Become an Agency Partner!

Frequently asked questions

Agency Partner Compensation
Becoming an Agency Partner
Operating as an Agency Partner
Common Questions

Agency Partner Compensation

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Are licensed insurance agents paid on commission?
Insurance agents are compensated by commissions they earn on the insurance policies they sell. In some cases, agents may be provided a salary depending on individual circumstances and place of employment.
How are insurance agents compensated for their work?
Although you do not pay an agent directly for their services, they receive a commission that represents a percentage of your insurance premium. Your agent is paid by the insurance carrier a set rate of commission based on your premiums.
How do insurance agents do their taxes?
Insurance agents who are independent/self-employed must pay self-employment taxes. Such taxes include Social Security and Medicare taxes. You can, however, save hundreds, maybe thousands of dollars in taxes by deducting allowable business expenses.
How much do property and casualty insurance agents make?
Annual salaries of Property and Casualty insurance agents varies by state with the highest annual salary reported by ZipRecruiter in New York at $58,671 per year. The lowest annual salary was listed (also by ZipRecruiter) in North Carolina at $36,120 annually.
How much does car insurance broker make on a policy?
The amount of money that insurance brokers make on car insurance is typically a set percentage of commission on the policy premiums. State regulations and type of coverages determine what they will receive. The percentage of commission typically lies somewhere between 2% to 8% of the policy premiums.
How rare is it for insurance agents to make 250k+ a year?
Finding an agent or broker who has hit the $250,000 yearly target is typically the insurance agent or commercial broker who has been in the business for a number of years and/or has written a policy(ies) for multi-million accounts. But it’s not impossible to see agents work their way up to a lucrative amount per year.
Is a career in Real Estate or Insurance more profitable?
The ability to excel and make a good living is possible whether you sell real estate or insurance. The primary difference between the two sales structures is the real estate transaction is complete after the sale is over. With insurance, you can continue to earn commissions with policy renewals and as long as you continue to service the client.
Is this a salaried position?
This is a performance based commission position, your compensation comes from new business and renewal commissions, because of the renewal commissions your compensation has a compounding effect. You are an entrepreneur running your own business/agency.
How often am I paid commissions?
You will be paid once a month every month on the 10th for the previous month.

Becoming an Agency Partner

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Can an MBA student become an insurance agent?
Most insurance companies do not require formal or graduate level degrees. But in many cases, a college level graduate may be preferred but bypassed for more favorable qualities.
Can someone simultaneously sell real estate and insurance?
Yes. You can sell real estate and insurance at the same time provided you are licensed in the state where you are located. Your clients will appreciate the convenience you provide and you will increase your chances of making commissions.
Can you get an insurance license if you have a misdemeanor?
The answer will depend on the specific type of misdemeanor that is on your record. Some misdemeanors can require that a waiting period be met before applying for an insurance license.
Do auto insurance companies check your marital status?
Several factors are included by insurance companies in determining your rates. They pull information from various sources to verify statements on your application, including your marital status. Providing inaccurate information may cause you to lose your coverage.
Do insurance companies check your background?
Yes. Insurance companies run background checks as part of their prescreening process for employment, including brokers and agents. This practice is important to prevent potential criminal activity.
How difficult is it to pass the license exams to be an insurance agent?
The key to successfully passing an insurance agent exam is to be prepared to take the test. The best way to prepare for the test in your state is to take an appropriate course, study the materials, be well rested, and have a positive attitude. The test includes questions on definitions, coverages, limits, risk management, and terms.
How can I become a licensed insurance agent?
Each state has its own requirements for obtaining an insurance license. How long it takes to become an agent will depend on the required number of hours for the appropriate course of study. This can take weeks or months depending on the study hours requirement from your state. You should also allow time to take your exam, background check completion, and getting your license.
How do I convince someone to become an Insurance Agent?
The decision to become an insurance agent should rest solely on the individual who may be interested on what this type of career has to offer. Becoming an agent will require dedication and time on the part of the individual agent and should be taken seriously.
How do I recruit the right person to be an insurance agent?
The “right” kind of individual to sell insurance is someone who likes to deal with people and can communicate easily with them. Agents will need to be able to listen to their clients and understand their needs to be successful.
How do you become an auto insurance agent?
Each state has its own education (study hours) and licensing requirements. You will need to pass an exam as well as a background check in your state. Check with the state your located in to determine what will be required of you.
How hard is the property and casualty insurance test to pass?
Like any insurance exam, the Property and Casualty licensing exam can be difficult to pass, especially the first time. You will need to prepare yourself with the proper course of study, appropriate amount of study time, and preparation to pass.
How long will it take me to get an insurance license?
How long it takes to get your insurance license to sell insurance will depend on the state where you are located. State licensing requirements vary as does the time it takes to complete any required hours of study, background and records checks, taking the exam, and other required procedures.
Should I get a Self-Background Check?
Performing a self-background check is a good idea to help you prepare for what information may be revealed to interested parties. Typically, your work and credit history are included along with your education and other relative information. By checking your background records ahead of time, you’ll be ready to answer any questions or fix any errors that might exist on your record.
Is being an insurance agent boring?
Insurance is about connecting with people. It’s about helping clients find solutions for their insurance needs. When they buy a new car, we’re there to help them. Or when they buy their home and need insurance, we’re there to find the right policy. So, although the movies might portray the insurance industry as boring, we think that we’re anything but boring! We find ourselves working along with our clients as they move through life and need insurance. We love connecting with our clients, meeting new people, answering referrals, and helping to make their lives a little easier.
Why do you need a license to sell insurance?
Each states regulates insurance licensing so you will need to reference the requirements of your state when seeking to obtain an insurance license. Licensing not only protects customers through agent tracking it also ensures the knowledge and expertise obtained by agents through the licensing process that includes study hours, an exam, and background check.
How long will it take before I can write business?
You will be able to write business and earn commissions within 5 business days of becoming an Agency Partner.
Do I need to have insurance sales experience for this?
No. Once you are able to pass State Insurance Licensing, we will help train and mentor you.

