What Is an Insurance Producer?
An insurance producer is the name given to an individual or company licensed by a state to sell insurance products and appointed to sell for an insurance company. In most cases, the term producer refers to an insurance sales agent.
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Function
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Individual insurance producers sell policies that provide monetary reimbursement in the event of a loss or unforeseen event. Producers typically specialize in selling one type of insurance, such as life, health, commercial or property and casualty, which includes products like homeowners and auto insurance.
Features
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Some individual insurance producers sell policies for only one company, while others have the ability to sell policies from a number of different insurers. Producers have a responsibility to fully explain the aspects of all policies to potential customers.
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Environment
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Some insurance producers work evenings and weekends when clients are more readily available for meetings. Because the work of a producer often requires meeting sales goals, the position has the potential to be stressful, especially during slow periods.
Education
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Insurance producers typically have a minimum of a high school diploma or GED, though many have bachelor's degrees. The specific field or major for a degree is not always of concern to employers, especially for producers who have proven sales experience.
Licensure and Appointment
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Producers must have a state-issued license to sell the type of insurance they specialize in, which is typically acquired by passing a written examination. After receiving a license, agents fill out applications for appointment for which they or their employers wish to sell products. Insurance companies generally grant appointments to producers unless the agent has a history of insurance license suspensions or criminal misdoings.
Compensation
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Insurance sales agents or producers earn annual salaries of around $44,000, according to the U.S. Bureau of Labor Statistics.
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