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Frequently Asked Questions

Explore our most commonly asked questions or click on a category to learn more.

Most Common
Most Common

  • What makes a good insurance agent?

    There is no magic list of skills you must possess to become a successful insurance agent. Many different people, from different walks of life with different characteristics and experiences have long, healthy careers as insurance agents. But there are a few key components that are most important for establishing a prosperous agent career.

    First, they must enjoy working with people and have a penchant for sales, or some sales or marketing acumen. Selling is a primary responsibility of an insurance agent, so the ability to uncover a client’s needs, find the right insurance product, and close the deal are vital to success.

    Second, insurance agents need to truly understand insurance policies and be able to explain the ins and outs of coverage in layman’s terms to their clients and potential clients.

    Agents must also be organized. They are responsible for managing vital (and private) information for many different insureds at one time.  Additionally, the agent needs to convey that information to a carrier via an Agency Management System (AMS). Agents are also responsible for obtaining policies in a timely manner, or in alignment with a home closing or other important deadlines. 

     

  • How do I get an insurance license?

    No matter where you live, you will need a license to be an insurance agent or producer. It is always best to start with getting your resident state license. After you are licensed in your home state, you can obtain other state licenses through reciprocity. Reciprocity, or reciprocal licensing privileges, allows a licensed insurance agent or producer to obtain another state(s) license without having to pass that specific state’s exam.

    To obtain your home state license, you will need to study for and pass an insurance exam. Some are available online, others must be taken in person through a testing provider. Once you pass, you will need to apply for your license, pay your fees, and possibly complete a few other requirements, such as a background check. State regulations and compliance vary, but you can review your state’s specific instructions in the FAQ section of our licensing pages.

  • How do I become an insurance agent?

    Becoming an insurance agent is a simple process, and with the right focus, you can start selling policies in as little as one month! In our 5 Steps to Become an Insurance Agent blog article, we walk you through the steps in detail, including some of the skills you’ll need, types of careers, and licensing process. Below is a quick glance at the steps you’ll need to take to start your insurance agent career.

    Determine if the career is a good fit for you

    At its heart, being an insurance agent is a sales career. You need to have great selling and customer service skills, and combine those with knowledge of insurance policies, processes, and terminology. Great insurance agents are passionate not just about making a sale, but finding the right product for every customer.

    Decide what type of agent (or producer) you want to be

    There are two main types of insurance agents, captive agents and independent agents. Both types may offer a long and high-paying career trajectory. Neither is better than the other, and it is possible to start as a captive agent and later become an independent agent, or vice versa. With your insurance license, you could also pursue a career as a broker or underwriter.

    Prepare for the licensing exam

    Most U.S. states require that you obtain a license to sell insurance and to get your license, you’ll need to pass a state-issued exam. Each state has different requirements for this process and you’ll want to make sure you are compliant with the regulations. Regardless, it’s essential to prepare and study for the exam so you pass it with flying colors the first time!

    Visit the All-Lines producer licensing pages of our website to see your state’s requirements and licensing process.

    Pass the exam and apply for your license

    Once you’re prepared for the exam, visit your state department of insurance website to find step-by-step instructions on how to schedule your exam and apply for your state license. Again, these processes vary by state.

    After you’ve taken and passed the exam, you should receive instructions on how to apply for and pay for your official license. Once you’ve paid for your license, be sure to download a copy of the license for your records.

    Apply for jobs

    We recommend applying for jobs and gaining a few years of experience working for another agency, or carrier, before you consider opening an agency yourself. If you prefer to work for someone else indefinitely, that’s great too! There is plenty of room for advancement within already established agencies and carriers. When applying for a role as an agent, consider whether you want to sell commercial lines of insurance, personal lines of insurance, or both. This may help you narrow down positions. As you build your career, join local associations and make sure you create and maintain a healthy social media profile. Networking and expanding your circle is vital for a thriving insurance career.

  • How do I find or reset my password?

    If you can’t find your password or want to reset it, visit the login page and click on “Forgot Your Password?” In the next box, enter the email address associated with your course. You will receive an email with a link that will allow you to set a new password.

  • What is reciprocity?

