Easy Ways to Be An Independent Insurance Agent in 2022

To start a career as an insurance agent, these are the steps that you need to follow to get an insurance agent license.

Decide what type of insurance agent you want to be

The first thing you need to decide is whether you want to become a captive agent or an independent insurance agent. Both career paths have their pros and cons. So, you’ll need to spend some time doing a little research before setting off on your journey.  

Decide what type of insurance product you want to sell

Decide on whether you want to sell commercial insurance or personal insurance. Agents specializing in personal lines of insurance focus on providing coverage for individuals and families. Their coverage options include motor vehicles, homeowners insurance, and life insurance.  

Commercial insurance agents provide coverage to commercial businesses with policies ranging from general liability insurance and commercial property insurance to errors and omissions insurance. 

It’s vital to base your decision on what line of insurance you’d be comfortable selling. Decide based on your gut instinct and your academic background. 

Review your state’s licensing requirements

Based on the line of insurance you’ve chosen to go with, you’ll need to assess the licensing requirements of the state that you’re planning on operating in. Each state has its own custom requirements and you need to be aware of them before taking your next step. 

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.  

Your career plan could require you to obtain multiple licenses. So, it’s advisable that you get the specifics from your state’s licensing department or the companies you plan on representing.  

Note: Individuals who operate without a license can face penalties or legal actions. 

Take the insurance exam

Once you’ve fulfilled any pre-exam licensing requirements for your state, you’ll need to register for your official licensing examination. This exam is held at a testing site where you’ll be placed at a computer. The date and time will be scheduled beforehand and the test usually lasts for two to three hours.     

Note: You may need to show proof that you’ve completed the required pre-licensing classes, so remember to take all the necessary documents with you.  

As with any subject, the level of difficulty will depend on how prepared you are. You should have a relatively smooth experience if you’ve completed your pre-exam requirements. The question format is typically multiple-choice and will test your knowledge on insurance terminologies, numbers, and practicality-based scenarios.  

You’ll need a score of over 70 to pass the exam, and you’ll find out if you’ve passed or failed the test immediately after you’ve submitted the paper. You can reschedule the exam if you fail on your first try.