Starting a career in the indemnity industry can be an sympathetic opportunity for new and established professionals. Depending on the sphere of emphasis, it ’ s a career path that allows for tractability and a divers roll of matter to clients. The requirements to become an insurance agent vary by state, but they can frequently be completed much faster than other professions that require a license. precisely how long does it take to become an indemnity agent ? Most people can become one in lone a few weeks. If you choose to take an on-line course that requires a certain number of study hours, your ability to complete it will largely determine your license time. There may besides be a week or two of waiting for the license to be issued once your examination and background checks are accomplished .
If you ’ re ready to jump into the worldly concern of indemnity sales, consider these steps to becoming an indemnity broke or agent .
1. Decide what kind of insurance agent you want to be
You will need to decide between two types of indemnity agents when starting your policy agentive role clientele : captive and independent.
Captive insurance agent
A captive agentive role is one who works with only one company, typically a big national policy provider. The captive company provides coach and support to the agent. In return, the agent represents only the company ’ mho products and can not sell policies for a rival .
many captive indemnity agents are required to sign a non-compete agreement, limiting them to only one policy company for a specific period. Commission rates may be lower based on the market digest provided to the agent by the carrier wave .
Independent insurance agent
An independent agent, besides called an indemnity broker, is person who works with more than one policy company. The agent provides clients with policy quotes from multiple companies to find the best policies and price.
independent agents have greater flexibility in their product offerings but receive less education and support from the policy carriers they work with. Agents must besides build their trade name in the markets they work in, preferably than relying on marketing patronize from long-familiar insurers, which can make the way to becoming an mugwump indemnity agent more challenge .
2. Decide which insurance products you will sell
There are many kinds of commercial indemnity and personal insurance policies. Personal lines of insurance focus on coverage for individuals and families. This includes policy for motive vehicles, home insurance, and life indemnity .
commercial indemnity agents focus on providing coverage to businesses with policies ranging from general liability insurance to commercial property indemnity and errors and omissions coverage.
3. Review your state’s licensing requirements
Before you begin the summons of getting licensed, you ’ ll need to know which products you will be selling ( see above ) so that you choose the proper license for your indemnity agent business. License name will vary depending on the state of matter you live in .
The two most common license types are:
- Property and casualty license, for agents who plan to serve clients who need auto, home, and business insurance.
- Life, health, and accident license, for agents who plan to serve individuals who need insurance related to life events, such as life insurance, accidents, or health insurance.
Your career plan may require you to obtain multiple licenses. You will need to get the specifics from your state license department or the company you plan to represent .
Why do insurance agents need a license?
policy agents must be licensed to discuss policy products or complete sales. Each state has singular license requirements. People who operate without a license could face penalties or legal action .