Even if you don’t think insurance to be the most exciting subject, currently majoring as an insurance agent will provide you with a plethora of work prospects, the opportunity to apply a diverse set of talents, and other advantages. However, you cannot operate without a valid insurance license. Thus, we have made this post on what disqualifies you from getting an insurance license.
Many individuals consider the phrase a dull employee or a suave, fast-talking trickster selling insurance no one requires. On the other hand, these portrayals could not be farther from reality.
Insurance agents work in an industry that is becoming more inventive and vibrant, attracting individuals from all backgrounds.
Insurance is a vital and diversified sector that touches almost everyone in the United States. Few citizens do not have insurance coverage, ranging from corporations that need property insurance to individuals who merely want medical coverage. Overall, an insurance license is necessary to assist you in meeting the demands of your consumers.
What Disqualifies You from Getting an Insurance License?
Your insurance license is the most significant credential in your profession as a new or experienced underwriter. This permit allows you to market coverage and engages in insurance-related commercial transactions.
However, there are a few things you should be aware of to receive and maintain your insurance license in the first place. This is in addition to asserting that your license does not expire or that you cannot extend it.
The following are some of the things that will prevent you from obtaining an insurance permit:
Failure to pass the insurance test
The most apparent issue on this list – but one that cannot be overlooked – is failing the insurance test. This typically precludes you from filing an insurance license application. It is suggested that you prepare for 2-8 weeks before sitting the coverage test. This will ensure that you are familiar with all of the content that may get evaluated. After that, you may start the application procedure.
Having a criminal conviction on your record
Homicide, rape, extortion, abduction, and arsons are felonies that carry heavy penalties and lengthy imprisonment or prison terms.
The sort of crime determines whether or not an agent may get licensing. Some candidates are automatically denied an insurance permit, while others may be qualified to participate after some time.
Candidates who have been convicted of a first-degree crime, a capital offense, a felony involving financial fraud, deception, misappropriation, or a criminal directly connected to the banking industry are unlikely to be eligible for an insurance permit.
There is a necessary waiting time for all other offenses before seeking a license.
A fifteen-year ban for offenses and misdemeanors is not explicitly included in lifelong bans. There is not a seven-year ban term for other violations for which neither the lifetime bans nor does the 15-year penalty apply.
Candidates must show that they have been reformed, do not pose a danger to clients, and are reputable enough to operate in the insurance industry after the disqualifying period. For precise information about gaining a license with a felony, contact your state’s Department of Insurance.
Failure to satisfy the standards for Continuing Education
To retain your insurance license once you’ve obtained it, you’ll need to pursue your insurance education. You ought to finish a different number of hours of Ongoing Training based on the kind of insurance license you hold and the jurisdiction in which it was awarded.
This is required before your license may get reissued, which happens every two or three years. In Iowa, for instance, insurers must finish 36 hours of instruction before their license expires after three years.
There are various Continuing Education programs available to assist insurance agents in keeping current and informed about their industry. This will help them excel in their employment while accumulating the needed CE hours to maintain their license.
Community Educators are a significant source of Continuing Education for persons with professional licenses in Iowa, Nebraska, and Texas. They generally provide a variety of practical courses that enable agents to earn CE credit while improving their insurance and business processes.
You haven’t paid your penalty for failing to meet your CE quota by the renewal deadline
Failure to complete the required hours of ongoing training to keep your certification in good standing may also impact your insurance license. This is decided by your license and the area it was granted. If you default, you will be fined for each hour not finished by the timeframe.
The hourly rate usually is approximately $50. You won’t be allowed to renew your license if you don’t have enough ongoing training hours and haven’t settled your penalties.
Unauthorized use of the license
Someone with an insurance license may misuse their license in various ways, canceling their license. These are the following:
Fraud: This usually occurs when an insurance permit holder knowingly defrauds a client, agent, or insurer.
Rebating: In most jurisdictions, incentives other than the policy’s advantages to persuade a party to acquire a plan are a license suspension act.
Twisting: It is forcing someone to let their existing insurance plan lapse in obtaining a new one is also a law revocation crime. Although the practice is still relatively widespread today, this is pretty legitimate.
Having a poor credit rating
It is not difficult to be accepted as an insurance provider if you have a bad credit history. However, you should remember that most insurance companies are highly discriminating in their screening procedure.
They will inquire about existing debts and insolvency and present and previous foreclosures before signing the deal.
Furthermore, several organizations provide advance royalties or a loan on future revenues if you pass based on credit. They want to know that if your consumers cancel their policies, you’ll be able to repay the loan.
While most candidates with weak credit will be eligible to get an insurance license, they may have trouble obtaining appointments with insurance companies. This may also make it difficult for them to get an insurance license.
In the end, it comes down to what’s on your credit report. Insurance companies will differ since some are more lenient with poor credit.
Having a DUI conviction on your record
Driving while intoxicated (DUI) is a capital crime that may have significant ramifications in your work life. If you get a DUI, whether you may receive insurance license relies on whether the crime is categorized as a violation or a misdemeanor.
A first-time arrest for driving while intoxicated is usually deemed a crime. It may even be prosecuted as a felony in some instances. A felony is generally considered when a DUI is committed many times.
The circumstances and categories of DUI differ from one state to the next.
If you are convicted of a minor DUI, you will most likely be able to obtain an insurance permit. If you have a criminal record, the procedure may be more complex, facing lengthy disqualification periods.
Frequently Asked Questions
What disqualifies you from getting an insurance license?
The following are some of the things that will prevent you from obtaining an insurance license:
- Failure to pass the insurance test
- Failure to disclose any criminal convictions on your request
- Non-fulfillment to satisfy the standards for Continuing Education
- You haven’t paid your penalty for failing to meet your CE quota by the renewal deadline.
- Unauthorized use of the license.
- Having a criminal conviction on your record
- Having a DUI conviction on your record
- poor credit rating
- Tax Lien
Is it feasible to get an insurance license after a criminal conviction?
If you’ve ever been charged with a crime, your qualification for a driver’s license is based on several factors. The seriousness of the crime is the most crucial factor. If you have been convicted of certain criminal crimes, you will never be allowed to become a qualified insurance agent.
Is it true that a criminal record has an impact on insurance?
You may be unable to obtain protection if you have a criminal past, depending on whether it is an infraction or a felony. The risk influences the cost of securities you pose to underwriters. Many life insurers consider having a felony criminal past the most dangerous.
Is it necessary to reveal any prior convictions when applying for an insurance license?
Yes. When seeking an insurance permit, you must disclose whether you’ve been convicted of a felony or are presently under investigation. You must produce certified copies of your sentence or any definitive case evidence.
Finally, if you want to sell insurance, you must have an insurance license. However, if you’re going to get and retain your insurance license, keep the above recommendations on what disqualifies you from getting an insurance license in mind. This will be essential as you begin your career as an insurance agent.
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.”