Why is Insurance License for Agents Required?
An insurance license for agents is a must when you want to start your career in the insurance industry and become an insurance agent. Without an insurance license, you will not be liable to sell insurance policies. Getting an insurance license for agents will open doors of opportunities for you.
Likewise, working in the insurance industry is a great career option. If you’re good with numbers and your negotiation skills with people, it could be the right profession for you. Having a valid license is crucial while working in the insurance sector. But it’s also important to remember that not everyone who works in an insurance agency needs a permit. There is a number of positions in the insurance industry which do not require licensing. So, who needs insurance licensing?
It depends on the Producer Licensing Model Act adopted by the National Association of Insurance Commissioners (NAIC). According to the model legislation, only those who sell, solicit or negotiate insurance need an insurance license. The exchange of money for an insurance policy falls under the term “sale.” Any effort to sell insurance or convince a person to buy insurance falls under the meaning “solicit.” On the other hand, to “negotiate” means advising a potential insurance buyer.
Therefore, anyone who commits such actions while operating in an insurance company requires an insurance license for agents to operate. Typically, such functions are performed by the insurance agents and insurance brokers. There are many benefits to selling insurance and earning an insurance license. A license will validate your knowledge and also help potential clients trust you better.
Now that you know who needs licensing, you should also know how to get it. Any person wishing to work in those positions must obtain an insurance license via a licensing test. The license exam requirements are different in different states. For instance, to obtain an insurance license for Georgia agents, you need to complete a certified pre-licensing course. Similarly, you need to be 18 plus. So, checking the requirement according to your state holds a lot of importance rather than straightaway jumping. It’s important to understand these requirements before registering for the exam. Candidates need to score 70% or higher to earn their license. Also, the course hours vary between states to states and the type of insurance. The pre-licensing course holds a lot of importance, and you need to finish a pre-licensing course, which can help you understand the insurance profession better. After passing the examination, you need to submit your electronic fingerprints for the background check.
Hence, an insurance license for agents is required to sell insurance policies and start your career as an insurance agent. Becoming an insurance agent not only open doors of opportunities for you, but you can also develop yourself personally and professionally.