing and have a
knack for it. Excellent interpersonal and communication skills are also required
because life insurance agents have to explain the ins and outs of all the
products they sell in a way that is easy to understand. Life insurance agents
can either be “captive” and work exclusively for one insurance company, or they
can be “independent,” selling products from multiple companies.
To earn a license to sell life insurance, you might need need to complete
prelicensing education for the state where you plan to work (26 states require
prelicensing education). You must also pass either a life insurance or a life
and health insurance exam. Agent pay is on commission. The average salary for a
life insurance agent as of November 2019 was $79,606. You can learn more about
this popular option for people with insurance licenses in this article about
what a life insurance agent does.
THINKING ABOUT A CAREER IN INSURANCE? GET ADVICE FROM 100 INSURANCE
PROFESSIONALS IN OUR FREE EBOOK, LAUNCHING YOUR INSURANCE CAREER.
HEALTH INSURANCE AGENT: HELPING CLIENTS GET HEALTHCARE
Health insurance agents sell health-related products and insurance to their
clients. Typically, these agents look for clients, share options that meet their
requirements, and, when necessary, help them get their claims settled. Health
insurance agents can also help people navigate healthcare exchanges and sign up
for the coverage that best suits their needs and budget. They must have strong
customer service and analytical skills, and they must excel at verbal and
written communication, time management, critical thinking, and decision-making.
Like life insurance agents, health insurance agents can be captive or
independent.
In almost all U.S states, health insurance agent licenses are packaged with life
insurance qualifications. You must complete prelicensing education and pass a
combined life and health insurance exam to earn your license. The average salary
for a health insurance agent as of November 2019 was $55,839. Agents are paid by
commission.
PROPERTY AND CASUALTY INSURANCE AGENT: A GREAT ENTRY-LEVEL CHOICE
Property and casualty insurance agents help clients insure property, such as
auto, home, and jewelry, against possible damage or legal liability, and they
help them settle their claims. These agents navigate clients through all the
available property and casualty insurance products to help them decide the best
way to protect their valuable assets. All states require licensed drivers to
carry auto insurance, and mortgage loan companies require homeowners insurance,
so there will always be buyers. This makes property and casualty a good
entry-level position for a newly licensed agent. Like life insurance and health
insurance agents, property and casualty insurance agents can be captive or
independent.
To earn a property and casualty insurance license, completing prelicensing
education and passing a licensing exam for your state (or the state where you
plan to sell) are required. The average salary for a property and casualty
insurance agent as of November 2019 was $48,723.
CLAIMS ADJUSTER: AN INVESTIGATIVE INSURANCE CAREER
Claims adjusters gather information about what happened in an incident or
catastrophe to find a fair settlement price. They collect police reports,
witness statements, and photos of an incident or property damage, for example.
Adjusters are either full-time employees or contractors who are paid a fee. Some
work for only one insurance company. Others work with multiple companies
(usually after a catastrophe, often traveling to affected areas). And there are
others who work on behalf of policyholders, helping them file insurance claims
if a proposed settlement seems unfit from an insurer.
Most states require adjusters to earn a license. They can do this by completing
licensing education and passing an exam. The average salary for a claims
adjuster as of November 2019 was $54,479. This article explains everything you
need to do to become a claims adjuster.
INSURANCE UNDERWRITER: A DIFFERENT INSURANCE CAREER PATH
An insurance underwriter evaluates insurance applications in order to decide
whether to provide the insurance and, if so, the coverage amounts and premiums.
Underwriters act as go-betweens for insurance agents who are eager to sell a
policy and insurance companies who want to minimize risk. For someone with an
interest in finance or insurance, an eye for detail, and decision-making skills,
it is an attractive career option.
Unlike most other insurance careers, an underwriter does not have to be
licensed. However, most participate in underwriting professional development to
sharpen their skills and knowledge. Others have found that having an insurance
license in the same specialty as their underwriting, such as life or property
and casualty, can be beneficial. The average salary for an insurance underwriter
as of November 2019 was $71,116. You can get all the details about the insurance
underwriting career in this article.
INSURANCE CAREERS ARE REWARDING AND SATISFYING
There are a variety of career paths you can take in the insurance industry,
depending on your interests and qualifications. Start your new career by
downloading this free eBook on launching your insurance career or by checking
out our insurance licensing education options.
Read More
Posted by Kaplan Financial Education - November 22, 2019
NEW YORK AMENDS REGULATION 187: WHAT IT MEANS FOR INSURANCE
In July 2019, the New York Department of Financial Services (DFS) announced an
amendment to New York Insurance Regulation 187 that affects annuities and life
insurance sales. It requires insurers to establish new standards and procedures
for how agents and brokers make insurance and annuity product recommendations.
In this article, I’ll explain the amendment, what it means for insurers and
producers, and where you can get more education on this regulatory change.
LOOKING FOR CONTINUING EDUCATION CLASSES THAT MEET THE REGULATION 187 TRAINING
REQUIREMENTS? WE HAVE THEM IN OUR NEW YORK TOTAL ACCESS CE LIBRARY.
THE BEST INTEREST RULE
The “Best Interest Rule” is an amendment to existing New York State suitability
standards for annuity transactions. Prior to this change, annuity
recommendations producers had to be suitable for the client. The amendment
raises the bar in that it requires recommendations to be in the best interests
of the consumer. These requirements also apply to life insurance
recommendations.Since the DOL Fiduciary Rule was vacated, regulatory bodies and
states have been seeking other ways to hold insurance producers, brokers, and
financial companies to the same standards.
Amending Regulation 187 is New York’s answer to the issue. The New York DFS
official announcement states that the rule “requires insurers to establish
standards and procedures to supervise recommendations by agents and brokers to
consumers with respect to life insurance policies and annuity contracts issued
in New York State so that any transaction with respect to those policies is in
the best interest of the consumer and appropriately addresses the insurance
needs and financial objectives of the consumer at the time of the transaction.”
On August 1, 2019, the best interests rule went into effect for annuities; for
insurance, the effective date is February 1, 2020.
WHAT THE RULE MEANS FOR INSURERS AND PRODUCERS
By mandating that life insurance or annuity recommendations to be based on the
best interests of the communities, the rule is designed to keep financial
compensation or incentives from influencing the recommendation made to a client.
It requires insurers to develop, maintain, and manage procedures for preventing
consumer financial exploitation. Basically, insurers must educate and supervise
agents and brokers to make sure that they are putting their clients’ needs above
their own when they recommend life insurance and annuities products. Also,
insurers should take note of the “life insurance policies and annuity contracts
issued in New York State” language because it means that non-resident, as well
as resident producers, are affected.
There are important exemptions, however. The rule does not apply to retirement
plans covered by the Employee Retirement Income Security Act (ERISA), other
retirement and deferred compensation plans maintained by employers, and direct
sales to consumers where no recommendation has been made by the insurer.
There is controversy around the amendment. The New York Chapter of the National
Association of Insurance and Financial Advisors filed a lawsuit to stop it,
claiming that exempting direct sales to consumers gives those insurers a
competitive advantage over producers. Another lawsuit has been filed by several
independent agents’ organizations stating that the amendment is too subjective
in the use of the term “best interest.”
If Regulation 187 clears these hurdles, it is very likely that other states and
organizations will follow suit. In fact, the SEC has already adopted a package
of best-interest rules and regulations. The National Association of Insurance
Commissioners (NAIC) is drafting a model regulation that has standards similar
to those of Regulation 187. And, New Jersey and Nevada are exploring
best-interest rules of their own.
EDUCATE YOURSELF
The Life Insurance suitability and best interests requirements went into effect
February 1, 2020. Producers recommending a life insurance policy to a New York
consumer going forward must be trained on the new provisions in Regulation 187
related to life insurance suitability and best interests.
As part of our New York Total Access CE library, Kaplan Financial Education
offers several courses designed to help you meet the Regulation 187 training
requirements.
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Posted by Randy Kemnitz, Ph.D., CFP® - August 12, 2019
WHAT DOES AN INSURANCE AGENT DO?
An insurance agent is defined as a person employed to sell insurance policies to
clients. That's just a broad overview of the job, and it doesn’t disclose
specific tasks or detail what an insurance agent does on a day-to-day basis. If
you’re interested in becoming an insurance agent, but aren’t specifically sure
what the job entails, this article gives you an idea of what working as an
insurance agent is like.
INSURANCE AGENT JOB DESCRIPTION
Insurance agents sell and negotiate life, health, property, or other types of
insurance to match the needs of their clients. As an insurance agent, you may
work for an insurance company, refer clients to independent brokers, or work as
an independent broker.
Marketing also plays a large part in the day-to-day duties of an insurance
agent. Successful insurance agents implement marketing strategies to promote new
and current insurance policies. Marketing activities are also crucial to
bringing new customers to your agency.
As an insurance agent, you develop relationships with prospective clients
through networking and referrals. Those relationships are the bedrock of your
business. You can develop a long-term base of clients through many channels,
including referrals, cold calling, email, social media, and postal mailing. You
can also present to groups at work-related gatherings or speak publicly at an
insurance-related event. In addition to finding new clients, as an insurance
agent, you must maintain relationships with existing clients. Your reputation as
an insurance agent depends on you being a reliable first point of contact when
your client needs to file a claim or increase their coverage due to major life
events, like purchasing a new car or having a child.
Insurance agents must evaluate the needs of their clients and propose plans that
will meet the criteria, as well as the clients' financial status. You will
develop an understanding of your clients’ needs and financial capacity by
scheduling meetings, determining the extent of present coverage and investments,
and building long-term goals. In addition to determining client needs, you
should also develop a protection plan by quoting rates for immediate coverage
and long-term goals.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
ADDITIONAL RESPONSIBILITIES OF AN INSURANCE AGENT:
* Attend meetings, seminars, and programs to learn about new products and
services
* Calculate premiums and establish payment methods
* Report the progress of initiatives to stakeholders
* Maintain bookkeeping systems, databases, and records
* Monitor insurance claims
* Meet customers’ expectation to ensure satisfaction of insurance coverage
* Continuously educate yourself on the industry and learn about new products
and services
* Fulfill all policy requirements
* Help clients settle any claims on their insurance
* Customize insurance programs to suit individual customer needs
* Ensure that policy requirements are fulfilled, including completion of the
appropriate forms
* Inspect property in order to examine its overall condition and decide its
insurance risk
* Make sure all paperwork is filled out and filed to put insurance policies in
place
* Assist customers in properly completing insurance applications in order to
act as an intermediary between the customer and the insurance company
QUALIFICATIONS TO BECOME AN INSURANCE AGENT:
* A high school diploma, although many start with a bachelor’s degree
* Licensure is required to work as an insurance agent
* Good customer service skills—must be comfortable speaking with others
* Experience working in a relevant field, such as sales (not a requirement)
Now that you know what an insurance agent does and what is required, learn about
the 10 traits that can help you succeed here.
__________
Ready to get started on your insurance career? Kaplan has what you need to
prepare for your insurance licensing exams.
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Posted by Kaplan Financial Education - April 9, 2019
HOW TO PASS THE LIFE AND HEALTH INSURANCE EXAM
In order to get your life and health license, you must first pass the licensing
exam in the state in which you want to sell insurance. The process to get
licensed itself varies by state, as does the passing score and pass rate.
However, the exam structure and life and health insurance content topics are
generally the same for most states, as are the best practices for preparing to
pass the life and health insurance exam. We recommend you follow these tips on
how to pass the life and health exam to ensure your success.
SET AND ADHERE TO A STUDY CALENDAR
The average insurance exam-taker spends about 35 to 40 hours studying to pass
the life and health insurance licensing exam. In order to better absorb the
information, it is recommended that you study for the exam over the course of a
few weeks rather than simply cramming during the week of the exam. We recommend
setting a study calendar for yourself and sticking to it.
If you take a course with Kaplan, you can simply plug your exam date into our
study calendar tool, and we’ll set a plan to keep you on track. Regardless, you
can divide up the work you need to do to be ready for exam day into digestible
daily study lessons.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
CONCENTRATE ON THE STATE EXAM OUTLINE
You will want to print out the State Exam Outline for General Lines Life and
Health Agent so you understand what material will be covered under each of these
topics, as well as how it will be weighted on the exam. The State Exam Outline
lets you know how many questions are included in each section of the test. This
is very important. It is recommended that you concentrate on the sections with
the most questions so you can attain mastery of the key topics first and then
move on to the less-tested areas.