Operating as an Agency Partner

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Can I change the agent of the same insurance company?
You can change your insurance agent whenever you want if you remain with the same insurance carrier. If you choose to change insurance companies, you will need to cancel your policy and may be subject to fees for your cancellation.
How stressful is to be an insurance sales representative?
According to ZIPPIA, The Career Expert, the career of an insurance agent is not stressful. You have the flexibility of choosing the type of insurance you wish to sell and can be your own boss as an independent agent.
How can I get clients as an insurance agent?
The most common ways that insurance agents get clients is by networking with people that they interact with on a daily basis, referrals, partnering with other professionals, i.e. (real estate agents, CPAs, mortgage officers, etc.), out bound marketing and lead programs
How can insurance agents boost their insurance sales?
Network, network, network! Look for opportunities to sell within your neighborhood, community organizations, and through referrals. Join other networking groups and work with other business professionals to gain leads.
How difficult is it to sell insurance?
How well you do in selling insurance policies has a lot to do with your commitment and plan to be successful. Everyone needs insurance, so there is a client literally around every corner. Taking a positive and proactive approach to networking and joining professional organizations will make a huge difference.
How do car insurance companies check your background?
Insurance companies will have access to your driving records when you request a quote and provide your driver’s license and Social Security number. The information they are able to obtain includes any claims, accidents, tickets, and any other violations.
How do independent insurance agents enjoy their work?
Independent insurance agents enjoy helping people and finding solutions for their clients. Their primary responsibility to match their clients needs with the right insurance carriers is what drives their success.
What is it like to be an insurance agent nowadays?
Like any other rewarding career, the life of an insurance agent requires a positive outlook and lots of honest, hard work. Sales can be challenging but can be easily accomplished by connecting with potential clients, practicing the right networking habits, and a determination to succeed.
How many deals do insurance agents usually close per week?
The amount of business an insurance agent can write on a weekly basis will only be limited to the amount of time and devotion an insurance agent is willing to invest in their career/business. Other factors for success include networking and making regular connections with potential clients, marketing, and online availability.
How do I gain customers if I am a new insurance agent?
Specialize in an insurance industry niche to attract new customers to what you have to offer. Network and make new connections, market your business, create and nurture leads, and take advantage of all referrals.
What are challenges faced by independent insurance agents?
Today’s challenges faced by independent agents include finding new clients, renewing existing policies, following up on referrals, developing leads, providing customer service, and handling client expectations. Agents also need to be up on the aspects of selling online and staying abreast of what competitors are doing.
What is it like to run an insurance agency?
Running an insurance agency is similar to running other types of businesses. When you are self-employed, you have to balance income and expenses, find new business, and maintain existing customers. In the insurance agency, you will partner with insurance companies to offer the best products (policies) for your clients.
What will it take to reach my goal as an auto insurance agent?
To succeed as an auto insurance agent, you will need to establish your goals and stay focused on the business of achieving them. Such goals likely will include gaining new clients, maintaining and servicing your current book of business, following up on leads and referrals, and providing the best service possible.
What is the scope of work for an insurance agent?
Insurance agents are in the business of selling policies to their clients. They look for and seek out opportunities to sell insurance as they handle their book of business and clientele. Their responsibilities as a professional include handling new business, tracking claims, managing renewals of existing policies.
Why do insurance agents need CRM software?
Insurance agents who use CRM (customer relationship management) find it useful in managing their customer interactions and keeping track of service issues, leads, referrals, email communications, marketing campaigns, and other organizational tasks.
Which insurance companies do you work with?
Link to carriers.
Are there carrier production requirements?
Agency Partners with RELI Exchange do not have carrier production requirements. The requirements are satisfied at a platform level by the RELI Exchange Network.
Are there requirements on my production?
Nothing serious, your business partners (us, the carriers) and clients want to know you are active in your business. You will need to issue an average of 5 policies (minimum) on a monthly basis.
Do I have the ability to issue business?
You have direct binding authority with almost all carriers.
Will my agency name have to be RELI Exchange?
No, your agency name will be what you decide (for example, YOUR NAME AGENCY).
Can I contract with additional carriers outside of RELI?
Our agencies get direct access with all of our carrier partners, without production requirements. Our carrier partners allow this because our agencies write all of their business in partnership with RELI Exchange.
Who owns the business that I write?
Agency Partners have equity in their book of business in the form of contract value, because we are an exclusive platform the policies are in RELI Exchanges name.
Will I have any service support?
Yes. You will have access to an established back office to assist with service.
Will I have support with Marketing?
Yes. Marketing will work directly with a Sales Director who will be in this journey with you, advising you on best practices, prospecting, marketing and celebrating your successes!
Will there be training?
Yes. You will have a dedicated Sales Director with you through your entrepreneurial journey. In addition, you will be able to reach out to resource experts within the RELI Exchange Network.
What products will I be able to sell?
You will be able to sell all products you are licensed for. The main areas include Property (Home, Auto, Condo, Renter, Flood), Casualty (Auto, RV, Motorcycle, Boat), Life, Health, Umbrella and Business Insurance.
What is the number one reason people get into insurance?
Residual Income, our Agency Partner receive residual income on policies that pay a commission every time they renew.
How will I be able to keep track of my business?
Utilizing our technology platform, you will be able keep track of your prospects through the life of the sales cycle as well as their accounts using our management system.
Do I need to have an office location?
It is your decision; an office location is not required.
Do I need to have staff for my agency?
It is your decision, staff is not required.
Are there location limitations to where I can operate?
You are able to sell insurance in every state that you are licensed and RELI does business.

