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Selling Insurance Overview

Selling insurance can be a lucrative career. It requires determination, perseverance, and a knack for sales. But insurance sales can be challenging. It involves soliciting and a high rejection rate. It shouldn’t be surprising that there's a high turnover rate in the first few years.

If the realities of the insurance industry don't deter you, it's wise to learn about the requirements. Insurance regulators oversee the insurance industry in each state. Among other things, regulators are concerned with consumer protection. They provide assistance and insurance information, and they regulate the insurance industry's market behavior. Insurance commissioners foster a competitive insurance marketplace and help ensure financial solvency.

State insurance departments set standards for agents. They also determine insurance licensing requirements for those selling insurance within a state. The article below discusses some of these requirements for selling insurance. It also explains the basics of getting started in sales of insurance.

Types of Insurance

There are many types of insurance beyond home insurance, health insurance, and auto insurance. Other common types of insurance coverage include:

  • Life insurance: Covers benefits paid to the insured's beneficiaries upon death, according to the terms of the life insurance policies
  • Dental insurance: Covers some healthcare costs of dental work, like cleanings and fillings
  • Renters insurance: Covers liability costs and damage to personal belongings
  • Flood insurance: Covers the home or its contents in case of flood damages
  • Umbrella insurance: Covers 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 has its benefits and challenges. No matter the type of insurance an agent sells, it’s hard work securing the business. The insurance agent must have sales practices pursuant to the relevant insurance code, rules, and regulations.

Requirements for Selling Insurance

You pay insurance premiums to receive coverage or a payout when needed. Many people rely on their insurance coverage to get through difficult times. Health plans cover policyholders when they face a serious illness. Homeowners receive coverage when they must file insurance claims after a natural disaster.

Insurance is critically important to the average consumer. This is one reason states require licensing for those interested in selling insurance. Regulations from a state department of insurance help protect consumers.

You must pass a state-administered licensing exam. You need to get a license in every state where you plan to sell insurance. You'll also need to complete ongoing education to continue selling insurance. These requirements help protect consumers against insurance fraud, misrepresentation, and other illegal misconduct. They also help educate agents about complex insurance products.

How To Choose an Insurance Company

Consider a few things if you want to sell insurance as an agent with a particular insurance company.

  • Look for companies who have a good reputation within the industry
  • Talk to experienced insurance professionals to get their thoughts
  • Research companies through rating entities like Moody and Standard and Poor
  • Check with your state's insurance commissioner to see if the company you're researching has complaints (the National Association of Insurance Commissioners (NAIC) lists state insurance departments)

It's also helpful if you can find a company with a strong training program. Finding a company with a rigorous training program can be invaluable. As you begin your career selling insurance, it's critical to get training. Even if you leave the company, you'll have a solid foundation in insurance sales.

Laws About Selling Insurance

It's essential to follow applicable insurance laws as you sell insurance. There's a general obligation to act in good faith and abide by the terms of the policies sold. This includes following state laws. These state laws can consist of the following:

  • Marketing practices
  • Underwriting policies
  • Rate-setting procedures
  • How insurance companies and agents can cancel or refuse to renew an insurance policy

It's essential to know and follow the rules of the particular insurance field. Consumers who feel that an agent acted unethically can file a complaint with the state insurance commissioner. Insurance agents and agencies can face lawsuits. It's wise to seek guidance to ensure compliance or protect your interests if you face a legal issue.

Get Help With Your Insurance Issues

Insurance is a large, complex industry. You may have been selling insurance and need help defending your actions in a lawsuit. Or, you may have experienced unethical behavior from an insurance professional. Don't fight the battle alone. Contact an experienced local insurance attorney today. They can explain your legal options and help protect your interests.

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