The Basic Scoop on Life Insurance Continuing Education Credits
Life insurance agents play many roles in today’s business environment. They have their traditional role of selling policies that pay a death benefit. They also have many other skills. Those skills include pension plan set-up, estate planning, and retirement planning. All states require life insurance continuing education credits for bi-annual license renewal. CE is key to maintaining and building agent skills.
There has been resurgence in this field since the 2008′s economic slowdown. Before 2008, many companies were not actively recruiting new agents. They depended instead upon the internet, banks, financial advisers, and stockbrokers for sales. These painted whole life policies as inferior products. Clients were advised to purchase a cheap term policy and invest their savings in the stock market. The tables turned, however, when the stock market plunged. The inferior whole life policies retained value while other investments tanked.
As a result, many companies have begun to add agents to their rolls. Bankers, lawyers, real estate agents, and mortgage brokers are transitioning out of their old careers and into the life insurance industry. These new agents have to face many challenges. Only thirty percent of agents earn more than $35,000 by their second year in the field. By the fourth year, only twenty percent remain at all. By the sixth year, however, those who stay can find themselves earning up to and beyond the $100,000 mark.
Agents can take a wide variety of CE courses. Regulatory and firm element courses may include suitability and ethics, money laundering prevention, securities, topics in economics, and FINRA (Financial Industry Regulatory Authority) rules and regulations. Other courses may include distribution planning, annuities, and accelerated benefits. Agents can also study health savings accounts, Medicaid and Medicare, and health and benefits insurance. Each state has its own CE requirements. License renewal usually must occur biannually. Some states require as few as eighteen hours. Other states require as many as thirty. Each state’s department of insurance has authority over renewal requirements. Some states require specific coursework. For instance, nineteen states require consumer protection and ethics courses.
Continuing education requirements vary from state to state. Most require license renewal every two years. The number of continuing education hours can be as few as eighteen and as many as thirty. Requirements are decided by state departments of insurance. Some states require specific courses. For instance, nearly twenty states require ethics and consumer protection courses.
Choosing an education provider can be daunting. Agents have to do their own due diligence. A referral from a firm or colleague is helpful. Agents should make sure that the CE provider has experience and a good reputation. They should look for online, live, and textbook courses. The coursework should be approved nationwide and accredited by the state. Some firms reimburse employees for CE, and others require the agent to pay out-of-pocket.
Firms should take some crucial steps before enlisting a CE provider for their agents. They should make sure that the provider offers a variety of courses. These courses should cover all of a firm’s offered services. Courses could include CLU, ChFC, CPA, CIMA, and CFP credits. Large firms should hire a compliance specialist. Smaller firms can use a government-employed local compliance officer. A specialist should have Series 7, 24, and 63 licenses.
All agents in all states must complete life insurance continuing education requirements. Agents should research their state’s requirements and their CE provider before signing on for classes. Agents and their companies must make compliance for CE a high priority.
Maryland Insurance Continuing Education
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