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    Definition of 'Agent'An agent is a person who represents an insurance firm and sells insurance policies on its behalf.

    Definition:An agent is a person who represents an insurance firm and sells insurance policies on its behalf.

    Description: Generally, there are two types of such agents who reach the prospective parties that may be

    interested in buying insurance. These are independent agents and captive or exclusive agents.

    Independent agents may represent many insurance firms and receive commission for their services

    accordingly. On the other hand, there are captive agents who are exclusively employed by a particular

    insurance firm and sell policies of the same. Their services can be rewarded in the form of salary or

    commission

    How important is having an agent?

    Insurance agents may have a less-than-golden reputation as a group, but

    when you think about it, this stereotype is mostly based on sales practices.Nowadays, with Internet resources at your disposal, you can educate

    yourself to avoid shady sales practices and select an agent that offers real

    value. It comes down to personal preference.

    Term life insurance is cheap and simple enough that most people can

    make an educated purchase, start to finish, on the Web or by phone from a

    direct insurance provider. On the other hand, long-term care insurance is

    about as new, complicated, and expensive as it gets. Even after extensive

    Web research, many people will still benefit from the services of an

    independent financial planner, particularly one with experience in long-term

    care issues.

    Auto, home, renter's, and disability insurance fall in the middle. They aren't

    all that complicated, but they are much more likely to lead to a claim than

    life insurance. When it comes to making a property claim, an effective local

    agent can be worth her weight in gold. Also, with liability and medical

    claims, procedures can be very tricky and decisions are rarely clear-cut. Aproactive agent can be an invaluable guide. Of course, it always depends

    on the agent, the circumstances, and to some extent, the way the company

    handles claims.

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    Generally there are two types of insurance agents which are as follow:

    1. Independent agents also known as Captive Agents who transact insurance

    for more than one company and

    2. Contract agents who represent a single company.

    Insurance agents assist clients to choose insurance policies that befit their needs.

    Clients include individuals and families as well as businesses. Independent agents

    work for a single insurance company, and sell only that company's products.

    Independent insurance agents or brokers represent different companies.

    Insurance may be for property, casualty, life, health, particular venture and long

    term contract insurance. Some insurance agents also sell mutual funds, annuities,

    shares and other securities.

    In order to choose the right insurance agent, people usually presume that

    insurance agents would act in the best of their interest. But this is not so easy.

    You have to be very careful while selecting an insurance agent and consider what

    he is selling you and at what price.

    How to Select a Good Insurance Agent?

    It will take time for people to find a suitable insurance agent that caters to theirneeds. However, In order to select the right agent you must consider the

    following things:

    1. Ask from your family members, relatives and friends because they are the

    most reliable sources for finding the right insurance agent as well as the most

    appropriate company. You may counsel with your co-workers, financial advisers,

    accountants etc.

    2. Make inquiries regarding the type of insurance they sell. Usually, you knowthe type of insurance you want, but you must compare different insurance

    packages offered by various agents. You should ask the experience of the

    insurance agent, as well as the type of products they sell.

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    3. Prefer experienced agents over amateurs because experienced agents

    usually provide better customer service.

    4. You should research and compare insurance quotes. This will create a

    competition between insurance agents which ultimately brings more benefits foryou.

    In a nutshell, In order to find a good insurance agent, you must compare

    professionalism, prices, and company ratings.

    It is important to find a good insurance agent for many reasons. Some of the

    reasons are discussed below:

    Usually there are a lot of complicated terms and conditions attached to

    insurance policies. You may find it difficult to fully comprehend them. A good

    insurance agent will help you understand these terms and conditions.

    Some insurance policies involve a lot of paperwork. A good insurance agent

    will help you with all the necessary paperwork.

    Several policy options can be available for you. A good insurance agent will

    help you compare all the available options and assist you in choosing the best

    option.

    A good insurance agent will act in the best interest of his client.

    A good insurance agent will solve all the problems that you may face during

    the purchase process.

    A good insurance agent is mindful of your needs and concerns; and is able

    to provide quality recommendations for you.

    Agents Clients Are Consumers

    Agents depend on their clients, whether individual consumers or employer groups, for their livelihood. By

    providing ongoing service and benefit expertise, the value of the agent is always evident.

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    Agents Often Support Small Employer Human Resource Departments

    Quite often, small employers cannot afford human resource staffing, so agents assist them in many of

    those functions. Small employers rely on agents to assist them in a multitude of ways in the day-to-day

    handling of their health insurance and other personnel matters.

    Agents Help the Elderly Understand Their Benefits

    Elderly consumers often have problems understanding their Medicare or long-term care benefits, and

    agents have the ability to explain these in a manner that is easier to comprehend.

    Agents Make Complex Benefit Issues Understandable to TheirClients

    Often, state and federal governments pass laws that affect employee benefits; health insurance agents

    understand these laws and explain them to their clients in a clear and concise manner. There are

    countless plan options available to employers and consumers; good agents guide their clients throughmyriad options to the plan that best suits their particular needs.

    Agents Solve Clients Problems

    Typically, agents are the first to be called when a clients claim is not paid or when premiums are raised.

    Because of their expertise, experience and relationships with insurance carriers, agents can often get

    problems solved quickly and efficiently. Many agents have customer service representatives in their office

    for the specific purpose of assisting clients with their benefit problems.