UTILIZE PRACTICE EXAMS
Be sure to utilize life and health insurance practice exams in your studies.
Practice exams will help you gauge how well you have absorbed the information
you’ve read, as well as determine which areas still need your attention. We
recommend you take at least one practice exam while mimicking testing
conditions. This will help you determine whether your pacing is right to get
through the exam in the allotted time.
TAKE AN EXAM PREP REVIEW COURSE
While not all states require it, it is a good idea to take a prelicensing
education course for your life and health insurance licensing exam. Not only
will it help you make sense of the material, but it will help you prioritize and
stay on track with your study calendar. With Kaplan, you can choose from
traditional live classes, online courses, or printed books for self-study. No
matter which study option you choose, you’ll receive the License Exam Manual
(LEM), State Law Supplement, a QBank containing hundreds of practice questions,
and access to an expert instructor.
KNOW THE EXAM PROCESS
Not knowing what to expect on exam day can trip up students who are otherwise
well prepared. The testing center can feel a little intimidating, so it’s good
to have an idea of what will happen so you aren’t caught off guard.
You should expect to put all of your belongings in a locker before you get
assigned to a testing cubicle. When you get to your assigned test spot, an
employee will explain the expected conduct to you. They are very alert to any
suspicious signs of cheating, so be sure to follow their directions carefully.
Learn more about the exam process here.
The life and health insurance exam can be challenging; however, you can pass on
your first try by following these recommendations. Be sure to check out this
video from Kaplan’s insurance experts, Julie Ramsey and Mary Orn, with more
insurance licensing exam study tips.
__
If you are interested in Life and Health insurance exam prep from Kaplan, you
can choose from our exam prep options here. We have a study package for every
type of learner!
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Posted by Kaplan Financial Education - March 29, 2019
WHAT DOES AN INSURANCE CLAIMS ADJUSTER DO?
Becoming an insurance claims adjuster is sometimes overlooked as a potential
profession when someone is considering an insurance career. Insurance claims
adjuster jobs can be a great option though; the need for adjusters remains
consistent over time as catastrophes and accidents happen every day. Exactly
what do insurance claims adjusters do in their day-to-day work? Read on to find
out or learn how to become a claims adjuster.
TYPES OF INSURANCE CLAIMS ADJUSTERS
There are a few different types of insurance claims adjusters, and each would
influence what your day-to-day work would be like.
Staff Adjuster: A staff adjuster works full-time for one insurance adjuster firm
exclusively. Generally, these positions mean that you are salaried and receive
benefits from the firm, such as pension, life and health insurance, and
continuing education training. Staff adjusters respond to claims for the one
insurance company they work for. Often, these are car accident claims.
Independent Adjuster: Independent adjusters work as contractors for multiple
insurance firms or third-party administrators. They often work with catastrophe
claims and will travel to the impacted areas after major weather events or
emergencies.
Public Adjuster: Public insurance adjusters work directly on behalf of
policyholders. They help businesses or individuals file insurance claims if a
proposed settlement seems unfit from an insurer. Generally, public adjusters are
also contract workers rather than salaried.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
CLAIMS ADJUSTING IS INVESTIGATIVE WORK
Regardless of what type of insurance claims adjuster you are, you will be doing
investigative work. Once an insurance claim is filed, a claims adjuster is
called in to take over the process. They gather information and details to work
out what happened in the incident and find a fair settlement price. Some of the
information a claims adjuster collects includes police reports, witness
statements, photos of an incident, or property damage. If needed, a claims
adjuster will conduct interviews with everyone involved in an incident.
Different types of adjusters have different goals. A public adjuster, for
example, wants to get the highest possible amount paid to their claimant client,
whereas a staff adjuster or independent adjuster for an insurance company works
in the interest of the insurance company.
WHAT HOURS DO CLAIMS ADJUSTERS WORK?
The hours claims adjusters work vary considerably. A staff adjuster for an
insurance company may work regular 9 to 5 hours and rarely on weekends;
independent or public adjusters are more likely to work irregular hours to
accommodate client schedules and do investigative work.
Independent and public adjusters, in particular, may have to work well over 40
hours a week during catastrophic events. However, there will also be times
during the year when their workload is much less. As a contract adjuster, they
have more control over how much they want to work than a staff adjuster.
GETTING STARTED AS AN INSURANCE ADJUSTER
To become an insurance adjuster, you will need a minimum education of a high
school diploma or GED equivalent. While some insurance companies may require a
bachelor’s or associate’s degree, it is not required to get into the profession
in all cases.
In some states, you will also need to be licensed. Even if you don’t live in a
state requiring a license, you may find it makes sense to get an out-of-state
license so you are able to work throughout the country. If you want to do
insurance claims adjusting after weather disasters or catastrophes, this will
make the most sense for you. If you get licensed, you will need to maintain that
license with continuing education. Each state has unique requirements, so it’s
best that you consult your state website for details.
__
If you think this sounds like the right career for you, find out more about how
to become an insurance claims adjuster. If you are interested in enrolling in
insurance adjuster licensing exam prep, check out our adjuster licensing online
course through Texas now.
Read More
Posted by Kaplan Financial Education - March 29, 2019
HOW TO GET YOUR FLORIDA INSURANCE LICENSE
Looking to earn your insurance license? The licensing process varies state by
state. These are the steps to earning your insurance license in Florida.
STEP 1: COMPLETE THE FLORIDA PRELICENSING EDUCATION
Regardless of the type of insurance license you are looking to earn, you will be
required to complete a specific number of state-approved education credit hours.
The number of hours varies depending on the license you are looking to obtain.
You can get the details on our State Requirements page. Upon completion of your
course, you will receive a certificate.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: SUBMIT THE FLORIDA LICENSE APPLICATION
Once you’ve completed the required education, it’s time to apply for your
Florida insurance license. There is an application fee of $50 and a License ID
fee of $5, giving you a total cost of $55. You can complete the license
application on Florida’s Division of Insurance Agent and Agency Services
webpage.
STEP 3: COMPLETE FINGERPRINTING AND BACKGROUND CHECK
Prior to earning your license, the state of Florida requires that state
licensing applicants submit fingerprints and complete a background check.
Florida uses MorphoTrust USA to complete fingerprinting. There is a $45.80 fee
(plus tax) associated with the fingerprinting process. MorphoTrust USA submits
your fingerprints automatically to the Florida Department of Law Enforcement.
STEP 4: PREPARE AND SIT FOR THE INSURANCE LICENSING EXAM
In Florida, Life, Accident, & Health and Property & Casualty are bundled
together. So you would need to sit for the exam that matches the insurance lines
you want to carry. Florida insurance licensing exams are proctored, meaning
there is a designated person overseeing you while you take the exam. To increase
your odds of success on your insurance licensing exam, trust your preparation to
Kaplan Financial Education.
STEP 5: PASS LICENSE APPLICATION REVIEW
After passing the exam and submitting your application, your background check
and application will be reviewed by the state. If approved, your license will be
issued. If there are issues revealed in your background check, the state may
reach out with questions. You will be notified of approval in your MyProfile
account on the FL Division of Insurance Agent and Agency Services website.
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Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET YOUR COLORADO INSURANCE LICENSE
You live in Colorado, and you’ve been researching a career in insurance. You’ve
reviewed the basics and have decided to become an insurance agent. Here are the
5 steps for earning your license in your home state.
STEP 1: FAMILIARIZE YOURSELF WITH THE LICENSING CANDIDATE HANDBOOK
What does a career in insurance in Colorado require? What education do you need?
Do you have to be a college graduate? Are you an insurance agent in another
state and would also like to be licensed in Colorado? Can other coursework count
toward your prelicensing education? Find answers to these questions and more in
the Colorado Insurance Licensing Candidate Handbook. It offers a wealth of
information on the specifics of insurance licensure in Colorado, including all
the education requirements, the costs, and the procedures for taking the exam.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: COMPLETE ALL PRELICENSING EDUCATION REQUIREMENTS
You’ll need to complete prelicensing education before taking the exam for your
license. This education helps you prepare for the exam and your future career.
You’ll need to take 50 hours each (10 hours of which must be Colorado-specific)
for the following types of insurance: life, accident and health, property and
casualty, and personal lines. All training is good for up to one year after you
complete your courses.
After you complete your education, the training school will inform Pearson Vue,
the exam provider. However, hang onto your training school code, because you’ll
need it to make a reservation for your exam.
STEP 3: SCHEDULE YOUR EXAM, PAY THE FEE, AND PREPARE YOURSELF
To take the exam, you must make a reservation with Pearson Vue, which you can do
online at www.pearsonvue.com/co/insurance. Simply create an account and follow
the step-by-step instructions to make your exam reservation. You’ll need to make
the reservation at least 24 hours before the exam. If you’re paying by
electronic check, you’ll need to do it at least 5 days in advance.
The fee is $48 for an individual exam. You’ll need to pay the fees when you
register and provide the code for the training center you used for your
prelicensing education. In preparation for the exam, you should study and
practice. The Colorado Insurance Licensing Candidate Handbook has information
about how to pay for the exams, and the Colorado Division of Insurance Producer
Information and Instructions website has a link to exam content outlines.
STEP 4: TAKE THE EXAM AND PASS
On the day of the exam, report to the exam center 30 minutes before the
scheduled start time. Be sure to have two forms of current ID with a signature,
such as a driver’s license, passport, military ID, state-issued ID card, and so
on. You’ll be asked to sign a Candidate Rules Agreement form, and you’ll be
photographed for your score report. Also, if you’re nervous, you have the
opportunity to take a tutorial that will not cut into your exam time.
After you complete your exam, you’ll be given a score report. If you passed, and
you meet all other requirements, you’re eligible for your license.
STEP 5: APPLY FOR YOUR LICENSE
To apply, go to the National Insurance Producer Registry (NIPR) website. The
cost of the license for a Colorado resident is $89 (plus a $5 NIPR transaction
fee) for each line of authority. More details about fees can be found on the
NIPR fees page.
AS YOU PURSUE YOUR NEW CAREER
As you follow these steps for successfully earning your Colorado insurance
license, keep in mind that you will also have continuing education requirements
to meet after you’ve earned your license. You’ll also need to renew your
license, so be sure to keep up with the latest information on the Colorado
Division of Insurance Producer Information and Instructions web page.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A WISCONSIN INSURANCE LICENSE
After doing some research and reviewing the basics, you’ve decided to earn your
license and become an insurance agent in Wisconsin. Here are the 5 steps for
earning your license.
STEP 1: FAMILIARIZE YOURSELF WITH THE LICENSING INFORMATION HANDBOOK
What does an insurance career in Wisconsin entail? What education do you need?
Do you have to be a college graduate? Are you an insurance agent in another
state and would also like to be licensed in Wisconsin? Can other coursework
count toward your prelicensing?
The Licensing Information Handbook from the Wisconsin Office of the Commissioner
of Insurance has answers to these questions and more. You’ll find a wealth of
information on the specifics of insurance licensure in Wisconsin, such as the
three main types of license: intermediary, navigator, and counselor. This
handbook will help you know what to expect as you go through the process.
Also helpful is this FAQ from the Office of the Commissioner of Insurance. This
goes into more detail about the different types of licenses and what they enable
you to do. Most likely, you’ll be trying to get an intermediary license, because
that’s the one for agents and producers.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: COMPLETE ALL PRELICENSING EDUCATION REQUIREMENTS
Before you can apply for your Wisconsin insurance license or take the exam, you
need to complete prelicensing education: classroom, self-study, or a combination
of both. There are different requirements for the different types of licenses,
but all require 8 hours of education on the principles of insurance, general
Wisconsin insurance laws, and ethics. The intermediary license requires 12
additional hours for the major and limited insurance lines: life, accident and
health, property, casualty, personal, variable life/variable annuity, credit,
and title. You can get more details here.
After you finish your courses, you will receive a certificate of completion from
your education provider. Hang onto it—you’ll need to bring it with you when you
take your licensing exam.
STEP 3: GET FINGERPRINTED, REGISTER FOR YOUR EXAM AND STUDY
In Wisconsin, all insurance license applicants must be fingerprinted before
licensing. Giving your fingerprints will also initiate a background check. Make
a fingerprint reservation with Fieldprint for the digital fingerprint.
Fingerprint information is valid for 180 days.
You can’t take the exam without a reservation. Prometrics is the exam provider
for Wisconsin, and you can take the exam in any of their locations in the US. To
register for the line or lines of authority you have chosen, visit the
Prometrics registration page for Wisconsin. Create an account and follow the
step-by-step instructions to make your exam reservation. You can also call
866.370.3411, or fax or mail your application. More details about the different
ways to register are available in the Licensing Information Handbook.
