Archive for December, 2011
Insurance License – Getting Licensed in Your State
Posted by in Insurance Licensing on December 16, 2011
Every state has a regulatory board that sets the requirements for licensing, continuing education and various types of insurance jobs. Due to that, the requirements to get your insurance license will depend on the state you reside in. To be an insurance agent you have to make sure that you take the state-approved pre-license course, if required and pass the state exam. By contacting your state’s Department of Insurance, you will be able find out everything that you need to know about getting your license, including the information about different types of licenses.
Amongst different types of insurance licenses, you can choose property and casualty license, which allows you to sell home, auto, rental, commercial and similar types of insurance. The property and casualty license is by far the most common license type. You can also get a life and health license to sell life and health insurance. Whereas, a financial insurance license will allow you to sell insurance for financial products, which is one of the most lucrative types of insurance to get involved in.
Getting a state insurance license of any kind is your first step towards a successful career in the insurance industry. It isn’t hard to get licensed to sell insurance, but it will require you to invest time to learn about your state requirements and educate yourself about the policies you choose to sell. If you want an easier and quicker way to get licensed, take online courses where you will be able to save both time and money.
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Bank Loan Versus Insurance Policy
Posted by in Insurance Policy on December 16, 2011
Getting a bank loan is not much different than getting an insurance policy. There is an underwriting process that takes place for both transactions. Most people are very careful when trying to get a loan to make sure they have everything in order and complete for their submission. Unfortunately, when it comes to procuring an insurance policy most people approach that transaction in a haphazard manner. Using the same careful and complete presentation that you would use when you submit your documents to the bank in trying to secure a loan is almost the exact same process you should use when trying to get insurance proposals for your small business.
The three C’s of banking, character, credit, and cash are also applicable in the insurance underwriting process.
Your character can be manifested in many areas throughout the insurance underwriting process. If your company has a frequency and/or severity problem with regards to claims, losses, and lawsuits, that will affect an underwriter’s view of your character in the underwriting process. If your company has high employee turnover and/or poor employee morale this will also have a negative impact in the underwriting process and thus will have a negative impact on the pricing of your policies.
Just like in banking your credit score plays an important part of whether or not you will be able to secure a loan for your project. While it does vary by state most insurance carriers are running your credit score for both personal insurance and commercial insurance policies that you’re trying to secure. In regards to personal insurance, normally the insurance carriers do not have the ability to surcharge their policies for bad credit scores. Therefore they normally just will decline you as a risk that they are not willing to take on. On the commercial lines side, most of the carriers have the ability to surcharge their pricing other commercial policies based upon credit scores. They can either decline you or increase your pricing because of the perceived risk of your low credit scores.
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Decode Your Life Insurance Quote
Posted by in Insurance Quote on December 16, 2011
Understanding what your life insurance quote means is essential to having a good experience when you apply for a policy. Misunderstanding creates confusion, and confused consumers are more likely to skip buying this important financial protection. Here is what to expect (and what not to expect) from your life insurance quote.
What a Quote Can do for You
A life insurance quote simply provides an estimate of what your policy will cost, before any in-depth information is known about your health and risk classification. Because the insurance company has not completed underwriting at the time that you get your quote, the outcome may change after your application has been turned in.
What a Quote Cannot do for You
A life insurance quote is not a promise that you will be approved for a policy, or that you will be approved at the same rate that you were quoted. Remember, anyone can use an online quoting system to get a quote for any amount or rating class. For example, a 70-year old man with heart disease and diabetes could get a quote for the best rating class without disclosing any medical history, but he will not be approved for the best rating class after the insurance company reviews his medical history.
Your Quote May Differ
Insurance agents cannot approve your policy, nor can they promise your policy will be approved at a certain price. Only the life insurance company can approve your policy, after a formal application has been submitted and underwriting review has been completed. Wait until you have a policy in hand that clearly states the price before agreeing to purchase.
Most applicants are approved at the same rate they are quoted, however this is not always the case. Here are some common reasons why your policy might not be approved at the same price as your quote.
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