Search CompleteMarkets

Preparing Insurance CRM for AI Agents With Better Data Integration
A policyholder opens a chat on an insurer's website with a simple question: whether a water damage claim has been approved, and whether the premium will rise at renewal. The AI agent on the other end greets the customer by name, confirms the policy number, and then stalls. It can see the contact record, recent emails, and a marketing preference. It cannot see the claim status, the adjuster's notes, the billing schedule, or the renewal rating. After three polite deflections, it offers to transfer the customer to a person. That exchange shows the risk carriers face as insurance CRM software is repositioned as the home for AI agents. Vendors now embed agents directly into CRM platforms, and the pitch is compelling: automated service, faster quotes, and always-on support for agents and brokers. In insurance, though, the answers customers need rarely sit in the CRM. They sit in policy administration, billing, and claims systems. Carriers that deploy agents without connecting those systems will get agents that can talk but cannot help. Core-to-CRM integration, more than the CRM license, decides the return. Why CRM Became the Home for AI Agents The move is easy to understand. CRM platforms already hold customer identities, interaction histories, and service workflows. They sit where conversations happen: web chat, email, contact centers, and agent portals. Adding AI agents there seems natural. Enterprise software is moving fast in this direction. Gartner predicts that 40% of enterprise applications will include task-specific AI agents by the end of 2026, up from less than 5% in 2025. CRM vendors are among the most active, bundling agent builders, prompt tools, and pre-built service agents into their platforms. For CRM for insurance companies, this creates pressure to act. Leaders see competitors announce AI service assistants and want to follow. The fastest path looks like switching on the agent features already included in the CRM license. What Data Do AI Agents Need to Answer Insurance Questions? Insurance AI agents need current coverage details, deductibles, billing status, claims information, and policy change data. Much of this information remains in core insurance systems rather than the CRM, making reliable integration essential. Insurance customer questions follow a clear pattern. Most fall into a few groups: Coverage: whether a specific loss is covered, what the deductible is, and whether rental car coverage applies. Billing: when the next payment is due, why the premium changed, and whether a payment went through. Claims: the status of an open claim, when payment will arrive, and which documents are still needed. Changes: adding a driver, raising limits, or updating an address, and what each change would cost. Answering any of these requires data from core systems. Coverage details, endorsements, and deductibles live in the policy administration system. Payment schedules and balances live in billing. Claim status, reserves, and adjuster notes live in claims. Rating logic for a proposed change lives in the rating engine. Most insurance CRM systems hold only a partial copy of this data... batch may push a policy summary into the CRM, but it often lacks endorsements, current balances, or claim details. An AI agent reading that summary may give an answer that was correct yesterday and wrong today. What Happens When Agents Cannot See Core Data Agents without core-system access may handle greetings and routing but struggle with substantive customer requests. They can also provide outdated or incorrect answers when they rely on partial CRM data, creating service, compliance, and trust issues. Deflection instead of resolution. The agent handles greetings and simple routing, then hands off to a person for anything substantive. Contact volumes do not fall, and customers experience an extra step before they reach help. Wrong answers. If the agent relies on stale or partial data, it may confirm coverage that was removed at the last renewal or quote a balance that has changed. In insurance, a wrong answer about coverage or claims can create complaints, disputes, and regulatory exposure. Compliance risk. AI governance rules are spreading across U.S. insurance regulation. The NAIC AI Model Bulletin adoption map shows 26 jurisdictions had adopted the bulletin as of August 2026, with California, Colorado, New York, and Texas under their own insurance-specific rules. Insurers must be able to explain how AI systems affect consumers and show that they are tested and monitored. An agent drawing on incomplete data is hard to defend. Lost trust. how AI sys How Does Core-to-CRM Integration Improve AI Agent Performance? The value of an AI agent in insurance depends on what it can see and what it can do. Integration determines both. A well-integrated agent can read the current policy, including endorsements and coverages. It can check billing status in real time, see open claims with their latest status, and trigger defined actions such as sending a payment link, requesting a document, or starting a policy change. The CRM becomes the conversation layer, while the core systems remain the source of truth. This shifts where the investment should go. The CRM license and agent features are one part of the cost. The larger and more important part is building reliable, governed connections between the CRM and the core systems. That work includes: Real-time APIs for policy, billing, and claims lookups, with clear performance targets. A shared customer and policy identity across systems, so the agent retrieves the right records. Event feeds that push key changes, such as a new claim or a missed payment, into the CRM as they happen. Permission rules that control which