    Reciprocity, or reciprocal licensing privileges, allows a licensed insurance agent or producer to obtain another state(s) license without having to pass that specific state’s exam. Thank goodness, right? Once you have your home state license, you can apply for other state licenses through reciprocity and then you are legally able to sell insurance in those states as well. It’s important to note that reciprocal licenses are only available for the same lines of authority. So, for example, you can’t hold a Personal Lines Producer license in one state, and then apply and receive an All Lines license in another.

    Reciprocity doesn’t happen automatically.  You must obtain your home state license first and it needs to be in good standing to qualify. Then you’ll need to complete the required paperwork and submit the licensing fees and you will need to register with NIPR for home state and nonresident state licenses.

  • What is an insurance agent vs. a broker vs. a producer?

    Insurance agent is the most common term used for individuals who sell insurance. An insurance agent represents and is paid by the insurance carrier. They are paid to sell insurance to consumers and become the link between the policyholder and the insurer. Insurance agents must be licensed in their state and most have to be appointed, as well.

     

    Insurance Brokers, on the other hand, are representatives of the insured. While they do still ‘sell’ insurance, brokers investigate insurance options from a host of different insurance carriers and make recommendations based on their clients’ needs. The broker reviews insurance options with the client and once a policy is chosen, the broker alerts the insurance agent to bind the coverage. The client, or policyholder, then sends a check for the policy amount and the broker commission to the insurance carrier. The carrier then receives the payment and pays the broker their commission from the client payment. The broker, therefore, is ultimately paid by the client.

     

    Insurance Producer is a relatively new term that isn’t used as much in the common vernacular, but is widely used within the industry itself. Producers encompasses anyone who sells, solicits, or negotiates insurance policies – meaning it refers to both insurance agents and insurance brokers.  

  • Why should I choose All-Lines Training?

    Our team is passionate about providing the best insurance training courses and online classroom experience in the industry. We started small, with just a few courses that focused on the insurance adjuster market. But after releasing adjuster courses for every state, we’re focused on taking our national solution to the producer market.

    We are committed to helping you succeed at every step of your insurance career. All-Lines Training has actually been a business for far longer than most people realize. We’ve offered our Florida courses under the AdjusterPro brand for years and now going to expand our All-Lines offerings to include all things agent!

    At All-Lines Training, we believe in serving our customers with transparency, honesty, and adhering to the Golden Rule, treating others as we would want to be treated.

    Building our company upon these principles, here are a few other ways we differentiate from the competition:

    • All-Lines Training is a part of AdjusterPro, the nation’s leading provider of adjuster licensing and training. AdjusterPro has been in business for over 10 years and has trained over 50,000 adjusters. We also serve 8 of the country’s top 10 insurance carriers.
    • Our simple, engaging online training was created to help you comprehend and retain information
    • Keeping your license compliant is simple with our convenient continuing education courses
    • You’ll receive honest answers from our dedicated (real-people) customer engagement team
    • 98.4% customer satisfaction rating

    Whether you are just starting to explore the insurance industry or a Fortune 500 company, All-Lines Training is here to help you reach your goals and achieve success.

Course Outlines
FAQ: Licensing

  • How do I get an insurance license?

    No matter where you live, you will need a license to be an insurance agent or producer. It is always best to start with getting your resident state license. After you are licensed in your home state, you can obtain other state licenses through reciprocity. Reciprocity, or reciprocal licensing privileges, allows a licensed insurance agent or producer to obtain another state(s) license without having to pass that specific state’s exam.

    To obtain your home state license, you will need to study for and pass an insurance exam. Some are available online, others must be taken in person through a testing provider. Once you pass, you will need to apply for your license, pay your fees, and possibly complete a few other requirements, such as a background check. State regulations and compliance vary, but you can review your state’s specific instructions in the FAQ section of our licensing pages.

  • What is reciprocity?

    Reciprocity, or reciprocal licensing privileges, allows a licensed insurance agent or producer to obtain another state(s) license without having to pass that specific state’s exam. Thank goodness, right? Once you have your home state license, you can apply for other state licenses through reciprocity and then you are legally able to sell insurance in those states as well. It’s important to note that reciprocal licenses are only available for the same lines of authority. So, for example, you can’t hold a Personal Lines Producer license in one state, and then apply and receive an All Lines license in another.

