Insurance Brokers and Licensing Overview

An insurance broker is slightly different from an insurance agent but both requires undergoing some training to start their career as well as get that license to engage in the insurance industry. An insurance broker is one that is not connected with a single insurance firm and thus can look for the best insurance policy that meets the need of his or her clients by checking out all the offers of several insurance firms and deciding on the best one and then to offer the chosen policy to the client. Whereas, an insurance agent is one that generally works for a certain company only and whose focus is selecting the best policy among all the available policies of the company he or she works for. Therefore, when it comes to scope and selection, an insurance broker has more to offer to clients compared to an insurance agent.

However they are similar in the respect that both deals with insurances and crafting of insurance papers, they are involved in claim settlements, and usually earns through commission from sale of insurance policies. When it comes to educational requirement, an insurance broker to be licensed as such needs a more in depth education and training versus an insurance agent.

There are many careers you can choose to pursue in the Finanzberater industry like life, vehicles, health, home and others. To engage in any of these possible careers, you must be familiar with the ins and outs of the particular field and the best way to do this is to have yourself go for the specific insurance brokerage training, say you choose to focus more on health insurance, then what you need to do is either avail of courses that tackles health insurance or you can go and train under a seasoned health insurance broker or apply first as an insurance agent and learn on the job.

Licensing for Insurance Brokers

Every state has their own policies and steps in securing an insurance broker’s license so it is best to consult the Department of Insurance in your state. But for a start, the following may give you a general idea of what to expect to secure your insurance brokers license.

    1. Find out what kind of insurance license the state allows as sometimes the distinction between insurance agents and insurance brokers are so blurred that the state chooses to grant insurance producers license instead.

 

    1. There are some states which aside from the written examinations, requires the applicant to have a certain number of hours of classroom or online training in order to get the license and may require a certificate of training. Make sure that the training school you go to have a training program that is duly approved by the Department of Insurance.

 

    1. Some states allow walk-in applicants to arrive at the testing center and administer the test after testing fee is paid. But this is not true for every state as some only schedules insurance license testing a few times a year and you have to plan ahead, pay for the testing fee and secure your test permit way before the testing day.

 

  1. If in case you are already duly licensed to engage in insurance brokerage in New York it doesn’t automatically gives you the same privilege of transacting business in Chicago as most states have their own insurance test that every one must pass before a state insurance brokers license is granted. The good thing however is that generally once you pass an insurance licensing exam in one state and wants to practice insurance brokering in another state, you do not have to undergo another round of insurance broker training, you can go straight to taking the test.

Before being granted a license by the Superintendent of Insurance in your state, you have to pay for the licensing fee, and also pay for a criminal background check.

The usual 40 hours of required education for your insurance broker license training by the Department of Insurance is short compared to the training you need to undergo if you are aiming for other types of broker licenses. Thus, getting that insurance broker’s license is within reach of anyone.

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