The fee for the exam is $75 for each line of authority. Also, when you register,
be sure you use the same name that’s on the government-issued ID you plan to use
at the testing center.
In preparation for the exam, you should study and practice. Prometrics offers
content outlines for each test here, as well as practice exams here.
STEP 4: TAKE THE EXAM AND PASS
On the day of the exam, report to the exam center 30 minutes before the
scheduled start time. Be sure to have your prelicensing education certificate of
completion and a government ID with a photo and signature, such as a driver’s
license, passport, military ID, state-issued ID card, and so on. After you show
your ID and get settled, the exam will start.
At the end of the exam, you will see a completion notice on screen. A copy of
your score report will be sent to your email address. The report indicates your
overall score and grade, including the percentage of questions you answered
correctly and whether you passed or failed. If you failed, you can take the exam
again, but you’ll have to pay the fee again.
STEP 5: APPLY FOR YOUR LICENSE
Once you pass the exam, you have 180 days to apply for your license. If you want
to apply for your license online, you can do it 48 to 72 hours after you pass by
visiting the NIPR website. The application fee is $10, and there’s an additional
NIPR fee of $5. The state of Wisconsin has some helpful tips you can use when
applying. Generally, applications are processed 2 weeks after they’re received.
You’ll receive an email notice from the licensing department with verification.
AS YOU PURSUE YOUR NEW CAREER
As you follow these 5 steps for successfully earning your Wisconsin insurance
license, keep in mind that you will also have continuing education requirements.
You’ll need to renew your license every two years, so be sure you keep up with
the latest information at the Wisconsin Office of the Commissioner of Insurance.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET YOUR PENNSYLVANIA INSURANCE LICENSE
After doing some research and reviewing the basics, you know you want to become
an insurance agent in Pennsylvania. Here are the 4 steps for earning your
license.
STEP 1: COMPLETE ALL PRE-LICENSING EDUCATION REQUIREMENTS
Before you can apply for your Pennsylvania insurance license or take the exam,
you need to complete prelicensing education. This education helps you prepare
for the exam and your future career. The requirement is for 24 hours of
prelicensing education courses, with a minimum of 3 hours of ethics. The courses
you need to take will depend on the type of insurance license you want to earn.
The types of insurance covered in the education include accident and health,
casualty and allied lines, life, motor vehicle physical damage appraiser,
personal lines, title, and more.
You can learn more about the courses, who provides them, and where you can take
them at Sircon. Click on “look up education courses/credits,” select “approved
courses inquiry,” choose Pennsylvania as your state, and click the “submit”
button.
Next, change the education type to “prelicensing education,” select your
preferred instruction method or leave blank, and click the “submit” button. When
you click the provider’s name, you will get contact information and a link to
the courses they provide.
After you finish your courses, you will receive a certificate of completion from
your education provider. Hang onto it—you’ll need to bring it with you when you
take your licensing exam.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: REGISTER FOR YOUR EXAM, PAY THE FEE, AND PREPARE YOURSELF
You can’t take the exam without a reservation. PSI is the exam provider. After
you have completed the prelicensing education requirements, register for the
insurance examination for the type you have chosen at
https://candidate.psiexams.com or by calling 800.733.9267.
The fees for the exam vary depending on the topic of the exam, but most are $43.
In preparation for the exam, you should study and practice. The PSI Learning
Academy has information and practice exams online.
STEP 3: TAKE THE EXAM AND PASS
On the day of the exam, report to the exam center 30 minutes before the
scheduled start time. Be sure to have to your prelicensing education certificate
of completion and a government ID with a photo and signature, such as a driver’s
license, passport, military ID, state-issued ID card, and so on. You’ll also
have your photograph taken at the testing site.
After you complete your exam, you’ll be given a Pass or Fail score. If you pass,
your score report will include an application for your license, and you can
apply for it right there. For that reason, it’s a good idea to bring checks,
money orders, or a credit card with you when you take the exam. If you fail,
you’ll get a report that indicates your strengths and weaknesses by exam
portion.
STEP 4: APPLY FOR YOUR LICENSE AND GET FINGERPRINTED
After passing the exam, you have the option to apply for your license and get
fingerprinted at the testing center. You will need to pay the license
application fee of $55 and a fingerprinting fee of $22.60 at this time.
Completing the paper application found at
https://www.insurance.pa.gov/Pages/default.aspx before you take your exam and
bringing it with you to use as a reference can speed along this process.
You may also choose to apply online using your own computer. You will still need
a fingerprint scan, so you’ll have to register online via the IdentoGO website
at https://uenroll.identogo.com, or you can call 844.321.2101. You’ll get a
registration number you can take with you when you go to the IdentoGO site for
fingerprinting.
After you complete your application, you can look up its status at
www.insurance.pa.gov. Once it’s been issued, you can print it right from the
website.
AS YOU PURSUE YOUR NEW CAREER
As you follow these 4 steps for successfully earning your Pennsylvania insurance
license, keep in mind that you will also have continuing education requirements.
You’ll need to renew your license every two years, so be sure you keep up with
the latest information at www.insurance.pa.gov.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A SOUTH DAKOTA INSURANCE LICENSE
After doing some research and reviewing the basics, you’ve decided to become an
insurance agent in South Dakota. Here are the 5 steps for earning your license.
STEP 1: FAMILIARIZE YOURSELF WITH THE LICENSING INFORMATION HANDBOOK
What does an insurance career in South Dakota entail? What education do you
need? Do you have to be a college graduate? Are you an insurance agent in
another state and would also like to be licensed in South Dakota? Are you moving
to South Dakota soon and want to be licensed when you arrive? Can other
coursework count toward your prelicensing? Is it possible to take exams for more
than one line of insurance at one time?
The Licensing Information Handbook from the South Dakota Division of Insurance
has answers to these questions and more. You’ll find a wealth of information on
the specifics of insurance licensure in South Dakota, including the different
lines. Of note are bail bondsman and crop—these types of insurance aren’t found
in every state.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: TAKE A PRELICENSING COURSE
There are no set prelicensing education requirements in the state of South
Dakota. However, you have a better chance of passing the licensing exam if you
take a course. The Division of Insurance has a list of approved vendors for
training courses on their website.
STEP 3: REGISTER FOR YOUR EXAM AND STUDY
Pearson Vue is the exam provider for South Dakota, and you can take the exam in
any of their locations in the US. To register for the line or lines of authority
you have chosen, and to find out the exam fee, visit the the Pearson Vue
registration page for South Dakota. Create an account and follow the
step-by-step instructions to make your exam reservation. More details about the
different ways to register are available in the Licensing Information Handbook.
When you register, be sure you use the same name that’s on the official
government-issued ID (with photo and signature) that you’ll use for
identification when you arrive at the testing center.
In preparation for the exam, you should study and practice. The Licensing
Information Handbook has content outlines for each test that you can study,
along with with information about the format of the test. You can also purchase
more in-depth study materials from approved vendors, such as Kaplan Financial
Education.
STEP 4: TAKE THE EXAM AND PASS
On the day of the exam, report to the exam center 30 minutes before the
scheduled start time. Be sure to have your prelicensing education certificate of
completion and a government ID with a photo and signature, such as a driver’s
license, passport, military ID, state-issued ID card, and so on. After you show
your ID and get settled, the exam will start.
At the end of the exam, you will see a completion notice on screen. A copy of
your score report will be sent to your email address. The report indicates your
overall score and grade, including the percentage of questions you answered
correctly, and whether you passed or failed. If you failed, you can take the
exam again, but you’ll have to pay the fee again.
STEP 5: APPLY FOR YOUR LICENSE
After passing your exam, you can apply for your license online at Sircon or at
National Insurance Producers Registry. After the Division of Insurance has
verified that you passed, and there’s nothing in your background to prevent you
from being licensed, you’ll be issued your license. After that, you can print
the license from the Sircon website.
AS YOU PURSUE YOUR NEW CAREER
As you follow these 5 steps for successfully earning your South Dakota insurance
license, keep in mind that you will also have continuing education requirements.
You’ll need to renew your license every two years, so keep up with the latest
information at the South Dakota Division of Insurance.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET AN ILLINOIS INSURANCE LICENSE
You live in Illinois, and you’ve been researching a career in insurance. You’ve
reviewed the basics and have decided to become an insurance agent. Here are the
5 steps for earning your license in your home state.
STEP 1: FAMILIARIZE YOURSELF WITH THE LICENSING CANDIDATE HANDBOOK
What does a career in insurance in Illinois require? What education do you need?
Do you have to be a college graduate? Are you an insurance agent in another
state and would also like to be licensed in Illinois? Can other coursework count
toward your education? Are there licenses that don’t require education? The
Illinois Insurance Licensing Candidate Handbook offers a wealth of information
on the specifics of insurance licensure in Illinois, including all the education
requirements, the costs, and the procedures for taking the exam.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: COMPLETE ALL PRELICENSING EDUCATION REQUIREMENTS
You’ll need to complete prelicensing education before taking the exam for your
license. This education helps you prepare for the exam and your future career.
You’ll need to take 20 hours each for the following types of insurance: life,
accident/health, fire (property), casualty, and personal lines. Of the 20 hours
for each type, you’ll need 7.5 hours of classroom training.
After you complete your education, you will receive a certificate of completion
from your education provider. Hang onto it, because you must present it to the
Illinois Department of Insurance before they issue your license. These
certificates are good for up to one year after you complete your courses. This
means you’ll have to take the exam and pass during this period.
STEP 3: SCHEDULE YOUR EXAM, PAY THE FEE, AND PREPARE YOURSELF
You can’t take the exam without a reservation. Pearson Vue is the exam provider,
and you can make an online reservation at www.pearsonvue.com/il/insurance.
Simply create an account and follow the step-by-step instructions to make your
exam reservation.
The fees are $102 for an individual exam, and it includes the states
administration fee of $50. However, you can schedule two exams back-to-back and
still pay just $102. You’ll need to pay the fees when you register. In
preparation for the exam, you should study and practice. The Illinois Insurance
Licensing Candidate Handbook has information about how to pay for the exams and
how you can obtain practice tests for the different types of insurance.
STEP 4: TAKE THE EXAM AND PASS
On the day of the exam, report to the exam center 30 minutes before the
scheduled start time. Be sure to have two forms of current ID with a signature,
such as a driver’s license, passport, military ID, state-issued ID card, and so
on. You should also bring your certificate or certificates of completion for
your prelicensing education. You’ll also be asked to sign a Candidate Rules
Agreement form. Also, if you’re nervous, you have the opportunity to take a
tutorial that will not cut into your exam time.
After you complete your exam, you’ll be given a Pass or Fail score. If you pass,
your score report will include an application for your license. You’ll need to
wait 5 days before applying. If you fail, you can take the exam again, but
you’ll have to wait 7 days before you can reschedule.
STEP 5: APPLY FOR YOUR LICENSE
To apply, go to the National Insurance Producer Registry (NIPR) website. The
cost of the license for an Illinois resident is $90 for two years. More
information is available at www.insurance.illinois.gov.
AS YOU PURSUE YOUR NEW CAREER
As you follow these 5 steps for successfully earning your Illinois insurance
license, keep in mind that you will also have continuing education requirements.
You’ll need to renew your license every two years, so be sure to keep up with
the latest information at www.insurance.illinois.gov.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A TENNESSEE INSURANCE LICENSE
Are you thinking about earning a Tennessee insurance license, and you’re
wondering what the process looks like? Every state has different requirements
for licensing. Here are the steps you need to follow to earn an insurance
license in Tennessee.
STEP 1: COMPLETE THE REQUIRED PRELICENSING EDUCATION
To earn your Tennessee insurance license, you must first complete the required
number of hours of education from a state-approved provider. The number of hours
you will need depends on the specific insurance license you are trying to earn.
See our state requirements page for the latest breakdown of hours required per
license.
When you complete the course, you will receive a certificate. Within six months
of receiving that certificate, you must sit for and pass the state exam, or you
will need to complete the education again.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: PASS A TENNESSEE INSURANCE LICENSING EXAM
Once you’ve completed the required education, you can schedule and sit for your
Tennessee insurance licensing exam. The exam you sit for will depend on the
specific license you are trying to earn. Tennessee insurance exams are
administered by Pearson VUE. You can schedule your exam on their website, or by
calling 800.274.4957.
If you need help preparing for the exam, consider taking advantage of one of
Kaplan’s Tennessee insurance exam prep resources to increase your odds of
success.
STEP 3: GET FINGERPRINTED
The state of Tennessee requires that all candidates for insurance licensure
submit fingerprints as part of a criminal background check. You can schedule
your fingerprinting with Identogo.
STEP 4: APPLY FOR YOUR TENNESSEE INSURANCE LICENSE
After you’ve passed your Tennessee insurance licensing exam, you will need to
submit your license application to the Tennessee Department of Commerce &
Insurance, through the National Insurance Producer Registry.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A MICHIGAN INSURANCE LICENSE
The process for getting an insurance license varies by state. Follow these three
steps to get your insurance license in Michigan.
STEP 1: COMPLETE YOUR PRELICENSING EDUCATION REQUIREMENTS.
To earn a life, accident and health, property, casualty, or personal lines
insurance license in Michigan, you must complete a fixed number of prelicensing
education hours. Check out the Michigan state requirements page for an
up-to-date breakdown of the number of hours required for the license you are
trying to earn.
Once you complete your education and pass the class exam, you’ll receive a
school certificate. The certificate is valid for 12 months from the date you
complete the course, so you are required to sit for and pass the exam within
that time period.
After you complete the course material, but before you take the exam with PSI,
you must file an Electronic Resident Licensing (ERL) application through the
National Insurance Producer Registry (NIPR) website at https://www.nipr.com/.
There is a $10 application/license fee is $10.00, and an additional $5.00
transaction fee. Your application will be valid for 6 months from entry into the
database.
The ERL application is required even though candidates no longer need the NIPR
confirmation page as part of the acceptance criteria to take an examination with
PSI.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: SCHEDULE AND PASS THE REQUIRED INSURANCE LICENSE EXAM.
After you complete your required education, you are able to take your Michigan
insurance license exam. The state of Michigan’s insurance licensing exams are
offered by PSI. You can schedule an exam on PSI’s website, or by calling
800.733.9267. You will need to pay the exam fee at the time of registration.
To further prepare yourself for the exam, take advantage of Kaplan’s insurance
licensing exam prep education.
STEP 3: APPLY FOR YOUR MICHIGAN INSURANCE LICENSE THROUGH THE NATIONAL INSURANCE
PRODUCER REGISTRY.
Once you have passed the Michigan insurance licensing exam, you will need to
submit your license application. You can apply through the National Insurance
Producer Registry website, which is found here: http://www.nipr.com/.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A MINNESOTA INSURANCE LICENSE
The process of earning your insurance license can sometimes be confusing.
Because every state’s licensing requirements are a little different, the steps
you need to take to become licensed can vary from state to state. If you’re
planning to earn your license in Minnesota, follow these four steps:
STEP 1: COMPLETE THE REQUIRED PRELICENSING EDUCATION
To earn a Minnesota insurance license, regardless of license type, you are
required to complete a certain number of hours of education. We’ve outlined the
specific hourly requirements for each license type on our Minnesota State
Requirements page.
To pass the prelicensing course, you will need to pass a course exam. When you
have passed the exam, you will receive a school certificate. Hold on to that
certificate because you will need to present it when you sit for your state
licensing exam.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: SCHEDULE AND PASS THE REQUIRED MINNESOTA INSURANCE LICENSING EXAM
Once your required education is complete, you are approved to sit for your state
exam. Minnesota’s exam provider is Pearson VUE. You need to contact Pearson VUE
directly to schedule your exam. They can be reached at
home.pearsonvue.com/mncommerce or 833-273-1946.
To ensure you’re prepared for the exam, consider taking advantage of Kaplan’s
Minnesota insurance licensing exam prep education.
STEP 3: FINGERPRINTS AND BACKGROUND CHECK
Fingerprinting is required as part of your criminal background check. It is part
of the exam process, and the service is provided at the testing center. You pay
a required fee, and your prints are sent to the state for approval, which could
take up to four weeks.
Scheduling with Idemia (electronic fingerprinting at a test center):
Go to pearsonwest.ibtfingerprint.com, or call Idemia at (866) 761-8069 (Monday
through Friday, 8:00 AM to 5:00 PM Central time) to make a fingerprint
reservation as close to the start time of your examination as possible. (It does
not need to be the exact same time. As long as you have made a fingerprint
reservation, the test center will be able to process your prints when you arrive
for your exam.) Use your full legal name, as it appears on your
government-issued ID, when you make your fingerprint reservation, and be sure to
select the correct license type. Write down the confirmation number; you will
need it on the day of your appointment.
STEP 4: APPLY FOR A MINNESOTA INSURANCE LICENSE
You’ve cleared some major milestones passing your course and state exam. Now
it’s time to follow through and apply for your license. You can submit your
producer license application online at Sircon.
---
Are you ready to get started on the path to earning an insurance license in
Minnesota? Browse our Minnesota insurance exam prep study solutions today.
You’ll find online and live class options to fit your preferred schedule and
learning style.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A CALIFORNIA INSURANCE LICENSE
If you’re considering earning your insurance license in California, you may be
wondering where to start. No two states’ requirements are completely alike, so
it’s important to know the licensing process for your state. Individuals seeking
to earn a real estate license in California must follow these 4 steps:
STEP 1: COMPLETE THE REQUIRED PRELICENSING EDUCATION
First things first, you need to complete the required education. For each
license type, there is a specific number of hours of prelicensing education you
must receive from a state-approved education provider. Our California state
requirements page outlines the specific hourly requirements for each specific
license type.
When you have completed the course, you will receive a Certificate of
Completion. You must submit the original certificate with your license
application (see below). You should also make a duplicate copy of the
certificate for your own records. Your certificate is valid for three (3) years.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: SUBMIT YOUR FINGERPRINTS FOR BACKGROUND CHECK
California requires all insurance license applicants to be fingerprinted, either
before the exam or on the day of the exam. If you choose to get your
fingerprints taken on the day of the exam, you can have it done at the exam
site. You pay a required fee, and your prints are sent to the state for
approval, which could take up to four weeks.
STEP 3: SIT FOR AND PASS THE CALIFORNIA STATE LICENSING EXAM
Now that you’ve completed your education, you are approved to sit for your state
exam. California uses PSI to administer their insurance licensing exams. You
need to contact PSI directly to schedule your exam. They can be reached at
www.psiexams.com or 800.392.6422.
To make sure you are prepared for success on the exam, consider taking advantage
of Kaplan’s California insurance licensing exam prep education.
STEP 4: APPLY FOR A CALIFORNIA INSURANCE LICENSE
Congratulations! If you’ve made it this far, you are now ready to apply for your
California license. You can submit your insurance license application online
with the California Department of Insurance.
---
Ready to take the first step on your journey to a California insurance career?
Check out our California insurance exam prep study solutions today. We offer
online and live class options to suit your life and learning style.
Read More
Posted by Kaplan Financial Education - March 22, 2019
HOW TO GET A NEW YORK INSURANCE LICENSE
The process for getting an insurance license can be confusing to someone just
entering the industry. Every state handles licensing a little differently, so
it’s important to be mindful that you are following the directions from the
state in which you want to get licensed. Follow these three steps to get your
insurance license in New York.
STEP 1: COMPLETE YOUR PRELICENSING EDUCATION REQUIREMENTS.
To get an insurance license in New York, you must complete prelicensing
education hours. The number of hours varies by license. Check out the state
requirements page for an up-to-date breakdown of the number of hours required
for your license.
Once you complete your education and pass the class exam, you’ll receive a
school certificate. Although you will not be required to show a completion
certificate of your education at the exam, you will need it to complete your
license application.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2: SCHEDULE AND PASS THE REQUIRED INSURANCE LICENSE EXAM.
Once you’ve completed your required education, you are able to take your New
York insurance license exam. To schedule an exam, you’ll need to go through PSI
directly. To further prepare yourself for the exam, take advantage of Kaplan’s
insurance licensing exam prep education.
STEP 3: APPLY FOR A NEW YORK INSURANCE LICENSE THROUGH THE NEW YORK DEPARTMENT
OF FINANCIAL SERVICES.
Once you’ve passed the insurance licensing exam in New York, you will need to
submit your license application to the Department of Financial Services, along
with any required paperwork. You will need to wait 48 hours after passing the
exam to apply to allow enough time for exam processing.
__
Ready to get started with your New York insurance licensing education
requirements? Check out our New York insurance exam prep study solutions now.
We’ve got live and online class options for any learning style.
Read More
Posted by Kaplan Financial Education - March 22, 2019
8 MUST-HAVE MARKETING STRATEGIES FOR INSURANCE AGENTS
Growing your business by marketing your agency can be an extremely daunting
undertaking, especially if you don’t have any marketing experience. For this
reason, the Kaplan Financial Education team put together some best practices and
ideas for insurance agent marketing.
1. SET GOALS
Before you embark on a marketing strategy, it is important that you first sit
down and set your marketing goals. It is best to make them SMART (specific,
measurable, achievable, results-focused, and time-bound) goals, so you will be
able to measure your results against them. Consider setting goals for producing,
prospecting, sales production, and cross-selling and retention areas. Write down
what you want to do, how you want to accomplish it, and when you want to
accomplish it by. This will help drive your new marketing ideas.
2. MAKE A MARKETING BUDGET
Once you know what your goals are, the next step is to make a marketing budget.
Allocate a certain amount of spend for each marketing channel you want to
utilize. If you can, look back on what you spent the previous year to get an
idea for your estimates. Are there channels that didn’t perform well? Consider
cutting the budget on those in favor of new or more profitable channels.
3. SET TRACKING METRICS
Tracking every piece of business is important so you know what channels of your
marketing are working. Ask every new client how they heard about you and keep
track of their answers. This will help you go a long way.
4. CREATE A REFERRAL PROGRAM
Your customers are your best referrals. Offer an incentive for your current
clients to spread the word about your agency. Offer your clients a discount or a
gift card for bringing in new referrals and your referrals a discount or gift
card for choosing your agency. You can even create marketing pieces explaining
the referral discount and hand them to customers to give out to their friends
and family. Post the program on your social media accounts and website. Add a
link to your referral program page on your email signature. Let your clients do
some of the work for you.
5. ENCOURAGE POSITIVE ONLINE REVIEWS
According to a BrightLocal study, 88% of consumers have read reviews to
determine the quality of a local business. In other words, nearly 9 out of 10
people have read online reviews of your business before deciding whether to
trust you. This means that it is vitally important that your agency get good
online reviews in places like Facebook, Google Plus, Yelp, and Yellow Pages.
There are many easy things you can do to encourage reviews. Add links to your
agency’s profiles in your email signature with a callout to leave a review. Post
a sign in the office. Mention it to happy customers as they are leaving your
office. Be sure to also read reviews regularly and respond to both positive and
negative feedback. The time you put into responses will showcase how much you
care about your clients.
6. GET INVOLVED IN THE COMMUNITY
Becoming involved in your local community is a great way to get your agency name
out there. It also shows that you are invested in the community. Consider
sponsoring youth sports, community events, or local non-profits. You may bring
in new clients who want to support the league, event, or organization you are
sponsoring!
7. UTILIZE SOCIAL MEDIA
Nothing connects you faster to your customers than social media. There are many
things your agency can do to take advantage of social media. You can utilize
social media ads and target people in your local community fairly inexpensively.
You can offer a discount to anyone who checks in to your agency online. You can
join relevant groups on LinkedIn and offer expertise to others. All of these
things will help you network and get more exposure for your business. Check out
our article on social media tips here.
8. DO CUSTOMER SURVEYS
Hear from your customers how your agency is doing through online surveys. Ask
for open-ended testimonials from your customers and use that information for
marketing materials. Ask for ideas of how your organization can improve.
Consider offering a small incentive like a gift card for completing your survey
to increase your response rate.
________
Looking for more tips and tricks in the insurance industry? Check out Kaplan's
Career Corner for more great articles related to insurance. Be sure to check out
our Insurance Licensing, Insurance Continuing Education, and Professional
Development programs as well.
Read More
Posted by Kaplan Financial Education - March 15, 2019
MARKET ETHICS AND THE RETIREE MARKET
While proper market conduct is an essential part of good business with any
client, it is especially important in the retiree market. Financial
practitioners who work in this market must be sensitive to the distinctive
issues and challenges confronting the retiree client. Still, while retirees
require additional attention to market conduct, the underlying basis is no
different here than with younger clients.
Dealing with personal financial affairs can be an intimidating ordeal for almost
anyone. For many retirees, especially widows who might have been removed from
day-to-day financial decision-making earlier in life, the need to make important
financial decisions can be terrifying. In addition, in their minds, there is a
dizzying new array of insurance products to consider, including long-term
care and Medicare supplement plans.
At first, the signs are hardly detectable. Indeed, a decline in decision-making
capacity can be masked by other outward signs of confidence. Rare is the retiree
whose opinions and convictions about family and social issues don’t intensify
with age. But over time, this confidence can weaken.
While faith in their general wisdom may strengthen, the same cannot always be
said of the confidence retirees feel regarding financial matters. Even those who
were responsible for the family’s budget during the growing years may find it
increasingly difficult to keep abreast of changing financial developments later
in life, especially those dealing with insurance matters and estate transfers.
A wide assortment of new issues arises after retirement that can cause retirees
to become at once more cautious and more deserving of their financial
practitioner’s care and attention to suitability and disclosure matters. There
are a number of challenges that can diminish the retiree’s capacity for keeping
up with their changing personal finances.
COMPLIANCE ISSUES: FIVE CHALLENGES FOR RETIREES
Some changes are more common than others, but all have the same end result—they
affect the way older Americans approach financial decision making. A closer look
at each will illustrate why it is so important to use extra care when conducting
business in the retiree market. These five challenges include the following:
1. A transition in investment perspective from asset accumulation to asset
distribution and preservation
2. A natural shift in risk tolerance toward a more conservative investment
position
3. Changing personal risks that increase the need for new financial products
and diminish the need for others
4. Increased product complexity that many consumers of all ages find hard to
grasp
5. Potentially reduced mental acuity or a growing unease with technical matters
that can slow down the decision-making process and may even raise questions
about buyer competence
CHALLENGE 1: TRANSITION FROM ASSET ACCUMULATION TO ASSET DISTRIBUTION
After spending years worrying about saving for retirement, it can be difficult
for some retirees to change their mindset and accept the need for distributing
those assets.
Decisions made with respect to qualified plan distributions and personal savings
will affect retirement income security, possibly for years to come, making many
retirees nervous about decision making.
It is especially important for financial practitioners serving the retiree
market to thoroughly understand the rules and requirements pertaining to
qualified plan distributions before offering advice in that crucial area.
CHALLENGE 2: A TURN TOWARD CONSERVATISM
Financial practitioners are beginning to advise their retiree clients to accept
more market risk than they have in the past. Nonetheless, the natural swing
toward conservatism that in part defines the transition to retirement age cannot
be denied. Practitioners who are struggling with this issue with a client will
find it easier to understand the client’s mind-set by realizing that the money
in question represents, to the client, the difference between financial security
and poverty.
This change in financial temperament translates into an understandable fear of
making a bad financial decision that might adversely affect the retiree’s
financial security or legacy by reducing assets that are earmarked for
retirement income or bequest purposes. When guiding retiree citizens in making
investment decisions, financial representatives must understand and be sensitive
to the client’s perceived need to protect asset values.
CHALLENGE 3: CHANGING INSURANCE NEEDS
Many retirees are well aware of the changing risks they face with advancing age.
For example, long-term medical and nursing care moves from the wings to center
stage in the theater of personal risks, while disability-related loss of income
retreats. Knowing they face new risks and knowing what to do about them are two
different things.
Statistically, the average new retiree today can expect two full decades or more
of life beyond age 65. Indeed, planning to meet the costs of a long and active
retirement should be at the top of every retiree client’s list of financial
priorities. As with any statistical average, some individuals must fall below
the mean, which in this case entails long-term medical and nursing care or an
early death.
Prudent financial planning calls for strategies that presume the client will
live a long, healthy, and active life but prepare them for the worst. The
probability of succumbing to a debilitating disease requiring extensive medical
and long-term care, though far from certain, is too great to ignore.
Senior Americans from all walks of life are aware of the new risks that arise
with age. Not every product is well suited for every individual. The need for
long-term care insurance, for example, is determined in large measure by the
client’s income and net worth. The unethical financial representative who is
motivated solely by sales volume might easily abuse the trust that elder clients
frequently place in their financial advisors by recommending products that might
not be in the client’s best interest, or suggesting benefit levels that exceed
the client’s needs.
CHALLENGE 4: INCREASED PRODUCT COMPLEXITY
In response to the burgeoning retiree population, the financial services
industry has developed new products that are geared to that age group’s
particular needs. These new products tend to be complicated. Second-to-die life
insurance, long-term care insurance, and the variety of Medicare programs (all
of which are directed to the retiree market), serve a valuable role in providing
financial security—but each is subject to misunderstanding by the general
public, especially retirees. Likewise, qualified plan distribution strategies
can be painfully confusing to lay people. All of this requires financial
practitioners to exercise even more care when educating their retiree clients.
It is important for the financial practitioner to remain focused on the need for
full and fair disclosure when recommending or explaining a product. It might be
easy to help a retiree client understand a complex product by referring to it as
something that resembles another better-understood concept, but care must be
taken to avoid confusing the client on this point. (The classic example of
oversimplification is the illegal use of the term tax-free mutual fund to
describe a variable contract.)
When trying to simplify a concept to make it clear, practitioners must always
remember to clearly identify the type of product being recommended. Simplifying
a product’s explanation is never a valid excuse for misleading a prospective
client about the product’s true nature.
CHALLENGE 5: THE SENIOR’S REDUCED MENTAL ACUITY
This common challenge facing the senior client—reduced mental acuity—may be the
most sensitive issue of all, and certainly is one of the most distressing
aspects of aging. Besides making it difficult for seniors to react promptly to
changing financial circumstances, a diminished ability or willingness to
comprehend complex issues is a frustrating reminder of the toll exacted by the
aging process. One only has to look at an aging parent or grandparent to realize
the extent to which the aging process can beat down the will, if not the
ability, to study a financial situation and make a decision.
The loss of decision-making capacity exposes an individual to a heightened risk
of ill-informed and ill-advised buying decisions. The fear of making a bad
financial decision at once makes older Americans especially wary of new ideas
involving finances, yet willing to let advisors they trust make financial
decisions for them.
SERVING RETIREES BETTER
Financial security in retirement involves other important issues besides money;
so much so that attention to these nonfinancial issues cannot be ignored by the
professional financial practitioner.
For example, a client who has no hobbies or interests other than work may
experience a feeling of uselessness after retirement. The practitioner who can
suggest worthwhile activities, such as becoming involved in a civic or
charitable organization, may provide an enhancement to a senior client’s
retirement. The most successful retirement planners strive to meet their
clients’ financial, personal, and emotional needs to ensure an enriching, as
well as financially secure, retirement.
The following are some ideas that financial practitioners can use to better
serve retiree clients:
* Always use a fact finder. A fact finder becomes an important record of the
information on the basis of which suitability is ultimately determined.
* Put everything in writing. This advice is important in all sales
transactions, but especially in transactions involving senior markets. The
client who understands the reason for buying a product today may forget the
reason next year; committing the problem and recommended solution to paper
(ideally, signed by the client) is the best way for the financial
practitioner to defend against memory loss.
* Encourage the participation of others close to the client. Retiree clients
are more likely than their younger counterparts to seek the advice of trusted
friends and family members before making a financial decision. If it is
apparent that a client places a lot of importance on their son’s or
daughter’s opinion regarding financial matters; for example, the financial
practitioner should suggest that the person be brought into the presentation.
Advice like this is a sure way of helping to build a client’s trust and
respect.
* Expect a shift toward conservatism. The desire to preserve retirement capital
exerts a strong influence on a person’s tolerance for investment risk. Before
ideas can be explored to accept higher market risk, a prospective retiree
client needs to see that the financial practitioner understands the client’s
concern about capital preservation.
* Use plenty of third-party material. In their effort to make informed
financial decisions, senior clients typically want more third-party material
(brochures, pamphlets, copies of relevant articles, etc.) than younger
clients.
* Be patient. As with any client, be patient. Be ready to repeat key points
several times if necessary.
___
Want more information on Senior Needs Planning? Take our full Insurance
Continuing Education course titled Senior Needs Planning, 5th Edition, which
covers the following topics:
* The Need for Retirement Planning
* Retirement Risk Management Strategies
* Inflation and Retirement
* Retirement Plan Distributions
* Social Security
* Analyzing Retirement Income Needs
* Wealth Accumulation and Market Conduct and Ethics
* Investing Retirement Assets
* The Role of Market Conduct and Ethics in the Retiree Market
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Posted by Kaplan Financial Education - March 15, 2019
AN OVERVIEW OF PROPERTY AND CASUALTY INSURANCE
Are you preparing for your state's property and casualty licensing exam? Or
perhaps you're thinking of adding it to your portfolio. Here's what you need to
know about this type of insurance.
PROPERTY INSURANCE
Property insurance is relatively simple to define. It includes many types of
insurance designed to cover property losses—the risks that we will suffer
financial losses because things we own are damaged or destroyed.
There are three basic types of property loss:
* Loss of or damage to the article itself: Examples of this type of loss are
the theft of a valuable painting or damage to an automobile caused by an
accident.
* Loss of income from the use of the article: For example, suppose a hotel
burns to the ground. In the year required to rebuild, the hotel loses more
than $2 million in room rentals. This loss of income that arises from the
damage to the hotel is a type of property loss.
* The extra expense incurred due to the loss of the article: Suppose a large
fire destroys a city newspaper building. To continue publishing, its owners
rent another press at one-third additional cost. The extra expenses required
to remain in business following a loss is a type of property loss.
Some types of insurance generally considered to be property insurance include
the following:
* Dwelling
* Homeowners
* Commercial property
* Crime
* Equipment breakdown protection (also known as boiler and machinery)
* Inland marine
* Ocean marine
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CASUALTY INSURANCE
Casualty insurance is more difficult to define because it includes a wide
variety of basically unrelated insurance products.
One of the most important types of casualty insurance is liability insurance.
Liability losses are losses that occur as a result of the insured’s interactions
with others or their property. Probably the best example of this would be an
auto accident. Let’s say Arthur is backing out of his driveway and hits
Beatrice’s parked car, resulting in $600 of damage. Because Arthur was at fault,
he is legally responsible, or liable, for those damages, and he must pay to have
Beatrice’s car repaired. Liability insurance would protect Arthur from having to
pay for those damages out of his own pocket.
To be legally liable, the individual must generally be guilty of negligence—the
failure to use proper care in personal actions. If negligence results in harm to
another, the individual is liable for the resulting damages.
People in the insurance industry often call liability losses third-party losses.
The insured is the first party. The insurance company is the second party. The
person to whom the insured is liable for damages is the third party.
Just as you can purchase property insurance to protect yourself from financial
loss if your property is damaged, you can purchase liability insurance to
protect yourself from financial loss if you become legally liable for injury to
another or damage to another’s property.
Although insurance for liability risks is an important casualty coverage, there
are many other types of insurance that have traditionally been considered
casualty insurance. Casualty insurance can also include the following types of
insurance:
* Aviation
* Auto
* Workers’ compensation
* Surety bonds
___
Interested in getting your property and/or casualty insurance license? Or do you
want to learn more about the basics of property and casualty insurance for CE
credit? Check out our insurance license study options for your state here or our
Property and Casualty Principles, 4th Edition insurance continuing education
course for your state here.
Read More
Posted by Kaplan Financial Education - March 15, 2019
INTRODUCTION TO MEDICARE SUPPLEMENT PLANS
A Medicare supplement policy, also called a Medigap policy, is health insurance
sold by a private insurance company to fill certain gaps in the Original
Medicare coverage. The Original Medicare Program, Medicare Parts A and B, does
not cover all health care expenses. There are major gaps in the program that can
create financial hardships for senior citizens. Part A covers inpatient hospital
expenses for a specified period of time, but it doesn’t cover outpatient
expenses.
More complete health care coverage is obtained by a beneficiary also enrolling
in Medicare Part B. However, both Part A and Part B are subject to deductibles,
coinsurance, co-payments, and certain other limitations.
Medigap policies are designed to help fill many of those coverage gaps, and some
Medigap policies even consider benefits the Original Medicare does not include.
However, Medigap policies do not cover Medicare beneficiaries’ share of the
premium costs under other types of health coverage, including Medicare Advantage
Plans (e.g., HMOs, PPOs, or Private Fee-for-Service Plans); stand-alone Medicare
Prescription Drug Plans; employer or union plans; Veterans Administration
benefits; TRICARERE; Indian Health Service, Tribal, and Urban Indian Health
plans; and long-term care insurance policies.
