Handy Guide To Getting An Insurance Broker License In California
The following opinion article is written by Todd Bryant, the founder and president of Bryant Surety Bonds.Pick a license type
- Accident and health
- Personal lines
- Individual Resident License
Complete the pre-licensing requirementsPass an education course Submit your fingerprintsPass the licensing examComplete the licensing requirementsWhat is the California insurance broker bond and why do I need it?Do I need to pay $10,000 to obtain the California insurance broker bond?Questions about the bondThe preceding article was written by Todd Bryant, the founder and president of Bryant Surety Bonds. The views expressed within do not necessarily reflect those of Insurance Business.Related stories:
How To Become An Insurance Agent In California
- Life And Health:The primary lines of insurance for most families, this license will allow you to provide Californians with the insurance coverage they need in case of a serious health emergency that could put a financial strain on a family.
- Property And Casualty:California homes can be subjected to numerous unforeseen events requiring protection. This license authorizes you to offer policies to protect California homes and other property from fire, theft and other dangers.
- Insurance Adjuster:Interested in helping investigate claims and determine their validity in California? We’ll show you what you need to be able to do just that.
California Insurance License Renewal
In California, insurance licenses expire every two years. The expiration will be on the last day of the month you were issued your license, biennially, based on the anniversary of your original license year. This means that if you were licensed on an even-numbered year, your license will expire on the last day of your issuance month in the next even-numbered year.
There is no requirement to take another exam from the state, though depending on the format of your continuing education, it is possible that you may take a short knowledge test at the end of the course to be sure that you understand important insurance concepts, laws, and regulations.
If this is the state you reside in, then renewing your license will also keep any non-resident license you have in good standing. You will still need to pay the license renewal fee for non-resident licenses held in other states.
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Is Your Agency Hiring
- Find CE requirements for insurance agents | Insurance Continuing Education
- Looking for a new position? Check out StateRequirement Jobs – a job board just for insurance professionals | Insurance Job Board
- Find what it takes to become a real estate agent | Real Estate Licensing
Information on this page has been gathered by a multitude of sources and was most recently updated in January 2021.
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Become A Certified Insurance Agent
Being a Covered California Certified Insurance Agent means you are at the forefront of the effort to make affordable health insurance for all Californians a reality. Insurance agents can become certified with Covered California once they complete all requirements of the certification process. There are two categories of agents, explained in detail below, which have different requirements for certification.
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Find And Maintain Clients
You have a license. Now what? Youll want to begin prospecting for clients. Many agents begin by writing their own insurance and prospecting to friends and family. This is a great way to get a good feel for how the systems work and become comfortable quoting new coverage.
At this point, its a good idea to begin marketing your agency. You may want to join the local chamber of commerce, create a website and promote your business online, or explore local advertising options. Many options are available, and most will require some trial and error until you find what works best for you.
How To Become An Insurance Agent In California1
Do you have an ability to connect with people and a desire to help those in your community? If so, youre in the right place especially if you live on the west coast. These qualities are highly sought after by companies looking to appoint new insurance agents in California.
To become an insurance agent in California or anywhere youll of course need an insurance license. But youll need something else thats just as important: tenacity and discipline. If you have those qualities, the actual work might not be as much of a challenge as you anticipate. Take it from me, says Brianna Rowe, a trainer and growth strategist who started her 15-year sales career with Aflac as an agent, with the right training procedures and attention, you can be successful.
In other words: An insurance agents success can be just as much about determination and willingness to learn as it is about prior industry knowledge.
What are the qualities of a good insurance agent
Insurance licensing requirements in California
So youve got the qualities and are ready to take the first step toward getting your insurance license. After that, how long does it take to become an insurance agent in California? If youve been working with a carrier that provides training and licensing assistance, you can start the instant you have your license and have been appointed with the carrier.
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Pass The Insurance Examination
You generally must pass an Arizona insurance examination for the license authority you want to have if either:
- Your primary residence or principal place of business is in Arizona or,
- You relocate from a state where you did not hold the license that you want to have in Arizona .
However, you do not need to pass an Arizona insurance exam if:
- You are only applying for a limited-line credit insurance producer authority.