    8 Qualities That Make A Good Insurance AgentByMark P. Cussen, CFP, CMFC, AFCon December 10, 2012AA AFiled Under:Career Advancement,Finance Careers,Life Insurance

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    If you have evercontemplated becoming an insurance agentor wondered whether

    this career pathcould be right for you, then there are several qualities that you will need to

    possess, at least to some degree. All good insurance agentsshare some of the following core

    qualities in one way or another.

    People Skills

    1. Puts the needs of the client first- An agent who is only out to earn a commission,

    regardless of the needs of the client, is not likely to last long in the business. Agents

    and brokerswho listen carefully to what their clients and prospects say will be able to earn

    their trust, which is the hardest part of their job. Those who are willing to put their clients

    into a product that pays a lower commission because it better fits their needs are much

    more likely to be successful.

    2. Good customer service- Customers who are able to get a hold of their agents when they

    need them are much more likely to stay happy and reassured. A timelyresponse to

    inquiries and phone callsis a must, and you must be able to do what you say you will do,

    when you say you will do it - or at least have a good reason as to why you can't. One of the

    major complaints of thosewho buy life insurance policiesis that there is no one around to

    answer their questions after they have purchased the policy.

    3. Emotional intelligence- This includes the ability to listen and empathize with clients on a

    deeper level in order to discern what they really want and need. A good agent is tactful and

    knows how to help a client seefinancial reality clearly, even when the client is dead set

    against it.

    How to pick your next hotel stay

    Strong Personality

    1. High energylevel- One of the most important traits of a good insurance agent is that

    they appear to be excited and eager at all times. A worn-down or dreary dispositionwill

    immediately rub off on clients and discourage them from buying anything.

    2. Persistence- This is perhaps the most vital quality of any good insurance agent. Those

    who work in this field absolutely must be able to handle rejection on a daily basis over the

    course of their careers, and do it with a smile. Good insurance agents understand that each

    "no" only brings them closer to someone who will say "yes."

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    3. Honesty- Insurance agents who use deception to close business seldom stay with the

    same companyfor very long - and can end up behind bars in some cases. A good agent

    knows that telling the truthup front willwin them clients' respect and trustand is likely to

    lead to repeat businessover time.

    General Knowledge

    1. Wide array of products- As the old saying goes, if all you have to work with is a hammer,

    then everything in the world looks like a nail. A good insurance agent will be able to offer a

    comprehensive selection of products and services that can meet any reasonableneed a

    client might have.

    2. Technical knowledge- A good insurance agent knows much more than how to sellapolicy. The agent must understand the taxand legal aspects of the products he or she sells

    and how they are designed to fit into a client's overall financial situation. Many agents

    earnfinancial planning designationssuch as theCertified Financial Planner, Chartered

    FinancialCounselor or other credential.Some agents practice financial planning,income tax

    preparation or some other avenue of financial service as their primary profession and then

    write insurance business when it becomes necessary.

    The Bottom Line

    These are just some of the qualitiesthat life insurance agents must possess in order to be

    successful. The life insurance business can be very challenging and immensely rewarding for

    those who are willing to learn the necessary skills to build their business. For more

    information on how to become a successful insurance agent, contact the recruiting offices of

    a few different agencies or a headhunter who works with insurance agents.

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    The Roles and Responsibilities of a Life Insurance Agent

    When working as an agent for

    awholesale life insurance brokerage,you have several roles and responsibilities. Try toavoid focusing on just one of these roles. Instead, make an effort to be well-rounded inall of these roles, and you'll see the results with good commissions and a burgeoningclientele.Educate Your Clients.As life insurance options have multiplied, clients increasingly needsomeone to educate them on the different types of policies available. When theyunderstand the different types of policies, they can make informed decisions aboutwhat's best for them and their families. As you teach your clients, they learn to trust youand rely on your solid advice.Paint the Big Picture.When selling life insurance, you have a responsibility to help yourclients see the big picture. How will their life insurance policies fit their overall financial

    goals? Do they need to make adjustments to their policies because of financial or familyrelated changes? As their life insurance agent, you can help answer these questionsand resolve any concerns.Be a Consultant.When making long-term financial decisions, most people like to consultwith experts. Demonstrate that you are an expert in life insurance by sharing yourexpertise with them. Provide accurate facts and figures, and be available to speak withthem any time they have questions. Increase your credibility by presenting charts andgraphs specific to their personal financial situations, and stay current on industry trendsand new information.Be a Liaison.You are the connection between your client and the life insurancecompany orwholesale life insurance brokerageyou represent. If your client has aproblem with the company, be a liaison and try to figure out what the problems is. Whenyou sell a policy and then disappear completely from your client's life, you losecredibility and future business from the client or from referrals. If a client has a simplequestion about billing or an address change, get involved and see what you can do tosolve the problem or at least direct the client to someone at the company who can help.Such exemplary customer service proves to your clients that you care.Be Thorough.When meeting a new client for the first time, refrain from recommending aparticular policy too quickly, even if you're pretty sure it's the right one for them. Instead,

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    ask a lot of questions in your initial interview to get a thorough picture of their needs,current financial situation, and future goals. Your effort shows your customer that youcare about finding a policy that meets their specific needs.Seek New Clients.To ensure future work for yourself, seek out new clients regularly. Ifyou treat your current clients well, they will refer their friends and acquaintances to you.

