This is how independent agencies gain new clients. So, sell insurance to people in your immediate social circle to get a feel for the process. Pre-licensing courses are offered both online and in classroom settings. If you're not prepared to answer questions or speak knowledgeably about industry developments, you could miss out on a sale or lose a client. They act as a middleman between insurance buyers and insurance sellers. Break down fancy financial terms so you can better understand the basic insurance policies everyone needs. Division of Insurance Agent and Agency Services, Do Not Sell or Share My Personal Information. Your inbox isnt flooded with dozens of cheesy sales pitches from different insurance companies. Your email address will not be published. Apply here. They typically work for themselves, receive commissions for the policies they sell, and are not considered employees of any specific insurance company. That said, you will need to factor in the costs of running your own business. Duane has seen two significant, substantial downturns in the market, which gave him a new perspective in how to partner with clients and their businesses. Financial Health Partner As an independent agent, you'll have no shortage of options for policies to sell. Want to learn, "How to Start Your Own Independent Insurance Agency?" Listen as Jason Hutchinson walks you through the steps of starting your own independ Show more Lead Generation Strategies. An insurance agent is a professional whose primary goal is to help clients acquire the right insurance policy that meets their needs. Before appointing you as an agent of the company, insurance carriers will look to see if there is a fit between the products it sells and the target market you are approaching as an agent. For example, if the carrier only sells business lines, the captive agent cannot sell any personal lines of insurance. What Is an Insurance Agent? Online courses, seminars, and industry events can help you meet your continuing education requirements and stay informed. Specialize? When clients see that youre an industry expert who knows what theyre doing, it can help establish you as a stand-out professional in the long run. So, from your perspective as a customer, the distinction is basically irrelevant because all of our ELPs are qualified to find the best coverage at the best price for you and your family. How long does it take to become an insurance agent in Florida? You might come back with three policies, each from a different carrier, to present to your prospect. Its vital to base your decision on what line of insurance youd be comfortable selling. Once you have acquired your license, you can finally legally discuss and sell insurance. Here's some tips on how you can achieve this for yourself. The first step to becoming an insurance agent is to get your insurance license. I work to meet the needs of each of my clients to include You could be saving hundreds! Thanks to all authors for creating a page that has been read 67,034 times. Your career plan could require you to obtain multiple licenses. As an independent insurance agent, youll need to submit applications to work with different insurance companies. Its important to remember that licensing requirements to become an insurance agent vary by state. Lets walk through the advantages of working with an independent agent. Build networks with other auto insurance agents, which can help you avoid common problems. In NY both group and individual coverage is offered by American Family Life Assurance Company of New York. You can submit the license application on Florida's Division of Insurance Agent and Agency Services webpage. Complete and submit Florida license application. Become a Small Commercial Independent Agent With The Hartford. These state licensing exams will likely include multiple choice questions. Your next step is to market your independent agency and its ability to sell insurance. Accident and Health. Charleston, SC - Renegade Insurance, a modern property and casualty insurance agency, is delighted to announce its newest branch coming to Charleston, Mount Pleasant, South Carolina. That includes marketing your business, handling administrative tasks, managing finances, and taking care of your self-employment taxes. % of people told us that this article helped them. If youre reading this, chances are that youre interested in entering the industry yourself. Independent insurance agents are usually qualified to sell a variety of different types of insurance coverages (auto, home, health, etc.). Use the exam content guidelines to focus your studying. Different pre-licensing courses vary in length and intensity, but expect to spend at least 40 hours in a course. Youll then want to meet with insurance companies that sell these policies. Its not uncommon to need to apply to multiple auto insurance companies for independent agents. These policies protect individuals from the financial impact of unexpected medical bills, and different policies will cover different aspects of medical care. working with a family is a partnership first and foremost. Speaking to a local insurance broker can give you a great idea of the insurance market in your area. Visit Renegade Insurance to start your insurance agent career. Pacific Crest Agents Have 100% Book Ownership, 300+ Direct Carrier Appointments, Highest Commissions, Profit Sharing, Bonus Incentives, Advanced Training, Development, Custom Business Plan, Marketing Strategy, Back Office Support, Access to Agency Systems, Analytics and . Just ask Brianna Rowe, a growth strategist who trains Aflac agents and who began her 15-year Aflac sales career as an agent herself: This business isnt hard, she says. Successful independent agentsthe ones who super-serve their clientsmake it their job to stay