- You are only adding variable life and variable annuity insurance producer authority to an existing insurance producer license for which you hold life insurance producer authority .
- You are only applying for authority as a health insurance navigator or certified application counselor .
- You are licensed in good standing in your home state for the license you want to have in Arizona.
- You are relocating to Arizona from a state where you have a resident license in good standing, and you want to hold the same license in Arizona, and Arizona offers that same resident license authority, and we receive your license application within 90 days after you cancel your license in your former home state, and you submit a clearance letter from that former home state.
Schedule to take your examination at any Prometric test center throughout the U.S. in which insurance examinations are offered:
Complete And Submit Your Application
Next, youll need to complete and submit your California insurance broker license application. The easiest way to accomplish this is through Californias FLASH online licensing application system.
Youll need to provide your basic personal information, certification that youve completed the education requirements, and information about your work history and experience. Finally, before the CDI will process your application, youll need to complete one more task: obtaining a California insurance broker surety bond.
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Insurance License Applicant Information
Agencies Of One Or More
The agencys authorized signer or the agency manager must sign the Agency Agreement . Every agency must designate an agency manager. The agency manager is responsible for all business submitted to Covered California and the management of all agents using that agencys federal tax identification number. Current independent agents are required to sign the Agency Agreement because they are identified as an agency of one and will be designated as the agency manager.
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Step : Decide Which Insurance License You Want To Get
You will need a license in every state where you do business. You can choose a business entity or individual license. In California, there are more than 30 types of license classifications issued by the Producer Licensing Bureau in the Department of Insurance. If youll be selling health insurance, youll need an Accident and Health Agent license or a Full Life Agent license .
With an A& H license, you are generally allowed authority in California to sell products offering coverage for sickness, bodily injury, or accidental death . The licensee may also transact 24-hour care coverage and Long Term Care insurance.
In Nevada, you can earn a Producer License, which is also available on an individual or business entity basis. Details on Nevada licensing can be found here.
Surplus Line Broker Frequently Asked Questions
Employment of licensed insurance agents is expected to increase by 10 percent over the next decade. Learn the steps it takes to become an insurance agent, the licensure requirements to sell life, health, property and other insurance, and the average salaries for insurance agents in your state.
If you are not working for an insurance company, it will be very difficult to obtain the additional training and resources that you will need to work as an insurance broker. As an added bonus, having a job with an insurance company will help take the guesswork out of the type of insurance license you should pursue.
So, you may be asking, what are the steps to becoming a licensed insurance agent? Training and Licensing. If you want to sell Life, Health, or other types of insurance in California and Nevada, you first need to obtain a license from the California Department of Insurance or the Nevada Division of Insurance.
Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company.
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What Certifies A Health Insurance Agent
To receive a California license to become a health insurance agent or broker a person must complete a state approved insurance course, pass a licensing exam, be fingerprinted for a background check, and have their application approved by the California Department of Insurance. Additionally, they must be appointed by the health insurance companies for whom they sell for. To maintain their license, they must take a required number of hours of specific continuing education courses every two years. Health insurance agents must comply with all California Insurance codes and laws or their license may be revoked.
How Long Does It Take To Become A Broker In California
On average, it takes between five and six months to get a California real estate license depending on the pace in which you complete the 135 hours of pre-licensing courses and pass your licensing examination, the time it takes you to complete the application process and find a sponsoring broker, and application
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License Expiration And Renewal
California Insurance Broker Licenses are valid for 2 years.
Property broker-agents will need to complete continued education courses to maintain their license. Your continued education must be equivalent to at least 24 hours of instruction during each two-year license period, including at least 3 hours of ethics training.
You must complete your continued education requirements before your license can be renewed.
If you are 70 years or older, and you have been licensed for 30 continuous years as a licensee in good standing in California, you may be exempt from the continuing education requirement.
If you are renewing late, the process is different.
California Group Health Insurance Broker Directory
CaliforniaChoice has been providing group health insurance for more than 20 years. Our program is designed for companies with 1 to 100 employees and is 100% Affordable Care Act compliant. Today, CaliforniaChoice serves more than 17,000 businesses and 330,000 employees and their families. To find out more about CaliforniaChoice you can get a quote from one of our insurance brokers near you. Employees can choose plans from 9 of the top carriers in California.