    Reciprocity doesn’t happen automatically.  You must obtain your home state license first and it needs to be in good standing to qualify. Then you’ll need to complete the required paperwork and submit the licensing fees and you will need to register with NIPR for home state and nonresident state licenses.

  • How do I maintain my license? What is continuing education (CE)?

    Most states require producers to pay a fee and submit some information to renew their license every two years. This can usually be done electronically through NIPR or Sircon, but some states use an internal system of their own.

    Additionally, most states also require producers to complete continuing education (CE) hours each renewal period. You can find the renewal information for your state by the All-Lines CE page for your state and scrolling down to the FAQ section. Details include how many hours are required in your state to renew your license and whether those credits need to contain a certain number of hours in a particular subject, like Ethics or Legislative Updates. 

    All-Lines Training’s CE courses can be found by clicking on your state from our Course Catalog.

FAQ: System Requirements

  • How do I find or reset my password?

    If you can’t find your password or want to reset it, visit the login page and click on “Forgot Your Password?” In the next box, enter the email address associated with your course. You will receive an email with a link that will allow you to set a new password.

  • Troubleshooting audio and video issues

    If you have problems with the audio in your course, we recommend that you check your internet connection and reset if necessary; clear your cache; and update your browser or try another browser.

    Additionally, check your speaker/headphone connection and your audio system preferences.

    If you have problems viewing a video in your course, we recommend that you check your internet connection and reset if necessary; clear your cache; and update your browser or try another browser.

    You may find this instruction helpful: http://wistia.com/doc/troubleshooting#playback

    Overall, it is a good idea to clear out your search history, cookies, and cache regularly. You can find instructions on how to clear your cache here.

  • Is internet access required?

    Yes, an internet connection is required to log in and view your online course. AdjusterPro courses offer a range of multimedia features, and we recommend that you have a good broadband or network connection for the best experience.

  • Preferred Browser

    Web Browsers

    We support the current and the previous major release of Chrome, Firefox, Safari, and Microsoft browsers. This currently includes Microsoft Edge and Internet Explorer. Each time a new browser version is released, we begin supporting that version and stop supporting the third most recent version.

    Mobile Browsers

    • Current and previous Android versions
    • Current and previous iOS versions

  • Do I need a special computer?

    No. But your course will perform best on a desktop or laptop computer that is less than 3 years old. Either a PC or a Mac will work well. While not a requirement, the course is best viewed using a minimum screen resolution of 1024 x 768.

FAQ: Our Courses

  • Why should I choose All-Lines Training?

    Our team is passionate about providing the best insurance training courses and online classroom experience in the industry. We started small, with just a few courses that focused on the insurance adjuster market. But after releasing adjuster courses for every state, we’re focused on taking our national solution to the producer market.

    We are committed to helping you succeed at every step of your insurance career. All-Lines Training has actually been a business for far longer than most people realize. We’ve offered our Florida courses under the AdjusterPro brand for years and now going to expand our All-Lines offerings to include all things agent!

    At All-Lines Training, we believe in serving our customers with transparency, honesty, and adhering to the Golden Rule, treating others as we would want to be treated.

    Building our company upon these principles, here are a few other ways we differentiate from the competition:

    • All-Lines Training is a part of AdjusterPro, the nation’s leading provider of adjuster licensing and training. AdjusterPro has been in business for over 10 years and has trained over 50,000 adjusters. We also serve 8 of the country’s top 10 insurance carriers.
    • Our simple, engaging online training was created to help you comprehend and retain information
    • Keeping your license compliant is simple with our convenient continuing education courses
    • You’ll receive honest answers from our dedicated (real-people) customer engagement team
    • 98.4% customer satisfaction rating

    Whether you are just starting to explore the insurance industry or a Fortune 500 company, All-Lines Training is here to help you reach your goals and achieve success.

  • What is Quiz Builder?

    Quiz Builder is a study tool included in our courses. It lets you build custom quizzes using questions from any of the cumulative lesson quizzes throughout your course.

    Quiz Builder will automatically build a quiz made of all the questions you got wrong in the quizzes you select, but you can choose to include questions that you had previously answered correctly as well. The answers and feedback will be displayed each time you answer a question, or you have the option to hide the answers until the end of the quiz.

