Becoming an insurance agent is a great career choice for those who enjoy helping others and have strong communication skills. If you’re wondering whether a career as an insurance agent is the right fit for you or are considering becoming an agent, it’s important to know what an insurance agent is, what they do, and how to get there. 

In this article, we cover everything you need to know about becoming an insurance agent. You’ll learn about an agent’s role, qualifications, and the benefits of the career. Most importantly, we’ll outline a general step-by-step process for obtaining your insurance agent license, as well as the process specific to New York State requirements.

Related: Are you a newly licensed and employed agent in New York State? Security Mutual wants to work with you! 

What Is an Insurance Agent?

An insurance agent is a professional who sells and advises clients on insurance policies. They act as intermediaries between insurance companies and customers, helping individuals and businesses choose the right coverage for their needs. 

Insurance agents typically specialize in a wide range of related insurance needs. At Security Mutual, our agents focus on homeowners insurance, business insurance, landlord insurance, or other related products.

While the day-to-day tasks of an insurance agent may vary, most involve the following responsibilities:

• Assessing clients’ insurance needs and recommending suitable policies

• Explaining policy details, coverage options, and costs to clients

• Helping clients file claims when needed

• Staying updated on industry regulations and new insurance products

• Processing paperwork and managing client accounts

Types of Insurance Agents

There are two types of insurance agents: Captive agents and independent agents. The key difference between the two types involves the number of insurance companies the agent represents.

1. Captive Agents – Represent a single insurance company and sell only that company’s policies. (e.g., State Farm, Allstate agents)
   

2. Independent Agents – Work with multiple insurance companies and offer policies from different providers. They vet products to meet the policyholder’s needs.

There isn’t a single definitive path to starting your insurance career. Some people begin as captive agents to build experience and gain referrals. They may transition to an independent insurance agency to start their own business or expand their career options. 

Others may start as independent agents because they want more autonomy and enjoy a fast-paced learning environment. Additional responsibilities, such as marketing, community outreach, and insurance product management, mean more opportunities to deepen your understanding of the industry. It also typically translates to higher earning potential. 

Why Become an Insurance Agent?

When considering an insurance career, it’s important to consider how becoming an insurance agent can benefit your life goals. Many people are drawn to insurance jobs because of the high earning potential, job stability, and growth potential.

• High Earning Potential: Most insurance agents earn through commissions, meaning the more policies you sell, the more you earn. Experienced agents can make a six-figure income with renewals, providing ongoing commissions.
  

• Job Stability & Demand: Insurance is necessary for individuals and businesses, and the field can also be complex. As a result, many policyholders will turn to insurance agents for their expertise when exploring products. This ensures a steady demand for agents regardless of the job market.
  

• Career Growth & Specialization: Insurance agents can specialize in different types of insurance that appeal to them, including life, health, property, commercial, and more. With this comes opportunities to advance into management, agency ownership, or financial advisory roles.

Insurance Agent Job Requirements in New York

To become a New York insurance agent, you must:

• Be at least 18 years old

• Have a high school diploma or GED 

• Be legally eligible to work in your country

• Complete pre-licensing education

• Take corresponding licensing exams

• Obtain a state-issued license from the New York Department of Financial Services

While these are the standard requirements, employers may look for additional qualifications when hiring. You can increase your competitiveness by earning a college degree (preferably related to finance or business) and pursuing certifications through continuing education.

Related: Explore insurance scholarships such as the CPCU Designation Scholarship to cover education costs.

5 Steps to Become an Insurance Agent in New York

1. Choose Your Insurance Type

You’ll need to decide which type of insurance you want to sell. Here are some common insurance types:

• Property & Casualty Insurance (P&C) – Covers auto, home, and business insurance.

• Life & Health Insurance (L&H) – Covers life insurance and health-related policies.

• Other Specialized Insurance – Such as annuities, long-term care, or Medicare supplements.

Need some inspiration? Security Mutual Group focuses on property and casualty insurance. Explore our insurance products to get a feel for our wheelhouse!

2. Complete Pre-Licensing Education

Next, you may have to enroll in a pre-licensing course, as most states require you to complete a pre-licensing course before taking the licensing exam. These courses can be taken online or in person through providers like:

• Kaplan Financial Education

• ExamFX

• The Institutes

• A.D. Banker 

• State-specific insurance education providers

In New York, you’ll need to enroll in a state-approved prelicensing course specific to the type of insurance you wish to sell. The required hours will vary by license type:

• Life, Accident & Health Agent: 40 hours

• Life Agent: 20 hours

• Accident & Health Agent: 20 hours

• Property & Casualty Agent: 90 hours

• Personal Lines Agent: 40 hours

3. Pass the State Licensing Exam

After identifying the type of insurance you want to sell and/or completing a pre-licensing course, you must pass your state’s licensing exam. Each state has its own exam for insurance licensing, and you’ll need to register and take the exam through a testing provider like Pearson VUE or Prometric. 

Exam topics generally include:

• Insurance laws and regulations

• Policy types and coverage

• Ethics and sales practices

In New York State, the licensing exam is administered by PSI, and a score of 70% or higher is typically required to pass. 

4. Apply for an Insurance License

After passing your state’s licensing exam, you must apply for your license through the National Insurance Producer Registry (NIPR) or your state’s insurance department. 

In New York State, the New York State Department of Financial Services (DFS) requires the submission of applications within two years of passing the exam. NYS also mandates that you schedule a fingerprinting appointment through IdentoGO before you can apply, as this appointment will initiate a background check. 

Following this fingerprinting appointment, you will be given two of the same receipts—one to attach to your license application and another for you to keep for your records. 

Once you have completed your fingerprinting appointment and attached the receipt to your application, you can submit your application to DFS via the NIPR.

Note: you must submit your application quickly after attending your fingerprinting appointment, as the DFS will discard any scanned fingerprints if they don’t receive a related application within 10 days.

5. Apply for a Job with an Insurance Company

After becoming licensed, you’re ready to job hunt! To start selling policies, you must be appointed by an insurance company or work as an independent agent. 

Consider working toward additional certifications during this period to boost your credibility as an insurance agent. Certifications can set you apart from other candidates when applying for jobs. 

The following general certifications are perfect for entry-level insurance agents and are suited for any insurance specialization: 

• Accredited Adviser in Insurance (AAI): A good starting point for agents wanting to understand insurance operations. It’s a solid foundational certification that teaches both the sales and technical sides of insurance products. Offered by The Institutes.  

• Certified Professional Insurance Agent (CPIA): An excellent choice for new agents who want to improve their ability to manage customer relationships, better understand insurance policies, and enhance their selling skills. Offered by AIMS Society.

Is Insurance Sales a Good Career?

Becoming an insurance agent in New York can be a rewarding career with competitive salaries and high job security. The job requirements are accessible given that you complete the relevant insurance exam and become licensed. And continued education allows you to enhance your insurance specialization, which can help open doors for further roles and clientele.

Looking to grow your insurance portfolio after earning your license? Security Mutual is a long-standing insurance carrier in New York, selling policies statewide. Join our network of over 400 independent insurance agents and start building your career!