data each agent, user, and channel may access. Action services that let agents perform approved tasks, with every action logged. How Should Insurers Build an AI-Ready CRM Integration Strategy? Insurers should begin with the highest-volume customer questions and map the data required to answer each one accurately. They can then establish secure read access, introduce low-risk actions, define human handoffs, and expand based on measured results. Pick the top questions. Review contact center logs and agent inquiries to find the five to ten questions that drive the most volume. Map the data each question needs. For each question, list the fields and systems required to answer it accurately. Build read access first. Connect the agent to the needed policy, billing, and claims data through secure APIs before adding any actions. Add simple actions. Start with low-risk tasks such as sending documents, resending payment links, or scheduling callbacks. Set clear handoff rules. Define when the agent must transfer to a person, such as coverage disputes, complaints, or large claims. Test with real scenarios. Run the agent against recorded customer questions and check every answer against the core system. Monitor and expand. Track accuracy, resolution, and handoff rates, then add new questions and actions based on results. This approach keeps the first release narrow and reliable, which matters because early failures shape how customers and staff view the tool. It also builds the integration layer that later agents and use cases will reuse. What Are the Most Common Insurance CRM Integration Pitfalls? Common challenges include relying on copied data, mismatched customer identities, legacy systems, slow API responses, and treating integration as a one-time project. Addressing these issues requires current data connections, clear performance targets, ongoing ownership, and monitoring. Copying data instead of connecting to it. Replicating policy and claims data into the CRM creates a second version of the truth that drifts out of date. Live lookups through APIs keep answers current. Ignoring identity mismatches. A customer may have several policies under slightly different names or addresses. Without a reliable link between CRM contacts and policy records, the agent may pull the wrong policy. Underestimating legacy constraints. Older policy and claims systems may not expose modern APIs. An integration layer or middleware service often has to wrap them first. Skipping performance targets. A chat agent that waits eight seconds for a billing lookup feels broken. Set response-time goals for every connected service. Treating integration as a one-time project. Products, systems, and regulations change. Integration needs an owner, monitoring, and a budget after launch. A representative mid-size carrier that plans for these issues might release a first agent covering billing and claim status questions within a few months, then add coverage and policy change questions once the policy system connection is stable. What to Look for in Insurance CRM Software When evaluating insurance CRM software for an agent-ready future, look beyond the CRM features themselves. The following questions help separate options: Does the CRM offer pre-built connectors or data models for policy, billing, and claims? Can it call core system APIs in real time from within an agent's workflow? How does it manage customer and policy identity across systems? What controls exist for data access by channel, user role, and agent? How are agent actions logged and audited? Can the carrier test and monitor agent answers against source data? CRM for insurance agents and brokers needs the same foundations. Producers want quick access to client coverage, renewal dates, claims history, and open service requests. An assistant that can answer those questions accurately saves producers time and improves client conversations. Governance and Security Connecting AI agents to core data raises the bar for governance. Carriers should document each agent's purpose, data sources, allowed actions, and handoff rules. They should test agents for accuracy and fairness before launch and monitor them after. Security controls matter as much as model quality. Personal and financial data must be protected in transit and at rest, and access should follow the principle of least privilege. State insurance data security laws, many based on the NAIC Insurance Data Security Model Law, require risk assessments and incident response plans that should cover AI agents and their integrations. Keep humans in the loop for consequential decisions. An agent may explain claim status, but coverage determinations and claim denials should stay with licensed staff. How Should Insurers Measure the Success of AI Agents in CRM? Useful measures for AI agents in insurance CRM include: Resolution rate: the share of conversations resolved without a handoff. Answer accuracy: the share of sampled answers that match core system data. Handoff quality: whether transferred conversations arrive with full context. Customer satisfaction: ratings after agent conversations, compared with human-handled ones. Contact volume: changes in calls and emails for the questions the agent covers. Track these measures from the first release. They show whether integration is paying off and where the next investment should go. Break each measure down by question type, since an agent may resolve billing questions well while still handing off most coverage questions. That pattern usually points to a missing data connection rather than a weak model, and it tells the integration team exactly which system to connect next. Insurance CRM software is becoming the home for AI agents, but agents create value only when they can see coverage, billing status, and open claims. Carriers