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First Steps to Becoming an Insurance Agent

by | Sep 15, 2023 | Learn About Medicare | 0 comments

The first step you need to take to become a successful insurance agent is to obtain your insurance license. After you attend an official class, you will be required to take the Dept of Insurance’s license exam. You only need a health license to sell the Medicare products, but we recommend getting both your Life and Health license.  That way you can sell life products which make good add-ons as well.  

When you have successfully passed the exam and have been granted your state license, you will need to purchase E&O insurance before you can become contracted with carriers. After your contracts with the carriers have been approved, you must complete any required training or certifications. This training includes AHIP and any product training that each carrier mandates.

You must be licensed and appointed for each carrier if you sell in more than one state. You will first obtain your non-resident license and then ask to be appointed with the carrier for that state.  You cannot sell in another state until you are licensed AND contracted/appointed with the carrier.  When deciding whether to get licensed in a state, look at the licensing fees and how much business you think you will get from the sale. If it will cost you more to get the license than you will make, then it is better to refer the client to someone else who is licensed there.  Don’t just get licensed in a state if you don’t have the business to support it.  You are in the business to make money, not to show how many places you can sell.  Also be aware that the products might be significantly different.  If you aren’t willing to take the time to learn the products for that state and the carriers that are competitive and then get appointed with those carriers, then don’t go down that path.  Also remember that you will have to renew your license in that state every 2 years. This is an ongoing cost for doing business in that state. Pick and choose wisely.  Fees can add up.

  • We recommend taking the course in person if possible.  That way you can interact with the instructor and they pretty much tell you what to look for on the exam.
  • There is a self-study option where you can take an online version of the Life & Health Course.  The cost is $149.  
  • After purchase, you will receive access to our site to begin your studies. Access includes: • Video with PowerPoint • Printable PowerPoint Slides for Taking Notes • Review Questions for each unit • Over 600 Practice Questions • PDF Textbook To gain access after purchase, go to: http://www.commonwealthschools.com/pre/ Enter your Email address and Order Number to log-in. Access is granted for 3 months from date of purchase.
  • If you don’t have the time to spend in the classroom for the week, this might be the option you want to take.  
  • For the in-person class, you will want the Life & Health class that goes from Monday – Thursday (8am -5pm).  It is typically offered every month or every other month.  The cost is $265 and includes the Exam Manual and workbook.
  • There is a virtual version of the in-person class for the cost of $265. 
  • The course consists of a moderated PowerPoint presentation that corresponds with the textbook. Each participant will receive a textbook and workbook that will be used for instructional purposes. Our professional instructors will answer any questions that you may have regarding the subject matter and testing procedures. You will be advised by email to register for a free Zoom account for the meeting in advance. Payment must be received prior to picking up or mailing your textbook and workbook.

