How to become an insurance broker
This article will focus on how to become an insurance broker. There are a number of steps to get the process going. The type of insurance you want to sell will make a difference. We will focus on the what is needed to be an independent insurance broker however the steps to become a captive broker are very similar.
Get an insurance license
You will need an insurance license to sell any type of insurance. The type you want to sell will determine the license you need. Life insurance products such as term life insurance, whole life, UL and final expense require a life license. Health, Medicare and indemnity based insurance policies require a health license. Those that want to offer Home, Auto and commercial insurance will need a P and C license. CLICK HERE TO LEARN HOW TO GET AN INSURANCE LICENSE
The process to get a license is slightly different in every state but most will require a passing score on a pre-licensing exam prior to taking the licensing exam. The license exam is taken at an official testing center. Access the link above for more details.
Errors and Omissions insurance ( E and O)
Independent insurance agents will need to acquire E and O insurance in order to offer the insurance companies products/plans. E and O is similar to malpractice insurance as it provides coverage for mistakes and errors brokers make when selling. There are a number of E and O carriers offering policies to insurance brokers. Some to consider are NAPA, Calsurance, Lloyds and a number of others. Check with your FMO as they may offer policies at a lower annual premium.
How to become an insurance broker: Contracting with insurance companies
Once you have your license and E and O insurance, you can start the contracting process. FMO’s/uplines handle processing for a number of carriers. The upline will handle all the contracting for the companies you want to be set up with. Some companies allow agents to contract direct. The compensation/commission is the same direct or through an FMO (make sure that is the case with the FMO)
Click here for a contracting kit (Agents working with Crowe and Associates are paid full commission and own their own book of business)
Interested in selling Medicare Advantage, Medicare supplement and Part D Rx plans? Click here for a Medicare contracting guide