What Should I Do After Passing My Insurance Agent Exam?

Congratulations! You’ve passed your insurance agent exam, and are ready to get your new career as an insurance agent started.

Just because you’ve passed your exam, however, doesn’t mean that you’re a licensed insurance agent yet. There are several steps that need to be taken before you can legally sell insurance in your state.

In this article, we’ll go over a brief outline of the steps that come next.

Minimum Requirements

When attempting to become an insurance agent, it’s important to consult the guidelines provided by your state’s Department of Insurance. Each state’s exact licensing requirements are different, but any prospective insurance agent can expect there to be minimum requirements that need to be met.

These requirements can include the minimum number of hours of class time that need to be completed before applying to take the insurance agent exam and the steps that need to be taken for a license to be issued by the state Insurance Commissioner’s office.

After the Exam

Once a person has passed their state’s insurance license exam, they are free to apply for an insurance license. Generally, the exam’s pass results page, handed to successful test takers when leaving the test center, will have the exact steps to take to apply for a license.

Most test providers (e.g., Pearson VUE, PSI Exams, Prometric, etc.) will also have a Candidate Handbook or License Information Bulletin that highlights the steps and required forms to be submitted. In order to start selling insurance as quickly as possible, newly approved insurance agents should apply for their license as soon as they can. In order to do so, they’ll need to follow the steps below.

Obtaining a Bond

Some states require new insurance agents (especially independent agents who are not employed by an agency) to take out a bond in favor of the people of the state in which they sell insurance.

By requiring independent agents to become bonded by a financial institution, the state is ensuring that it will be able to recoup money in case of fraudulent practices or other damages caused by the insurance agent.

If your state requires you to take out a bond, you will need to provide the state insurance office with proof that the bond has been obtained. The cost of surety bonds can vary widely. They typically cost between 1% and 15% of the bond amount. For example, a bond of $10,000 might cost anywhere between $100 and $1,500.

Registering with the State

As is customary with state licenses, insurance license applicants should expect to provide the state insurance office with identifying information, such as their social security number, photo identification, and fingerprints.

The exact requirements for providing personal information vary by state, but it is common practice for states to collect this information from licensed professionals so that they can verify their identity, check their criminal records, and keep pertinent information on the licensed individual available for future reference.

To make sure that you are following the correct insurance agent licensing procedure, be sure to consult your state’s official guidelines. Following these guidelines as closely as possible will help make sure your application is processed as quickly as possible.

Before you can apply for a license, you need to study for your insurance agent exam! Contact America’s Professor today at 800-870-3130 to learn more about our online insurance training program, taught by industry veterans with decades of experience.

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FAQs

I passed my insurance exam, now what?

Congratulations on passing your exam! The next steps depend on your state’s requirements, but you may need to:

• Get fingerprinted: Many states require fingerprinting as part of the background check process.
• Undergo a background check: Your state’s insurance department may review your criminal history before issuing your license.
• Submit your application: Complete your insurance agent application through your state’s licensing department and pay any required fees.
• Get bonded (if required): If you’re becoming an independent agent or broker, some states require you to secure a surety (or other type of) bond. If you’re joining an insurance company, they may already be bonded, so you may not need one.

Be sure to check with your state’s insurance department to understand the next steps after passing your insurance exam and ensure you meet all the licensing requirements.

Do I need to get bonded?

It depends on your role and your state’s requirements. Many states require insurance brokers to be bonded (typically with a surety bond) to ensure financial responsibility and protect clients. If you plan to work for an insurance company, you may not need to purchase a bond since the company itself will very likely be bonded. Check with your state’s insurance department to confirm whether you need to be bonded before selling insurance.

Do I need to pass a background check?

Most states require a background check before issuing an insurance license. Many insurance companies also conduct their own background checks before hiring agents.

If you have a felony or misdemeanor on your record, your state’s insurance department will decide whether you qualify for a license. Some states automatically disqualify applicants with convictions related to dishonesty, violence, or deadly weapons.

If you have concerns about your background, check your state’s licensing requirements before submitting your insurance agent application.