How to Become an Independent Health Insurance Broker

Health insurance brokers are independent agents who are free to represent a variety of insurance carriers. Brokers frequently specialize either in the individual and family market or in the employer group market. Health insurance agents not only sell major medical coverage, but frequently sell other lines, too, including long-term care, long-term disability, short-term disability, dread disease coverage, vision and dental. Some agents also specialize in selling Medicare supplemental policies, or Medigap policies, to senior citizens.

Instructions

• 1

  Order study materials for your health insurance license exam. Textbooks and study materials are specific to your state, so providers vary. Two of the largest providers of health insurance license exam study materials are Kaplan University and American Investment Training, Inc.

• 2

  Enroll in required classes. Your state may require you to take a class in order to sit for the exam. You can obtain specific requirements by contacting the Office of Insurance Regulation or Office of the Insurance Commissioner in your state. You can generally choose to take the courses online or in a classroom setting.

• 3

  Pass the licensing exam. Many people do not pass the exam on the first try. Take the exam seriously and make sure you are prepared. If you fail the first time, many states make you wait a number of weeks before you can retake the exam.

• 4

  Contact insurers in your area and apply to be appointed to sell their products. You must be formally appointed with an insurance carrier in order to solicit for them.

• 5

  Purchase errors and omissions insurance coverage. This protects you in case a client sues you for misrepresenting a policy or mishandling documents. Many agencies require you to carry errors and omissions insurance. Look for a policy that contains language specifying that the insurance company has a "duty to defend" against allegations. This protects you against an insurance company settling on a case you could have won, leaving you with a black mark on your record.

• 6

  Attend carrier-specific training. Every carrier has unique products, underwriting practices, commission programs, incentives and bonuses. You must become familiar with all of them. Training may be in person or online or a combination of the two.

• 7

  Gather needed materials. You will need marketing and presentation materials and application forms for each carrier with whom you are appointed. Make sure the company compliance department approves any advertisements, fliers or sales material you develop yourself. Otherwise, use the marketing material the companies provide you.