Except for Medicare Part D prescription drug plans, if a person has any one of
the other types of health coverages referred to in the preceding paragraph,
insurance companies cannot sell a Medigap policy to that individual.
It’s also important for beneficiaries to realize that Medigap policies do not
cover long-term custodial care such as that provided in nursing homes. Too many
people believe that the combination of Medicare and Medigap supplement policies
cover such care.
THE FINANCIAL NEED
The need for additional health care coverage is clear when the benefits provided
by Medicare are reviewed. For individuals who have adequate income to provide
for their daily needs and comforts but only a few extra dollars for nonessential
items, a sudden, large medical bill can create a financial crisis.
The Original Medicare Plan (i.e., Medicare Parts A and B) presents senior
citizens with significant financial risks.
Medicare supplement insurance policies are designed to pay the costs not covered
by the Original Medicare Plan, and this is why Medicare supplement insurance is
called Medigap coverage. Federal and state laws regulate the benefits provided
by Medicare supplements.
Senior citizens also need good advice regarding Medicare and Medicare supplement
insurance policies. Many insurers and retiree associations overwhelm senior
citizens with Medicare supplement advertisements. This often creates confusion,
and the confusion causes seniors to make mistakes in choosing supplemental
coverage.
Professionalism and ethical conduct on the part of producers marketing Medicare
supplements are critical needs, as many marketing abuses in this area of
insurance have occurred in the past.
THE ROLE OF INSURERS AND PRODUCERS
What seniors actually need are one-on-one discussions, explanations, and advice
regarding Medicare supplemental coverage. The best way for a senior citizen to
receive these services is in a planning session with a professional insurance
producer who is knowledgeable about the Medicare program and Medicare supplement
coverage.
As a producer, you must thoroughly understand the personal circumstances of a
prospect for a Medicare supplement policy. The individual will generally be an
older person who most likely needs detailed information presented in an
easy-to-understand manner and will probably not be inclined to make an immediate
decision regarding the purchase of any insurance.
So, you, the producer, must have specific and up-to-date information regarding
Medicare—how it functions, the types of benefits that are offered, the claims
process, and so forth. You must also have specific information regarding the
need for Medicare supplement insurance to close the gaps in Medicare coverage,
and you must be able to explain how your product satisfies the client’s specific
needs.
Insurance producers dealing with senior citizens have a fiduciary responsibility
to act in an ethical manner and to never sell inappropriate or duplicate
coverages. Too often, senior citizens are the target of unscrupulous individuals
who prey on their fears and lack of resistance to high-pressure sales tactics.
In most states, it is illegal to sell duplicate Medicare supplement cover¬age
(not replacement coverage), and it is illegal to sell Medigap insurance to
people who are covered by Medicare Advantage (Part C) plans. It is always
illegal for a producer to resort to high-pressure sales tactics. Severe
penalties are usually imposed for violating these laws, including:
* loss of license
* jail terms for up to two years
* fines up to $10,000
Although it is unethical and inappropriate to duplicate existing coverage for
the sake of generating a premium and/or commission, the practice does exist.
Producers may, therefore, encounter senior citizens who already have more than
one Medicare supplement policy. When this situation arises, producers are
obligated to inform clients that only one Medicare supplement is needed to
provide adequate coverage. Plan beneficiaries cannot collect double or triple
benefits on a claim just because they may have two or three separate policies.
Providing proper advice about existing coverage is as important as recommending
new coverage to close insurance gaps. Doing so may not always result in a sale
or commission, but such behavior is demanded by regulation and codes of
professional ethics.
Producers also need to exercise patience when dealing with senior citizens. In
many cases, senior citizens do not like to be forced into quick decisions, and
this effort should not take place. When contemplating a purchase decision,
seniors often want to talk it over with significant others, such as a spouse,
children, other relatives, or friends. Frequently, wanting to do this is not a
sales objection but a genuine need for consensus and support, which generally
must be satisfied before the person will purchase any insurance. Thus, producers
should always exercise compassion, understanding, and patience when dealing with
senior citizens.
__
Want more information on Medicare Supplemental Plans or Medigap coverage? Take
our full Insurance Continuing Education course titled Medicare and Medigap
Insurance, which covers the following topics:
* Introduction to Medicare
* The Original Medicare Program – Medicare Part A
* The Original Medicare Program – Medicare Part B
* Medicare Supplemental Insurance
* Medicare Advantage Plans and Medicare Prescription Plans: Part C and Part D
* Examples of Benefit Payments
Read More
Posted by Kaplan Financial Education - March 15, 2019
SELLING LONG-TERM CARE INSURANCE
Long-term care insurance allows you to use the fundamental selling skills that
you have developed with other financial products to address another need of the
customer. In most cases, only minor modifications of these skills will be
required for you to sell long-term care insurance. However, looking into
insurance continuing education on the topic is always a good idea.
MINIMUM AND MAXIMUM AGES
Most literature from carriers that provide long-term care insurance products
suggests that the individual long-term care market "begins at 40." Generally
speaking, consumers will not become motivated to consider their long-term care
needs until their early 40s. Why?
Well, several things are happening in their lives. They just got their first
pair of bifocals, and the optometrist explained that, "it's just something that
happens to your eyes when you get older." Someone at the office who is about the
same age recently had a heart attack. And the doctor wasn't happy with their
triglyceride count during the last physical. The kids are in college or about to
start, and that comfortable nest egg doesn't look so comfortable anymore. The
health and care of their aging parents are increasingly on their minds.
Perhaps most important of all, they begin to feel the death-grip of age take
root in their own bodies. In the sanctuary of secret thought, they begin to
confront the inevitability of their own mortality. The maximum issue age varies
by insurer. The most common maximum ages in more recent policies are 79 and 84.
Of course, the coverage becomes more expensive at the higher ages.
PROSPECTING
So, with such a large market, where do you begin? First, recognize that this
group is not your traditional life insurance clientele. Your 20- to 39-year-old
life clients will eventually become long-term care prospects, but they generally
are not the place to start in bridging into the long-term care business. Too
many agents have made this mistake.
So, we need a fresh way to generate prospects among the 50–64 age group. There
are several approaches we could use.
* Your natural market: social systems and subcultures you belong to in a
community
* Seminars: Host a seminar to get the message across to a large group at once;
consider inviting a health expert to add credibility
* Referred leads: Ask for leads from satisfied customers
* Advertising: Advertise in community, TV, radio, online
Important Note: However you prospect for long-term care clients, be sure to be
diligent in following any applicable policies and procedures of your company.
And, above all, be ethical.
QUALIFICATION
Once you have identified possible long-term care insurance prospects, you must
qualify them for your services. The questions here are the same as for any other
insurance market:
* Does the prospect have an insurable need?
* Can the prospect be seen on a favorable basis?
* Is the prospect insurable?
* Can the prospect pay premiums?
APPROACHING THE PROSPECT
In approaching the long-term care insurance prospect for the first time, you
have three goals in mind:
* Make the prospect aware of who you are and what you do.
* Give the prospect an idea of how you can benefit him or her.
* Establish personal rapport and a feeling of trust between you.
Agents often use so-called pre-approach letters to make the initial contact with
a prospect. This personalized letter may be accompanied by a brochure about the
need for long-term care insurance. The letter and brochure are certainly
intended to be educational, but they should also disturb the prospect's
complacency. Sometimes you'll catch the prospect at just the right time—he or
she knows that something needs to be done; he or she just hasn't done it yet.
You follow up the pre-approach letter with a telephone call for an appointment.
If your letter has made the proper impression, the appointment should be easy to
secure.
Important Note: However you prospect for long-term care insurance clients, be
sure to be diligent in following any applicable policies and procedures of your
company.
THE FIRST INTERVIEW
At the first meeting with the prospect, the agent wants to describe the
long-term care insurance need, seek general agreement from the prospect that the
need exists in his or her case, and set the stage for fact-finding. The first
interview is also usually the best time to discuss how the agent gets paid for
his or her services and how those services can benefit the client.
The agent wants to create a good first impression and to begin to build rapport
and trust. These are necessary steps before the client will freely share
confidential personal, family and financial information.
Some agents prefer to collect the facts personally at the end of the first
interview. Another common practice is to give the client a fact-finding form to
complete before the next interview.
In the first interview, it is important to deal with the potential need for
long-term care coverage carefully. Most people have an aversion to nursing
homes. They refuse to picture themselves living in one. This denial can result
in lost sales if you "allow the game to be played on this field." Instead, you
need to seek a different venue—a "playing field" that is less threatening to
your prospect.
The agents who successfully sell long-term care insurance have found the correct
playing field: the prospect's fear of economic loss due to long-term care costs.
The prospect will deal with this subject rationally, unlike the fear of entering
a nursing home. We can't solve the nursing home fear anyway; the best long-term
care policy won't keep the insured out of a nursing home. But it will prevent
the financial devastation of paying long-term care costs out-of-pocket.
PRESENTING AND SELLING THE PLAN
After you have gathered the facts and used them to develop one or more long-term
care plans for the prospect, it is time to make the closing presentation. The
agent will normally begin the presentation by restating the assumptions and key
facts on which the plan is based. This serves to remind the prospect that the
plan was not developed in a vacuum but used the information provided by him or
her as the starting point.
The agent must, of course, secure the prospect's acceptance of the plan. If he
or she balks for any reason, the agent must discover the reasons for such
reluctance. Some of the most common objections and misconceptions are identified
and defused in the following screens.
ADDRESSING CONCERNS AND UPDATING THE PLAN
The final aspect of long-term care planning is periodic plan review and update.
This is an area in which agents sometimes fall short. The best-designed plan can
become obsolete if long-term care costs, client financial circumstances, client
objectives, or tax laws change.
As a general rule, the long-term care plan should be reviewed at least every
other year.
_____
Want more information on long-term care insurance? Take our full Insurance
Continuing Education course titled Long-Term Care Concepts for your state, which
includes the following topics:
* The Need for Long-Term Care
* Sources of Long-Term Care
* Paying for Long-Term Care
* Individual and Group Long-Term Care Coverage
* Partnership Policies
* Taxation of Long-Term Care Insurance
* Selling Long-Term Care Insurance
* Sample Pre-Approach Letter
Read More
Posted by Kaplan Financial Education - March 15, 2019
ANTI-MONEY LAUNDERING: HOW TO SPOT MONEY LAUNDERING IN INSURANCE
Today, money laundering is becoming an increasingly international and complex
crime because of the rapid advances in technology and the globalization of
financial services. Financial systems allow criminals to transfer millions of
dollars instantly through computers and satellites. In addition to banks, money
is now laundered through currency exchanges, stock brokerages, gold dealers,
casinos, automobile dealerships, as well as insurance companies.
The insurance industry is attractive to money launderers because insurance
products are often sold by independent agents or brokers who do not work
directly for insurance companies. The agents and brokers are often unaware of
the need to screen clients or to question payment methods. In some cases, such
agents and brokers have even joined criminals against insurers to facilitate
money laundering.
WHAT IS MONEY LAUNDERING?
Most financial transactions leave a trail that connects a person to the funds.
In an illegal financial transaction, money laundering is used to hide the trail.
So, what is money laundering? Money laundering is a process that criminals use
to make dirty money—that is, money derived from illegal drug, terrorist, or
other criminal activities—clean money, that is, legitimate money.
The term money laundering conveys a perfect visual picture of what actually
takes place. Illegal money is put through a cycle of transactions designed to
hide the source of the funds and make them clean or legitimate. Money laundering
is similar to washing clothes—you put in dirty clothes and after being washed,
the clothes are clean. Laundered funds can then be used without restriction.
For example, a life insurance policy that can be cashed in is an attractive
money laundering vehicle because it allows criminals to put dirty money in and
take clean money out in the form of an insurance company check.
This illegal money is derived from criminal activities such as the following:
* Drug trafficking
* Terrorism
* Illegal arms sales
* Prostitution
* Smuggling
* Counterfeiting
* Insider trading
* Other serious crimes
POSSIBLE SIGNS OF MONEY LAUNDERING IN INSURANCE
Let’s look at some examples of potentially suspicious activities insurance
professionals may encounter that could be an indication of money laundering or
terrorist financing activities.
* A customer borrows against the cash surrender value of permanent life
insurance policies, particularly when payments are made to apparently
unrelated third parties.
* A customer purchases a product that appears outside the customer’s normal
range of financial means or estate planning needs.
