Insurance brokers research the policies offered by different insurers to ensure that their clients get the coverage they need at the best price. They can work on behalf of individuals, companies, or organizations, and are generally specialists in a specific type of policy. Most work on commission, and the average salary is $ 48,210. (You can get more specific information about salaries in California by clicking here). Follow the steps in this article if you want to know how to become an insurance broker in California.
Steps
Part 1 of 3: Planning Your Career as an Insurance Broker
Step 1. Identify the opportunities
Obtaining a license takes time, a lot of work, and money, so it's important to make sure your efforts pay off. Check that there are many good opportunities in your area. You can even apply to insurance companies that offer financial support to obtain an insurance license. If you do not work for a company, it will be very difficult for you to access the additional training and resources necessary to work as an insurance broker.
As an added benefit, having a job with an insurance company will help dispel doubts regarding the type of license you should obtain. You can simply ask your employer what license is for you
Step 2. Consider your skills before applying for an insurance broker license in California
Most accredited brokers recommend that applicants have certain skills and knowledge of the industry before entering the profession:
- Interpersonal skills. Brokers must be patient and attentive to clients, many of whom will find themselves overwhelmed by the process of selecting insurance coverage. Brokers must also project confidence when negotiating policies with insurance companies.
- Strong personality. The most successful agents are enthusiastic, open and positive at all times when working with clients. In addition, they must know how to deal with rejection. As a professional, you will receive a “no” for an answer as part of your daily work. Successful agents see this rejection as another step that brings them closer to a "yes."
- Business education. While only a high school diploma is required, college-level training related to business classes can be very helpful for new insurance brokers and may lead to higher pay down the road. The most successful brokers must understand the tax and legal aspects of the products they sell and how they fit into the overall financial situation of their clients. Tax law, accounting, business administration, and investment planning classes can provide you with a solid foundation as a new professional.
Step 3. Decide on your area of expertise
All aspiring runners must take a required course work and licensing exam in their chosen area of expertise. California specialties include:
- Life insurance. Insurance brokers sell products that provide coverage for human life, including life insurance (which protects against the risk of early death), pensions (guaranteed income that protects the financial resources of the survivor) and funeral insurance and burial (covering funeral and burial costs).
- Accident and health insurance. Brokers largely sell health insurance that covers medical expenses incurred by the policyholder as a result of an accidental injury or illness, and disability insurance that covers loss of income.
- Property insurance. Brokers provide coverage for property loss or damage of any kind, including commercial property insurance, crop insurance, livestock insurance, earthquake insurance, equipment breakdown, flooding, homeowners or homeowners insurance, and inland marine insurance (covers movable property, such as jewelry or unusual perils).
- Accident insurance. Known as liability insurance brokers, these types of professionals provide coverage against legal liability, including that for death, injury, disability, or damage to real property and other personal property. The most common form is auto insurance, but there are many other lines.
- Insurance to individuals. Brokers provide specific insurance for individuals, rather than companies, and may include the following types of policies: auto, residential property, including earthquake and flood insurance, personal watercraft, and liability insurance.
- Limited auto insurance. Brokers sell, request or negotiate auto insurance for private use, liability coverage, physical damage or collision.
- Bail bond agents. These professionals issue bonds on behalf of insurers. A bond is an insurance product that guarantees a defendant's appearance in court.
Step 4. Talk to an insurance broker
There is no better way to get a real idea of the type of specialty that suits your personality and interests than to speak with a practicing professional. It will provide you with details of the nature of the work, earnings, hours, etc.
Part 2 of 3: Get the license
Step 1. Complete the required pre-licensing education according to your specialty
- The California Department of Insurance requires that all aspiring insurance brokers receive 20 hours of classroom instruction in the type of insurance they want to specialize in.
- Applicants can also take 40-hour courses that offer a combination of property and casualty, or life and accident and health insurance.
- New and accredited brokers in other states will also have to complete a single 12-hour course related to ethics and the California Insurance Code.
- You can find a course near you through the California Department of Insurance search tool.
- Click here for more information about online courses.
Step 2. Study for the license exam
The content of the exam will depend on the specialty you have chosen. Use the materials provided in the pre-licensing course to study for the exam. Questions will include what-ifs, cover specific policies, and issues related to California law regarding insurance.
Step 3. Provide your fingerprints
You can do it before or during the exam day. Providing your fingerprint impressions before taking the exam will help you avoid possible delays with issuing the license.
- To provide your fingerprints before the exam, make an appointment with the company contracted by the California Accurate Biometrics Department of Insurance or another company. Bring the LIC 442-39A in-person scan request form to your appointment.
- If you provide your fingerprints on the same day as the exam at the California Department of Insurance testing center, you will have to pay a fee of $ 58.30 by money order, cashier's check, personal check, or credit card. Cash is not accepted.