  • How many times can I take the practice exams?

    Our practice exams are set up to simulate the actual state exam. You can take the practice exams as many times as you would like.
    After completing a practice exam, you will have the option to Retake the Test, Review All Question Results, or Review All Unanswered Questions. If you want to review your results, you must do so before continuing to the next page in the course, since once you continue the practice exam will be reset.

    We recommend achieving a 90% on your practice exam before moving on to take your state exam.

  • Once I have completed the course, how do I schedule my State Exam?

    Every All-Lines course includes state-specific instructions for scheduling and taking your state exam. You can also find step-by-step instructions for getting your license (including how to register for the state exam) on your state page in the FAQ section at the bottom. 

    Students who complete our exam preparation courses will need to register to take the state exam through their state’s testing provider: either PSI, PearsonVue, or Prometric.

    Where required, our courses satisfy the state’s pre-licensing requirement. Your certificate of completion, available on your All-Lines Training dashboard, will need to be submitted before you register for and take the state exam through a test provider.

  • Refund Policy

    We believe our curriculum, trainers, and products are the best in the industry. These courses are used by the country’s largest insurance companies and have helped thousands of people in their insurance careers. With the proper time and dedication to studying, we are confident they will help you too.

    If you’re not satisfied with your purchase, you may request a refund through our customer service department. Refund requests must be made within 15 days of your purchase. Refunds will only be issued to the original method of payment.

    If you took the Alabama state exam as part of your course, we will refund your purchase price less $75 because the state doesn’t allow us to refund the mandatory $75 exam fee. You are not eligible for a refund if you have completed a course and/or received your completion certificate or passed your included exams.

    If you’re concerned you purchased the wrong course or need help deciding which course to choose, give us a call. We will make sure you’re enrolled in the right course for your state and career path.

FAQ: Español

  • ¿Cómo obtengo una licencia de Florida 4-40?

    Esta licencia es requerida para trabajar en casi todas las agencias de aseguranza en la Florida. Está diseñada para trabajadores con salario fijo, no para agentes o agentes comerciales que ganan la mayoría de su sueldo con comisión de ventas. La licencia 4-40 le permite dar cuotas, explicar normas al cliente, y proveer importante asistencia al agente de ventas.

    Para obtener su licencia 4-40, completa los siguientes pasos:

    1- Cumplir con los requisitos básicos de licencia de Representante al Cliente de Aseguranza 4-40 de Florida (4-40)

    • Ser una persona física de al menos 18 años de edad.
    • Ser residente del Estado de Florida
    • Ser ciudadano de los Estados Unidos o extranjero legal que posea una autorización de trabajo de los Servicios de Inmigración y Naturalización de los Estados Unidos

    2- Complete el Curso de Representante de Servicio al Cliente de Florida con el examen estatal a través de All-Lines Training

    3- Procese y submita sus huellas de acuerdo a las instrucciones en El Departamento de Servicios Financieros de Florida Requisitos de huellas

    4- Submita su aplicación por MyProfile

    • Los solicitantes preocupados por las preguntas de antecedentes penales en la solicitud pueden ver una lista de delitos descalificadores proporcionada por el estado

    5- Submita prueba de ciudadanía 

    6- Entre en su cuenta para ver si ya tiene su licencia en MyProfile 

    • Para los detalles completos de las licencias, incluida la información para no residentes puedo consultar la página de información de licencia en el sitio de FLDFS.

  • Quien necesita la licencia 4-40?

    Esta licencia es requerida para trabajar en casi todas las agencias de aseguranza en la Florida. Es diseñada para trabajadores con salario fijo, no para agentes o agentes comerciales que ganan la mayoría de su sueldo con comisión de ventas. La licencia 4-40 le permite dar cuotas, explicar normas al cliente, y proveer importante asistencia al agente de ventas.

  • Cual es la parte de un Representante al Cliente?

    Como un representante al cliente, manejara muchas de las funciones de los agentes o de la agencia. Puede discutir las normas y coberturas con clientes, responder sus preguntas, estar encargado de información personal de clientes y clientes potenciales, o hacer cambios a normas. Representantes al cliente también pueden vender aseguranzas tal cuando estén supervisados por un agente licenciado. Otras responsabilidades de un representante al cliente incluye, mantener buenas relaciones con asegurados, vender coberturas adicionales, y animar a los clientes que refieran a familiares y amigos.

    Un representante al cliente es visto como la “cara” de una agencia ya que son ellos quien interactúan con asegurados y con asegurados potenciales todos los días. Pueden tener un impacto enorme en la satisfacción y retención de un cliente (cual es la meta de cualquier aseguranza) por eso son muy importantes. Representantes al cliente también pueden ganar comisiones  siempre y cuando las comisiones no excedan más de la mitad de un sueldo anual.

  • Cual es el proceso para aplicar para la licencia 4-40?

    Para aplicar para su licencia 4-40, primero tiene que completar un curso requerido y pre-aprobado por el estado, usualmente referido como “designación.” Nuestro curso de designación es titulado CIR cual significa Representante al Cliente de Aseguranza.

    Ya que complete su curso, estará listo para aplicar para su licencia 4-40.

  • Cuánto cuesta para aplicar para la licencia 4-40?

    Ya que complete nuestro curso de Representante al Cliente 4-40 de la Florida, y apruebe el examen incluido, tendrá que pagar las próximas cuotas:

    • Curso de Representante de Servicio de Cliente al Florida: $249
    • Cuota de la licencia y el proceso: $57.45
      • $57.45 incluye una tarifa de solicitud de $50, una tarifa de identificación de licencia de $5 y una tarifa de conveniencia de la compañía de tarjeta de crédito de $2.45
    • Proceso de huellas: $48.55
    • Sin tarifa de renovación

  • Hay posibilidades de crecimiento con la licencia 4-40?

    La respuesta simple: SI!

    Hoy en día, aseguranza está en cada aspecto de nuestras vidas. La industria es una de las más grandes en el mundo y emplea millones de personas en cientos de trabajos y partes. No importa cual sea su interés, es muy probable que hay una posición en la industria que le convenga a sus talentos.

    En la escala más pequeña, la licencia 4-40 es una buena forma de entrar en esta industria retumbante. Trabajando como un representante al cliente podrá aprender más sobre la industria y las normas de las aseguranzas y experiencia si quisiera ser un agente de tiempo completo. Ya que complete su curso y haya trabajado como un representante al cliente con su licencia 4-40 por un año, califica para aplicar para la licencia 2-20 agente licenciado general. En comparación, alguien que no tenga su licencia 4-40 tiene que tomar un curso de 200-horas y aprobar el examen del estado antes de aplicar.

  • Cuales son los cursos de estudios continuos y requisitos para renovar la licencia 4-40?

    La licencia 4-40 debe ser renovada cada 2 años. Mientras no hay una tarifa para renovar su licencia, cada persona con esta licencia tiene que tomar y completar un curso de 10 horas y procesarlo con el estado para permanecer en norma.

    Las 10 horas de educación continua deben de consistir en 4-horas de leyes y éticas renovadas de la Florida y 6 horas adicionales de créditos electivos.

    All-Lines Training ofrece un curso aprobado por el estado de Florida reglas y éticas de 4 horas, además de un paquete de cursos para satisfacer completamente los requisitos de Educación continua.

FAQ: Career Basics

  • How do I break into the insurance business?

    The first, and most important step is to get your Producer’s License. You should also begin applying for entry-level jobs with insurance agencies and carriers. This will give you exposure and experience in the insurance industry while you’re working on your license, or as a newly licensed insurance Producer. Visit our How to Become an Insurance Agent blog to view detailed instructions on becoming an insurance producer. You can also visit your state’s licensing page on our website and scroll down to the FAQ section.

      • If you’re in Florida, you will need your CIR License before you can move forward in gaining your Producers License. We offer the 4-40 CIR certification and the 2-20 producer conversion course. Click here to learn more or get started. 

    Once you have a job, we recommend learning everything you can from your position, and from those you interact with in the position. The insurance industry is massive, and there are opportunities in a wide variety of areas, no matter your passion or skill set.

    If your goal is to be an agent or producer, networking, finding a mentor, and joining local associations are great ways to establish yourself within your market. Expanding your personal and professional connections will be vital to creating a lucrative career.

  • What are lines of authority (LOAs) in insurance?

    A ‘Line of Authority’, often referred to as LOA, is the type of insurance an agent is licensed to sell. Examples are Property, Casualty, Health, Life, and Auto. Depending on the state’s licensing regulations, some lines are combined under a single license, while others require a stand-alone license. 

    There are six major LOAs as defined by the National Association of Insurance Commissioners (NAIC).

    1. Life – Insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income
    1. Accident and health or sickness –  Insurance coverage for sickness, bodily injury or accidental death, and may include benefits for disability income.
    1. Property – Insurance coverage for the direct or consequential loss or damage to property of every kind.
    1. Casualty –  Insurance coverage against legal liability, including that for death, injury or disability, or damage to real or personal property.
    1. Variable life and variable annuity – Insurance coverage provided under variable life insurance contracts and variable annuities.
    1. Personal lines – Property/casualty (P/C) insurance coverage sold to individuals and families for primarily noncommercial purposes.

    Most states have adopted these definitions of the six LOAs, but some choose to bundle insurance products further. For example, it isn’t uncommon for property and casualty LOAs to be combined as property and casualty or P&C insurance.

  • What makes a good insurance agent?

    There is no magic list of skills you must possess to become a successful insurance agent. Many different people, from different walks of life with different characteristics and experiences have long, healthy careers as insurance agents. But there are a few key components that are most important for establishing a prosperous agent career.

    First, they must enjoy working with people and have a penchant for sales, or some sales or marketing acumen. Selling is a primary responsibility of an insurance agent, so the ability to uncover a client’s needs, find the right insurance product, and close the deal are vital to success.

    Second, insurance agents need to truly understand insurance policies and be able to explain the ins and outs of coverage in layman’s terms to their clients and potential clients.

    Agents must also be organized. They are responsible for managing vital (and private) information for many different insureds at one time.  Additionally, the agent needs to convey that information to a carrier via an Agency Management System (AMS). Agents are also responsible for obtaining policies in a timely manner, or in alignment with a home closing or other important deadlines. 

     

  • How do I become an insurance agent?

    Becoming an insurance agent is a simple process, and with the right focus, you can start selling policies in as little as one month! In our 5 Steps to Become an Insurance Agent blog article, we walk you through the steps in detail, including some of the skills you’ll need, types of careers, and licensing process. Below is a quick glance at the steps you’ll need to take to start your insurance agent career.

    Determine if the career is a good fit for you

    At its heart, being an insurance agent is a sales career. You need to have great selling and customer service skills, and combine those with knowledge of insurance policies, processes, and terminology. Great insurance agents are passionate not just about making a sale, but finding the right product for every customer.

    Decide what type of agent (or producer) you want to be

    There are two main types of insurance agents, captive agents and independent agents. Both types may offer a long and high-paying career trajectory. Neither is better than the other, and it is possible to start as a captive agent and later become an independent agent, or vice versa. With your insurance license, you could also pursue a career as a broker or underwriter.

    Prepare for the licensing exam

    Most U.S. states require that you obtain a license to sell insurance and to get your license, you’ll need to pass a state-issued exam. Each state has different requirements for this process and you’ll want to make sure you are compliant with the regulations. Regardless, it’s essential to prepare and study for the exam so you pass it with flying colors the first time!

    Visit the All-Lines producer licensing pages of our website to see your state’s requirements and licensing process.

    Pass the exam and apply for your license

    Once you’re prepared for the exam, visit your state department of insurance website to find step-by-step instructions on how to schedule your exam and apply for your state license. Again, these processes vary by state.

    After you’ve taken and passed the exam, you should receive instructions on how to apply for and pay for your official license. Once you’ve paid for your license, be sure to download a copy of the license for your records.

    Apply for jobs

    We recommend applying for jobs and gaining a few years of experience working for another agency, or carrier, before you consider opening an agency yourself. If you prefer to work for someone else indefinitely, that’s great too! There is plenty of room for advancement within already established agencies and carriers. When applying for a role as an agent, consider whether you want to sell commercial lines of insurance, personal lines of insurance, or both. This may help you narrow down positions. As you build your career, join local associations and make sure you create and maintain a healthy social media profile. Networking and expanding your circle is vital for a thriving insurance career.

  • What is an insurance underwriter?

    Simply put: the role of the underwriter is to assess the risk of a potential insurance policy. After all, an insurance agent or producer can not set up an insurance policy however they like. It must be a compromise between what the policyholder needs and what the insurer is financially comfortable with providing. The underwriter typically evaluates the risk using their specialized insurance training, guidelines set by the carrier, and actuarial data. Underwriters use these guidelines to determine if the risk submitted by an agent will be a good fit for their employer, the carrier, or the broker.

  • What is the difference between an insurance agent, broker, and producer?

    The jobs of an insurance agent, insurance broker, and insurance producer can be a bit confusing, but the differences are worth noting.

    Insurance Agent: An insurance agent is almost always what we, as consumers, use for individuals who sell insurance. The distinguishing characteristic of insurance agents is that they are representatives of insurance carriers. They are paid to sell insurance to consumers and become the link between the policyholder and the insurer. Insurance agents act on behalf of the insurance carrier and can bind coverage. Insurance agents must be licensed in their state and most have to be appointed, as well. Agents are paid by the insurance carrier.

    Insurance Broker: Insurance brokers, on the other hand, are representatives of the insured. Brokers investigate insurance options from a host of different insurance carriers, make recommendations for coverage, and provide quotes. The broker may work directly with the insured or through an independent insurance agent. It is most common for the broker to work as an intermediary between the independent agent and the carrier.

    If the insured accepts the quote, the broker will alert the carrier that the quote has been accepted. The insured, or policyholder, then sends a check for the policy premium amount, taxes, and applicable fees. In some instances, the payment will go directly to the carrier; in other instances, it may go directly to their local independent agent or to the broker. This premium will include a commission that will go to the broker or will be split between the broker and the insured’s independent agent. The remaining premium will go to the carrier. The broker, therefore, is ultimately paid by the client.

    Insurance Producer: Insurance Producer is a relatively new term adopted in 2005 by the NAIC (National Association of Insurance Commissioners). It isn’t used as much in the common vernacular but is widely used within the industry itself. Producer is the industry term used to refer to both insurance agents and insurance brokers.

    Anyone who sells, solicits, or negotiates insurance policies is required by state law to be licensed. Whether you are an agent who solicits and sells insurance policies, or a broker who investigates and negotiates policies with the client – you will need to be licensed to sell insurance. In fact, brokers and agents go through the same process and get the exact same license. So to simplify things, the term “producer licensing” is used when discussing requirements for who needs to have a license – brokers and agents.

     

     

  • What are lines of business (LOBs) in insurance?

    A Line of Business or LOB sounds similar to an LOA; however, they are a bit different.

    LOB is the blanket business term used to describe the type of insurance an agency or carrier may offer. Commercial, Personal, Auto, and Worker’s Comp are among the most popular LOBs. Commercial is often called Commercial Lines, and Personal is called Personal Lines. This is also how many agencies and carriers divvy up their personnel or teams to provide the ability for agents to specialize and better support their clients, the insureds. 

  • What is an ‘appointment’ in the insurance industry?

    Insurance carrier appointments are a form of authorization from an insurance company giving a person the authority to act on its behalf as an agent. Agents must be appointed by at least one insurance company in addition to being licensed by their state.

  • What’s the difference between a “captive” and an “independent” insurance agent?

    There are 2 basic types of insurance agents that you can work with when choosing your insurance coverage, or when pursuing a career as an agent: ‘Captive’ or ‘Independent’.

    Captive insurance agents sell policies for only one company. So Jake can only sell policies from State Farm and Flo can only offer you options from Progressive. Many large insurance carriers only utilize this type of agent. Captive agents are paid a salary as well as a commission for policies sold. Selling for only one carrier allows these agents to become very knowledgeable about their policies which can be a great advantage for the consumer. 

    On the flip side, your policy options are more limited since the agent can only present policies available through that one carrier. Independent insurance agents sell policies for multiple insurance companies and are paid a commission for policies sold. Consumers usually get more options to fit their budget and needs through an independent agent, but with so many policy options available, these agents may not be as knowledgeable about the ins and outs of every policy.

State-Specific Compliance