current on all the different coverage options and the prices available from the insurance carriers they represent. Request a quote dialog. According to the federal Bureau of Labor Statistics, the median yearly salary for insurance sales agents was $50,000 in 2018. The annual salary range for insurance agents is $29,000 to $127,840.1 Like any commission-based job, your location, marketing skills and the amount of effort you put into the job have a direct effect on your take-home pay. The carrier will also consider several other factors, including your agencys financial stability, business plan, level of automation, and history of carrier appointments. It can also help in client retention and referrals. P&C insurance encompasses several categories: As a P&C agent, you can either choose to sell one specific type of policy or specialize in selling multiple types of policies to a broad spectrum of clients. Table of Contents Get Education Attend college and get a degree in business and finance-related subjects such as; Economics Mathematics Business Accounting Assurance offers you personalized training and pre-qualified leads who are eager to talk to you about finding the right insurance coverage for them. Commercial insurance agents provide coverage to commercial businesses with policies ranging from general liability insurance and commercial property insurance to errors and omissions insurance. The types of insurance your insurance company will need depends on the structure and assets of your business. Most newly licensed agents work for an established agency to gain experience before becoming an independent agent. Corporations and partnerships will also require separate licenses to be filed with the state's Department of Insurance. With the right score, you can complete the final paperwork to receive your license. Review their record with your state licensing agency and see how many insurance companies they represent. Being an insurance agent is a profession in itself. Resources to help you adapt to the realities of COVID-19. If you answered yes, thats great news for your sales career: Companies in the Sunshine State that are looking to appoint new insurance agents are seeking people with these qualities. Thats completely normal. Independent agents already know how important it is to carry adequate liability coverage. An insurance partner can help your business scale to different heights and explore new opportunities. SmartRide is an insurance program that rewards safe drivers - with discounts of up to 40% - using an app that measures driving metrics. Becoming an independent insurance agent requires several steps, including taking courses (set by your state) and passing license exams (depends on the type of insurance you want to sell). I serve people best when I know You must receive your high school education to be an insurance broker in most states, including Florida. Its also vital to understand customer behavior and leverage your learnings into practice. Licensing requirements vary from state to stay but you are generally required to take a course and pass your state's licensing exam. This guide will provide you with information to help simplify the process of starting an insurance agency that you can call your own. To sell insurance, you will need a producer license. In most states, you will need a license for each type of insurance that you wish sell. The commission allows successful agents to achieve high earnings. Guide to Becoming an Independent Auto Insurance Agent, How you will handle administrative services, such as communications or payroll, Whether you want to specialize or be a generalist, What is your target market and how to reach them. Use it to try out great new products and services nationwide without paying full pricewine, food delivery, clothing and more. This one is tricky to explain, but its really important to understand the distinction. Use the Florida Division of Insurance Agent and Agency Services License Qualifications to determine whether your specialization requires a pre-licensing course. This role offers a flexible lifestyle while helping people choose insurance coverage based on their needs. All states regulate insurance agents--usually through a department of insurancewhich often requires passing a pre-licensing course and a state exam. As we've mentioned, marketing is a key part of your job as an independent agent. Some may require you to purchase course-specific materials and specialized study materials. A pro. Some of the responsibilities of an independent insurance agent are: According to ZipRecruiter, as of December, 2022, the average annual earnings for an independent insurance agent in the U.S. are $89,730 a year or $43.14 an hour. You sell insurance for a living, but you also need to buy insurance to help protect your investment. Many states set a number of hours of education that you must complete before you can take a licensing exam. The cost and the process of getting an insurance license differ from state to state. Your email has been registered. About the practice? Duane feels that his clients work with him because of the personal, strategic, and holistic approach that Keep reading for more. Selling auto insurance can be a great career with the right preparation. Based on the line of insurance youve chosen to go with, youll need to assess the licensing requirements of the state that youre planning on operating in. Send us your receipts, photos, invoices and more with just a push of a button. Learn how an insurance agent can help you cut through the confusion to get the right coverage. Automobile. The first thing you need to decide is whether you want to become a captive agent or an independent insurance agent. Insurance as a whole can be confusing. Submit proof that you took a pre-licensing course. Everyone