Overview For Becoming A New York Property And Casualty Insurance Agent
Selling insurance in New York comes with basic education requirements.
Property & Casualty agents essentially assist clients manage uncertainty and risk. They help them find policiesto protect against financial losses in case of accidental damagesto their businesses, homes, or cars. Property & Casualty insurance provides protection from risk in two areas: physical items like home, car, or inventory , and against legal liability .
Like most skilled careers such as lawyers, accountants, or teachers, a Property & Casualty insurance agent must receive industry specific training. They must also meet educational requirements before entering the professional workforce. There are a number of basic educational criteria that must be met in order to receive the insurance license from the State of New York.
Ny 15 Hr Life & Health Review
This course is approved by the NYS Department of Financial Services for 15 Hours of CE credit, and is applicable for Life and/or Accident & Health Agents, Life Consultants, Life Settlement Brokers, and Life Brokers. This course includes an ethics class.
NYS Department of Insurance Course ID: 3652Course Expires: 11/30/2021
Top 10 Insurance Agent Associations & Groups
Membership in insurance agent associations and industry trade groups can help insurance agents in numerous ways. These organizations offer opportunities for professional development, help agents stay abreast of important industry news and events, and provide an important voice of advocacy in legislative and regulatory issues. They also can lead to key networking opportunities, which is an important business development tool for insurance agents and brokers relationship building has long been a key tenet of the insurance industry.
Insurance agents should consider membership or attending the national conferences of one or more of the following organizations:
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American Agents Alliance
Founded in 1962 in Southern California, this member-driven organization is dedicated to serving the needs of independent brokers and agents. Membership benefits include access to industry insurance, government advocacy, continuing education, and networking opportunities at local meetings and the AAA national convention.
There are many other specialty insurance and related trade associations in the U.S. as well. The Insurance Risk Management Institute offers a comprehensivelist of insurance organizations on its website.
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The Two Most Common License Types Are:
- Property and casualty license, for agents who plan to serve clients who need auto, home, and business insurance.
- Life, health, and accident license, for agents who plan to serve individuals who need insurance related to life events, such as life insurance, accidents, or health insurance.
Your career plan may require you to obtain multiple licenses. You will need to get the specifics from your state licensing department or the company you plan to represent.
Does Commission Affect A Life Insurance Policy Cost
Your life insurance premium itself doesn’t change based on how much of a commission your rep gets. But It gets factored in to the price structure. It is the part of the premium the insurance company gives the rep for making the sale. It rewards them for providing a level of service that retains customers. The more times a policyholder renews, the better for the company.
Life insurance commissions factor in the time an agent spends on sales that will never happen.
For every policy sold, several will not get sold. They can be rejected due to failing medical exams. Or maybe another agent undercut the price. It’s a very competitive industry.
The type of insurance policy impacts the size of the commission. Larger, longer-term policies tend to pay out more commission.
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How Do I Get My License
Step 1: Complete a prelicensing course that has been approved by the NY Department of Financial Services. Once you have completed your course, ExamFX will issue a certificate of completion which you may download and print from your online ExamFX account.
Step 2: Schedule your exam with your states testing provider, PSI Services LLC. The fastest way to schedule your exam is to do so online at PSI. You can also schedule your exam over the phone at 733-9267.Your exam may be taken at a physical PSI examination center or via a remote online proctored exam.
To change of cancel your testing appointment, you must contact PSI Services LLC at least 48 hours in advance or forfeit the examination fee. A voicemail or email message is not an acceptable form of cancellation. Please use the PSI Website or call PSI to speak directly to a Customer Service Representative.
IMPORTANT NOTE: When you register for ExamFX prelicensing courses, schedule your license exam, and/or apply for your license it is important to use the same name that appears on the identification forms you plan to present at the time of your testing appointment.
Security measures are taken for all testing methods. Restrictions on what you may bring with you to the testing center, into the testing room, and what you may wear will be enforced. For more detailed information about the security measures that will be taken during your testing appointment, please read and review the candidate bulletin offered at PSI Exams
Benefit #: Renewal Commissions
The commission you earn on a life insurance policy sale is not limited to the first year. Rather, you keep getting paid as long as the policy is in force. Your commission percentage on a policy drops after the first year, but you keep earning 5% to 10% as long as the policyholder pays their monthly premium. This is the passive income you receive each month without even having to get out of bed.
Most life insurance agents do not last a year in the business, and even fewer make it five years. The ones who persevere, however, are rewarded immensely with renewal commissions.