Common Questions

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Is one's insurance agent penalized if a client makes a claim?
Your agent’s book of business is rated on what is called a loss ratio. This loss ratio looks at the amount of premiums that are written versus the amount of claims. If an agent has a loss ratio that shows more is being paid in claims than premiums taken in, they may be subject to having their carrier contract revoked or suspended. So, although your one claim may not directly affect the agent, it can indirectly contribute to a loss of their bonus commission or result in a revoked carrier contract.
How many insurance agents are independent in the US?
According to the Independent Insurance Agents and Brokers of America’s (IIABA) 2020 Agency Universe Study, “there were an estimated 36,000 independent agencies in the United States in 2020.” This is the latest available data on independent agencies and represents just about what the count was in 2018, which was the previous study done by the IIABA.
What is a national producer code in insurance?
Assigned by the National Association of Insurance Commissioner’s (NAIC), the National Producer Number (NPN) identifies each individual producer. It is a unique code that is assigned during the licensing process and tracks individuals as well as businesses through the National Insurance Producer Registry.
What is the best company for insurance agent to work for?
There are many great insurance companies to work for. But if you are an independent agent, you’ll find that working with more than one carrier will help your clients get the best coverage options.
What is the future of insurance agents?
As long as there is a need for insurance, there will always be a need for the human connection to assist customers in choosing the best coverages for their situation. Although the future is unpredictable for many industries, people will continue to seek out the help of others to solve their problems.
Why are insurance agent jobs so in demand right now?
Agents help to provide new clients for insurance companies. Staying profitable in the insurance industry is predicated on these new customers entering the market to purchase coverages for their homes, cars, and personal belongings among other types of policies.
© 2022 Reli Exchange
RELI Exchange is a subsidiary of Reliance Global Group Inc.
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