that invest in core-to-CRM integration, starting with the highest-volume questions, will get agents that resolve issues instead of deflecting them. Find an insurance CRM software built for carriers and agencies that need client, policy, and service data in one place. As more insurers switch on AI agents, the ones that see real returns will be those that connected the data first. Sources: Gartner, Gartner Predicts 40% of Enterprise Apps Will Feature Task-Specific AI Agents by 2026, https://www.gartner.com/en/newsroom/press-releases/2025-08-26-gartner-predicts-40-percent-of-enterprise-apps-will-feature-task-specific-ai-agents-by-2026-up-from-less-than-5-percent-in-2025 (2025) NAIC, Implementation of NAIC Model Bulletin: Use of Artificial Intelligence Systems by Insurers, https://content.naic.org/sites/default/files/legal-adoption-map-ai-model-bulletin.pdf (2026) Deloitte, 2026 Global Insurance Outlook, https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/insurance-industry-outlook.html (2025)

$50 Million Life Insurance Sales Starts With P/C Agents
$50 MILLION LIFE INSURANCE SALES STARTS WITH P/C AGENTS Life agents can learn much from the following Life case written by a mother-daughter team. It all started, the agents said, when another agent failed to return to a client as promised, to convert a Term policy. Upset, the client called his P/C agent who in turn called the Life agents he worked with. Together they met with the client and converted his Term insurance. They also identified the need for Second-To-Die insurance, and the client agreed to buy it. The agents then asked about the client's father, a man of considerable wealth who, they learned, carried only $750,000 on his life. His son felt that at least $50 million was needed, and the agents presented a plan of combined permanent and term amounting to $50 million to be written by six companies. The father and son told the agents to call two weeks later for their decision. When they called, the prospects agreed to buy the proposed insurance. But the story doesn't end there. The father's medical examination revealed a prostate problem, so all the carriers declined the case. What would you do? The agents called one of the underwriters for advice on getting these policies issued. The underwriter suggested getting the prostate-specific antigen levels down by having the father drink plenty of water. The creative agents, Judith Panos, CLU, and Debra Franklin, CFP, of Livingston, NJ, called the son, other family members, and the applicant's secretaries, instructing them all to bring him water continuously. Another examination a week later found his antigen levels within a normal range. All six carriers agreed to proceed with underwriting. Still, there were bumps in the road that had to be smoothed. Prior to submitting the apps, the agents had arranged with the six underwriters to coordinate their efforts. Although working independently, they freely shared information. Once one of the major companies approved the case, the others would follow. 'We thought we had the ball over the goal line,' the agents stated, 'until the case got to the issue department. They wanted additional financial information.' The client resisted, unwilling to release this kind of information, especially to six different companies. Gridlock. The problem was solved by getting the companies to agree that if the lead company was satisfied with the financial information, the others would also issue. The client agreed to fax the additional financial information to the lead carrier. Five minutes after the fax was received, that carrier called the agents to say that it was satisfied. All the carriers now approved the case. The agents delivered $30 million of permanent and $20 million of term insurance. They also illustrated how the client could convert the term in four years. When the client bought the original $50 million of coverage, the agents report, he had figured on converting and in his mind would be spending $22,747,295. But the question of converting the term arose. Fortunately, the major carrier offered a credit for the prior year's term premium towards the purchase of a permanent policy, meaning that they didn't have to wait until the fourth year to act. They considered the benefits of converting now. The term premium in 1991 was $159,538, to be paid semi-annually. The major carrier agreed not only to give credit of $159,000, but offered an additional credit of the semi-annual premium that had just been sent in. 'By converting the $10 million of insurance, [the client] would pay $132,252,' the agents explained. But the real impact, they added, was on the overall premium. Instead of spending $22,747,195, his overall premium went down to $21,646,743, a savings of over $1.1 million with $40 million of permanent Life insurance. 'How could he resist?' they asked. The next step, the agents noted, was to convert the final $10 million of term. That was recently done, completing the total package of $50 million of permanent coverage. In addition, the agents reported, during the last three years of working with this client, they were also able to close cases on relatives, key employees, and their families. One of the secretaries came from a very wealthy family, and covering her insurance needs generated premiums in the five-figure range. 'Our next step,' the agents conclude, 'is to find another client like this one.' The question is: How many similar cases are in your client list waiting to be seen? Remember, this case started with a phone call to a P/C agency, triggered by an outside Life agent who had slipped up. You shouldn't wait for such calls. Actively seek to find similar situations by constantly putting out feelers for them. If this client had been your P/C insured, what would have happened?...

