Insurance Agent Forum

[DHK]

Okay, here's a poll for y'all.

In the State of California, it appears they're trying to find a new way to increase revenues for the state by splitting the L&H insurance license into 2 separate licenses: Life-Only & Accident & Health.

Along with this, is a change in CE requirements.

The old requirements were:
- Licensed from 1-4 years - 50 hours per license term
- Licensed from 5+ years - 30 hours per license term.

The NEW requirements are:
- 24 hours per license term.

This does make it easy to keep your license current with just certification CE courses - such as:
- annuities (8 hour certification then 4 hours ongoing),
- LTC (8 hours per license term),
- CA Partnership LTC (8 hours per license term)
- Ethics (4 hours per license term)

http://www.insurance.ca.gov/0200-ind...quirements.pdf

It is my personal opinion that this requirement is extremely LOW. Much more education should be required by anyone who considers themselves a professional in this industry.

This is one reason that I'm an RFC - the requirement to complete 40 hours of CE every year.

So, do you think states should mandate higher CE, or
Should they just get out of the way and let the "survival of the fittest" rule in our industry?

[GreenSky]

Originally Posted by DHK

It is my personal opinion that this requirement is extremely LOW. Much more education should be required by anyone who considers themselves a professional in this industry.

This is one reason that I'm an RFC - the requirement to complete 40 hours of CE every year.

So, do you think states should mandate higher CE, or
Should they just get out of the way and let the "survival of the fittest" rule in our industry?

By using WebCe, 30 hrs. of credit can be had for under $50. And unless you are an idiot, you can finish this stuff in about 2 hours.

If the CE was increased, then it might take 3-4 hours. I see little or no benefit from any CE requirements.

Good agents take the initiative to understand what they are doing. No amount of CE will take a dishonest or stupid person and turn that person into a professional.

Rick

[Mr. Bill]

Gosh, no kidding. And remember, it used to be (back when dinosaurs roamed the earth) that you had to park your butt in a classroom and be forced to sit there for the entire 40 hours. Nowadays, with everything accessible online, the state has simply made it easier for realtors and mortgage brokers to "get into the business" and mess things up!

[TXINSURANCE]

By using WebCe, 30 hrs. of credit can be had for under $50. And unless you are an idiot, you can finish this stuff in about 2 hours.

If the CE was increased, then it might take 3-4 hours. I see little or no benefit from any CE requirements.

Good agents take the initiative to understand what they are doing. No amount of CE will take a dishonest or stupid person and turn that person into a professional.

Agreed 100%.

If anything put the barrier to GET INTO THE BUSINESS higher (hey job security...) to keep the slime balls OUT.

The CE is complete junk and a waste of my time and money. I have to take some online classes to learn about Annuities, Medicare, and Universal Life Insurance - when ALL I sell is Health Insurance?

Interestingly enough Health Insurance (individual) is such a small part of CE - yet somehow now that I know about annuities I will be a much better health agent? OK Sure...

Just another way for someone to get my $50 and serve no purpose. Part of the game I suppose... 3 hours of my life every 2 years, it could be worse...

[al3]

Here is my theory for breaking out the health from the life license.

There is a plan on the drawing boards to be voted on by the CA state Senate (already passed by the Assembly) that will "give" GI health to individuals. One of the wrinkles is that the carriers can only spend 15% on admin cost... 85% must be paid out.

I think a deal was made.

The carriers saw this coming... and realized they will need an army of new agents. But higher-educated agents (able to pass the current exam) would not work for the the low commission that could be paid. The carriers would need low-paid agents to sell their GI products.... since current agents will probably leave the health sector and go into life or something else.

The carriers will need to recruit less-educated agents who won't demand 20% but will be happy at 5%. These less-educated people will be able to "ace" the license exam and get to work ASAP... less time needed to study and the exam will be watered-down.

If you are tossing tortias as Taco Bell, becoming a white-collar "insurance agent" sounds quite good... perhaps a step up the ladder of success?

Yeah, I know it sounds like a conspiracy theory... but I spent a few years with Blue Shield of CA in 1975 (I met my wife there... she was an admin to one of the VPs) and I learned a lot (at a young age) about how closely the large carriers work with legislative and regulatory staff.

No crime committed here and nothing unethical either but I think there was a deal. YMMV.

Al

[TXINSURANCE]

One of the wrinkles is that the carriers can only spend 15% on admin cost... 85% must be paid out.

I see CA commissions going to 0% real soon.

This could spread like wildfire also.

[Mr. Bill]

Let's face it, the exam is pretty much a joke as it is, otherwise you wouldn't have every washed up realtor and mortgage broker getting their insurance license and joining World Financial Group.