needs an expert in their corner. Like many other states, Florida has a strong insurance market and becoming a licensed insurance broker can lead to a lucrative career. conversation with regard to the changing needs of their family and how we can create the greatest level Although its not a bad idea to have a college education before you get started, it may not be a requirement for success. To become an independent insurance agent, follow these general steps: Step one: Complete an Associate's or Bachelor's degree in a relevant field. Independent insurance agents help customers find the perfect policy fit for their needs while enjoying the flexibility and earning potential that comes from being self-employed. In addition to meeting state insurance licensing requirements, youll need some other key assets, such as diligence, discipline and adaptability. Take Licensing Exam. As an independent insurance agent, you will need agency appointments with insurance companies that sell the types of insurance products you want to offer to your clients. Some of the most essential insurance coverage to consider getting for your business is: Let us help you become the independent insurance agent that we know youre capable of becoming! TLTR: This article provides an in-depth analysis of what independent insurance agents are and focuses on the benefits of being one. Accessed 5.5.2021. Heres what you need to do. SmartMiles offers the same great coverage as a traditional Nationwide auto policy but with a flexible monthly premium that's based on mileage. You'll also need to apply for the license . Do you have the right insurance coverage? What Does an Independent Insurance Agent Do? 1 Identify opportunities in your area. The U.S. Bureau of Labor Statistics projects that from 2014 to 2024 there will be 9% job growth for insurance brokers. An insurance agent is a professional whose primary goal is to help clients acquire the right insurance policy that meets their needs. Research the time needed to get your license, which could take weeks to months. The commission they earn from renewed policies allows them to make passive income. Find Out More Becoming Licensed to Sell Insurance In order to sell insurance, you must first obtain a producer license. I want to learn as much about each of my clients families as possible. If that describes you, here are nine steps that will get you on your way. Customers usually have little to no idea regarding what type of insurance they should purchase. Were committed to providing the world with free how-to resources, and even $1 helps us in our mission. Here are the 7 steps you need to follow to become a Medicare insurance agent. They offer clients options from many different insurance companies, rather than working exclusively with one insurance agency. The Latest News on Student Loan Forgiveness. Direct to Consumer Business is underwritten by Tier One Insurance Company, doing business as Tier One Life Insurance Company in California (Tier One NAIC 92908). How Much Does an Independent Insurance Agent Make? life everyday from zip-lining to riding horses at the beach to being vigilant about his fitness and health! Apply for a Florida license through MyPortal. You can usually get the hours through an organization that offers pre-license education. Both types of insurance sales professionals have their advantages and disadvantages, which makes the final conclusion a very personal one. You can also build your business and plan to sell it when youre ready to retire. An agent who sells homeowners insurance and car insurance can expect to earn commissions from both the premiums as well as a portion of the policy renewal. Decide what kind of insurance agent you want to become You will need to decide between two types of insurance agents when starting your insurance agent business: captive and independent. If you are interested in becoming an independent agent for a specific carrier, you will likely find information on how to become an agent on the carriers website. Keep an eye on your license renewal date, so that your license remains current throughout your career. With the right training procedures and attention, you can be successful.. You'll need to hustle to be an insurance agent in Florida - but that doesn't mean that the work itself is out of your reach. It all starts with your target market, and you can build from there. Their number-one goal is to help you find a policy thats tailor-made for you and your family. There are primarily two types of insurance agents: captive and independent. If you are not yet a resident of Florida, you cannot apply for a Florida resident license until you surrender your old state license and move. "Many of our sales leaders are quite introverted. Im looking for hungry individuals., That motivation pays off, from attaining your license, landing your first client and beyond. Note: You may need to show proof that youve completed the required pre-licensing classes, so remember to take all the necessary documents with you. Remember when we mentioned the importance of having someone in your corner? Independent insurance agents or insurance sales agents are the opposite of captive agents. Think of the time, money, and resources you will need to plan and invest in getting your agency up and running and what type of agency (personal lines, commercial, or both) makes the most sense for you and the people in the area you'll serve. Products may not be available in all states and may vary depending on state law. Wish you knew more about insurance so you could get the best deal? As with any subject, the level of difficulty will depend on how prepared you are. In NY, self-funded plans and absence services are administered by and insurance is offered by American Family Life Assurance Company of NY. 3 ExamFx. coast! The