How To Become An Insurance Agent In Colorado
What Kind Of Agent Are You Going To Be?A majority of people who are applying for their insurance license have a plan in already in place of where they are going to use it. If you don't yet have a plan on how you will be using your insurance license, this is the place to start. Here are some of the questions that you should ask yourself:
- What type of insurance am I going to sell?
- Am I starting my own agency or working inside of an existing agency?
- It may depend on how your agency is set up to tell you what type of licenses you need to hold.
- What types of licenses does my company require me to hold?
How To Get Your Insurance License In Colorado
The first step in getting a Colorado insurance license is taking pre-license education courses. These are state required courses pertaining to the subject matter that will be on the license exam. To fill the pre-license requirement, you must complete a certain amount of credit hours depending on the lines of authority (types of licenses) you wish to attain.
The pre-license education requirements for each line are as follows:
- Life: 50 hours
- Health: 50 hours
- Property: 50 hours
- Casualty: 50 hours
You must also complete 10 hours in the following subjects once (not per line):
- Principals of Insurance: 3 hours
- Legal Concepts and Regulations: 4 hours
- Ethics: 3 hours
This means if you are going to get all four lines, you will need two hundred ten 210 hours of education prior to testing.
You will receive a certificate upon completion of the course. Keep this certificate, as you will need it when taking your exam.
Most applicants choose to take these courses online, as it fits their schedule better, but there are also in-person courses available. You should choose which format in which to take your courses based on your preferred method of learning. The goal isn't just to get the courses out of the way, it's to prepare you to pass your license exam on the first attempt.
Insurance License Exams
The next step after completing all of your pre-license coursework is to take the insurance exam. You will take one exam for each line of insurance you wish to carry. Life, Accident, & Health (LA&H) and Property & Casualty (P&C) are a total of four lines. Pearson Vue in Colorado offers these four exams in two "back to back" exams, so you will essentially take four tests, but if you pass them on your first try, you will only have to sit for exams twice. This option does not shorten the exams, but it does allow you to save the fee for one exam sitting.
You must pass your exams within one year of completing your pre-license education course. Colorado offers what is called "partial pass" for these exams. This means that if you take one of the exams and pass one part, but not the other, you will receive a waiver for the parts that you have passed on the next attempt at the exam.
This is a proctored test, which means that you will be in a controlled environment with a person watching you. For people who haven't tested in a situation like this should be aware of this fact, and work on taming their nerves prior to sitting for the exam.
The fee for each attempt of the exams is $48 for each "back to back producer exam" (P&C and LA&H). When you show up you must have a photo ID and the original pre-license education certificate. Each "back to back" exam will be four (4) parts. An outline of each exam is available on this Pearson Vue PDF.
To explain scoring of this exam, we will quote Pearson Vue,
Equating and Scaling
There are multiple versions of each of the licensing examinations. These versions are known as forms. Although all forms of an examination are developed based on the content outlines, the difficulty of the forms of an examination may vary slightly because different questions appear on each form. To ensure that no candidate is put at an unfair advantage or disadvantage due to the particular form of an examination that he or she is given, a statistical procedure known as equating is used to correct for differences in form difficulty.
For example, in an examination with two (2) forms, Form A and Form B, the state licensing agency determines that answering 30 questions correctly on Form A demonstrates the minimum amount of knowledge necessary to be licensed. It is further determined through the equating process that Form B contains slightly more difficult questions than Form A; therefore, answering 30 questions correctly on Form A would indicate the same level of knowledge as answering only 28 questions correctly on Form B. Under this set of circumstances, a score of 30 questions correct would be used as the passing score on Form A whereas a score of 28 questions correct would be used as the passing score on Form B.
A second statistical procedure known as scaling is used to derive the numerical score to report for each candidate. Scaling is used to place a raw score on a common reporting scale on which each scaled score represents a given level of knowledge regardless of the difficulty of the form on which the raw score was achieved.
To illustrate how scaling works, suppose that in the examination example used above, the state licensing agency decides to use a score of 500 as the passing score for reporting purposes. (Note that the score selected to be used as the reported passing score is not related to, and has no bearing on, the difficulty of the examination.) Based on the information provided above, a raw score of 30 on Form A would translate to a scaled score of 500; a raw score of 28 on Form B would also translate to a scaled score of 500 since a raw score of 30 on Form A represents the same level of knowledge as a raw score of 28 on Form B.
The passing score of an examination was set by the Division (in conjunction with Pearson VUE) after a comprehensive study was completed for each examination. Raw scores are converted into scaled scores that can range from 0 to 100. To avoid misuse of score information, numeric scores are only reported to failing candidates. The scaled score that is reported to you is neither the number of questions you answered correctly nor the percentage of questions you answered correctly. Any score below passing score indicates how close the candidate came to passing, rather than the actual number or percentage of questions the candidates answered correctly.
Check out our Insurance Exam Guide. It's extremely in-depth, and will hopefully help you pass the first time.
Insurance license tests are intentionally difficult, but not impossible by any means. You should study to the point of comfortability with the information before you attempt the test. Failing the exam isn't the end of the world, but keep in mind that you will need to pay the fee each time you attempt the test.
Note: StateRequirement recommends that you study for one exam at a time, then after passing, starting on your next line. The exams are difficult enough on their own without confusing information from one line to another.
You may register to take your exams and find more information on the Pearson Vue Colorado website.
Once you have completed your exams, you are now ready to apply for your license. If you have more than one line of authority that you have passed the exam for, be sure to apply for all of those lines.
The fee for an online application is $57 plus a $7 service fee for a total of $64 per line of authority. Even if you took your pre-license education and the "back to back" exams as combined lines, Property, Casualty, Life, and Accident & Health are counted as four (4) separate lines when applying.
Fill out your online application on the Sircon Colorado web page.
Once you have submitted your application and have filled all the other requirements, your license application will be reviewed by the state. Your background check will also be reviewed.
If everything is to acceptable standards your license should be issued within three (3) days. If there are any items from your background check that need to be reviewed, it may slow down the process of issuance. If this is the case, the state may contact you to provide context to the issues that they have run into.
You should receive an email informing you of your license acceptance. If three (3) days pass after submitting your application and you haven't received an email, contact the Colorado Insurance License Office at 303-894-7499.
You may look your license up yourself in the Sircon Colorado License Lookup Tool.
You've done the work, put in the time and effort, and now hold the key to your own success! We're proud of you. Take five (5) minutes and celebrate.
Information on this page has been gathered by a multitude of sources and was most recently updated in November 2018.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. Huge Hammer LLC and its members and affiliates are not responsible for any losses, monetary or otherwise. For more information, please contact your state's authority on insurance. Disclosure: StateRequirement has an affiliation with Kaplan Education company, and may receive compensation based on user activity on this site. We truly believe that Kaplan offers excellent products and services, and compliments the mission of StateRequirement.