Insurance Broker in the Texas
Insurance brokers help customers choose the coverage that is a good match for their insurance needs. In addition, each state has specific education and licensing requirements for professionals to work in the insurance field. If you want to pursue the career as an insurance broker, reviewing the list of steps you can take to secure your Texas insurance license may be helpful for you.
What is an insurance broker?
An insurance broker is responsible for helping customers research and purchase the insurance policies. They often specialize in one type of the insurance, such as auto or property insurance. Generally, they analyze their client’s insurance needs and conduct research to determine which policy is best. Then insurance brokers: may offer multiple policy options that customers can choose from, which range in price and coverage. While they cannot bind insurance policies, they can assist insurance agents in purchasing policies for customers.
How to Become an Insurance Broker in the Texas
The Texas Department of the Insurance establishes requirements for the individuals to become the insurance brokers. These are the steps you can take to become the insurance broker in the Texas:
1. Get a high school diploma or GED
To get a Texas insurance license, get a high school diploma or GED. While in school, take the courses that teach you about insurance policies or procedures or improve your customer service skills. To help you do this, consider taking business, law, finance, or communications classes.
2. Consider getting a bachelor’s degree
While the Texas Department of Insurance does not require professionals to obtain a bachelor’s degree, completing a degree program may advance your insurance knowledge and strengthen your skill set. For example, you can earn a bachelor’s degree in the business, economics, finance, or the marketing. While in the college, you can consider completing an internship with the insurance agency to watch experienced brokers as they work with clients and conduct research.
3. Complete a pre-licensing course
Complete a pre-licensing course to enhance your insurance knowledge and prepare you for the licensing exam. The Texas Department of Insurance approves many licensing procedures throughout the state. You can complete the course online or in person. In your system, you can learn about the basics of insurance and each insurance specialty, including life, health, auto, property, and casualty insurance. Once you finish the course, you can get a certificate of completion, which you can show when you apply for your state insurance license.
4. Take the licensing exam
Next, take the licensing exam also for the insurance specialty you plan to pursue. Pearson VUE provides exams for insurance brokers, including General Lines Life and the Health, General Lines Property and Casualty, Personal Lines Property and Casualty, and the Life Agent. The Texas Department of the Insurance allows professionals to take the test home using their software. Pearson uses an off-site proctor to watch you using your webcam and microphone during the test.
The exams have two sections each with multiple choice questions. The first part contains questions about basic insurance information. You can answer questions about specific insurance policies, strategies, and laws in the second part of the exam.
5. Pass the background check
After completing your licensing exam, pass the background check. You can visit the Texas Department of the Public Safety to provide your fingerprints and the answer questions about your criminal background. You can include the copy of your completed background check when applying for your license.
6. Apply for the Texas insurance license
After passing the licensing exam, you can also apply for the Texas insurance license. First, you can use the National Insurance Producer Registry website. Be sure to apply for the Texas license. In the application, you can include your details, educational background, and certification from a state-approved pre-licensing course. Once you submit the application, you can receive the National Producer Number (NPN), which the National Association of the Insurance Commissioners assigns. You can use this number to track the application and check your license status.
FAQs about becoming an insurance broker in the Texas
Here are some FAQs about becoming an insurance broker in Texas:
How much money does an insurance broker make in Texas?
The average national salary for the insurance brokers in the Texas is $89,529 per year. However, the typical salary for an insurance broker may vary depending on their experience, education level, location, and skill set. For example, an insurance broker with a bachelor’s degree in business may have the opportunity to earn a higher salary than a broker with a high school diploma. Therefore, you can increase your salary by pursuing additional education, experience, and skill development in insurance.
How can I renew my Texas insurance license?
You can renew the Texas insurance license every two years. The Texas Department of the Insurance requires all insurance professionals to complete 24 hours of continuing education to renew their license. Complete at least 12 hours in the classroom, and you can meet another 12 online. When renewing your license, provide proof of your continuing education.
What is the working environment for an insurance broker?
Insurance brokers often work in the office setting to research policies and work with the clients. They may travel during the business day to meet with customers and provide information about their policy options. Insurance brokers often work independently, collaborating with insurance agents to create client-binding policies.