    You can also look for new clients through newsletters, ads, door approaches,presentations at seminars and workshops.Keeping these roles and responsibilities in mind can help you build a strong clientelewhen working for awholesale life insurance brokerage.With the right approach yourclients will come to trust you and depend on your good advice, all while you have thesatisfaction of a job well done.Tags:Insurance Broker Training,Life Insurance Broker,Life Insurance Sales

    Training,Business Management,Wholesale Life insurance Brokerage

    Features:

    The insuranceindustry in India is the fifth largest life insurance market in the emerging

    insurance economies globally and is growing at 32-34% per annum. The industry haswitnessed exceptional growth and has a mix ofpublic and privateplayers both in life and

    non-life business.

    Becoming an insurance sales agentis a great way to kickstart a career in this industry.

    Insurance sales agents advice clients on choosing insurance policies that suit their needs.

    Clients can include individuals, families as well as businesses. Insurance agents can be

    divided into two broad categories-

    Captiveagents who work for an insurance company, and only sellthat particular

    company's products

    Independent insurance agents, or brokers, who represent several companies and work on a

    commission basis.

    The Job Role and Responsibilities

    An insurance sales agent's job role and responsibilities would fall under two categories:

    New Client acquisition

    o Seeking out new clientsand develop clientele by networking to find new customers and

    generate lists of prospective clients. Understanding the prospective client's insurance

    needs and suggesting suitable policies, explaining features, advantages and disadvantages.

    o Ensuring that policy requirements are fulfilled, including any necessary medical

    examinations and the completion of appropriate forms. Inspecting property, examining its

    general condition, age, and other characteristics, to decide if it should be insured.

    o Calculating premiumsand establishing payment method. Performing administrative tasks,

    such as maintaining records and handling policy renewals. Contacting underwriter and

    submitting forms to obtain binder coverage.

    Client Management

    o Providing consultative service to policyholders by providing information and assistance,

    suggesting additions or changes to policy through future follow-up visits and evaluations of

    needs.

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    o Monitoringinsurance claims to ensure they are settled equitably for both the client and the

    insurer. Helping clients make and settle claims.

    Competencies and Skills Required

    Being an insurance sales agent is primarily a sales job, and salesmanship depends upon two

    factors- understanding the products thoroughly and working well with people. Mechanics

    of selling and techniques can be taught upto an extent, however, connecting with the widerange of potential insurers, and suggesting the right product and solution using the

    appropriate blend of information and conversation is more artthan science. Some qualities

    that potential recruiters look for in candidates are:

    Selling Skills - The candidate should know basic selling techniques and the art of convincing

    and persuading others. He should be able to complete the entire sales cycle which includes

    needs assessment, proposing suitable offerings, objection handling, negotiatingand closing

    the dealand evaluation of customer satisfaction.

    Result Orientation- The candidate should be performance oriented and should give due

    importance to goal setting, performing and achieving. He should be able to develop specific

    targets, plans to prioritize, organize, and accomplish. He must also take initiative, recognize

    opportunities and be self-motivated to make it happen. Interpersonal Skills- a good insurance sales agent must be able to connect and work well

    with different types of people. Being a personality factor it is a bit difficult to teach

    someone how to be pleasant and have good social skills. Hence good interpersonal skills

    play a crucial role in selection of candidates.

    Communication Skills- Since interaction with prospects & clients is a key part of the sales

    job, the candidate must be fluent in English as well as local language.

    Trainability- candidates need to be well versed with product knowledge and industry

    trends in order to do consultative selling. Hence strong trainability is a desired

    characteristic.

    Basic domain knowledge of insurance

    Assessment for the 'Right'Insurance Sales AgentInsurance Sales Agent Profile AMCAT Mapping

    Selling Skills Logical Ability- High

    Extraversion- High

    Emotional Stability- Moderate

    Agreeableness- Moderate

    Result Orientation Logical Ability- High

    Conscientiousness- High

    Interpersonal Skills Extraversion- High

    Agreeableness- High

    Communication Skills Extraversion- HighEnglish Comprehension- Mid to High

    TrainabilityLogical Ability - Mid to High

    Domain KnowledgeInsurance Readiness- Mid to High

    Assessments' Correlation to Performance

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    Globally, standardized assessments have been used for hiring Insurance Sales Agents.

    There is much evidence to indicate that tests of cognitive ability and personality are strong

    predictors of job performance in an Insurance Sales job. Studies by Arneson et al. (1993)1,

    Barrick et al. (1993)2, Mount et al. (1998)3and Vinchur et al. (1998)4clearly show that

    there is a strong correlation between a candidate's general cognitive skills and personality

    traits with his Supervisor Ratings, Sales volumes and other parameters of job success in aninsurance setting. The objective criteria consist of assessments in English, cognitive skills

    and personality inventory. Benchmarking studies done by Aspiring Minds at several

    insurance companies, shows that Logical Ability combined with Extraversion,

    Conscientiousness and Agreeableness shows the strongest correlation to the success of an

    insurance sales agent at entry level. Implementation of benchmarks on these traits could

    decrease the non-performers by 64% and increase the performers by 31%. Thus a

    company can improve its top line significantly by using standardized assessment during

    selection and recruitment of insurance sales agents.