Insurance Agent/Broker Licensing
INSURANCE AGENT/BROKER LICENSING by Marcus Ramsey Growing your agency's business might require you to obtain licenses in other states. Most experienced agents/brokers comprehend and are willing to do what it takes to ensure that the commercial side of the transaction succeeds. However, some seem to forget all this hard work is wasted if project planning fails to allow adequate time to obtain proper licensing in the target state(s). 'Ramsey's Rules' outlined below will direct you toward obtaining and maintaining proper licenses to help your new venture prosper. (I assume that anyone who reads this article already holds insurance licenses in one or more states but needs (at least one) additional license in another state to take advantage of a business opportunity. RAMSEY'S RULE #1: NEVER RELY SOLELY ON THE FREELY GIVEN ADVICE OF OTHERS. I am constantly reminded of the number of intelligent, thoughtful agency executives who for all intents and purposes jeopardize their business by accepting half-baked advice from someone they would not trust with their car and daughter on prom night. Obtaining the licensing information as the first step of your new project/program (not your third, 15th or 23rd step). How do you go about obtaining this information? Contact the agent licensing section of the department of insurance of the target state and request a copy of its agent/broker license instructions and application forms (see the State Insurance Department Directory in back). Most states have their own specific, easy-to-follow instructions on the licensing process. Get this packet and quickly read through it even if you intend to delegate the project of obtaining the license to a member of your staff or retain a consultant or licensing service. In fact, reading over the instructions will give you a good idea of the time and effort involved in obtaining the necessary license and whether you or a staff member will have the time to prepare, file, and follow up on license issuance within the time constraints you are working under. You should consider retaining outside assistance when you plan to seek licenses in several states at the same time. Be sure that whoever is going to do this work can focus the necessary attention on the project to complete it as quickly as possible. RAMSEY'S RULE #2: IF SOMEBODY ELSE IS DOING THE WORK FOR YOU, MAKE SURE YOU KNOW AT LEAST GENERALLY WHAT IS INVOLVED, REQUIRE PERIODIC PROGRESS REPORTS, AND QUESTION ANYTHING THAT SEEMS WRONG TO YOU. Remember, it is YOUR business and you had better look out for its best interests unless you are looking for a career change. RAMSEY'S RULE #3: RELATE THE LICENSING REQUIREMENTS TO YOUR ACTUAL BUSINESS SITUATION. Clearly define how you intend to operate and identify the key points to be covered in licensing. Licensing services and consultants who do licensing work usually ask the client to complete a form which requests most of the information contained on state application forms. This information is then typed onto the appropriate state forms and returned to the client for rechecking, signature, and attachment of the proper fees. The problem with this approach is that planned operations might not match license authorization. That can mean trouble later, unless someone is willing to take a couple of extra minutes to be sure everything is right. The answer to simple questions such as, 'Will you write Life/Disability or Property/Casualty coverages or both?' and 'Do you intend to open an office in the target state or do you plan to operate from your existing office?' will help define the types of licenses needed. Whether you intend to conduct business as an individual, partnership, or corporation can have a direct bearing on whether a license can be obtained for that entity (a few states, such as Alabama, issue nonresident licenses only to individuals, not to partnerships or corporations). If you are seeking a license for a corporation, make sure that an application for individual licenses are also filed. When you receive an approval, make sure you have approval for the corporation and all individual transactors. By carefully outlining how operations will be conducted, you can dictate whether you need to seek licensure as an agent, broker, managing general agency, surplus line broker, etc. Sometimes you find that you do not need to obtain a license in another state. For example, some states, such as California, do not require nonresidents to obtain a license to insure risks with incidental exposures in the state as long as the unlicensed nonresident does not enter the state to solicit, service, or inspect the entities insured; However, other states, such a Texas, do require nonresidents to be licensed under the same circumstances. Keep in mind that 'entering' the state may include obtaining information by mail and telephone as well as physical presence inside the state. Also, many states will not issue a surplus line broker's license to a nonresident except in connection with a risk retention group. If your activities will involve related services by the same or by one or more related entities, such as a third-party administrator or claims adjuster, check to see if those activities require licensing as well and, if they are, be sure that those licenses are obtained as well for the corporations and all individuals involved. 