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Submit Your Licensing Application And Background Check
When you pass your state insurance license exam, youll submit all required licensing applications to your state licensing department. Some states will require a background check, which may involve fingerprints. Once youre officially licensed, youll be able to legally discuss and sell insurance policies.
Pass The State Licensing Exam
Licensing exams are provided by Prometric. As a result, you can use the following link to schedule an exam online: Prometric Licensing Exam Registration. Select your home state from the menu and follow the directions they provide. NOTE:New Jersey and Pennsylvania administer tests via PSI Online: PSI Online Testing. You can obtain a North Carolina license if you follow the process at: Pearsonvue NC Insurance Licensing. Georgia state licenses are obtained by following the process at: Pearsonvue Georgia Insuance Licensing. If your home state is not listed on the Prometric site or above, please contact the office at admin@croweandassociates.com or 203-796-5403 for additional information.
Practice exams are available from your pre-licensing course provider and at Prometric.
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Benefit #: Job Prospects
Compared to most finance careers, becoming a life insurance agent is easy. No educational requirements exist beyond a high school diploma at most. Some states require you to take a licensing course and pass an exam, but truthfully, these are as easy as a fifth-grade spelling test.
Jobs selling life insurance are everywhere. The online job search sites are full of them. Because most companies offer commission-based pay with no guaranteed income, they have no incentive to limit hiring. They offer jobs to anyone interested and hope a small percentage of hires become productive agents.
What To Ask A Life Insurance Sales Rep
The National Association of Personal Financial Advisors offers some great tips on finding a good representative. Here are some questions they suggest asking before you select a personal financial planner to help you.
While it may be interesting to know how much commission is being paid for your life insurance policy, other things are as important. How much time has the person spent getting to know your needs? Are they explaining the options so you understand the choices? It is your money and your life insurance. You don’t have to deal with someone you don’t trust.
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How Life Insurance Reps Are Paid
Some key factors go into how life insurance reps are paid. The size of the client base and years of experience count. They may earn more if they sell more than one type of insurance. Agents may work with only one carrier. This is known as a captive agent. Also, the rep may have to cover rent, staff, and supplies.
Decide Which Insurance Products You Will Sell
There are many kinds of commercial insurance and personal insurance policies. Personal lines of insurance focus on coverage for individuals and families. This includes insurance for motor vehicles, home insurance, and life insurance.
Commercial insurance agents focus on providing coverage to businesses with policies ranging from general liability insurance to commercial property insurance and errors and omissions coverage.
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Special Marketing And Sales Training Programs
New York Life prioritizes agent training and expertise in their sales programs.
With its NYLIC University, New York Life offers comprehensive agent training that includes not only education and skills that will help them succeed in the company but training in real-world scenarios with the New York Life sales principles.
New York Life offers professional designations as well as reimbursement for tuition when agents pursue valued designations through NYLIC University.
These include:
- Master of Science in Financial Services
- Chartered Financial Consultant
- Chartered Leadership Fellow
As a new agent, you will not only be responsible for using your new education to sell plans but also for creating marketing plans and providing unique solutions to premier clients.
For those who have completed their MBA in the last two years before being hired or have previous business-specific management experience, New York Life will consider you for a Management Fast Track Program.
Those who succeed in the program can be fast-tracked to management within the first 12 months of being an agent with New York Life.
Fees And Renewal Period
Licenses are issued for up to 2 years. Individual/tba licenses will be issued with an expiration date determined by the applicants date of birth:
- If born in an even numbered year, the license will expire on the birthday in an even numbered year.
- If born in an odd numbered year, the license will expire on the birthday in an odd numbered year.
All licensing fees are non-refundable. A full fee is charged when a license is issued for a licensing period of more than one year a half fee is charged when a license is issued for a period of one year or less.
For New York residents the full fee is $80, half fee is $40.
Non-residents please see the Fee Schedules to determine the licensing fee.
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Benefit #: Potential For High Salary
By far, life insurance sales offer the largest commissions in the insurance industry, but it depends on the type of insurance being sold. For example, most auto insurance salespeople earn a percentage of the policy that is purchased. With life insurance, you earn a percentage of the policy when it is sold, and then you get another commission each time it is renewed.
The U.S. Bureau of Labor Statistics reports that insurance sales agents earn a wide range of salaries. The bottom 10% only earn an estimated $28,000 a year, but in the high range earn $125,000. The median salary comes in at nearly $51,000 a year.
In addition to high commissions, some life insurance companies advance their agents a specific amount of commission based on calculating the agent’s earning potential rather than making them take it as earned, but others do not. So, for example, on a $100 per month policy, with a six-month advance, you would receive a check for $600 the day the policy is issued.
