How do you become a licensed insurance producer?

Do you have to pass an examination? Is it hard? How good is the pay if you work for for example farmers insurance? Anything else?

Best Answer:

Walter: In order to become a licensed insurance producer, you have to pass a state exam for each line of business you wish to sell (property and casualty, life and health, etc.). You may get exemptions for holding certain professional designations such as CPCU and CLU.

Insurance sales is extremely hard work, whether you are an independent agent or work as an exclusive agent for a single carrier. There will be long hours for the first several years with possibly little or no financial return. You may want to try working for an established agent as a producer to see how successul you may be without taking on as much risk.

Oh, and I would not recommend working for Farmers as an agent. They will hire ANYBODY without regard to experience, sales ability, financial strength, or business acumen. They will invest 0$ in their prospect because they are not selective and they know the vast majority will fail, but not before bringing some new policies. It's a win/win for them: If you succeed they win, if you fail they win. Because other carriers actually invest $ in their prospects they put them through a much more vigorous selection process. Farmers Insurance will make money off of you and watch you go into personal bankruptcy.

Other answer:

The pay is usually nothing, or at least not enough to keep working. Approximately 95% of all newly licensed insurance producers aren't able to make enough to keep working and have to quit within a year (and some of the rest don't make anything but have enough savings to keep working for free). Only 5% are still working in insurance after a year, and some of them aren't making money.
Casey Y:
Its not hard.

You don't need a license to work for Farmers, only if you want to be a producer. You need to write business to make money, how are your sales skills and how big is your business network? Whether you can make money is entirely on you.

I am an independent agent. Independents can access more companies but captives pay higher commissions.

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Pay money. Take a test. Pass. Pay more money to get license.
You pass a test, and pass a background check. The test isn't hard, if you REALLY REALLY know the material. But you can't bluff your way through; people who try, fail.

The money is mostly straight commission – you don't sell, you don't get paid.