What Does an Insurance Agent Do?

An insurance agent is a licensed professional who helps individuals and companies find and purchase insurance policies that meet their needs. Their responsibilities can vary based on the type of insurance they sell (e.g., home, auto, life, health, business), but generally, they:

What Does an Insurance Agent Do Day to Day?

Insurance agent responsibilities can vary depending on the type(s) of insurance they sell (for example, property, casualty, life, or health).

Having said that, insurance agents are typically responsible for the following:

Assessing Clients’ Needs and Making Policy Recommendations

As an insurance agent, you regularly evaluate a client's financial situation, risks, and insurance requirements to recommend suitable policies. For example, a primary earner with a family might benefit from a life insurance policy that could help financially support the family in the event of the primary earner’s death.

Explaining Terms and Conditions

In addition to explaining different insurance options, Insurance agents can outline options in detail, including providing information on coverage limits, premiums, exclusions, and deductibles. This helps clients choose the best policy for their situation. You can also explain the claims process to your clients upfront so there are no surprises if/when your client needs to file a claim in the future.

Selling and Issuing Policies

Insurance agents are licensed to sell policies. This typically includes helping clients complete relevant applications, submitting required documents, and finalizing policy purchases.

Assisting with Claims

Although agents don’t process claims, they often guide clients through the claims process, serving as a liaison between the client and the insurance company.

Maintaining Client Relationships

Insurance agents regularly check in with clients to see if their situations have changed. A change in income, assets, or household composition (divorce, new babies, etc.) could warrant changes to existing coverage or additional policies. These periodic reviews also give agents a chance to make sure their clients are satisfied with the service.

Staying Up to Date on Industry Changes

Insurance laws, products, and industry trends are always changing. Agents must keep up with those changes to provide accurate recommendations to their clients.

Marketing and Generating Leads

Insurance agents are continually looking to grow their client list. They regularly engage in lead-generation tasks like networking, requesting referrals, marketing themselves online, and reaching out to acquaintances to see if they can be of service.

How Do You Become an Insurance Agent?

Becoming an insurance agent involves completing the necessary education, earning your license, and getting appointed by one or more insurance companies.

Here’s a quick step-by-step guide:

Step 1. Choose the Type of Insurance You Want to Sell

Insurance agents typically specialize in one or more lines of authority, such as:

• Life insurance (term life, whole life, annuities, etc.)

• Health insurance (individual health, Medicare supplements, long-term care, etc.)

• Property insurance (homeowners, renters, flood, etc.)

• Casualty insurance (auto liability, general liability, professional liability, etc.)

Deciding early helps you focus your training and licensing on the right market.

Step 2. Meet the Basic Requirements for Your State

Most states require that insurance agents:

• Be at least 18 years old

• Have a high school diploma or GED (some roles may prefer a college degree)

• Have a clean criminal record (some offenses may disqualify you from licensure in some states)

Step 3. Complete a Pre-Licensing Course

Most states require pre-licensing education. This is how you learn the fundamentals of your chosen lines of authority.

The course requirements vary by state and type of insurance. In most cases, you will need 20 to 40 hours of instruction per line of authority.

Some states now accept online insurance courses so you don’t have to attend classes in person!

Step 4. Pass the State Licensing Exam

To confirm that you understand your role as an insurance agent, you’ll need to pass a state test. This test typically covers:

• Insurance laws and regulations

• Policy types and coverage details

• Ethics, compliance, and fraud prevention

Step 5. Apply for an Insurance License

Once you pass the exam, you can submit your license application and licensing fee to your state’s Department of Insurance.

To complete the application process, you may also need to provide fingerprints and submit a background check.

Step 6. Get Appointed and Start Selling!

To sell policies, you need to be appointed by one or more insurance carriers.

• Captive agents work for one company and sell only their products. These positions are likely to include a base salary plus commissions on sales.

• Independent agents work with multiple insurance companies. These agents have more freedom and flexibility. They are typically paid on commission, meaning that there is no base salary, but they have unlimited earning potential.

Ready to Launch Your Insurance Career?

If you're ready for a fresh start and a new career path, we can help you become an insurance agent!

Our online insurance courses are convenient and engaging, helping you meet your education requirements quickly and retain the information throughout your career.

Whether you’re looking to sell property, casualty, life, health, or all of the above, enroll in your pre-license courses today and start on the path to your new career as a licensed insurance professional!