How to Get a License to Sell Auto Insurance

Auto Insurance Broker

Before you can set up shop and start selling auto insurance, you must become duly licensed by the state in which you want to operate. Having a license makes sure you have a basic understanding of the insurance you're selling and the applicable insurance laws. While each state has its own nuances when it comes to obtaining a license to sell auto insurance, the basic process remains the same. Here's how to get a license to sell auto insurance.

Instructions

1. Determine whether you want to sell commercial auto or personal auto insurance. Some states offer different licenses for auto insurance depending on whether or not it's personal or commercial. While New York State's property and casualty insurance license permits licensed individuals to transact both personal and commercial insurance, some states like Texas do not. If you are a Texas resident you have to decide prior to getting your license whether you are going to sell commercial or personal insurance because they are two different licenses.

2. Gain the necessary education. Some states require licensing candidates to sit for a set number of course hours. New Jersey requires its licensees to have 80 course hours while Texas does not. Some states allow experienced individuals to opt out of the education requirement. If you can prove to the state that you have adequate hands on experience and knowledge, you can forgo the education requirement.

3. Take the state licensing exam. After satisfying the pre-licensing requirements, contact your state's Department of Insurance to find out where and when the exams are given. Most of the states now use an online service such as PSI Exams or Prometric to administer their exams (see Resources below).

4. Submit to the necessary background checks and fingerprinting. Some states require their insurance agents to undergo fingerprinting utilizing services like L1 Enrollment before you can become licensed to sell auto insurance. Most states require varying degrees of background checks. Some background checks are as simple as completing an application while other background checks are more in depth. No matter what the state requires, you must submit the necessary information.

5. Complete and file the insurance broker's application with the state. Once you have passed the exam and submitted to the background check and fingerprints, you must complete the state required application and mail it along with the necessary fees to the appropriate address. Once your application is processed and approved, you'll receive notification and your license. At that time you will be able to sell automobile insurance.

Tips & Warnings

• An insurance license gives you the opportunity to sell other policies in addition to auto insurance.

References

• New Jersey: Department of Banking & Insurance
• Texas: Department of Insurance

Resources

• Agent Broker: Training Center
• Prometric
• PSI Exams
• L1 Enrollment