How to become an insurance agent in California
How to become an insurance agent in California | Insurance Business America
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How to become an insurance agent in California
Wondering how to become an insurance agent in California? Here’s everything you need to know from taking pre-licensing courses, to getting a license and maintaining it
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By
Ramon Berenguer
If you like connecting with other people and making a positive impact on their lives, then the career of an insurance agent is for you. To start a potentially lasting and fulfilling career as an insurance agent in California, you must meet certain requirements. If you like connecting with other people and making a positive impact on their lives, then the career of an insurance agent is for you. To start a potentially lasting and fulfilling career as an insurance agent in California, you must meet certain requirements.
To become an insurance agent in California – or in just about any US state – you must first get a license to work as an insurance agent. Getting an insurance agent license is only a small part of being a successful insurance agent.
In this article, Insurance Business provides insight on how to become an insurance agent in California. We’ll give answers to burning questions like what the requirements are, what you need to do to get a license, and more.
It’s also the job of an insurance agent to provide clients with all the relevant information about these insurance providers and their insurance products. Due to the massive amount of information, regulations and laws regarding insurance, this is not something ordinary individuals or businesses can do themselves. This is where an insurance agent can help.
The most basic requirement for becoming an insurance agent in California is a license. To do that, you must first be eligible to apply for the license.
Fortunately, the initial eligibility requirements for getting a California insurance agent license are not complicated:
at least 18 years old
registered as an individual or business entity
need not be a resident of California to apply for the license
no formal education requirement
ideally, no record of any misdemeanors or offenses
If you are eligible to apply, you will then need to take the necessary pre-licensing courses and tests.
Here are the steps in applying for the insurance agent license in California:
Step 1. Decide on what type of insurance license to get
In the initial stages of your career as an insurance professional, you must choose which type of insurance policies you would like to offer – this choice dictates the kind of license you’ll need.
For instance, if you wish to sell car, home, or business insurance, you’ll need to get the Property & Casualty or P&C license. Or, if you wish to become one of the many life insurance agents, then you must have a Life, Accident & Health license.
Here are the different types of insurance licenses you can obtain in the state of California:
Funeral Insurance
Life, Accident & Health (L&H)
Limited Lines
Personal Lines Property & Casualty
Property & Casualty (P&C)
Surplus Lines
Although there is a significant variety of licenses and insurance specializations to choose from in California, for most aspiring insurance agents, it’s usually a toss-up between the P&C or Health & Life licenses.
It’s common practice for most insurance agents in California to take on both licenses. Choosing to get both licenses gives them access to a wider share of the business, since these are the most common types of insurance that clients look for.
If you are already set on specializing in a particular type of insurance, you don’t have to go down the P&C and/or Health & Life route. You only have to focus on the specific license relevant to the type of insurance you want to offer.
Step 2. Take a California pre-licensing course
Once you’ve decided on the kind of insurance you want to offer, take the appropriate pre-licensing course. This means you’ll have to complete 32 hours of pre-licensing education. These 32 hours consist of:
Required 20 hours of general insurance education
Required 12 hours of ethics training and instruction on the California Insurance Code
To say there are a lot of pre-licensing courses is an understatement, and it’s very easy to get overwhelmed and confused with the many choices. These courses are available as online classes or as face-to-face classroom settings.
To help you choose the right pre-licensing course in California, here’s what you should consider:
Is the course flexible for your needs? Confirm whether the pre-licensing course allows for flexible learning, and if it has a long or short window to complete.
Is the course reasonably priced? The only advice you should consider is not to choose a pre-licensing course that is priced too low, as you will surely get what you pay for.
What is the reputation of the course provider like? Check reviews of a pre-licensing course provider before signing up; the last thing you need is inferior or incomplete resources to study with before your exam.
Step 3. Pass the California licensing exam
After taking your pre-licensing course, you can proceed to take the necessary exam. The necessary exam is the one connected to your pre-licensing course. For instance, if you chose to take the pre-licensing course for becoming a P&C insurance agent, you will have to take the 150-question P&C exam.
All insurance licensing exams in California are administered by PSI. Examinees are typically granted 3 hours and 25 minutes to complete the exams.
California requires a 60% score to pass these licensing exams, although the Claims Adjuster and Bail exams require a passing score of 70%. Those who want to have more than one insurance specialization can take more than one exam; however, this is not recommended as you risk not having enough time to complete either exam.
Step 4. Complete a fingerprinting and background check
Those who wish to become insurance agents in California and most other states must also undergo a background check and identification process. This is to ensure that licensed insurance agents do not have prior criminal records or offenses.
Apart from having a clean record, it can also help that you have a college degree (this is not required). In general, these are common requirements to become an insurance agent in many states, not only in California.
If you have committed any misdemeanors or felonies in the past, this can affect the outcome of your licensing application. Should you foresee any issues of this nature arising, contact the California Department of Insurance (CDI) via phone or email and seek more guidance and details.
Insurance agent applicants can complete the process at the CDI Los Angeles exam site or at any of PSI’s 20 test centers across California.
Step 5. Submit your application
After passing the exams and completing your fingerprinting and background checks, you are ready to apply for your license.
You will need to visit Sircon to officially begin this process and submit your application online. If additional documents are required, you can attach them directly to this electronic application.
You can also submit these documents to the National Insurance Producer Registry’s Attachments Warehouse. Finally, you can also send your application by mail and send your application directly to the CDI, although this is not recommended due to the possible delay in processing.
Step 6. Wait for your application review and approval
The only thing left to do now is wait.
If your papers are in order and nothing comes up in your background check, then it should take an average of 3 to 5 weeks for your application to be processed and reviewed. If anything in your background comes up, the review process will take longer. Should any background issues arise, state officials will contact you.
Typically, the state of California will send you an email to notify you of the status of your application, whether you are rejected or accepted as an insurance agent.
If your application is approved, you are then granted an insurance agent license to operate in California. That is only the beginning. Here are some initial steps you are recommended to take once you become a qualified insurance agent in this state:
1. Get additional securities licenses.
If you offer advanced life insurance products, you must pass the Securities Industry Essentials (SIE) examinations and get the appropriate securities licenses. This can include the Series 6,7, and 63 licenses.
2. Decide how you will operate.
Should you work as a captive agent employed by one insurance provider, or as an independent agent who can work with several different insurance companies? Consider several factors when you choose between either route. For instance, how much time do you have or intend to devote to working as an agent and how much do you want to earn?
3. Develop your own marketing strategy.
Whether you’re a life insurance or a P&C insurance agent, you will need an effective marketing approach. Finding and sticking to the insurance niche you are good at, and setting and organizing all your client meetings, are good ways to start closing those insurance sales.
4. Ensure that your license remains valid.
To continue to work as an insurance agent, you need to comply with the continuing education (CE) requirements. This is done every two years to keep your insurance license active. If you’re looking for the best CE providers, here’s our top 10 picks to choose from.
The required hours vary by license type but can range between 20 to 24 hours. To be safe, complete your CE requirements at least 60 days before your license’s expiration date. This can ensure timely processing.
Here’s a short video explaining how you can renew and keep your license active in more detail:
Now that you know how to become an insurance agent in California, it’s clear that it’s no walk in the park. Those who overcome this hurdle can look forward to a challenging but potentially rewarding career.
As with any occupation, the job of an insurance agent comes with its own caveats. But with hard work, optimism and perhaps a little luck, you may find yourself among the highest achievers in the insurance industry.
Are you considering becoming an insurance agent in sunny California? Let us know in the comments
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