How to Get your Insurance Broker License in New York
How to Get your Insurance Broker License in New York | Insurance Business America
Guides
How to Get your Insurance Broker License in New York
Do you have your sights set on becoming an insurance broker in the Big Apple? Learn how to get your insurance broker license in NY
Guides
By
Ramon Berenguer
The career of an insurance broker in New York can be exciting. As with most insurance broker careers, this promises to be long and lucrative where you get to meet and help many kinds of clients. As an insurance broker, your services can prove invaluable to individuals, businesses, organizations, or even the local community.
To become an insurance broker in New York, the first step is to obtain your insurance broker license. Like getting your license in other states, you will need to meet certain requirements and go through several steps in securing your insurance broker license. You will also have to gain practical experience in the field of insurance brokering.
Apart from meeting the requirements, you must understand the nuances of the insurance market and hone your sales and negotiation skills to effectively position yourself for success.
In this article on how to get your insurance broker license in NY, you can get a glimpse of what will be demanded of you on this journey. No doubt you will have many questions about this process, like:
what are the NY insurance broker license requirements?
which insurance broker license course in NY should I take?
what is the insurance broker license test in New York like?
Insurance Business will shed some light on these and more questions, so let’s dive right in.
The first crucial step when you apply for the insurance broker license in New York is to make sure that you are eligible to apply. Here are the basic eligibility requirements:
candidate must be at least 18 years old or older; this is the basic age requirement for most US states when applying to become an insurance broker or insurance agent
have no prior fraud or felony charges
have no federal taxes owed
candidate can pass a background check
have graduated from high school
Pre-licensing education for New York insurance brokers
Before sending in your application for a NY insurance broker license, it is essential to get the mandatory pre-licensing education. The number of hours to complete them varies depending on the insurance line.
These are the common insurance lines and the hours they take to complete:
life insurance – 20 hours
accident and health – 20 hours
personal lines insurance – 40 hours
property & casualty (P&C) – 90 hours
This is the step-by-step process for getting your insurance broker license and becoming an insurance broker in New York:
Step 1. Complete your high school or university education
Although a formal education is not required to become an insurance broker in New York, this can help immensely in your endeavor to become an insurance broker here. A high school or even a university degree can equip a candidate with the basic knowledge needed to pass the licensure exam.
Some university degrees that can be helpful include:
Economics
Mathematics
Business management
Accounting
Marketing
Communications
Step 2. Get a prelicensing course
The next step is to sign up for a prelicensing course. These courses prepare you for all the topics and questions covered in the NY insurance license exam. Taking a prelicensing course is also mandatory for applying as an insurance broker in the state. This type of course can include private tutoring sessions, exam materials presentations, and practice tests or exam simulator.
Step 3. Get relevant work experience
While an education is not required, work experience is mandatory when getting a New York insurance broker license. In the three years prior to applying for a broker’s license, candidates must obtain at least a year’s worth of work experience in a New York licensed insurance company.
To fulfill this requirement, it can be enough to take on an entry-level job – as long as it’s related to insurance underwriting or adjusting losses for the type of license the candidate is applying for. One entry-level job example is assistant insurance agent.
The purpose of the work experience is twofold: so that the candidates have practical experience in insurance and to let them have a feel if the insurance industry is a good fit for them.
Step 4: Take and pass the licensing exam
Once you have completed the work experience and pre-licensing course requirements, you can schedule your licensing exam. You may contact the Department of Financial Services (DFS) in New York State for more information.
You will be eligible to apply only after you pass the licensing exams. To pass, you must score at least 70% in the exams. In case you already took an insurance broker licensing exam in another state, you may be allowed to skip this step and apply directly for the insurance broker license in New York. However, you will still be required to take a pre-licensing course.
Step 5. Apply for the New York insurance license
Assuming you have fulfilled the eligibility requirements and passed the state licensing exam, you may then formally apply for the New York insurance broker’s license. You need to apply for the license within two years of passing the exams. After receiving the license, you can practice as a broker in the state.
Don’t forget that you must also take continuing education (CE) courses to maintain your insurance broker license in New York.
Step 6. Search for insurance broker jobs
Now that you are a licensed insurance broker in New York, you can now look for insurance broker jobs or set up an independent practice. If you take the employment route, look for positions in small or large insurance companies.
