Congratulations for deciding to explore the possibilities of pursuing a career in the business of insurance. I am very excited for you. Becoming an insurance agent requires many attributes and skills. Also, you must jump through all the hoops that your state will impose as well, such as pre-licensing education, state license qualifications and passing the state examination. This article will explore each of these topics so that you can get an idea of what is needed and required to become an insurance agent. Let’s not forget that the basic responsibility of insurance agents is to help individuals, families and business owners make wise decisions regarding their insurance needs. The agent has a fiduciary responsibility, in other words, the agent must put the prospect’s/client’s needs first, even above their own needs. Many years ago, the insurance agent was seen as a salesperson. Now, he/she is seen as a consultant that identifies problems and proposes appropriate solutions to those problems. If you can‘t work within this expectation then you should not pursue the business of insurance.
Personal Attributes and Skills –
There are many personal attributes and skills that are needed in order to have a chance of becoming a successful insurance agent. In the next few lines I will mention the ones that I believe to be the most important.
Authentic – a person that is authentic is someone that is genuine, not a poser, in other words, “what you see is what you get”. The old adage of “fake it until you make it” does not work well in the business of insurance.
Accepts Responsibility – willing and able to endure significant responsibility when making decisions and being accountable.
Openness – communicates openly, honestly, sincerely and consistently when assisting the client. The process should involve education, collaboration, and motivation so that the client understands and agrees with the final solution for their situation.
Commitment – committed to helping the client make the very best decisions in determining their insurance problems and their insurance solutions.
Integrity – maintains the highest standard of conduct and can be relied upon to get the job done with no surprises.
Positive Attitude – encourages a positive viewpoint rather than a negative one.
People Skills – a good listener that is able to build productive working relationships.
Proactive – rather than reactive and able to avoid mistakes that could and should be anticipated.
Judgment – can evaluate information, identify primary issues and develop solutions based on sound judgment, experience, and common sense.
Organized – well prepared with an organized purpose and process.
Obviously, there are many other attributes and skills that I could mention, but the ones listed represent some of the ones that would be most beneficial in the business of insurance. I am not suggesting that all of these attributes and skills must be in place before becoming an insurance agent, but they should be in the agent’s education process. One thing that I have failed to mention is that the education of an insurance agent never ends. The insurance industry is ever changing. A successful agent must be dedicated to continuous learning.
Choosing What to Offer
There are a multitude of insurance lines of coverage that an agent can offer his/her prospects and clients. Many agents will specialize in life, health, and variable annuity plans and others will offer automobile, homeowners, commercial property and casualty, and many other interesting lines of coverage. Agents with a very wide vision may offer both. Obviously, there are challenges associated with all insurance activities. Since you are researching this career choice, it would be a good idea to interview different agents to get an idea of what each line of coverage involves. Also, you might want to discuss in general the different ways that agents can be compensated. Commissions from life, health, and variable annuity placement are usually paid up front with a smaller renewal commission if any. With property and casualty lines of coverage the commissions are pretty much level as long as you have the account. This means that the first year commission will be a smaller percentage of the premium, but will continue from year to year. If there is an increase in the premium at renewal, then the commission will increase.
Pre-Licensing Education
Virtually all states require some amount of pre-licensing education. I would visit your state’s website to determine what is required. To use Florida as an example: for the life, health, and variable annuity license, 40 hours of pre-licensing education is required (I recommend ExamFX for your online Pre-Licensing Course). This course can be taken in a classroom setting or taken online in most states, making it possible to train for a new career at home. The amount of time required in this part of the process will vary from state to state. After taking the pre-licensing course, a certificate of completion will be issued. This certificate will be needed to demonstrate to the state that you have completed the required pre-licensing education and you are ready to take the state exam.
State Licensing Qualifications and the State Exam
I mentioned the above two matters in the first paragraph of this article. To make sure that you are on track from the very beginning of your exploration of the business of insurance, you should refer to the State Licensing Qualification often. There is quite a bit of paperwork required, along with finger printing in the application process for the insurance license. Also, let’s not forget the State Exam. You should schedule your appointment to take your exam as soon as you can after taking the pre-licensing course. If you want to take a cram course, then take your exam as soon as you can after your cram course. By the way, cram courses are available in a classroom setting or online.
Conclusion
Insurance agents need to be smart, self-motivated, and enthusiastic about helping others. Also, they need to be dedicated to continuously learning about their prospects, clients, and their business. I have enjoyed many years in the insurance business and I hope to work in it for many years to come. So, come join me! If you have questions, please do not hesitate to email me at jerry@batemanlearning.com or call me at 407-927-1191.
