Are you thinking about entering into the field of insurance? If so, you will want to get a license for your area of expertise. Insurance licenses are given out by the state after you meet certain criteria. They are basically a piece of paper with an official signature and seal stating that you are approved by them to do business. Having one gives you more credibility as an insurance worker and a leg up in your chosen profession.
The two major insurance licenses are an adjuster license and agent license. The former certifies a person to process and settle claims ranging from auto to property. The later allows a person to sell insurance. In order to get either one, a potential insurance professional must pay a fee, take a test and pass a background check. Then, afterward they will receive a certificate in the mail giving them the green light to engage in business.
Where you live plays a big role in insurance licensing requirements. In California, adjusters are not required to get a license in order to handle claims. Yet, in Wyoming adjusters are required to be licensed which includes a grueling test on every aspect of claims handling along with a rigorous background check. So, it’s important to visit your local city hall or their Website to get the details for your state.
There are many benefits to insurance licensing. The party getting the license has more credibility because he has proof that he understands his state’s insurance laws. The public can easily identify a person who is fraudulently selling insurance because he has no license. Also, the state has a way of tracking people who sell insurance and adjust claims, which helps them exact punishment if something illegal happens. These things help maintain a level of decency within the insurance industry.
In the future, people who wanted to be licensed adjusters may be required to show their state that they have personal liability insurance. Why? The continuing complaints from consumers about the mishandling of claims have led to new ground breaking laws. These laws allow consumers in some states to sue their insurance company if their claim is not handled right. In the state of Washington, for example, this is true. It has brought up new concerns about how much a company will pay for the misdeeds of an employee. Companies who believe an adjuster should pay for all or a portion of the lawsuits they induce will need to have personal liability. Most likely, the state will have to regulate the limits needed for this kind of insurance in order to protect the general public and ensure their proper compensation.
Compensation for Fees
Before you pay for your insurance license, check out other options. If you currently work for an insurance company in any capacity, nine times out of ten, they will pay for your license fees. Also, if you are getting unemployment, you can also seek reimbursement for this fee from your state’s job placement program. Explore these areas before you pay for your license fee yourself.