* A customer purchases insurance products using a single, large premium
payment, particularly when payment is made through unusual methods such as
currency or currency equivalents.
* A customer purchases products with termination features without concern for
the product’s investment performance.
* Policies are purchased that allow for the transfer of beneficial ownership
interests without the knowledge and consent of the insurance issuer. This
would include secondhand endowment and bearer insurance policies.
* A customer is known to purchase several insurance products and uses the
proceeds from an early policy surrender to purchase other financial assets.
* A customer uses multiple currency equivalents, such as cashier’s checks and
money orders, from different banks and money service businesses to make
insurance policy or annuity payments.
* A customer terminates an insurance product early, including during the
free-look period.
* A customer designates an apparently unrelated third party as the policy’s or
product’s beneficiary.
Among all the things an insurance agent does, reporting such suspicious
activities is a the top of the list. However, there is no need to determine
whether the transactions are, in fact, linked to money laundering, terrorist
financing, or some other crime. That is a matter better left to those with
experience in such matters.
__
Interested in learning more about this topic? Enroll in Kaplan’s Anti-Money
Laundering Rules for Insurance Companies course in our Insurance CE library.
Simply visit the Insurance CE page and select your state to get started.
Read More
Posted by Kaplan Financial Education - March 15, 2019
WHAT TO EXPECT ON INSURANCE LICENSE EXAM DAY
So, you've followed our tips for how to pass your insurance license exam and are
about to take it, Congratulations! Do you know what to expect on test day? We
have the inside scoop on the testing process so you are not tripped up on exam
day.
To take your insurance exam, you will need to schedule it with one of your
state’s approved testing centers. Every state uses test providers, which are
companies hired by the state insurance commissioner and/or the state securities
administrator to conduct insurance license exams. Do not be alarmed if you
encounter others who are at the testing center for a completely different test.
These locations may offer many different types of tests beyond insurance in
fields like securities, nursing, and contracting.
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INSURANCE LICENSE EXAM DAY ARRIVAL
Be sure to show up a little earlier than your testing time. It is a good idea to
research ahead of time where the center is and how long it will take you to get
there, so you can plan accordingly. If you are late, you may not be allowed to
take the exam.
CHECK-IN
When you arrive at the test center on the day of the pre-arranged exam, you must
check in before your exam time. You will need to present a picture ID (ie. state
driver’s license, state ID card, passport). In some states, you must also
present a Certification of Completion form indicating that you have successfully
completed a licensing course from a provider like Kaplan.
After check-in, you must place everything from your pockets, including jewelry,
watches, and purses in a locker. For greater peace of mind, do NOT wear or bring
anything valuable to the exam. After you lock your belongings in a locker, you
will be escorted into the testing room with only your picture ID and locker key
and placed in an assigned testing cubicle. A testing employee will explain the
expected conduct during the exam to you.
IN THE TESTING ROOM
There may be cameras present in the testing room. You are expected to be quiet;
any suspicious signs of cheating will disqualify you from the exam. If cheating
is suspected for any reason, a testing employee will remove you from the room
and you may face disciplinary action from the state administrator. If you need
to use the public facilities during the exam, you will have to use your ID to
leave and return to the testing room.
There will be a computer provided in your testing cubicle. Prior to the exam,
you will participate in a tutorial presentation. This presentation will explain
the functions of the computer, provide a sample multiple-choice question, and
give directions on how to select an answer. Then the exam will begin!
RESULTS
Once you complete the exam, you will receive a piece of paper with the results.
If you pass, you will receive a piece of paper explaining how to apply for your
license with the state. You may have to wait a few days for the testing center
to report that you passed before you can apply for your license. If you fail,
you will get a diagnostic report so you know what areas to study for next time.
If you studied on your own, you can increase the odds of passing the second time
around by looking into an exam preparation package.
That’s all there is to it! If you have other questions or are looking for more
exam-related information, please visit our Insurance Licensing FAQ page here.
____
Ensure you are prepared for the insurance licensing exam with Kaplan’s insurance
license exam prep solutions . We have study options to suit all learning styles!
Get started today.
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Posted by Kaplan Financial Education - March 7, 2019
WHAT DOES A LIFE INSURANCE AGENT DO?
As someone considering a career in the insurance industry, you may be wondering
what different types of insurance agents do. This article explores the
day-to-day work of a life insurance agent to help you get a better feel for
whether this is a good career move for you.
Life insurance agents have the important job of helping people prepare for
unexpected circumstances. The main tasks of a life insurance agent are to: 1)
sell life insurance policies and annuities to clients; and 2) to work with
clients and beneficiaries to process insurance claims promptly. Being a life
insurance agent involves a lot of selling, which means an interest in and knack
for marketing is a must.
A typical day for a life insurance agent involves actively pursuing potential
clients by phone, mail, email, or social media; making presentations to clients
or groups; and meeting with clients to discuss long-term goals and coverage
options. There is a lot of paperwork required in the insurance industry;
processing changes in beneficiary and policy loan applications and updating
records are frequent job tasks. You’ll also do a fair amount of crunching
numbers to determine rates when helping clients find the best products to suit
their needs.
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INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
It is not enough to pass a life insurance licensing exam or a life and health
licensing exam. A life insurance agent must stay up-to-date on regulation
changes and industry updates. For this reason, it is important for life
insurance agents to participate in education opportunities (including mandatory
continuing education for license renewal), read professional publications,
maintain personal networks, and participate in professional organizations.
Successful life insurance agents will also be actively involved in their
community—it helps build their reputation locally and network for prospective
clients.
CAPTIVE LIFE INSURANCE AGENT VS. INDEPENDENT LIFE INSURANCE AGENT
There are two different routes for employment that a life insurance agent can
go: become a captive agent or an independent life insurance agent (non-captive
agent). A captive insurance agent works for one insurance company and
exclusively sells that company’s products. An independent life insurance agent
works for a brokerage and is able to sell multiple companies’ products.
There are benefits and challenges to both career paths. Being a captive agent
for an insurance group or firm generally means your office expenses are paid
for, and you receive benefits like a pension, life and health insurance,
continuing education training, and credit union membership. Some captive agents
are even salary-based. The downside to being a captive agent is the limitations
of what you can sell. You may also find you have to meet quotas of selling
certain policies for the company. An independent life insurance agent has more
product offerings available and is able to work with clients to ensure the
product they are selling most closely aligns with the client’s needs. You will
be required to use your own resources to start the business and market it
though.
IMPORTANT SKILLS FOR SUCCESS
Regardless of whether you become a captive or non-captive agent, there are some
key skills you will need to be a successful life insurance agent. Agents need to
have excellent interpersonal skills and be comfortable with people from all
walks of life and in various emotional states. A life insurance agent will meet
with beneficiaries upon death and will need to help them process their claim as
promptly and smoothly as possible. Communication skills are also important in
this career. Not only is it important to understand the ins and outs of all
products you sell, but you need to be able to explain them in a way that is easy
to understand in order to be successful. You can learn more about the traits
that make an insurance agent successful, and that includes life insurance sales,
here.
Being tech savvy is becoming increasingly important for success as well. Many
prospective clients will find you via your website, review sites, and social
media. It is important that you have a good web presence and are willing to
adopt the next important platform. All insurance agents must be self-starters
who are determined to succeed. Building a book of business takes time and
dedication, and it requires hearing ‘no’ a lot to get to a ‘yes.’
__
Does this career sound like a good fit for you? If so, check out our article on
how to become an insurance agent. If you are ready to start studying for your
life only or life and health insurance license, explore some of our insurance
exam prep study options .
Read More
Posted by Kaplan Financial Education - March 7, 2019
HOW TO BECOME AN INSURANCE CLAIMS ADJUSTER
While most people think of insurance agents when they think of an insurance
career, there are many other options available to you. Among the insurance
career “hidden gems” is the insurance claims adjuster industry. Insurance claims
adjusters are high in demand because claims remain steady, but a large
generation of adjusters are retiring out of the industry. If you have a good
work ethic, have a knack for working with numbers and people, and enjoy variety
in your work day, becoming an insurance claims adjuster might be right for you.
Learn more about the process of becoming an insurance claims adjuster in this
article.
STEP 1. COMPLETE YOUR EDUCATION
In order to become a claims adjuster, you must have a high school diploma or GED
equivalent. Some employers prefer an associate’s or bachelor’s degree, but it is
not required for claims adjuster licensing.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
STEP 2. DETERMINE YOUR INSURANCE ADJUSTER CAREER INTERESTS
There are a few different routes for employment that an insurance claims
adjuster can use: become a staff adjuster, independent adjuster, or a public
adjuster. A staff adjuster works full-time for one insurance adjuster firm
exclusively. An independent insurance adjuster handles claims for multiple
firms. A public insurance adjuster, conversely, is paid directly by the
policyholder.
Being a staff adjuster for an insurance group or firm generally means you are
salaried, and you’ll receive benefits like a pension, life and health insurance,
and continuing education training.
An independent insurance adjuster works as a contractor for multiple insurance
firms or third-party administrators. These people are sometimes referred to as
“catastrophe claims adjusters” because they are the ones on the ground after
major weather events and emergencies.
Public insurance adjusters work on behalf of policyholders directly. They will
help businesses or individuals file an insurance claim if a proposed settlement
from an insurer is seen as unfit.
While being a staff adjuster is a steady 40-hour-per-week job, the independent
and public routes offer more flexibility. If it’s the busy season, you could
work well over 40 hours per week, but you could work considerably fewer hours
during less busy times.
STEP 3. COMPLETE AN INSURANCE LICENSING COURSE AND EXAM
Depending on what state you live in, you may need to take a course and pass a
licensing exam to become an insurance claims adjuster. Some states have minimal
requirements, while others require completing an insurance licensing course and
passing a licensing exam. If you live in a state that requires adjusters to be
licensed, you should get your home state license before thinking about other
licenses. If you do have to take an exam, an insurance certification study
package can help.
If you live in a state that does not require an adjuster license, you can
legally adjust claims without taking a licensing exam. However, many adjusters
want to get out-of-state licenses that will enable them to work throughout the
country. To do this, you can get a DHS (Designated Home State) license. What
this means is an individual residing in a state that does not require an
adjuster license or does not offer their own adjuster licensing exam may choose
to designate another state as their resident or “home” state under the
Designated Home State (DHS) process. Nonresident licensure is then based on that
qualification.
STEP 4. MAINTAIN LICENSURE (CONTINUING EDUCATION)
States that require licenses likely also require continuing education credits
for adjuster license renewal. Continuing education (CE) credits can be earned
from live or online courses. Occasionally, CE can also be earned from
employee-provided training sessions, or by publishing articles or giving
lectures related to the insurance claims industry. Check with your state to find
out what CE is required and how you can fulfill the requirements in your state.
If you like investigative work, crunching numbers, and negotiating settlements,
you could have a bright future as an insurance claims adjuster. Regardless of
whether you are interested in a steady 9 to 5 job, or would prefer to choose
when and how much you work, there’s an insurance claims career path that is
right for you.
__
If you are interested in enrolling in insurance adjuster licensing exam prep,
check out our adjuster licensing online course through Texas now.
Read More
Posted by Kaplan Financial Education - March 7, 2019
TOP TEN TRAITS OF SUCCESSFUL INSURANCE AGENTS
There are many advantages of going into the insurance industry. An insurance
agent has flexible hours, independence, and gets to help clients solve problems.
It is not a career for everyone though. It takes a certain type of person to
thrive in this unstructured, fast-paced industry. In this article, we count down
the top 10 traits that the majority of successful insurance professionals share.
10. PROBLEM-SOLVER
Do you enjoy coming up with creative solutions to problems? Much of this job is
helping clients find the right insurance policies for their needs. If you get a
sense of accomplishment from finding the right solution for a client, this
career might be for you.
9. SELF-MOTIVATED
Are you someone that can get yourself going every day without a ton of
structure? To succeed in insurance sales, one must be a self-starter. The role
an insurance agent means working more than just 9:00 to 5:00. It takes a lot of
internal motivation to stay on track. Persistence and follow-up are keys to
success.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD OUR FREE EBOOK, LAUNCHING YOUR
INSURANCE CAREER WITH CONFIDENCE, FOR ADVICE AND TIPS FROM 100+ INSURANCE
PROFESSIONALS.
8. HONEST
This might seem obvious, but unethical insurance agents rarely stay in business
very long. Telling the truth to clients is what will win respect and trust,
which will result in higher retention of clients.