Choose a broker in your area below or use the zip code search to see only the brokers nearest you.
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California Department Of Insurance Contact Information
Two years. Learn more here: California Insurance License Renewal
How long does it take to get an insurance license in California?
2-8 weeks. The bulk of the time is spent on studying for your California insurance exam. Some people study for as little as one week and feel comfortable taking the exam. We recommend you take whatever amount of time you need to feel comfortable with the material. Check out our guide: How to Pass the Insurance Exam
How much does the insurance license cost?
The total cost for your insurance course, application, and exam will be about $375. If you dont pass the exam the first time, add $121 for each subsequent attempt.
How do I get a life insurance license in California?
Follow the steps above. The licensing process is the same for all insurance agent and producer licenses.
How do I get a property and casualty license in California?
Follow the steps above. The licensing process is the same for all insurance agent and producer licenses.
After Getting Your California Insurance License
Once youve passed your exams and completed the licensing application, you are now a licensed insurance agent in California. A common question we hear is, I have my insurance license, now what? Here are a few things you can do or need to know:
- Get a job in the insurance field. Check out StateRequirements Insurance Jobs board.
- If youre going to sell advanced life insurance products, youll need to have the proper securities licenses. The Series 6, Series 7, and Series 63 are the most common among insurance agents, but youll need to begin with the SIE exam. Find out which licenses you need with our Securities Licensing Guide.
- Every two years, youll need to renew your insurance license. Check out our guides on California Insurance License Renewal and California Insurance Continuing Education for more details.
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Step : Prepare For Your Insurance Licensing Test
California requires a minimum of 20 hours of approved pre-licensing study. A new resident applicant who had a current Accident and Health license in another state within the last 90 days and has a current non-resident license in California or an applicant holding a Life Underwriter Training Council Fellowship , Chartered Life Underwriter , Certified Insurance Counselor , Certified Employee Benefit Specialist , Fellow, Life Management Institute , Health Insurance Associate , Registered Employee Benefits Consultant or Registered Health Underwriter designation is exempt from the 20 hours of pre-licensing education.
California also requires 12 hours of approved pre-licensing on code and ethics.
Nevada has a similar requirement. Candidates must satisfactorily complete an approved course of education in each field of insurance for which they plan to be licensed.
Complete A California Pre
To qualify for the California insurance license exam, you must complete a pre-licensing insurance course that is certified by the California Department of Insurance . Upon passing the pre-licensing course final exam, you will be awarded a Certificate of Course Completion.
Our California pre-licensing insurance courses cover the various insurance concepts, definitions, insurance laws and agent regulations listed on the California Pre-Licensing Educational and Examination Objectives. Courses are presented in a clear and concise format and include instructional videos, interactive illustrations, practice exams, and student support.
National Online Insurance School is certified by the California Department of Insurance to offer the following courses below. Each course includes the required 12 hours of Ethics and California Insurance Code.
ImportantYour Certificate of Course Completion is valid for a period of 3 years from the date you pass your pre-licensing course final exam.
Your Guide To Getting A California Insurance Broker License
Agents & Brokers Overview / Resident License Renewal / Producer Types and Requirements Producer Types and Requirements The Producer Licensing Bureau has prepared licensing information on those license classes issued by this office to provide the necessary qualifications, requirements, and form numbers to file for the license types listed below.
Do insurance agents make good money? The most recent government data regarding the average income of American insurance agents was compiled in 2012. According to that data from the Bureau of Labor Statistics: The median annual wage for insurance agents was $48,150. The highest paid 10% of insurance agents earned more than $116,940 annually.
The difference between a freight broker and a freight agent is that a freight broker is required to have a license , a surety bond and adequate insurance. A freight agent performs all the same work as a freight broker and perform it on behalf a broker, but do not carry liability.
PRODUCER : License Application for an Individual. The following are requirements for an individual applying to become an insurance producer. These requirements apply to both Arizona residents and residents of other states except where noted: