Frequently Asked Questions
1. How do I learn to market myself and generate leads?
Regardless of the type of insurance you sell, to be successful you must learn how to market yourself to potential clients and create a system of generating new business leads. A common philosophy is if you are taught how to fish you will be more successful than if you are given a fish. Insurancecareer.com will help guide you in the right direction so you receive extensive training in all areas of marketing and sales. Learning these valuable skills will ensure you will be successful in an insurance career for a long time.
2. What kind of commissions can I earn?
Each insurance industry and each carrier has its own commission structure and payment policies. For example, some industries pay the agent a percentage of the client’s premium each month and some pay a flat pre-determined rate for each policy sold. It depends on the industry and the carriers you contract with as to what your commissions could be. National Marketing Organizations assist agents with understanding the varying commission structures and payment options.
3. What is the difference between contracting direct to carrier and contracting through a broker?
Typically, when an agent contracts direct to a carrier they are “captive” to that company meaning they cannot sell or represent plans from another company. By contracting as a broker or with a National Marketing Organization, an agent is free to offer their clients plans from a variety of carriers. Broker agents may also sell a variety of types of insurance to their clients, which can be limited by working directly with a carrier. This is a personal decision that all agents must make. Opportunities are changing all the time; therefore doing research before committing to one organization is recommended.
4. Where do I go to receive an insurance license?
Each state has its own requirements to receive an insurance license; however, every state requires the potential agent to pass an exam before being issued an insurance license. Your State Department of Insurance will have the requirements for your state.
5. Do you have an E&O company you recommend? How much will Errors and Omissions coverage cost?
E&O coverage typically costs around $500 per year. You can obtain E&O insurance coverage at a discounted rate from CalSurance.
6. How do IMOs or NMAs get paid or make money?
Carriers typically pay National Marketing Organizations (or IMOs) an override over the agent’s commission. It is important to understand that these overrides are paid to the IMO/NMO to support, train and assist each of their agents. Additionally, most NMOs have their own commission policies for agents they contract. National Marketing Organizations prefer the insurance carrier pay the agent directly when possible and do not take a percentage of the agent’s commission. NMOs will assist an agent in researching their commissions and help them solve commission issues, but prefer that agents receive their commissions from the carrier.
7. How will I be trained?
It is extremely important for agents to receive as much training as possible prior to meeting with a potential client. Obviously, the more an agent knows about a product, the better he or she will be able to assist clients. It is important to choose a supportive marketing organization that holds training and sales webinar meetings, provides numerous sales and marketing guides and regularly updates you, since products and restrictions are constantly changing in each insurance career. Additionally, each insurance carrier also provides many training opportunities. Insurancecareer.com will help guide you in the right direction so you receive extensive training in all areas of marketing and sales. Remember, Knowledge is Power!
8. What is the appointment process and how long will it take?
The process to become contracted and appointed is not complicated; however, each carrier has a different process. The processes also vary by insurance career as well. A National Marketing Organization (NMO) can explain these differences and assist agents in becoming appointed in most insurance industries. The time frame for becoming appointed ranges from a few days to a few weeks. Again, these variances are dependent upon the time of year, the carriers, the insurance industry and the agent’s motivation to complete the process as quickly as possible.