Tag become an insurance agent

Tag become an insurance agent

Quickest way to get your insurance license in Texas

Tags: , Agents
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“I need to be insurance licensed tomorrow!”

I can’t tell you how many times I have heard that statement. Everyone wants the quickest, shortest path to getting their insurance license. Well, my friends, I am here to give it to you!

Over the last four years, I have come to realize that what seems like the easiest and cheapest path to licensing, isn’t always so. To be successful on your state insurance exam, you need the proper preparation. What you have to decide is, “what is the best method for me?” Here are a few ways for you to prepare for your insurance exam.

  1. Study, Study, Study. With this method, all you know is that you want to start making the “big bucks” like your buddy, or the person that interviewed you for the job, is making. Their advice is to get your license and then come back and see them. You don’t know how you are going to go about getting your insurance license, but you do know how to Google stuff! One of the first items that appears in your search is “Insurance Licensing for Dummies”, sounds promising. Not that you are a dummy, but if a book can dummy this stuff down so you can pass the exam, then you’re in. You order the book and read it from cover to cover, absorbing as much insurance lingo as you can. You go take your test and…..FAIL!
  2. Online Insurance Licensing Course. “Ok, this time is going to be different!” You order the best online course you can find. It has a book and an exam simulator for you to do practice exams…”Sweet!” You read the book, cover to cover and take the practice exams over and over until you have them memorized. You go take your test and…FAIL!
  3. Classroom Insurance Pre-Licensing Course. “This is what I needed the whole time!” You attend a 2 or 3 day class, have an instructor, that has been in the insurance business for 30 years, telling you insurance sales stories, and every once in a while talking about test material. You think you are getting the test information that is going to make a difference this time. You go take your test and…FAIL!

If any of these approaches sound familiar to you, you are not alone. The majority of the people looking to get into the insurance industry, have no idea exactly what is needed to prepare for the state exam.

What if I told you that all of the information that you study and even see on the test, you are never going to use again? Isn’t that the way most exams are to begin with? So, why would you want to learn it all? How about we give you the “Cliff Note” version, give you just enough, so that you can go into the testing center and walk out with a passing grade?

My company, Texas Insurance Training Academy, focuses on just the test material; we don’t teach you about insurance! In our 2 or 3 day classes, we cover each section of the state exam, but more importantly, we work on your test taking skills. Let’s face it, if you don’t read a question correctly, it is kind of hard to answer it correctly. We make sure that you Stop, Slow Down, Read Every Word and Know What the Question is Really Asking. We then work on eliminating answers so that you can get it down to 2 answers and pick the best answer for the question that is being asked.

So, back to the original statement about needing to be licensed quickly. Our live classes can cut your study time down by at least 10 days. We get you focused on the information you need and get rid of the fluff. If you can’t make it to one of our live classes, we offer a video based, online course. Whichever method you choose, you get our guarantee that you pass your exam the first time, or we will pay for you to take it a 2nd time. Find another company with that type of guarantee…they don’t exist!

Trust me when I say, you only want to take the state insurance exam once! By following our recommendations, we know that you will find the success you are looking for.

Getting Appointed as an Insurance Agent

Tags: , Agents

Now that you're licensed as a Texas insurance agent, what’s next?  Obtaining the license is only first step in your insurance career.   If you’re newly licensed, you’ll find it difficult to get appointed as a new agent.  The best way to entering the insurance business is to get going and get experienced.  Since there are so many different distribution methods, it’s best to take a look at the three main methods in which most insurance is sold.

Direct Writer  – Insurance Company Employee

A direct writer is an insurance agent that works for one company and is involved in their selling system.  Generally, these type of agents earn a base salary (and production bonuses)  through call center distribution centers.  Renewal commissions are not paid to the agent.  Instead, the agent earns salary increases based on their results.  The insurance company owns the clients sold by a writing agent.  Become a direct writer is a good position for someone new to insurance and lacks the experience or funds to become purchase an agency or start one on their own.  Examples of direct writers include; Progressive, Geico, Liberty Mutual, USAA, and 21st Century

Captive Insurance Agent – Independent Employee  Agent

A Captive agent is one that represents one company.  Generally, this type of agent can offer several different products under one company’s umbrella.  Captive agents are generally compensated by commission and other bonuses for writing profitable business that stays with a  company from year to year.  The captive agent usually specializes in auto and home insurance but they may offer a limited number of life insurance and business insurance products.  Ownership of the client base varies based on the agent’s contract with the insurance company.   Generally, these types ofcompanies require a large capital investment for things like purchasing a client book and location from a former agent, opening new offices, marketing, etc.  Because of the large capital investment needed to become a captive agent, these companies tend to have high quality training programs.  In essence, the agent buys the business with his initial capital investment. Examples of companies with captive agents include: State Farm, Allstate, Farmers, and Nationwide.

Independent Insurance Agent

Independent insurance agents and brokers come in  all shapes and sizes.  These agents offer different products from different companies.  Becoming  authorized as an independent agent can be rather difficult if you have little or no experience.  Some companies will offer appointments to virtually every agent that applies to become an agent while others will want to know more information about your background, experience and business plan.  Many independent agents have production goals.  As a result, many agents join clusters, aggregators, and MGAs to avoid production goals; in exchange for reduced compensation and service.  Generally, captive agents become independent agents after transitioning from being a captive agent.  Compensation for independent agents simple, commission and bonuses.  Examples of companies that use independent agents include: Travelers, The Hartford, Liberty Mutual, Progressive, and Kemper.  Commissions tend to be higher for independent agents because  the companies know independent agents can place business with any carrier they are authorized to sell.  The independent agent owns his clients.

Ultimately, You decide your path

There are pros and cons to each agent type.  The Direct Writer of a base salary offers the ultimate security of a base salary and home office training, while limiting the agent’s ultimate earning power.  On the other hand, having a big name like State Farm or Allstate combined with all the structure, training, and support that goes with a  large company can make becoming an insurance agent much easier.  However paying for your own expenses and  only representing one company and requiring large initial investments could make the life of the captive agent difficult during tough markets.  Ultimately, the independent insurance agent presents the agent with the option of selling any and every product available on the market without exception.  Companies like Liberty Mutual, Allstate, and Farmers write business through independent and captive agents alike.  Commissions and bonuses are available to agents of all types.  Ultimately, you must decide which route to becoming an agent is best for you.  Whether you want to start as a direct writer or captive agent and transition to becoming independent the choice is yours.