    ----------------------------------------------------------------

    1. Arneson, S., Millikin-Davies, M. &Hogan, J. (1993).Validation of personality and cognitivemeasures for insurance claims examiners. Journal of Business and Psychology, 7(4), 459-

    473.

    2. Barrick, M.R., Mount, M.K. & Strauss, J.P. (1993). Conscientiousness and performance of

    sales representatives: test of the mediating elects of goal setting. Journal of Applied

    Psychology, 78(5), 715-722.

    3. Michael K. Mount, Murray R. Barrick & Greg L. Stewart (1998). Five-Factor Model of

    personality and Performance in Jobs Involving Interpersonal Interactions. Human

    Performance, Volume 11, Issue 2-3, 1998, 145-165.

    4. Vinchur, A.J., Schippmann, J.S., Switzer, III, F.S. & Roth, P.L. (1998). A meta-analytic

    review of predictors of job performance for salespeople. Journal of Applied Psychology, 68,

    587- 593.

    0occ0ooooo, accidents, marine) and 9,276 insurance agents (interns

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    Insurance sales agents explain various insurance policies and helps clients choose plans that suit them.

    occupational outlook

    Quick Facts: Insurance Sales Agents

    2012 Median Pay$48,150 per year

    $23.15 per hour

    Entry-Level Education High school diploma or equivalent

    Work Experience in a Related Occupation None

    On-the-job Training Moderate-term on-the-job training

    Number of Jobs, 2012 443,400

    Job Outlook, 2012-22 10% (As fast as average)

    Employment Change, 2012-22 45,900

    What Insurance Sales Agents Do

    Insurance sales agents help insurance companies generate new business by contacting potential customers and

    selling one or more types of insurance. Insurance sales agents explain various insurance policies and help clients

    choose plans that suit them.

    Work Envi ronment

    Although most insurance sales agents work for insurance agencies and brokerages, which sell the policies of several

    companies, some work directly for a single insurance company. Most insurance sales agents work in offices, although

    some may spend much of their time traveling to meet with clients.

    How to B ecome an Insurance Sales Agent

    Although most employers require agents to have a high school diploma, many agents have a bachelors degree.

    Agents must be licensed in the states where they work.

    Pay

    The median annual wage for insurance sales agents was $48,150 in May 2012. Many sales agents are paid through

    commissions rather than a fixed salary.

    Job Out look

    Employment of insurance sales agents is projected to grow 10 percent from 2012 to 2022, about as fast as the

    average for all occupations. An aging population and changes in federal regulation may increase demand for agents

    who sell health and long-term care insurance.

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    Similar Occup ations

    Compare the job duties, education, job growth, and pay of insurance sales agents with similar occupations.

    What Insurance Sales Agents Do?

    Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, and health

    and long-term care.

    Insurance sales agents help insurance companies generate new business by contacting potential customers and

    selling one or more types of insurance. Insurance sales agents explain various insurance policies and help clientschoose plans that suit them.

    Duties

    Insurance sales agents typically do the following:

    Call potential clients to expand their customer base

    Interview prospective clients to get data about their financial resources and discuss existing coverage

    Explain the features of various policies

    Analyze clients current insurance policies and suggest additions or changes

    Customize insurance programs to suit individual clients

    Handle policy renewals Maintain electronic and paper records

    Help policyholders settle claims

    Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, and health

    and long-term care insurance.

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    Property and casualty insurance agents sell policies that protect people and businesses from financial loss resulting

    from automobile accidents, fire, theft, and other events that can damage property. For businesses, property and

    casualty insurance also covers injured workers compensation, product liability claims, or medical malpractice claims.

    Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Life insurance

    agents also sell annuities that promise a retirement income.

    Health and long-term care insurance agents sell policies that cover the costs of medical care and assisted-living

    services in old age. They also may sell dental insurance and short-term and long-term disability insurance.

    Agents may specialize in any one of these products or function as generalists providing multiple products.

    An increasing number of insurance sales agents offer their clients comprehensive financial planning services,

    especially for clients approaching retirement. These services include retirement planning, estate planning, and help in

    setting up pension plans for businesses. In addition to offering insurance, these agents may become licensed to sell

    mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who

    already sell annuities, but many property and casualty agents also sell financial products. For more information on

    agents who sell financial products, see the profile onsecurities, commodities, and financial services sales agents.

    Many agents spend a lot of time marketing their services and creating their own base of clients. They do this in a

    variety of ways, including making cold sales calls to people who are not current clients.

    Clients often learn about policies by themselves, by comparison shopping online and getting information from the

    insurance companies. They then contact the company directly to buy a policy, so the client comes to the agent ready

    to buy.

    Insurance agents also find new clients through referrals by current clients. Keeping clients happy so they recommend

    the agent to others is a key to success for insurance sales agents.

    Insurance agents may work for a single insurance company or an insurance brokerage.

    Captive agentsare insurance sales agents who work exclusively for one insurance company. They can only sell

    policies provided by the company that employs them.

    Independent insurance agentswork for insurance brokerages, selling the policies of several companies. They

    match insurance policies for their clients with the company that offers the best rate and coverage.

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    Work Environment

    Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with

    clients.

    Insurance sales agents held about 443,400 jobs in 2012. In 2012, about 78 percent of insurance sales agents worked

    in the insurance carriers and related activities industry, and about 19 percent were self-employed. Although most

    insurance sales agents, 53 percent, worked for insurance agencies and brokerages, which sell the policies of several

    companies, others worked directly for a single insurance carrier.

    Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with

    clients. Their work environment may vary depending on the type of company that employs them. Because some

    companies are small, agents may work alone or with only a few others.

    Work SchedulesInsurance sales agents usually determine their own hours of work and often schedule evening and weekend

    appointments for the convenience of clients. Some sales agents meet with clients during business hours and then

    spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time, and

    about 1 in 5 worked more than 40 hours per week in 2012.

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    How to Become an Insurance Sales AgentAbout this section

    Agents must be licensed in the states where they plan to work.

    Most employers require agents to have a high school diploma. Agents must be licensed in the states where they

    work.

    Education

    A high school diploma is the typical requirement for insurance sales agents, although a bachelors degree can

    improve job prospects. Public speaking classes can be useful in improving sales techniques, and often agents will

    have taken courses in business, finance, or economics. Business knowledge is also helpful for sales agents hoping to

    advance to a managerial position.

    Training

    Insurance sales agents learn many of their job duties on the job from other agents. Many employers have newagents shadow an experienced agent. This allows the new agent to learn how to conduct the companys business

    and how the agency interacts with clients.

    Employers also are increasingly placing greater emphasis on continuing professional education as the variety of

    financial products sold by insurance sales agents increases. Changes in tax laws, government benefits programs, and

    other state and federal regulations can affect the insurance needs of clients and the way in which agents conduct

    business. Agents can enhance their selling skills and broaden their knowledge of insurance and other financial

    services by taking courses at colleges and universities or by attending conferences and seminars sponsored by

    insurance organizations.

    Licenses, Certifications, and RegistrationsInsurance sales agents must have a license in the states where they work. Separate licenses are required for agents

    to sell life and health insurance and property and casualty insurance. In most states, licenses are issued only to

    applicants who complete specified courses and who pass state exams covering insurance fundamentals and state

    insurance laws. Most state licensing authorities also require agents to take continuing education courses focusing on

    insurance laws, consumer protection, ethics, and the technical details of various insurance policies.

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    As the demand for financial products and financial planning services increases, many agents also choose to get

    licensed and certified to sell securities and other financial products. Doing so, however, requires substantial study

    and passing an additional exameither the Series 6 or Series 7 licensing exam, both of which are administered by

    theFinancial Industry Regulatory Authority (FINRA).The Series 6 exam is for people who want to sell only mutual

    funds and variable annuities. The Series 7 exam is the main FINRA series license that qualifies agents as general

    securities sales representatives.A number of organizations offer certifications that show an agents expertise in insurance specialties. These

    certifications are not required for employment, but they can give job candidates an advantage over other applicants.

    Certifications can also be a source of continuing education credit. For details on specific designations, contactThe

    InstitutesandThe American College of Financial Services.

    Important Qualities

    Analytical skills.Insurance sales agents must evaluate the characteristics of each client to determine the

    appropriate insurance policy.

    Communication skills.Insurance sales agents must be able to communicate effectively with customers by listening

    to their requests and suggesting suitable policies.

    Initiative.Insurance sales agents need to actively seek out new customers to maintain a flow of commissions.

    Self-confidence.Insurance sales agents should be confident when making cold calls (calls to prospective

    customers who have not been contacted before). They must speak clearly and persuasively and maintain their

    composure if rejected.

    PayAbout this sectionInsu rance Sales Agents

    Median annual wages, May 2012Insurance sales agents

    $48,150

    Total, all occupations

    $34,750

    Sales and related occupations

    $25,120

    Note: All Occupations includes all occupations in the U.S. Economy.

    Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics

    The median annual wage for insurance sales agents was $48,150 in May 2012. The median wage is the wage at

    which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent

    earned less than $26,120 and the top 10 percent earned more than $116,940.

    http://www.finra.org/http://www.finra.org/http://www.finra.org/https://www.theinstitutes.org/https://www.theinstitutes.org/https://www.theinstitutes.org/https://www.theinstitutes.org/http://www.theamericancollege.edu/http://www.theamericancollege.edu/http://www.theamericancollege.edu/http://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-payhttp://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-payhttp://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-payhttp://www.theamericancollege.edu/https://www.theinstitutes.org/https://www.theinstitutes.org/http://www.finra.org/
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    Many independent agents are paid by commission only. Sales workers who are employees of an agency or an

    insurance carrier may be paid in one of three ways: salary only, salary plus commission, or salary plus bonus.

    In general, commissions are the most common form of compensation, especially for experienced agents. The amount

    of the commission depends on the type and amount of insurance sold, and whether the transaction is a new policy or

    a renewal. When agents meet their sales goals or when an agency meets its profit goals, agents usually get bonuses.Some agents involved with financial planning receive a fee for their services rather than a commission.

    Insurance sales agents usually determine their own hours of work and often schedule evening and weekend

    appointments for the convenience of their clients. Some sales agents meet with clients during business hours and

    then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time,

    and about 1 in 5 worked more than 40 hours per week in 2012.

    Job OutlookInsu rance Sales Agents

    Percent change in employment, projected 2012-22

    Total, all occupations

    11%

    Insurance sales agents

    10%

    Sales and related occupations

    7%

    Note: All Occupations includes all occupations in the U.S. Economy.

