Selling Insurance Overview
Created by FindLaw's team of legal writers and editors | Last reviewed June 02, 2017
Selling insurance can be a lucrative career if you have determination, perseverance, and a knack for sales. However, because selling insurance is difficult due to the rejection rate, the turnover rate is very high in those first few years. Still, if you’re thinking of a career in insurance sales, you should know that there are some requirements you’ll need to meet. The article below discusses some of these requirements, as well as tips for getting started.
Types of Insurance
First, you should know that there are many types of insurance beyond just home, health, and auto insurance. And some kinds of insurance are more heavily regulated than others. For example, there are a lot of rules about who can sell health insurance and what the minimum levels of coverage are. On the other hand, pet insurance has relatively few requirements. Other common types of insurance include:
- Life Insurance: Benefits paid to the insured’s beneficiaries upon his or her death
- Dental Insurance: Helps cover the costs of dental work, like cleanings and fillings
- Renters Insurance: Covers liability costs and damage to personal belongings
- Flood Insurance: In case a flood damages the home or its contents
- Umbrella Insurance: Adds additional liability coverage to an existing policy
- Business Insurance: Covers a wide range of mishaps that can happen to a business
Each type of insurance product will have its own benefits and challenges, but all of them require tenacity when it comes to the sales aspect.
Requirements for Selling Insurance
Many people rely on their insurance policies to get them through difficult times, such as a serious illness, the destruction of their home, or the death of a loved one. Therefore, insurance is vitally important to the average consumer. This is one of the reasons states require those interested in selling insurance to be licensed first – it helps protect consumers.
Before you can sell insurance, you must pass a state-administered licensing exam in every state in which you plan to conduct insurance sales. You’ll also need to complete ongoing education in order to continue selling insurance later on. These requirements help protect consumers against insurance fraud, misrepresentation, and other unethical or illegal misconduct. They also help educate agents about complex insurance products.
How to Choose an Insurance Company
If you’re looking to get your start with an insurance company, there are a few things to keep in mind. It’s a good idea to look for companies who have a good reputation within the industry, either by talking to other insurance professionals, or by researching companies through rating entities like Moody’s and Standard and Poor’s. It’s also helpful if you can find a company with a strong training program as you begin your career selling insurance. Lastly, you can check with your state’s insurance commissioner to see if there are many complaints against a company you’re thinking about joining.
Laws About Selling Insurance
Those selling insurance have to abide by state insurance laws regarding their general obligations to act in good faith and abide by the terms of the policies they sell. This includes following state laws regarding marketing practices, underwriting policies, and rate-setting procedures. Insurance agents must know and abide by their state’s regulations which specify how and when insurance companies and agents can cancel or refuse to renew an insurance policy. In addition to filing a lawsuit, consumers who feel an agent acted unethically can file a complaint against the agent with the state insurance commissioner, so it’s important to know and follow the rules and regulations of the particular field of insurance.
Get Help with Your Insurance Issues
Insurance is a large, complex industry with a lot of rules, requirements, and fine print. Whether you’ve been selling insurance and need help defending your actions in a lawsuit, or you’ve been wronged by an insurance professional, don’t fight that battle alone. Contact an experienced, local insurance attorney today to get help protecting your rights and interests.
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.