The downside occurs if the policy lapses within the first six months if that happens, your employer charges back the unearned portion of your advance.
How To Become A Licensed Insurance Agent
Exactly how long does it take to become an insurance agent? Most people can become one in only a few weeks. If you choose to take an online course that requires a certain number of study hours, your ability to complete it will largely determine your licensing time. There may also be a week or two of waiting for the license to be issued once your exam and background checks are complete.
If youre ready to jump into the world of insurance sales, consider these steps to becoming an insurance broker or agent.
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Faq On Becoming An Insurance Agent
Many entry-level insurance agents learn the duties of the job by working alongside more experienced agents. Following are some of the most frequently asked questions by new and aspiring insurance agents:
Each state has an insurance board or commission that can help applicants determine the mandatory requirements in their state. The American Council of Life Insurers provides a list of all50 state insurance departments on its website.
Yes. Changes in federal insurance laws, insurance benefits programs and other areas can impact clients needs. Most state insurance boards require agents and brokers to complete continuing education courses to keep abreast of these changes to maintain their licensure. The Institutes Risk& Insurance Knowledge Group provides a list of each statescontinuing education requirements for a wide range of common industry certifications.
Yes. Insurance agents especially those who have completed bachelor degree programs often move on to more advanced careers. These include working as insurance underwriters, actuaries, cost estimators, appraisers, claims adjusters or in risk assessment and risk management.
Definitely. There are dozens of industry trade organizations that provide members with discounts on continuing education, educational resources, opportunities for professional development and networking, and regional and national conferences where agents can mingle with like-minded peers. These resources can be an important avenue for career growth.
Becoming A Licensed Medicare Agent Complete A Pre
Courses tend to be similar in price and content. Depending on your own specific learning/studying style, you can choose to take the course in a traditional classroom, online or via self-study. We recommend Kaplan . Select your home state. Then choose the Life and Health option. Select the exam prep package and products that will best suit your needs.
When you satisfy the requirements for your course, you will receive a Certificate of Completion. Pre-licensing education is valid for one year from the date of completion you will need to take and pass your state exam within this timeframe. Connecticut requires you to present an original copy of the Certificate of Completion at your licensing exam, so make sure that you allow at least 5 mail delivery days between your course completion and the date of your scheduled exam.
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New York Life Insurance Review
David DufordDisclaimer: We are not in any way affiliated with New York Life. In fact, we are a direct competitor of theirs. This article is our personal review of their agent sales career opportunity and our personal opinions of the company. If you are looking to contact New York Life directly, call them at 1-800-225-5695.
Are you thinking about starting a career selling life insurance with New York Life?
If so, you probably have questions about products youd sell, how much money you could make, and what the pros and cons are of a New York Life insurance agent career.
If so, youve found the right article!
Im going to detail what selling life insurance with New York Life is really like for people interested in becoming an agent.
My goal is to give you a fair and balanced overview, so you can determine if a career with NYL is right for you.
Lets begin!
PS: Check out my other articles on insurance sales jobs for information about other organizations you could possibly join.
NOTE: Are you an aspiring or new insurance agent looking for more insight on how the insurance sales industry works? Check out my free New Insurance Agent Resource Guide to help answer many of your questions .
How Much Education Is Required
The minimum 90 hours New York State requires to become a Property & Casualty insurance agent are taught in classrooms right here in the Boroughs. REEDC provides a 96-hour NYDFS approved course to prepare students for the New York Licensing Exam and a successful career moving forward. Classes include:
- insurance & risk management
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New Jersey Insurance License Exam
The next step after completing all of your pre-license coursework is to take the insurance exam. You will take one exam for each line of insurance you wish to carry. You must pass your exams within one year of completing your pre-license education course.
This is a proctored test, which means that you will be in a controlled environment with a person watching you. For people who havent tested in a situation like this should be aware of this fact, and work on taming their nerves prior to sitting for the exam.
The fee for each attempt of the exams is $45. When you show up you must have a photo ID and the original pre-license education certificate.
For each of the four exams, Life, Accident and Health, Property, and Casualty, you are allotted three hours and thirty minutes to complete the exam. You must answer 70% of the questions correctly to pass.
PSI Exams provides a content outline for each of the exams:
- New Jersey Casualty Insurance Exam Content Outline 91 Questions
For more information on the New Jersey Insurance exams, visit the PSI Exams New Jersey Insurance Producer License Examination Candidate Information Bulletin.
Check out our Insurance Exam Guide. Its extremely in-depth, and will hopefully help you pass the first time.
Tip:
StateRequirement recommends that you study for one exam at a time
Check out our review of the Kaplan Insurance Course.