    Source: U.S. Bureau of Labor Statistics, Employment Projections program

    Employment of insurance sales agents is projected to grow 10 percent from 2012 to 2022, about as fast as the

    average for all occupations.

    The insurance industry generally grows with the economy as a whole. Overall economic growth will continue to

    create demand for insurance policies. Direct online purchases of insurance are not expected to negatively affect

    employment of traditional sales agents, because they will continue to have a critical role in the insurance industry.

    Because the profitability of insurance companies depends on a steady stream of new customers, the demand for

    insurance sales agents is expected to continue. Employment growth will likely be strongest for independent sales

    agents, as insurance companies rely more on brokerages and less on captive agents as a way to control costs.

    Many clients do their own Internet research and purchase insurance online. This somewhat reduces demand for

    insurance sales agents, as many purchases can be made without their services. Agents are still needed to interact

    with clients regarding more complicated policies, however. Also, many people lack the time or expertise to study the

    different types of insurance to decide what they need. These clients will continue to rely on the advice from

    insurance sales agents.

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    Employment growth should be stronger for agents selling health and long-term care insurance. As the population

    ages over the next decade, demand will likely increase for packages that cover long-term care. The number of

    individuals who have access to health insurance will increase due to federal health insurance reform legislation.

    Insurance companies will rely on sales agents to enroll people from this new customer base.

    Job ProspectsCollege graduates who have sales ability, excellent customer-service skills, and expertise in a range of insurance and

    financial services products are likely to have the best prospects. Multilingual agents may have an advantage, because

    they can serve a wider customer base. In addition, insurance terminology is often technical, so agents who have a

    firm understanding of the relevant technical and legal terms should also be desirable to employers.

    Many beginning agents fail to earn enough from commissions to meet their income goals and eventually transfer to

    other careers. Many job openings are likely to result from the need to replace agents who leave the occupation or

    retire.

    Agents may face some competition from traditional securities brokers and bankers who also sell insurance policies.

    Insurance sales agents will need to expand the products and services they offer as consolidation increases amonginsurance companies, banks, and brokerage firms and as demand increases from clients for more comprehensive

    financial planning.

    Employment projections data for insurance sales agents, 2012-22

    Occupational

    Title

    SOC

    Code

    Employment,

    2012

    Projected Employment,

    2022

    Change, 2012-22

    Employment by

    IndustryPercent Numeric

    SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

    Similar OccupationsAbout this sectionThis table shows a list of occupations with job duties that are similar to those of insurance sales agents.

    OCCUPATION JOB DUTIES

    Advert is ing Sales Agents

    Advertising sales agents sell advertising space to businesses and individuals. They contact

    potential clients, make sales presentations, and maintain client accounts.

    Insurance Underwri ters

    Insurance underwriters decide whether to provide insurance and under what terms. They

    evaluate insurance applications and determine coverage amounts and premiums.

    http://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-similar-jobshttp://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-similar-jobshttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htmhttp://www.bls.gov/ooh/sales/advertising-sales-agents.htmhttp://www.bls.gov/ooh/sales/insurance-sales-agents.htm#TB_inline?height=325&width=325&inlineId=about-similar-jobs
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    OCCUPATION JOB DUTIES

    Personal Financial Advisors

    Personal financial advisors give financial advice to people. They help with investments, taxes,and insurance decisions.

    Real Estate Brokers and

    Sales A gents

    Real estate brokers and sales agents help clients buy, sell, and rent properties. Although broke

    and agents do similar work, brokers are licensed to manage their own real estate businesses.

    Sales agents must work with a real estate broker.

    Sales Managers

    Sales managers direct organizations' sales teams. They set sales goals, analyze data, and

    develop training programs for organizations sales representatives.

    Securi t ies, Commodit ies, and

    Financial Services Sales

    Agents

    Securities, commodities, and financial services sales agents connect buyers and sellers in

    financial markets. They sell securities to individuals, advise companies in search of investors, a

    conduct trades.

    Wholesale and Manufactur ing

    Sales Representatives

    Wholesale and manufacturing sales representatives sell goods for wholesalers or manufacturers

    to businesses, government agencies, and other organizations. They contact customers, explain

    product features, answer any questions that their customers may have, and negotiate prices.

    The Importance of an IndependentInsurance Agent

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    For the last two weeks we have been discussing different

    elements of a policy that affects a premium. We stressed that not all policies arewritten the same way even if the Dollar amountof coverage is the same and this, ofcourse, will affect the premium. Therefore, we determined that it was extremelyimportant to review the details or fine print of each coverage provided in the policy.However, how can busy consumers be expected to know and understand all the finerpoints of an insurance policy? You have enough on your plate without having tobecome an insurance expert too!

    This is where a good insurance agent or broker comes in. Imagine if you woke up with ahigh fever, nausea, an ugly rash, and a nose bleed. While you might look your symptomsup on the Internet to get an idea of what you had, would you go all the way to finding out

    what medicine you should take and then go to the pharmacy and buy it without everseeing a trained physician? Common sense screams No! A visit to your trusted doctoris a foregone conclusion. Likewise, you obviously should do your homework before youpurchase any insurance policy, but to do so without the advice and counsel of a trainedinsurance professional could lead to much heartache in the future.

    Remember that yourindependent insurance agentor broker is like your real estate

    agent or attorney. They work forYOU. Just like a realestate agentis the go-between between

    you, the buyer of real estate, and someone selling property, insurance agents and brokers are

    the go-between, between you and the various insurance companies to which they have access.