Getting your insurance license

  • You will then need to apply for a license with the Department of Insurance in Frankfort.
  • You will complete the application via the National Insurance Producer Registry (NIPR) portal
  • Nipr.com
  • Under the Licensing Center you will click on “Apply for a New License”
  • Then you will pick “Resident License”
  • Then “Go to the Online Application”
  • You will pick the Individual license unless you also have a corporation or LLC.  If you are registering your corporation or LLC, you must first have an individual license as the principal of the business.  
  • Since you don’t yet have an NPS or License number, you will sign in using your social security number
  • Fill out the application.  There will be a fee at the end you will need to pay.  You can do that with a credit card or bank account.
  • Make sure you keep track of all the fees you are paying for the education and licensing as these will be tax deductible.
  • If applying for a resident license you must request a criminal background check from the Administrative Office of the Courts (AOC) by submitting an electronic report via AOC’s AOCFastCheck Portal. You will be notified by e-mail with the results are available after the department processes your application/registration.
      • https://kcoj.kycourts.net/PublicMenu/
      • You will register for an account.  You will pick the option “I need a background check for me or another individual and will pick it up online.”
      • The category will be “Individual” and reason will be “Licensing”
      • The cost will be $25
    2. After you have been approved, you will be able to search for yourself under the Individual/Business Entity Search.   https://insurance.ky.gov/ppc/Agent/Default.aspx
  • Taking the test
  • You can only schedule an examination via obtaining an eServices account after the Department processes your application.  If you have never registered for secure access, please click the “Sign up for access” link.  
  • You will click on the “Examination Scheduling and Rescheduling” box.
  • The fee is $50 per exam. Life and Health are two separate exams.  If you have to retake the exam, the fee is $50 per exam.  Do not schedule the exam until you feel confident with the material.
  • All exams are computerized and graded upon completion.  
  • When you pass, the license certificate will be able to be printed from your eServices account.
    1. Congratulations you are now an insurance agent.  It doesn’t mean you’re ready to sell yet.
    2. If you want to get appointed in Indiana, you can now apply for a non-resident license via NIPR.  Cost for Indiana is $90.
  • E&O
  • Errors & Omissions insurance
  • Protects you and your assets from liability in the event that you make a mistake or someone tries to sue you for any reason related to you selling them insurance.
  • Required. No carriers will contract with you unless you have it.
    1. If you plan on writing all your business with Gordon Marketing and don’t have other business out there you have already written, you can get E&O insurance through Gordon Marketing.  The coverage is:
      • $15/month
      • $1,000,000 per claim shared policy limit
      • $2,500 deductible
      • Includes $100,000 of PHI (Personal Health Information) data breach coverage
      • https://www.gordonmarketing.com/eo-agreement-form/
    2. If you have business that you have written outside of Gordon Marketing you can still get coverage through Gordon Marketing.
      • $454/year or monthly rate of $34.05
      • $1,000,000 per claim, $3,000,000 aggregate.
      • $500 deducible per claim for Life, Accident, Health and LTC Policies
      • Can add coverage for fixed and indexed annuities, variable annuities & mutual funds and disability income insurance.  $2500 per claim deductible for those claims.  There is an additional fee of for coverage of those claims. 
      • https://enroll.getinsured247.com/gordon/
    3. Cyber Policy
      • You may want to consider getting a separate Cyber policy. What this does is protect you and your clients if your computer gets hacked and someone gets your clients Personal Health Information (PHI).  It gives you extra liability and coverage for those events.  
      • We purchase a stand alone policy through a Blue Cross Affiliate. The website is https://www.rpscyber.com/iau_live/eis/rps.html#login.  
      • Our cost is $427.50/year.  
      • With today’s technology always being hacked and sometimes you not even knowing it, we think that as you grow your business, this is a good investment.
  • Contracting with carriers
  • Who should you contract with?  We have listed below by product the carriers we feel you should get contracted with.  Contracting with some carriers will give you both the Medicare supplement and MAPD/PDP contracting.  Exceptions have been noted.  You will need to be certified for the MAPD/PDP products by the carrier in order to sell the products.  
  • Getting appointed with a company can take a few weeks depending on the time of the year.  Typically, there are cut offs on contracting as we get toward the Annual Enrollment Period (AEP).  Make sure you have gotten all your contracting done no later than June or July in order to be ready for AEP.  Refer to our lesson on How will you contract.
  • If you are already contracted with a carrier and want to move your business under Imagine Insurance Advisors, please contact us as there are processes to transfer the business.  Refer to our lesson on How will you contract for more information on releases.
  • We encourage you to focus first on the Medicare products and then add the ancillary as you feel comfortable and have mastered the Medicare options. These are the companies we recommend as of 2021.
  • Medicare Supplements
  • Anthem
  • United Healthcare (AARP)
  • Mutual of Omaha
  • Medico
  • Aetna – separate contract from MAPD/PDP
  • MAPD – Medicare Advantage Prescription Drug Plans
  • Anthem
  • Humana
  • Wellcare
  • United Healthcare (AARP)
  • Aetna (includes Silverscript)
  • LASSO – Medicare Savings Plan (MSA)
  • Caresource – not really competitive and not necessary unless you do health under 65
      • PDP – Prescription Drug plans
        • Anthem
        • Humana
        • Wellcare
        • United Healthcare (AARP)
        • Aetna – Silverscript
        • Mutual of Omaha
      • Ancillary products
        • Medico – Hospital Indemnity
        • GLT – Hospital Indemnity
        • Delta Dental – Dental/Vision
        • Discount Dental Plans
        • International Travel – IMG or GeoBlue (Anthem division)
        • Identity Theft – Legal Shield
        • Cancer & Critical Illness – multiple carriers
        • Life Insurance – multiple carriers
  • AHIP
  • “American Health Insurance Plans” = AHIP
  • You must have this certification if you are going to sell MAPD (Medicare Advantage Plans) or PDP (Prescription Drug Plans).  It does not apply to selling Medicare Supplements.
  • Almost all carriers require that you pass initial AHIP training and that you recertify annually before you will be allowed to sell their products each year.
  • This will be the first recertification you must complete every year.  It includes all 5 modules, compliance , discrimination and Fraud Waste and Abuse. 
  • Certification usually opens in July.
  • Cost: $175
  • Carrier’s will offer a discount if you complete the AHIP through their portal.  This will bring the price to $125.
  • Some carriers will pay for your AHIP if you sell so many of their plans per year.  Check with the regional managers or watch for emails on these.  If you think you might be able to make the requirement in sales, then do the AHIP through that carrier.  If you don’t, then you won’t be eligible for reimbursement from that carrier.  Here are some carriers that have offered reimbursement in the past.
  • Aetna Front Runner
  • Humana
  • Anthem Megastar
  • Use it as a nice refresher course to keep yourself sharp about the rules and procedures we must follow.  After your initial taking of AHIP, in future years you only need to complete Modules 4&5 and the Fraud Waste and Abuse.  Modules 1-3 are still on the final exam, so we recommend reviewing the PDF’s of modules 1-3 before you take the test.  It is also a good reminder for you before you go into AEP.  Anything new with Medicare could be in any of the 5 modules.
  • If you do not pass AHIP on your first attempt, DO NOT ATTEMPT it again alone.  You only have 3 chances to pass, if you do not pass, you will be locked out of selling the MAPD and PDP for the year.  If you do not pass, get with another agent or with Imagine Insurance Advisors’ management for retaking the test.

