How long does it take to get an insurance license? This is a question that many individuals want to start a career in insurance nowadays. As a result, we’ve written this article to assist you. Let’s find out how long does it take to get insurance license?
Everywhere you turn, there’s a new visage espousing the merits of this or that insurance salesperson on a billboard, TV ad, or strip mall office front. In reality, the United States has over 1.4 million insurance agents as of 2020. There’s a reason why so many experts choose to work in the insurance sector. In reality, there are a number of them.
Despite many acting agents, there is still potential for more in one of the country’s most important sectors. However, this is only feasible if you have a valid insurance license. To this end, the preceding sections will inform you how long it takes to get an insurance license and the acquisition steps. Come along!
How Long Does it Take to Get Insurance License?
For all individuals, starting a career in the insurance business may be an intriguing choice. It’s a great path with a broad list of fascinating customers, depending on the area of specialization.
The criteria to become an insurance broker vary by state, although they are often substantially less than those for other license-required professions. In only a few weeks, the majority of individuals can become one.
If you decide to take an online course that needs a set number of study times, your finishing ability will influence how long it takes you to get your license. Once your test and background checks get completed, you may have to wait a week or two for your license to be granted.
Overall, you should budget at least two to eight weeks to complete the tasks necessary to get your insurance license. The bulk of that time gets used to prepare for your licensure test and finish your pre-licensing education course.
How to Get an Insurance License
If you’re ready to start selling insurance, follow these steps to receive your insurance license:
Decide on the kind of insurance agent you want to be.
When launching your insurance agent firm, you must opt for two sorts of insurance agents: captive and independent.
A captive insurance agent works exclusively for one company, usually a large national insurer. The captive firm provides training and support to the agents. In return, the agent will only promote the company’s products and will not offer other firms’ insurance.
Many captive insurance representatives must sign a non-compete contract prohibiting them from working for more than one insurance company for a certain period. The agent’s commission rates may be reduced due to the carrier’s marketing help.
An independent insurance agent, often referred to as an insurance broker, works with various insurance firms. The representative seeks insurance quotes from several suppliers to get the best plans and costs.
Independent agents have more product options but get less training and assistance from the insurance companies with whom they work. Instead of depending on marketing help from well-known insurers, agents must establish their brand in the regions they serve.
The path towards becoming an independent insurance agent may become more complex.
Decide on the insurance products you’ll sell.
Commercial and personal insurance coverage comes in a variety of forms. Individuals and families are the focus of personal lines insurance. This covers auto insurance, house insurance, and life insurance. Furthermore, commercial insurance brokers provide coverage for companies, including general liability, commercial property insurance, and errors and omissions insurance.
Examine your state’s licensure requirements
You’ll need to know which products you’ll be offering before you start the licensing procedure so you can pick a suitable license for your insurance agent firm. The name of your license will differ based on the state you reside in.
The two most prevalent licensing kinds are: The two most pervasive licensing kinds are:
- A property and casualty license for agents who aim to provide car, house, and business insurance to their customers.
- Life, health, and accident license for agents who want to represent clients who require insurance for life events such as disasters or health.
Your professional path may need the acquisition of various licenses. You’ll need to ask your state licensing agency or the firm you wish to represent for further information.
Take the insurance license exam
Pre-licensing classes get required in most states. Many of these may be completed either online or in person. Depending on the state, requirements range from a one-day session to 20-40 hours of web training.
After you’ve completed any state-specific pre-exam requirements, you’ll need to arrange your formal license test. A third party frequently proctors these tests. You will go to a testing location on the appointed day and time to take the online exam. Before taking the test, you may get required to present evidence of completing the training course.
What to anticipate on the day of your insurance license examination
Exams are typically not tough, remarkably if you have fulfilled the pre-exam prerequisites and are well-prepared. When you arrive on time, you’ll be seated at a computer.
Multiple-choice questions are common in tests. You’ll know right away whether you passed the test after it’s over. You may reschedule and retake the exam if you don’t pass the first time.
Submit your application for a background inspection.
After passing your state insurance license test, you’ll submit all needed licensing applications to your state licensing agency. A vetting process, including fingerprints, is required in several states. You’ll be able to legitimately discuss and offer insurance plans after you’ve received your formal license.
Frequently Asked Questions
How long does it take to get an insurance license?
If you want to receive an insurance license, you should budget two to eight weeks to complete the process. Most of that time gets spent preparing for your licensure test and finishing your pre-licensing education course.
Why is it necessary for insurance agents to have a license?
To discuss insurance products or make deals, insurance agents must be licensed. Every state has its licensing requirements. Those who practice without a license may risk fines or legal consequences.
What information do I need to know about the insurance licensing exam?
The test provider offers an exam topic outline for each state licensure exam, including a list of the exam subjects utilized to construct the test questions. This framework may get found in each state’s Candidate Licensing Handbook, located on the exam provider’s website. A candidate or any test provider does not have access to the actual questions that appear on the state exam.
How long will it take me to prepare for the state insurance test?
What it takes to prepare for an exam might range from a few weeks to many months. Candidates may take a shorter time, depending on their academic level, industry experience, and other time obligations.
What occurs at the testing facility for insurance licenses?
A test provider—a corporation engaged by the state insurance commissioner and the state securities regulator to execute the testing process—runs the testing facilities. Many different exams get conducted at various places.
Checking in: Candidates must check-in when they come for their pre-arranged insurance exam. They will not be permitted to take their exam if they arrive late unless they have contacted the testing facility in advance.
Each state offers a Candidate Licensing Handbook that covers how to take the exam and what constitutes being late (e.g., traffic, illness, family emergencies, etc.).
When they appear at the facility, candidates must provide a photo ID (e.g., state driver’s license, passport, qualifying state ID card, etc.) when they appear at the facility. Candidates must produce a valid Certificate of Completion form in specific states. When students successfully finish the needed course, they are given this document by a recognized state provider.
After: After checking in, applicants must return to the main counter and leave everything from their pockets, including jewelry, watches, handbags, and other valuables, in a locker. Candidates will be taken into the testing room and put in their allocated testing cubicle with just their photo ID and locker key. A test center staff will describe the anticipated behavior before entering the room during the exam.
What occurs in the course of the test?
This room gets equipped with cameras, quiet is needed, and any suspected evidence of cheating will result in a candidate’s disqualification. They will get removed from the room, and if cheating gets found, they will face disciplinary action from the state administrator.
Candidates will use their ID to leave and return to the exam area if they need public restrooms. Each of the testing applicants’ cubicles will have a computer terminal. Before the actual test, they will attend an instructional presentation.
This lesson will walk applicants through the steps of negotiating the license test. The tutorial explains how to use the computer, shows an example multiple-choice question, and instructs you to choose an answer.
What percentage of insurance licensing examinations gets passed?
The percentage of people who pass varies from state to state and license to license. Some states make their pass rates public, while others do not. For further information about pass rates, go to your state’s Department of Insurance website.
In conclusion, insurance provides an excellent career field for many people today. And if you desire more aid on how long it takes to get an insurance license, the tips above will be indispensable.
Nicholas J. Banks has been an expert in the Insurance industry for over 10 years. He is well-versed in all aspects of insurance, and he has worked on Allstate Ins Group since 2006.
He attended the University of Pennsylvania with an undergraduate degree in Business Administration, followed by a Master’s degree from the University of Southern California to further his career in Insurance Management.
His experience working with many different companies has helped him develop valuable insight into how to succeed in this exciting field, which he now shares through our blog “Pro Insurance Info.”