    Anybody can sell you a policy, butGOODinsurance agents and brokers are not there tomerely sell you an insurance policy. They should also provide you with sound adviceabout

    which of the many options is best for you and make sure that no gaps are left in your overall

    risk protection program. So when discussing insurance quotes with your agent or broker,

    discuss the entire quote including the details, not just the price. Always ask questions. Make

    sure you totally understand what you are buying before you buy it. Believe it or not, there is

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    casualty insurance. In most states, sales agents, in order to becomelicensed, must complete pre-licensing courses and pass state examinations.

    Advancement of Insurance Agents:

    An insurance agent with ability can advance into a management position,becoming, for example, a sales manager in a local office. Later on one canbecome an agency superintendent or land another executive position.

    Job Outlook for Insurance Agents:

    Employment of insurance agents is expected to grow as fast as the averagefor all occupations through 2018. Job candidates who are multi-lingual andthose who have a strong knowledge of relevant technical and legal terms willhave the best chance of getting hired.

    How Much Do Insurance Agents Earn?:

    Wage and salary insurance agents earned median annual earnings of$45,500 in 2009. Independant insurance agents earn only a commission,while insurance agents who work for an agency or carrier receive either asalary only, a salary plus commission or a salary plus bonus. Insuranceagents often receive benefits that include continuing education, training tohelp with licensing requirements, office space and clerical support.

    Use theSalary Wizardat Salary.com to find out how much insurance agents currently earn inyour city.

    A Day in an Insurance Agent's Life:

    On a typical day an insurance agent might perform some of the followingduties:

    prepare reports and maintain records;

    seek out new clients;

    in the event of a loss, help policyholders settle insurance claims;

    some may also offer their clients comprehensive financial planning services, such as

    retirement planning, estate planning, or assistance in setting up pension plans for businesses;

    THE ROLE OF THE INSURANCE PROFESSIONALToday, very few businesses or individuals have sufficient cash orfinancialreserves to protect themselvesagainst the hundreds of property and liability exposures that most businesses face. What those exposures are,

    what their dollar value is and how much protection is enough are thorny questions. When you add the need for

    an employee benefits program or the need to protect the business when its ownership or management

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    changes, the picture becomes increasingly complex. That is why an insurance agent is so important in helping

    you cover all the bases.

    Typically, the independent agent is a smallbusiness owner-manager. Insurance companies are representedby agents who receive a commission for selling the companies' products and services. An agent may represent

    more than one insurance company.

    The professional independent insurance agenthas been trained in risk analysis. He or she is familiar withthe insurance coverages and financial strategies available in your state and with the regulations that govern

    them. With this expertise, the agent can point out exposures you may overlook. He or she can suggest options

    from a vast menu of risk-management strategies and amend a basic policy by adding special coverages and

    endorsements. The resulting policy will be custom tailored to your business's unique protection needs.

    Your agent can also recommend noninsurance strategies to meet your needs. Where appropriate, he or she

    will suggest that youraccountant and attorneybe brought into the decision-making process to review thelegal and taximplications of suggested strategies.

    Other Services Insurers Provide

    You may not be aware of other services that insurance companies provide to policyholders:

    Legal defense -- Liability insurance(particularly for property damage and bodily injury) usually includes legaldefense at no additional charge when the policyholder is a party to a lawsuit that involves a claim covered by

    the policy. Litigation is costly, whether the claimant's suit is valid or ridiculous. The legal defense provision

    greatly reduces those costs to the policyholder.

    Rehabilitation -- Insurance companies that write a lot of workers' compensation insurance may provide

    access to extensive rehabilitation services. Generally, these services help returninjured workers to

    employment and, in some cases, may even help train the workers for a different job.

    Inspection services -- Many cities require businesses to conduct regular inspections of the steam boilers

    in commercial buildings. Boiler and machinery insurance policies not only protect against certain kinds

    of damages to energy equipment, but also provide for inspection by the insurance company's specialists.The insurance company issues a certificate of inspection to the policyholder as proof that the inspection

    requirement has been met.

    Loss control services -- Some commercial insurancepolicyholders may also qualify for consulting services

    of the insuring company's loss control (or engineering) department. This department is staffed with

    engineers and safety experts who specialize in inspecting business premises, identifying hazards, perils

    and possible trouble spots and recommending possible solutions.

    Claim management services -- Some commercial insurers provide claim management services that

    support the policyholder in loss analysis.

    INSURANCE CHECKLIST FOR SMALL BUSINESSES

    In addition to helping you identify, minimize and, in some instances, eliminate business risks, the checklist in

    Appendix A will help you strengthen your insurance program and will provide guidelines for discussions you

    should have with an insurance agent.

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    duties of insurance agent

    1. Marketing and Saleso Insurance sales agents and brokers are usually referred to as "producers" within the insurance

    industry. This means that theyare responsible for producing new business for the insurance

    company for which they work. In the case of a broker, this would mean producing business for multiple

    companies. In order to produce, most insurance agents are expected to market and sell the products theircompany offers to people who need them. This means that agents must find people with a need and fulfillit. This can usually be accomplished through networking with other business professionals, cold callmarketing efforts, buying mailing lists and sending correspondence to people, and through daily face-to-face encounters with the general public. Once they have identified a need, both agents and brokers areexpected to close business by meeting with clients and writing a policy on their behalf.