- If you provide your fingerprints on the day of the exam at the PSI testing center, the processing fee will be $ 68.95. You can pay by money order, cashier's check, or company check made payable to PSI. Visa or MasterCard cards are also accepted. Personal checks or cash are not accepted.
Step 4. Take the license exam for the type of insurance you want to sell
The computer-based tests take between an hour and a half and two and a half hours, and cover between 60 and 150 questions.
- The Candidate Newsletter provides information related to exam preparation, testing procedures, sample questions, test strategies, and directions to the testing center.
-
You will need to present one of the following types of identification with you:
- valid California or other state driver's license
- California identification card
- passport or passport card
- military identification
- Your name must match the one on the ID.
- The examination fee is $ 50 if it is done at the California Department of Insurance testing center, or $ 83 if it is done at the PSI center.
- The California Department of Insurance assessment centers are located in Los Angeles, Sacramento, and San Francisco. Hours and directions are available here.
- You can schedule the exam at the PSI by clicking here.
- To cancel or reschedule the exam without losing the paid fee, you will have to do so at least 48 hours in advance. If you do not take the exam and want to reschedule it, you will have to pay a fee again.
Step 5. Apply for a license online using the Fast License Request Service (FLASH)
You will need to provide information for a credit and background check. If after investigation the California Department of Insurance determines that you have withheld or misrepresented the information, your application may be denied.
- If you have received a conviction for a felony of dishonesty or breach of trust or any violation of Title 18 U. S. C. § 1033, you will need to file a 1033 written consent request to obtain the consent of a commissioner prior to obtaining the license.
- To apply for a license, you will need the 12 numbers located in the upper left corner of your examination approval letter.
- The license fee is $ 170 for all specialties except Bail Bonds, which is $ 566.
Step 6. Print or download your insurance license
You can access your license through the California Department of Insurance website.
WARNING: The fact that you are licensed does not relieve you of the obligation to submit additional forms before acting as an insurance agent
Part 3 of 3: Working as an Insurance Broker
Step 1. Submit additional documents that demonstrate your financial security before making a transaction, application or negotiation of the sale of insurance
The license does not entitle you to practice as a broker until you have submitted these documents. Different specialties have different requirements.
Step 2. Submit one of the following documents if you specialize in property, casualty, and private insurance
These fields will allow you to start your own internship or join an insurance company or agency.
- An insurance broker's bond, form LIC 417-5. These bonds can be obtained from a surety company.
- An appointment notice filed by an accepted California sponsoring insurance company. This means that you will represent an insurer. The notification must be submitted electronically. To do this, contact the National Insurance Production of Records (NIPR) and its authorized business partners for a list of approved partners.
- An endorsement from a business entity that will be added to your list of sponsoring insurance agencies as an insurance agent. Approval must be submitted through the California Department of Insurance online service.
- An attorney notification form LIC 417-31 authorizing the licensee to act as an employee of an insurance agency or broker to assist them in their commercial insurance transactions.
Step 3. Submit one of the following documents if you specialize in life, accident and health, or auto insurance
For these specialties, you will need the appointment of an insurance company or the sponsorship of an agency to start working.
- An appointment notice filed by an accepted California sponsoring insurance company. This means that you will represent an insurer. The notification must be submitted electronically. To do this, contact the National Insurance for Records Production and its authorized business partners to access a list of approved partners.
- An approval from a business entity that will be added to your list of sponsoring insurance agencies as an insurance agent. Approval must be submitted through the California Department of Insurance online service.
Step 4. Submit all of the following documents to begin working as a surety agent:
- Form LIC 437-9 of a surety for $ 1000 executed by a surety accepted by California and signed by the principal.
- Bond notification form LIC 437-9 executed by a surety insurer and appointing you as their agent to negotiate surety commitments.
- If you plan to work as an employee of an existing guarantor, you will need to submit a notice of guarantor or permit statement of employment, the form of which is LIC 438.
Step 5. Consider working for a brokerage firm
If you want to specialize in life, accident and health, or auto insurance, you will need an appointment from an insurance company or an agency job before you can start selling insurance.
In any major, working with an established agency will allow you to understand the pros and cons of the profession, and build a client list. Most new brokers intern or observe the work of more experienced brokers for six to nine months before working independently
Step 6. Look for work on job search sites
Job pages (such as Indeed.com and CareerBuilder) provide insight into job openings. Find a job that matches your qualifications, such as insurance broker positions in your area of expertise. You can also apply for these positions online.
Step 7. Submit your job application to local insurance companies
If you know of some insurance companies in your area, you can apply directly. Come to the office with a copy of your resume. Wear professional attire (such as a suit) when applying for a position. Be nice and polite.
Step 8. Complete continuing education courses to retain your license
California brokers must complete a certain number of continuing education hours for each two-year license renewal cycle:
- 12 hours (deposit).
- 20 hours (car).
- 24 hours (accident and health, loss, life or property insurance).
- Some pension and long-term care specialists are required to complete an additional eight-hour course.