In your search, make sure to check the job posting and see if there are any minimum experience requirements so you don’t waste time applying for jobs that don’t match your qualifications. But don’t lose hope – some insurance companies may hire licensed candidates who lack insurance experience but have the relevant skills and sales or customer service experience.
As mentioned, you must meet the eligibility requirements, such as:
be aged 18 or older
have completed the prelicensing education requirements – at least have a high school diploma or equivalent GED levels
have the prerequisite working experience of one year in a licensed insurance company
pass the appropriate New York State exams within two years of applying for the insurance license
submit a license application to the DFS within two years of passing the exam; you can apply for multiple classes of licenses simultaneously, if qualified, but you cannot apply for a class of license previously held
pay the licensing fee via credit card, check, or electronic fund transfer
Insurance licensing applications
The following l is a list of the different types of insurance broker licenses aspiring candidates can apply for:
This video gives sound advice on how to become an insurance broker. The presenter discusses important topics like what the role entails, how to get potential clients, and the importance of having a mentor. Watch the video in its entirety to know more:
Those applying for the insurance broker license in the state of New York must pay the application fee.
The fee costs $185 and can be paid via credit card or by issuing a personal check.
After submitting their application, candidates will have to wait a few days or weeks to know if their application has been approved or rejected.
Aspiring insurance brokers, after meeting all the licensing requirements, can get their insurance license online by first submitting their application to the DFS portal. Simply select the type of insurance license you want to get the process started, then follow the instructions on the site.
To maintain and renew an insurance broker license in New York, Insurance Law Section 2132 prescribes the CE requirements. According to this law, insurance brokers are required to obtain 15 credits of continuing education to keep their license.
The CE credits will be required once the license has been active for over two years and for every succeeding renewal or re-licensing. Credits must be accumulated during the licensing period, starting from the effective date of the license.
In the case of relicensing, the broker may use credits accumulated in the previous licensing period, plus any credits completed until the date that the re-licensing application is submitted.
As of November 12, 2021, the insurance licensee must render 15 hours of CE instruction required in accordance with Insurance Law Section 2132. They must satisfactorily complete courses or programs of instruction or attend seminars that provide:
a minimum of one hour of Insurance Law instruction
a minimum of one hour of ethics and professionalism instruction
a minimum of one hour of instruction in diversity, inclusion, and elimination of bias
a minimum of one hour of flood insurance instruction, should the licensee be licensed to sell one or more lines of property/casualty insurance
a minimum of three hours of enhanced flood insurance instruction if the licensee sells flood insurance through the NFIP
This guide breaks down the different CE requirements for insurance license in each state.
To meet the CE requirements to maintain your insurance license, you must take an approved course supplied by a New York state-approved provider.
These providers offer courses covering different insurance lines, like life insurance or property insurance, that are applicable to specific license types. You may take any course that is approved by the DFS for your specific license.
You can take these courses in a classroom, on a webinar or by self-directed study, either online or via textbook. If you choose to complete a self-study course, you must take and pass a final exam to earn the CE credit. Keep in mind that you can:
Find a suitable CE Provider with the Continuing Education Provider Search tool on the DFS portal.
Find an approved class, webinar, or self-study course with the Continuing Education Course Search tool on the DFS Portal.
You may contact the provider directly to find out which courses are available and register for them.
Obtaining your insurance broker license in New York involves a seemingly simple path, and the process is a lot like getting your license in other states. While a formal education apart from a high school or equivalent GED is not necessary, it helps to have a university degree. A degree can give you the essential knowledge about insurance and familiarize you with insurance terms and concepts.
Whether you’re fresh out of college or shifting from another industry, the work experience requirement can give you a comprehensive understanding of the insurance industry. This is also an opportunity to learn the necessary skills that can help you navigate complex policies and meet client demands.
The licensing process ensures that brokers maintain a high standard of professionalism and ethical conduct, which is essential for protecting consumers and fostering trust in the insurance marketplace. While the endeavor to become a licensed broker is a substantial effort, the results can be rewarding – you get to build a career of assisting individuals and businesses to make informed insurance choices.
If you’re looking for industry leaders to model your career from, our Best in Insurance Special Reports page is the place to go. You can find out how some insurance professionals rose through the ranks to become among the industry’s respected leaders.
Are you going to get your insurance broker license in NY or will you try another state? Let us know in the comments.
Keep up with the latest news and events
Join our mailing list, it’s free!
