How to Earn a License in Insurance,

The first step to becoming an insurance agent is to get your insurance license. As mentioned above, the license or licenses you need are dependent on which types of policies you want to sell.

A degree is not required to get an insurance license or to sell insurance.

The Insurance company you go to work for may have different requirements but getting your producer licenses makes you an agent and as long as you have the learning capacity, a clean background and good people skills, you will make money with insurance.

Recently I decided that I was not getting enough from my employer, where I hold a license in personal lines Property and Casualty Insurance. This means that with holding this state license I am allowed to talk about automobile and house insurance. And I would love to answer any and all of the questions we all have regarding this expense we all have to endure every year.

Holding a license in insurance gives me the authority to not only operate in the industry but I can legally talk insurance.

Each state has different guidelines; make sure you are checking your home states steps to getting a license.

You will need to enroll in a pre licensing course either online or in person before taking your state exam. Not all States require the pre licensing course but you will want to study or take a course to study for the exam. This is recommended because these test can be difficult especially if you do not go prepared.

The length of the course depends on the type of license you are getting and.

There are two licenses that insurance agents attain:

• Property & Casualty Insurance License – Car Insurance, Home Insurance, Business Insurance, etc…
• Life & Health Insurance License – Life Insurance, Annuities, Health Insurance, etc…

Most general insurance agents choose to get both of these licenses. Some agents (like life insurance agents) don’t have any plans on selling car or homeowner’s insurance, and therefore only need the Life and Health Insurance License.

It is often recommended in finding which license you need first, working on that one first, then coming back to get the other license at a later date.

I started by taking my P&C and then went to Life and Health.

What is P&C Insurance?
P&C insurance stands for Property and Casualty insurance. It is a type of insurance that provides coverage for property (such as homes, buildings, and vehicles) and liability risks (such as personal liability or business liability).

Property insurance protects against damage or loss of physical property caused by perils like fire, theft, or natural disasters. It includes policies such as homeowners insurance, renters insurance, and commercial property insurance.

Casualty insurance, on the other hand, covers liability risks associated with injuries or damage caused to other people or their property. It includes policies such as auto insurance, general liability insurance, and professional liability insurance.

P&C insurance is typically sold by insurance agents who have obtained a Property & Casualty Insurance License. These agents help individuals and businesses assess their insurance needs and select appropriate coverage options to protect against property damage and liability risks.

What is a Life and Health Insurance License for?

A Life and Health Insurance License allows insurance agents to sell and provide services related to life insurance and health insurance products.

Life insurance provides financial protection to beneficiaries in the event of the insured person’s death. It pays out a death benefit to the designated beneficiaries, helping them cover expenses, replace income, or meet financial obligations. Life insurance policies can also have investment or savings components, such as whole life or universal life insurance.

Health insurance, on the other hand, covers medical expenses and provides financial protection for individuals and families in case of illness, injury, or medical emergencies. It helps policyholders pay for medical services, hospitalization, prescription medications, and other healthcare costs. Health insurance policies can be obtained individually or through group plans offered by employers.

With a Life and Health Insurance License, agents can sell and advise clients on various life insurance products, such as term life, whole life, or annuities, as well as health insurance plans, including individual health insurance, group health insurance, or Medicare plans.

By obtaining a Life and Health Insurance License, insurance agents can assist clients in assessing their life insurance and health insurance needs, explaining policy options, and providing guidance on selecting the most suitable coverage for their specific circumstances.

Here is a simple explanation of insurer classification according to authorization

1. Licensed/Authorized Insurers: These are insurance companies that have official permission from the government to operate and provide insurance coverage. They meet all the legal requirements and regulations set by the authorities. Licensed insurers are closely monitored by regulatory bodies to ensure they follow the rules.
2. Unauthorized Insurers: These are insurance companies that don’t have the necessary permission to operate in a specific area. They may be based in another country where they are authorized, but they aren’t allowed to provide insurance in the area where policyholders live. Buying insurance from unauthorized insurers can be risky because there may be limited protection or support if issues or claims arise.
3. Surplus Lines Insurers: These insurers specialize in covering risks that are considered too high or unusual for licensed insurers to handle. They are authorized to provide coverage for these unique risks but operate on a non-admitted basis. They must meet specific criteria and get approval from the regulatory authority or a surplus lines association.

Gaining a license in most anything puts you another step closer to starting a career that you will be ready and educated for and earn you a better income. I know it is hard work and will cost a few bucks unless you find a company paying to get you through the relicensing course and passing the state exam. Grabbing that license on your own will get you an opportunity to choose. You won’t have to put yourself in a seat that does not allow you to leave and compete against the company that paid for your license.

Here is a general guide of the steps needed to get your insurance agents license:

1. Research your state’s licensing requirements: Each state has its own requirements for insurance licensing. Research the specific licensing requirements for the state in which you plan to work. This information can usually be found on your state’s insurance department website.
2. Determine the types of insurance licenses you need: Decide which types of insurance you want to sell. The two common types are Property & Casualty Insurance (e.g., car insurance, home insurance, business insurance) and Life & Health Insurance (e.g., life insurance, health insurance, annuities). Most agents choose to obtain both licenses, but it depends on your career goals and the products you want to sell.
3. Prepare for the licensing exam: Depending on your state, you may be required to complete an insurance pre-license education course. This course prepares you for the licensing exam. Even in states where it’s not mandatory, it’s recommended to take a course to study for the exam. Consider reputable providers or courses recommended by your state’s insurance department.
4. Schedule and take the licensing exam: Once you’ve completed the pre-license education (if required), schedule your licensing exam. The exam will test your knowledge of insurance laws, regulations, and product information. Make sure to study and review the materials provided during your pre-license education course.
5. Complete fingerprinting and background checks: Some states require fingerprinting and background checks as part of the licensing process. Follow your state’s instructions on completing these steps.
6. Apply for your insurance license: After passing the licensing exam and meeting all other requirements, submit your license application to your state’s insurance department. There may be application fees involved.
7. Consider continuing education: Once you obtain your insurance license, you may need to complete continuing education courses to maintain your license. Check your state’s requirements for ongoing education.
8. Begin your insurance career: With your license in hand, you can start working as an insurance agent. Decide whether you want to work for an established agency, join a nationwide provider, or start your own agency.

Remember, this is a general guide, and the specific requirements and steps may vary by state. It’s important to consult your state’s insurance department or licensing board for the most accurate and up-to-date information on becoming an insurance agent in your area.

Insurance exams in all states follow these guidelines:

• Proctored – You will take this test in a professional testing center with a proctor monitoring you
• Timed – Generally, you have about two hours per exam
• Multiple-choice – These exams give you a question and four possible responses to select from
• Closed-book – You will not be able to bring any study materials into the building with you when testing

The Exam for insurance producer can be costly but you may also find an agent with a discount code that would save you up to 100%. But in my experience it is usually 50%-75%. It also cost to take the exam whether you pass or fail. Another reason why it is important to come to the test prepared. Pass all pre-licensing courses.

Regardless of the student you have once been if you have an interest in the field and want to find yourself with earning power and potential to be your own business. This is for you.

I hope you have found this post helpful and I will add more down the road.

If you have any questions comments or concerns please let me know by leaving a message,