How to Start as an Insurance Broker

Details vary by state, but testing is always required

Insurance is sold through licensed agencies and brokerage firms throughout the country. By becoming an insurance broker, you will be able to provide appropriate insurance products to the people who need them. Each state has different requirements for licensing, so check with your state for specifics before beginning this process. It is easiest to partner with an existing firm or company to help with the licensing procedure. Once you are licensed, your license belongs to you and will follow you even if you change jobs or firms, or start a business of your own.

Instructions

1. Check your criminal background. If you have a felony conviction, choose a different profession. Misdemeanors are considered on a case by case basis. Each state will check you against the FBI database as well as their own.

2. Since each state will have different requirements for the type and amount of classroom experience needed, you should first contact your state's department of insurance to determine an exact list of requirements before you begin. A quick search for "[Your State] Department of Insurance" will direct you to the right place.

3. Perform the required pre-licensing education. Some states require in-classroom training at accredited institutions, and some allow for self-study. Depending on the type of license for which you are applying (property & casualty or life licenses) the number of classes needed will vary.

4. Make an appointment with a local testing center to take the required exam(s). Some states will require you to pass a pre-test which then qualifies you to take the state's exam. When you pass the exam, the testing company will submit your results to the state for processing.

5. Once you are properly licensed, contact at least once insurance company and become "appointed" with them by filling out a brokerage application and providing a copy of your license. This will enable you to sell their products to your clients.

Tips & Warnings

• Applying for the appropriate federal licenses will allow you to sell financial securities, which will broaden the services you can provide to your clients.

• Insurance is among the most highly regulated industries. Be sure to follow your state's instructions exactly when applying. Failing to do so can delay your license, or cause it to be rejected entirely.

References

• "Degree Dictionary": Become an Insurance Broker in 5 Steps
• "Wise Geek": How Do I Become an Insurance Broker?
• "Secure Insurance Quotes": Becoming a Licensed Insurance Agent

Resources

• "Insurance Forums"