The rules of the game have changed! In the past, the Insurance industry was driven by captive/career agencies. Now that role has been ceded to Independent Insurance Agents. In the past, Annuities were seldom talked about; Life Insurance was the lead product. For the foreseeable future, the senior market will drive sales; which means an abundance of Annuities, Long Term Care, and Senior/Estate life cases.
There are many types of licenses required for the various products that Insurance Carriers offer. The two most commonly used licenses that agents earn are Life &Health License and Property & Casualty License. We are going to dicuss how to get an Insurance License.
The Life & Health license is required to sell all forms of life insurance products. Examples of such products are Whole Life, Universal Life, Term Life, Fixed Annuities and Health Insurance. The Property & Casualty, referred to as P&C, is required to sell specific property insurance. Examples of products sold by P&C agents include Auto, Boat, and Homeowners Insurance.
We are going to focus on obtaining the Life & Health License for the Independent Life Insurance Agent.
After you have successfully completed your exam, a few requirements still remain before you may apply for appointment with an Insurance Carrier. First you must obtain Errors and Omissions (E&O) Insurance and receive Anti-Money Laundering Training (AML).
Errors and Omissions Insurance is protection for the agent. It is required by certain carriers and will come in handy if a client files a claim holding you responsible for any errors with their policy, or if you have failed to perform as you have promised in your contract. This coverage includes any subsequent legal fees and may cover any judgments ruled against you. There is a premium cost for Errors and Omissions coverage for which you will be held responsible. Please contact us for specific details.
Anti-Money Laundering training (AML) is also required for all insurance agents. AML is a set of procedures designed to prevent the generation of income through illegal maneuvers. An Insurance Agent must complete a one-time training course. The results of which are sent to every Insurance Carrier that the Agent is affiliated with or considering becoming appointed with. Annually, agents are often required to complete a refresher course to keep agents up-to-date on current AML procedures.
In 2010, the National Association of Insurance Commissions (NAIC) adopted changes to the Suitability in Annuity Transactions Model Regulation to insure suitable annuity sales to consumers. The two primary provisions regarding producer training are outlined below:
Continuing Education credits are required to be completed by insurance agent every two years. The total number of CE credit hours you must obtain is contingent upon the requirements of your state. On-line continuing education is also readily available.
Thank you for taking the time to discover more about the insurance industry's most comprehensive and profitable financial opportunity. We hope you find this information beneficial to the building of your future success. Our strategy and core strength is to partner with select financial professionals who desire a thriving business, not just a selling career. Please don’t hesitate to contact us if you have further questions.
Being in the right place at the right time is not good enough. You also have to know that you are there... and have something to sell. For those who grasp the magnitude of this opportunity, developing an insurance business now is paramount.