7. SENSE OF URGENCY
A great work ethic is required to be a top producing insurance agent. You must
have the tenacity to pursue every lead and stay on top of follow-ups.
6. RESLIENCE
If you are deterred easily by rejection, this career may not be for you. An
insurance agent must be prepared to hear no often and not be fazed by it. It
takes a great deal of patience to achieve success in this industry.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
5. PASSIONATE
To be a good insurance agent, it is important to be upbeat and engaging with
clients. The more energy and enthusiasm you show for helping clients, the more
you will connect with them.
4. COMMUNICATION SKILLS
Insurance is difficult for the average person to understand. Insurance agents
who can easily explain coverage options in easy to digest ways are going to have
much greater success than those who cannot.
3. GOOD LISTENER
The key to being a good insurance agent is putting the needs of the client
first. In order to do this, it is essential an agent listen carefully to what
their prospective clients need and clearly demonstrate their interest in
providing a proper solution. No one wants a stereotypical salesperson that won’t
stop talking.
2. NETWORKING SKILLS
Do you have a large network? Are you comfortable asking friends, family, and
clients for referrals? In order to grow your book of business, asking for
referrals and networking will need to be second nature to you.
1. LOVE OF LEARNING
The insurance industry changes all the time, and it is essential to
stay-up-to-date on policies and state regulations and meet continuing education
requirements. Good insurance agents love learning and want to understand the tax
and legal aspects of the products they sell, as well as how they fit into a
client’s financial portfolio.
READY TO GET STARTED?
You’ll get out of your career whatever you put into it. There is a certain level
of commitment needed (time, money, energy) to make any business venture
successful. Insurance is really no different. If you are passionate about
insurance and have similar traits to those outlined here, you have a great shot
at having a long and successful insurance career.
__
Read More
Posted by Kaplan Financial Education - March 7, 2019
ADVICE FOR ASPIRING INSURANCE PROFESSIONALS
Making the decision to enter the insurance industry is not a career move to be
made lightly. We recently sat down with David Gorecki, who has over 35 years of
experience in the financial services industry and 10 years of experience as a
Kaplan instructor, to ask him what advice he has for aspiring insurance agents.
Q. WHAT SKILLS DO YOU THINK SOMEONE NEEDS TO HAVE A SUCCESSFUL CAREER IN
INSURANCE?
A. It is important for a person in this industry to realize that insurance is a
career – not a job. It is going to be a rough 3-5 years to build up a book of
clients. A clock puncher will not be successful in this industry. A career does
not have a time clock. It’s a 24/7 job and you should want to do all that needs
to be done in order to be successful. It is important to think of this career as
climbing a mountain for the first 3-5 years. You will hit some steep points
before you hit the top of the mountain. Once you hit the top of the mountain,
you will have built up clients that continually bring in renewals. It is quite a
journey to get there though.
It is important for people to do a personal assessment and find out whether
sales will be a career they enjoy. This list of characteristics needed to be a
successful insurance agent can help you make that determination. No one should
enter this career without a great deal of understanding for what they are
getting into. Interviewing veterans in the industry will help a prospective
insurance professional get a realistic picture of the job and whether it would
be a good fit.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
Q. WHAT ARE THE MAIN CAREER PATHS FOR SOMEONE GETTING AN INSURANCE LICENSE?
A. There are two main paths: become a multi-line insurance agent, either a
broker for multiple agencies or captive for one agency, or become a financial
advisor. With insurance, the focus is on protecting people. With investment, the
focus is on making someone more money. Some insurance firms will have agents get
their life, accident, and health license on day one so they are trained to sell
life insurance first. Then they will require securities licenses later. Other
firms that focus on investment will have you get all your licenses before you
can start.
One of the biggest fears going into this industry is commission sales. I tell
the students that there are two ways to get paid: one is for someone to decide
how much you’re worth (salary) and the other is to decide what you’re worth
(commission). You have to understand that and how to deal with commission to
make it in this industry.
Q. WHAT ADVICE DO YOU HAVE FOR SOMEONE WHO IS THINKING ABOUT PURSUING A CAREER
IN INSURANCE?
A. The best thing anyone can do is go talk to three insurance industry veterans
and interview them. Ask them not only the broad questions like ‘why did you
choose this career?’ but the hidden questions like ‘how long did you struggle?’
‘How poor were you when you started your career?’ ‘How many times did you want
to quit in your first year?’ ‘How did you cope with rejection?’ I make students
do this all the time. When I worked in the industry, I would always have new
employees interview veterans in my office. It’s the best way to get a realistic
job preview.
Also, interview the company that wants to hire you. Don’t let them just
interview you – interview them too. You have to understand that the interviewing
process is a two-way street. It is a good sign when companies ask prospective
employees to do pre-job requirements, create marketing systems, and go out and
talk with industry veterans. It shows that they care about finding the right
people for their jobs.
_____
If you're ready to get started on your path to an insurance career by taking a
licensing exams, an exam preparation package can help.
David Gorecki started teaching insurance, securities, and CE classes for Kaplan
Professional Education in 2005. Previously, he spent 35 years in the financial
services industry. David held various management positions for 18 of those years
with both insurance and investment companies. He received his psychology degree
from DePaul University in Chicago and currently manages 60 classroom instructors
who teach insurance licensing courses.
___
Read More
Posted by Kaplan Financial Education - March 7, 2019
INSURANCE AGENT CAREER AT-A-GLANCE
Are you considering a career in the insurance industry? If you are looking for
more information about the profession, you are in the right place. Find out more
about what the day-to-day of an insurance industry professional is like, as well
as the expected job growth over the next decade below.
WHAT DO INSURANCE AGENTS DO?
Insurance agents sell one or more types of insurance for insurance companies.
The role of an insurance agent is to help clients understand differences in
insurance policies and help them choose what plans are best suited for
them. Typical job duties for insurance agents include:
* Call potential clients to drive new business
* Meet with potential clients to discuss their existing coverage and insurance
needs
* Explain various insurance policy options
* Analyze clients’ current insurance plans and suggest changes/additions
* Process policy renewals
* Help clients settle insurance claims
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
IMPORTANT SKILL SETS FOR INSURANCE AGENTS
* Customer Service: At the core of being an insurance agent is helping
prospective and current clients understand and choose insurance plans.
* Sales and Marketing: An insurance agent will also have to routinely call
prospective clients and set up meetings to get details about their finances
and goals.
* Analytical Abilities: It is important for insurance agents to be able to
analyze risk and benefits of all policy options for clients.
* Self-Motivated: Being an insurance agent means being able to take initiative,
recognize opportunities, and continually follow up with prospective and
current clients.
* Commitment to Life-Long Learning: Insurance policies and state regulations
are constantly changing. It is important for insurance agents to stay
up-to-date on industry and regulation changes.
Along with skill sets, there are traits that can help you succeed. Learn about
them here.
JOB OUTLOOK FOR INSURANCE AGENTS
According to the Bureau of Labor Statistics Occupational Outlook Handbook,
employment of insurance sales agent is expected to increase by 10% from 2012 to
2022. This is higher than other sales and related occupations, which are
expected to grow by 7%.
Employment growth should be even higher for agents selling health and long-term
care insurance due to the aging population. There is also more opportunity for
growth as more people have access to health insurance from federal health
insurance reform legislation.
HOW MUCH DO INSURANCE AGENTS MAKE?
The median annual wage for insurance sales agents was $49,710 in May 2017,
according to the Bureau of Labor Statistics. The lowest 10% were paid less than
$27,180 and the top 10% earned over $$125,190.
Insurance agents are often paid in one of three ways: salary only, salary and
commission, or salary plus bonus. In some situations, agents who do financial
planning receive a fee for their services instead of commission.
Commissions are a common form of payment, particularly with more experienced
insurance agents. The amount of commission varies on the type and amount of
insurance sold, and whether it is a renewal or new policy. Bonuses are sometimes
given to agents when individual or agency sales goals are met.
HOW DO YOU BECOME AN INSURANCE AGENT?
The process for becoming an insurance agent depends on what lines of authority
you want to sell and what states you want to sell in. You also have to pass
prelicensing exams. For more information on becoming an insurance agent, visit
our article on this topic. If you're thinking of becoming licensed, exam
preparation can help.
__
Read More
Posted by Kaplan Financial Education - March 7, 2019
HOW TO BECOME AN INSURANCE AGENT
The role of an insurance agent, has amazing growth potential, and is a great way
to start your career or make a much-needed change. But if you do know, you think
you have what it takes, and you've considered making this career change, you're
likely wondering how. In this article, we've outlined the five basic steps
toward earning a license and starting your insurance career.
HOW TO BECOME AN INSURANCE AGENT
STEP 1: DECIDE WHAT KIND OF INSURANCE YOU WANT TO SELL
The first thing you want to do is decide what type or types of insurance you’d
like to specialize in. In the industry, these are referred to as “lines of
authority.” Here’s a rundown of the most common:
* Life insurance: Selling policies and annuities related to providing for a
beneficiary upon the death of the insured.
* Health insurance: Selling medical, disability, Medicare supplement, and
long-term care policies.
* Property insurance: Selling homeowner, commercial property, and inland marine
policies.
* Casualty insurance: Selling auto, workers compensation, crime coverage, and
professional liability policies.
* Surplus line insurance: Selling coverage for unique or unusual situations
with risks that aren’t covered by standard insurance, such as daycare
insurance, oil drilling rigs insurance, and special events like state fairs,
car races, and outdoor amusement parks.
* Variable products insurance: Selling insurance products with an investment
element. To sell this kind of insurance, you need certain securities
licenses.
* Personal lines insurance: Selling products like auto insurance, homeowners
insurance, renters insurance, and policies for boats, motorcycles, and
snowmobiles to individual consumers only.
Another option is becoming an adjuster, which is the business of investigating
and adjusting claims on an insurance policy. Insurance adjusters also solicit
for the adjustment business.
In a number of cases, you don’t have to pick just one line of authority.
Individuals often combine certain lines, such as property and casualty
insurance.
THINKING ABOUT A CAREER IN INSURANCE? DOWNLOAD THIS FREE LAUNCHING YOUR
INSURANCE CAREER EBOOK.
STEP 2: UNDERSTAND THE GENERAL REQUIREMENTS
After you’ve decided what kind of insurance agent you want to be, the next step
is to understand the basic requirements:
* You need to be at least 18 years old to become an insurance agent.
* You need to complete prelicensing education for your line of authority, which
is determined by each state. The number of hours you’ll have to complete and
the cost also varies by state.
* You need to pass the state insurance licensing exam for your line or lines of
authority. An insurance exam preparation package can help.
* You need to pass a background check. The process varies by states and, in
some cases, includes fingerprinting.
* You need continuing education to keep or renew your license.
STEP 3: DECIDE ON A STATE AND FIND OUT ITS REQUIREMENTS
Now that you have a basic idea of what you need to do, it’s time to decide
whether you want to sell insurance in your home state or some other state. (You
can also sell in more than one state, but you also must abide by the rules for
each.) As you saw in Step 2, each state regulates its own insurance licensing
process, and each state’s regulations or rules are slightly different, so this
is why deciding on where is so important.
After you’ve made your decision, check with the department of insurance in that
state for the rules. The state bodies of government that regulate insurance have
different names, so a good way to find out the name of the state’s insurance
body is to go to the official website of the state and search for the insurance
licensing rules. Most state insurance web pages are quite helpful and often have
handbooks you can download and read to get all the information you need to
become an insurance agent in that state. You’ll find out exactly how many hours
of education (if any) you need, how to register for the exam, where to go for
the exam, how you’ll get your score, and—if you pass—how you’ll get your
license.
Each state website will also tell you what kind of continuing education you need
to keep or renew your license.
STEP 4: RESEARCH AGENCIES
Now is also the time to research any agencies for which you want to work. Many
have additional requirements for candidates or agents to follow that you’ll need
to be aware of if you want to work there. Also, some agencies will hire you
before you have a license, and they might have specific processes you need to
follow.
STEP 5: PASS YOUR STATE EXAM AND APPLY AT INSURANCE AGENCIES
You’ve done your research and know what you want to do. So, it’s time to get out
there, get the hours of education required by the state and agency of your
choice, take the exam, and pass it. Armed with your license and your knowledge,
you’re ready for an exciting and rewarding career as an insurance agent. Good
luck, and don’t forget about keeping up with your continuing education.
___
Read More
Posted by Kaplan Financial Education - March 7, 2019
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