    Administrative Dutieso Insurance agents and brokers also perform various administrative dutiesand tasks. This is especially

    true for those that might be new to the industry and do not have their own administrative assistant orsecretary to perform these tasks for them. Administrative duties can include writing reports, completingcorrespondence with clients through letters or email, making phone calls to clients that may havequestions regarding their policies, and maintaining all of the pertinent records for their current clients.

    Along with maintaining client records, insurance agents and brokers have a legal duty to safeguard thatinformation so that it does not fall into the hands of someone who might use it in a malicious manner.

    o

    Learning Dutieso Insurance sales agents andbrokers have a duty to learn also. This means that they have a duty to their

    clients to learn as much about them as possible in order to provide them with adequate coverage to meettheir insurance needs. It also means learning as much about them as possible in order to protect the

    company the agent represents. For instance, agents selling life insurancepolicies must learn as much aspossible, within reason, about potential clients and their health so that they do not write a policy forsomeone who knows he is dying from a disease or condition. The same is true regarding health insurance.

    By not writing policies for those with obvious preexisting conditions, agents and brokers can save theirown company from undue financial loss.Sponsored Links

    Roles and responsibilitiesof an insurance agent.

    We all have sometime in our lives met insurance agents. These are the people who sellvarious insurance

    policiesto general public. I have noticed that many of us do not know what responsibilities of an insurance

    agent are and thus are not able to get services which we should be getting as customers from an insurance

    agent. Here I will be discussing the roles and responsibilitiesof an insurance agent. First of all let us discuss

    the roles. All insurance agents should have a valid IRDA license, which is renewed every three years.

    Role of an insurance agent

    Primary role of every insurance agent is of a seller of insurance products to potential customers.

    Provide good and unbiasedfinancial advicebased on their knowledge of the various products based after

    understanding the condition and requirement of the customer.

    Post sales help in caserequired by the customer.

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    Many agents just want to sell the policies which provide maximum benefits (as a commission) to them, thus

    keeping their self-interest above customer interest. Things are changing now and more and more insurance

    companies are projectingthemselves as customer centric firms with excellent insurance agents.

    What are responsibilities of an insurance agent? We already know that he has to explain the details of

    insurance products and help buythem. Let us look in some more detail:

    Understand the basic condition of the customerfamily size, income, savings, loans, etc. before going

    ahead and discussing policies. Several people will already have policies in that case an agent has

    to

    decide how much extra cover will be appropriate.

    Explain in detail the gamut of insurance policies available with the companybased on his understanding of

    the requirement of the customer. For example, if the customer cannot spend too much on insurance, but is

    interested in a cover, agent should explain term insurance policy to him.

    Most agents do not tell (or sometimes do not know themselves) the details of the insuranceproposal,

    especially the fine print. It is not always that the customer will ask queries as he may himself not be aware

    of it. It is responsibility of the agent to explain these finer points for the benefit of the customer.

    Agent should encourage that customer should provide as much detail as possible (medical history etc.) with

    accuracy. A few years ago when I was planning to take life insurance, one of the agents I met told me that

    with some extra money he can help in getting all my medical results favorable, I fired that agent and got the

    policy from another one.

    Another responsibility is to tell all pre-requisitesfor the policy detail to the customerwhat all

    documentation will be required, which proofs will be required, which medical testswill be needed etc. I have

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    noticed several agents making it sound very easy while signing up the policy and then asking customers for

    more details later.

    One important point agents miss is to tell the significance of nominationand who is the idealperson for

    nomination.

    The work of the agent does not finish with selling the policy. An ideal agent should also remind his

    customers about the policy premiumsso that the policy does not lapse

    If as a customer you feel your agent is not fulfilling any of the above responsibilities, it is your right to ask him

    so else fell free to change the agent himself.

    If an agent has to really make a mark as a good agent he has to make sure he is with the customer throughout

    the policy tenure. I have seen insurance agents helping in-case of policy problems and even in case of claims.

    Such agents really go a long way and are well respected.

    Role of an insurance broker

    Let us understand the role of an insurance broker. Mainly, the most important andcrucial role that a broker plays is to act as a consultant for the client and help inmanaging the insurance portfolio

    Assess / analyse clients risk profile Structuring of insurance program Market and negotiate program with insurers Policy administration Claims management Risk management services

    Provide regular updates on insurance

    IRDA writes new norms for insurance agents

    IRDA writes new norms for insurance agents Insurance Regulatory and Development

    Authority (IRDA) now wants a complete overhaul of the rule governing insurance agents.

    CNBC-TV18s Avni Raja reports that the insurance regulator is pushing for a change in

    rules so that insurance is sold as long-term products. 258 0 0Google +0 0 HDFC Life Term

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    Development Authority (IRDA) now wants a complete overhaul of the rule governinginsurance agents. CNBC-TV18s Avni Raja reports that the insurance regulator is pushing

    for a change in rules so that insurance is sold as long-term products. Insurance agents will

    now be bound by new rules laid down by the insurance regulator IRDA. The idea behind

    the regulations is to encourage investors to stay invested in the long-term. These rules are

    aimed at reducing the surrender rate and the number of policies that lapse. So what is the

    regulator proposing? If any agency's annual persistency ratio is less that 50%, the agency's

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