The "barriers to entry" should INCREASE, not decrease!

[Mr. Bill]

Oh, and one way to make it really tough would be for the state to charge about $2,499 for the initial license and $800 per year for annual licensing (just like a corporation). What d'ya think about that? Think of all those "parked" licenseees that would go away...

[salpro22]

Originally Posted by al3

Here is my theory for breaking out the health from the life license.

There is a plan on the drawing boards to be voted on by the CA state Senate (already passed by the Assembly) that will "give" GI health to individuals. One of the wrinkles is that the carriers can only spend 15% on admin cost... 85% must be paid out.

I think a deal was made.

The carriers saw this coming... and realized they will need an army of new agents. But higher-educated agents (able to pass the current exam) would not work for the the low commission that could be paid. The carriers would need low-paid agents to sell their GI products.... since current agents will probably leave the health sector and go into life or something else.

The carriers will need to recruit less-educated agents who won't demand 20% but will be happy at 5%. These less-educated people will be able to "ace" the license exam and get to work ASAP... less time needed to study and the exam will be watered-down.

If you are tossing tortias as Taco Bell, becoming a white-collar "insurance agent" sounds quite good... perhaps a step up the ladder of success?

Yeah, I know it sounds like a conspiracy theory... but I spent a few years with Blue Shield of CA in 1975 (I met my wife there... she was an admin to one of the VPs) and I learned a lot (at a young age) about how closely the large carriers work with legislative and regulatory staff.

No crime committed here and nothing unethical either but I think there was a deal. YMMV.

Al

GI plans at 5%. Sign me up. That is like shooting fish in a barrel. I receive $100 for every MHIP application I sell, so anything above $167 a month is worthless from a financial perspective. I'd focus on that if I were you by finding people who have been declined by insurance carriers and don't know what do. Cross sell them a quality accident plan and CI if available and the numbers get better.

[BKrocko]

Originally Posted by DHK

- Ethics (4 hours per license term)

http://www.insurance.ca.gov/0200-ind...quirements.pdf

It is my personal opinion that this requirement is extremely LOW. Much more education should be required by anyone who considers themselves a professional in this industry.



So, do you think states should mandate higher CE, or
Should they just get out of the way and let the "survival of the fittest" rule in our industry?

I have to laugh - seems like every state requires a CE course in Ethics.

I was finishing up Grad School back in the mid 80's - about the time "Wall Street" and "Greed is Good" became fashionable. There was a huge scramble to require all students (Undergrad and Grad) to complete a semester in an Ethics course.

I never really understood that - either you have 'em or you don't. If you have not learned and practiced ethical behavior by the time you are a young adult, it's a lost cause. Taking a course in them is not going to change which course of action you choose to pursue.

Tongue 'n' cheek - I think that NAA was behind the push to require only a Life License and Mega was behind the Health/Accident portion. I'm sure they both fought very hard to get rid of the Ethics requirement.

[STIBROKER@AUSTIN.RR.COM]

Man I will be glad when I do not have to do this anymore...

[TXINSURANCE]

man I will be glad when I do not have to do this anymore...

What is it 20 years in Texas?

[salpro22]

Originally Posted by BKrocko

I have to laugh - seems like every state requires a CE course in Ethics.

I was finishing up Grad School back in the mid 80's - about the time "Wall Street" and "Greed is Good" became fashionable. There was a huge scramble to require all students (Undergrad and Grad) to complete a semester in an Ethics course.

I never really understood that - either you have 'em or you don't. If you have not learned and practiced ethical behavior by the time you are a young adult, it's a lost cause. Taking a course in them is not going to change which course of action you choose to pursue.

Tongue 'n' cheek - I think that NAA was behind the push to require only a Life License and Mega was behind the Health/Accident portion. I'm sure they both fought very hard to get rid of the Ethics requirement.

Quite true, but it makes some people feel all warm and fuzzy when we have to refresh our ethics foundation. The license regulations for agents are a joke.

[STIBROKER@AUSTIN.RR.COM]

In your 21 first year you apply with tdi to get your grandfather cert. then no more of this BS....only 8 more years for me.....

Originally Posted by TXINSURANCE

What is it 20 years in Texas?

[Bhains Insurance Broker]

Well every state has their different requirements. Nevada, where i'm in, is a great example. Due to the high "transience" in Las Vegas and other major cities in Nevada, the department of insurance requires an 80% to pass all examinations. Only those with determination & willingness pass and let me tell you, it wasn't easy for me.

[Mr. Bill]

Not sure what you mean. All it took was some $$$ for me to get a non-resident NV license.