best way to explain the difference is to start with the fact that insurance brokers cant actually sell you insurancetheyre the go-between between you and insurance agents. You'll need to prove that you passed the courses before you can apply for an exam. These professionals are called independent insurance agents. As with the property and casualty license, you will have to take a pre-licensing course, pass your examination, and apply to your states department of insurance for a license. Youll have an easier time selling your services to clients. Working with Duane will move you to your next level of living and help you to live your best life! Why do you do what you do? 1. Some types of commercial insurance you may need to purchase include general liability insurance, commercial property insurance,errors and omissions insurance(commonly referred to asE&O coverage, which protects you against errors that you or a member of your staff may make), and workers' compensation insurance. He is able to set up a strategy with consideration to all his clients needs, goals, and challenges that may otherwise not be addressed without his individualistic approach. Assist their clients in completing their applications. For instance, if you're selling term life insurance, you'll have a substantially younger clientele than if you're selling Medicare. Step #3: Research Which Insurance Carriers You Need An agent is only as good as their client base. As an independent agent, you can focus solely on sales and let an insurance agency handle all the back-end administrative tasks. Get Your Health Insurance License Complete AHIP Certification Get Errors & Omissions Insurance (E&O Insurance) Contract with a Medicare Wholesaler (FMO) Getting Contracted and Appointed with Multiple Medicare Companies Complete Your Annual Carrier Medicare Certifications The U.S. Bureau of Labor Statistics projects that from 2014 to 2024 there will be 9% job growth for insurance brokers. So long as youre with a carrier that provides training and licensing assistance, you can start working the moment you have your license and have been appointed with the carrier. They act as middlemen between insurance buyers and insurance sellers to facilitate a transaction. Well, before you open the doors for the first time, a review of the laws and rules affecting insurance representatives and the operation of Florida agencies could be very beneficial to you. 2021 Assurance IQ, All rights reserved. For example, if you intend to take the Florida Health & Life exam the test is 150 questions plus 15 pretest questions that will take you 2 hours and 45 minutes. Sell policies from multiple insurance companies. If you fail the licensing exam, you must re-register for another exam with Pearson VUE and take the exam again. Personal insurance includes your car, home, life, disability, health insurance, etc. You will be required to take a certain number of hours of training as well as sit for a licensure exam. Felony convictions may bar you from becoming an insurance broker. 3. Cavemen, geckos, mayhem, Flo, Jakeinsurance seems to have a bad case of mascot overload. Then, you will take a licensing exam and apply to your states department of insurance for a license.. wikiHow's Content Management Team carefully monitors the work from our editorial staff to ensure that each article is backed by trusted research and meets our high quality standards. Most states also have continuing education requirements for maintaining your license. Agents selling property and casualty insurance can earn commissions from the sales of several lines of policies. A college education could help you go further, especially if you get a degree in a field like marketing, finance, or business administration. Opening an Insurance Agency Opening an Insurance Agency So, you're thinking about opening your own insurance agency?! Insurance can get complicated, but independent agents know their stuff. Get the Right Education The first important step towards becoming an excellent independent insurance agent is getting the right education. The good news is that there are plenty of opportunities to stay up to date on what's happening in the insurance industry. Find out more aboutjoining Assurancetoday. Furthermore, advances in insurance software have made it very easy for agents to manage all their administrative tasks entirely in the digital realm. There are two basic types of insurance agents: captive and independent. For example, if you intend to pursue a license with a specialization in health insurance, you must complete a 40 hour course and submit proof that you have passed the course to be able to register for the licensing exam. They eat, sleep and breathe insurance because they love helping people. There's no wrong answer. Theyve passed their state exams and have the license to prove it. This should be a significant budget line for your business as an independent insurance agent so you can connect with as many prospects as possible. Many mortgage lenders require homeowners insurance as a requirement for mortgage terms. As an independent agent, you'll also typically work as an independent contractor. So, you can offer multiple lines of insurance to your clients. So, whats the difference between captive vs independent insurance agents? A specialist. There are countless ways to market yourself and your services. Finding the best insurance coverage is no different. As an independent agent, youre not bound to sell the policies of a particular company. Choose and contact your local Big "I" state association for assistance understanding . Some states will also require you to attend a 20-hour pre-licensing course in a classroom or through online platforms before sitting for an exam. Required fields are marked *. There are more than 200,000 people working in the insurance field in Florida, and metropolitan areas tend to have higher concentrations of brokers. Being an independent agent, youre not limited to selling insurance policies from just one insurance company. Independent agents also benefit from having a lot of flexibility they can specialize in one type of coverage or offer several. Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Hold on though. Learn how Aflac pays cash benefits to help with out-of-pocket expenses that your major medical may not cover. Having a bachelor's degree in finance, marketing or business administration could help improve long-term career prospects. Automobile insurance policies cover motorized land vehicles. Before you jump into this exciting career field, here are some things you should know and a few tips to help you get started. Youll need a score of over 70 to pass the exam, and youll find out if youve passed or failed the test immediately after youve submitted the paper. Goal/Mission/Vision wikiHow is where trusted research and expert knowledge come together. Once you have completed the prelicensing education you may apply for the Florida insurance license. Your email address will not be published. Trusted Choice represents a network of independent insurance agents and brokers that are a part of their local communities and support the people and businesses in it. All these options also mean that you dont have to be adamant about advising your client on buying from a specific carrier. Many states set a number of hours of education that you must complete before you can take a licensing exam. Since each state has different licensing steps and guidelines, you may find more value in reading your state's insurance license guide. You'll pay self-employment taxes for Social Security and Medicare, which are twice the rate you'd pay as an employee. To apply for an appointment in Florida you must use eappoint, an online portal. Independent agents are not limited to selling insurance policies from just one insurance company. These plans are quite popular, with 42% of Medicare recipients enrolled in one as of 2021. Look at job boards in your city or target work area to gauge the strength of the insurance job market. If you don't put yourself out there, you'll have a hard time selling enough policies to create a sustainable business. His clients have the opportunity to reach out via phone, email, text, or even social media if this works best. Lastly, the agent walks through all the options with you so you can choose the best policy. So, youll want to make sure that your agency or business is well protected with commercial insurance. A good independent insurance agent will provide a side-by-side comparison of the pricing and coverage options they find. Commission rates are usually comparable across multiple insurance companies, so independent agents can focus on finding the policy thats really right for younot the one that will make them the most money. They earn a certain percentage of the commission every time they sell an insurance policy and when their clients renew those policies. Essentially, this means they do the legwork for you, so you dont have to fill out a bunch of different online applications to get your own quote comparisons. American Family Life Assurance Company of New York | Albany, NY You need to successfully complete the license exam to get a producer license. Mission: Partnering with each individual in both business and personal financial endeavors to create a stable, sustainable, secure environment for their families such that their experience is that of a trusted partner to whom they connect and with whom they rely. Once you buy your policy, the insurance company pays a commission to the independent agent. Similarly, agents who sell life and health policies earn upfront commissions from their companies, albeit at lower commission rates on renewals. As a leading insurance platform, we've created the most advanced technology and data science systems and built it all to support the human touch. The Florida Bureau of Licensing offers an interactive online tool to help you identify the licensing you require based on the type of insurance you wish to work with. You'll also need to study for your state-specific licensing exams, which we'll discuss in the next section. Learn more Insurance brokers act as independent agents who help clients find and purchase insurance policies. Plus, theyre your neighbors and will take the time to get to know youso you never feel like youre just another number in a sea of faceless customers. We discuss lifestyle, family, goals, and personal This allows you more freedom to craft the right policy for your customers. First, lets go over the difference between independent agents and insurance brokers. enjoyment and security. After you thoroughly go over their needs with detailed questions, you would go back to your portfolio of carriers and policies to come up with a few options to offer. Duane is impassioned by his clients success as defined by their ability to handle obstacles, pivot, and sustain viability regardless of changes in the market. Customers usually have little to no idea regarding what type of insurance they should purchase. In CA, CAIC does business as Continental American Life Insurance Company (CAIC NAIC 71730) You can also choose to sell personal and commercial insurance or focus on only one or the other. Step two: Choose a specialty or line of authority, such as property & casualty, disability, life & health, commercial lines, or personal lines. For independent agents, choosing the right carriers to partner with is critical. Agents are regarded as employees of the company and are provided with office space, training, and administrative support.
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