Carrier Certifications

  • Once you have completed AHIP, you then need to complete all certifications for each carrier.  These will be in the learning portal for each carrier.  If you have completed AHIP through one carrier, when you go to another carrier’s portal, you will need to sign on to AHIP through that portal and transmit your results from AHIP to the carrier.
  • After you have done that, complete ALL requirements for the carrier. You will not be done until you have completed all 100% of the activities.  You will typically receive a certification document when you are done. 
  • Some companies have limits on the number of times you can take the test.  All of them have a minimum threshold of passing.  If you DO NOT PASS the test on the first attempt, DO NOT take it alone again.  Get with another agent or with Imagine Insurance Advisors’ management to take the test again.  If you don’t pass with the number of attempts you will not be allowed to offer their products for a year.  You don’t want this to happen.  
  • Keep a spreadsheet of all your carriers and when you have completed their certifications.  You will receive a certificate when you have completed all the certification requirements.  Many carriers will send you an email that you are Ready To Sell (RTS).  Keep those as proof you are good to go.  Save all the certificates either printed out or as a PDF on your computer in a special directory so you can find them.
  • Once you have completed all certifications, you are ready to go for the year.  
  • Congratulations you can now sell the Medicare products.

Continuing Education

 

  • Every 2 years you need to acquire 24 hours of continuing education (CE) to maintain your license.
  • Sometimes attending carrier training sessions you can get CE credits. 
  • If you need to purchase credits, you can go to www.webce.com to buy classes that meet the requirements. They typically will offer one set price to get all 24 CE credits.
  • We encourage you to watch for carrier training that will give you free CE credits.
  • The CE credits you acquire for your resident state will meet the requirements for other states you are licensed in. You will not have to do it for those states also.  

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