In this article we explore how to become an insurance broker.
Insurance Broker How To
Get experience in insurance. What kind of insurance do you want to focus on? Property and Casualty insurance? Life insurance? Health insurance?
Sometimes it is recommended to get a job in the industry that you want to work in so you know it is right for you. At the end of the day most people will help train you if you have a really good attitude and a good spirit.
Getting The Proper Licensing
Insurance is by state. You do not need to be sponsored by an insurance organization in order to take an exam. It is always much easier to have someone with experience to guide you through it though.
There are free practice exams online. It is recommended to take a course before you sit for the exam. You can take an exam at any Pearson Vue testing center.
Now that you have passed the exam you go to NIPR register, pay the fee and you are licensed to sell insurance! Renew every 2 years from the date of your birthday. Now it is time to put that license to use and make a commission by selling insurance!
Broker
This article is about how to become a broker. Are you sure you do not just want to sell insurance? There is a difference between a broker and an agent. Check out the actual difference between the two words, agent and broker by reading this article here.
Sometimes we use the term agent and broker interchangeably when actually meaning one or the other.
Most true brokers work commission only because they decide which insurance carrier that they work for.
Working In The Industry
There are captive and non-captive at the end of the day. You will find people who love what they do at each place. There can be some really amazing places to work.
Some well known captive carriers have agents that can broker insurance through other carriers but their book and everything stays with the company & carrier.
Some independent brokerages employ licensed representatives to handle their book and get new clients but the book is still captive.
Sometimes, it can be difficult to get a true non-captive agreement. There are so many great places to work. Don’t be a guy that gets upset with other brokers or agents for any reasons such as having the highest price with no options. Especially if someone takes a client from you.
Agency / Brokerage Agreements
Try to avoid some of the major pitfalls that most agents run into. including but not limited to:
- Non-Competes
- Captive Agreements
- Ownership of Clients
- Exclusivity Clauses
- Minimum Production Requirements
Insurance Broker Resources is an insurance brokerage experienced brokers go to in order to not have any of these strict requirements. At the moment IBR is working to get the processes in place to be able to onboard more brokers. Currently we are licensed in Missouri and Illinois. Insurance Broker Resources is a source for knowledge in insurance & insurance sales in the industry. IBR can potentially really help you.