How do I Become an Insurance Broker?

N. Madison
N. Madison

Insurance brokers help people to find insurance companies, plans, and products that meet their particular needs. Some insurance brokers may specialize in a particular type of insurance, such as life or health insurance, or they may help consumers find and purchase everything from life and health insurance to home and disability insurance. Unlike many insurance agents, brokers do not work for a single insurance company. They research companies to help their customers find the best options.

Insurance brokers help people to find insurance companies, plans and products to meet their specific needs.
Insurance brokers help people to find insurance companies, plans and products to meet their specific needs.

A degree is not a requirement for someone who wants to become an insurance broker. However, taking college courses that are related to the insurance field may be good preparation for the career. For example, business, finance, accounting, and marketing courses can be good preparation for work as a broker. Even communications and psychology courses may help. Additionally, some insurance brokerages prefer job candidates with degrees, and earning at least a bachelor’s degree may help a person get his foot in the door.

An insurance broker may specialize in life insurance.
An insurance broker may specialize in life insurance.

In many locations, a person has to obtain a broker’s license in order to become an insurance broker. In the United States, for example, a person has to obtain a license in every state in which he plans to sell insurance. Getting a license typically involves studying, obtaining training, or taking classes and then taking exams in order to become an insurance broker. In some locations, it may be possible to study on one’s own for the licensing exams while the laws of other areas may require in-classroom training. To obtain the requirements for becoming an insurance broker, a person can contact the Department of Insurance, or similar organization, in his area.

An insurance broker may specialize in disability insurance.
An insurance broker may specialize in disability insurance.

A person who wants to become an insurance broker should consider his background before seeking licensing. In some places, such as the United States, having a criminal background can prevent a person from becoming licensed. Having a felony record typically results in disqualification. A person with a misdemeanor record may or may not be approved. His financial background may be checked as well, and someone with a bad credit history or bankruptcies may have difficulty becoming licensed or may be denied altogether.

After passing the insurance broker exam, a person may consider becoming certified in a particular specialty, such as life insurance. However, certification is not mandatory. It may just make the broker more attractive to potential clients and brokerage firms. Certification requirements depend on the organization that offers it.

A health insurance broker may help people find the policies that best fit their needs, and offer coverage at their preferred clinics.
A health insurance broker may help people find the policies that best fit their needs, and offer coverage at their preferred clinics.
N. Madison
N. Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

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Discussion Comments

anon288852

I live in Miami, Florida and am interested in studying to be an insurance broker. We'd like to open a car insurance place. I need to know where I need to go or what I need to do for my license.

anon160501

I'm a 19 year old lady who is doing Bachelors of Business Administration. i want to volunteer as an insurance broker. i like working with people and being generous on behalf of the company.

anon71007

The majority of this article is correct, but the very last two sentences were off. You do not actually take an "insurance broker" exam, you take a state specific Exam for the area you are receiving the license, such as "life and health" exam.

Continuing education for specific industry designations can be acquired in addition to the state license. It is true that designations make an agent become more attractive. also brokerage firms are more so referring to firms offering securities.

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