'FC&S Bulletins' published by the National Underwriter Company and the 'State Licensing Requirements Guide' published by Pictorial, Inc. offer helpful summaries of state licensing procedures and provide invaluable overviews of each state's licensing and continuing education requirements. Even if someone else is going to do the licensing work for you, you should at least review the state's overview/summary. RAMSEY'S RULE #4: OBTAIN AND REVIEW EACH STATE'S INSURANCE CODE. If someone else will actually do the licensing work for you, it may be enough for you to review a state overview or summary during the application process. However, the individual handling the licensing work for you MUST obtain and review all applicable sections of the target state's insurance code. Once the license has been obtained, you will need access to a copy of the state insurance code, regulations, and bulletins. How can you obtain another state's insurance code? Some state departments of insurance sell or can refer you to a source for a relatively inexpensive copy of the state insurance code, the department's regulations, and the department's bulletins. Otherwise, contact the National Insurance Law Service (NILS) or another law book publisher. If you are comfortable 'surfing the net,' you will find pricey but instant access to on-line law libraries on the Internet. Another possible source is the law library maintained by a local bar association or a nearby law school. RAMSEY'S RULE #5: IF THE WORK NECESSARY TO OBTAIN THE LICENSE(S) SEEMS TOO EASY OR QUICK, YOU ARE PROBABLY ON THE WRONG TRACK. This sounds cynical, but the people who drafted agent/broker licensing laws and regulations never considered whether the requirements being adopted would make it easier for the agent/broker to make a living. Just filling out the forms won't suffice. Most states require that you provide a copy of your license certified by your home state insurance department. If you are seeking licenses for a corporation, you probably will also need to obtain a copy of the articles of incorporation and/or certificate of good standing certified by your home state's Secretary of State. As a rule of thumb, it takes 30 to 60 days to gather all the information necessary to file the application. Once the application has been filed, don't expect to receive the approval by return mail: approval time frames of 60 to 90 days or even longer are not uncommon in certain states for certain types of licenses. Because the licensing process can be terribly slow (even when the process moves quickly, it is very slow), you need to begin as soon as possible. Since you cannot start writing the program/account until you have the necessary licenses, processing delays may push you beyond your frustration tolerance level. However, all you can do is relax, breathe deeply, and try to make sure that you aren't the reason for the delay. Keep the ball in the department's court by making certain the application and any required supplemental information are complete in every respect. Many states will simply return an incomplete application without action. Once the application and all necessary supplements have been submitted, your application will be 'ripened' according to the season of the year in a big pile of similar forms. Discount any claims by license services or consultants that they can obtain the license you need significantly faster than anyone else on earth. To deliver on such a promise, it would be necessary to overcome the Universal Laws of Orderly Bureaucratic Work Flow and Form Processing. While occasional triumphs over this inertia have been reported, they are rarely confirmed by reliable sources or any documented evidence. Only a complete application will allow unimpeded progress step to step. Again, if you make it your business to know generally what's involved in obtaining the license(s) you need and if you monitor activities through periodic progress reports, you should be able to assess the quality and timeliness of the work being done on your behalf. RAMSEY'S RULE #6: ONCE YOU OBTAIN THE NECESSARY LICENSE, KEEP IT CURRENT TO AVOID REPEATING THE RIGMAROLE. You should apply this rule to all licenses, permits, and/or corporate authorizations held. For example, don't assume that meeting your home state's continuing education requirements will be sufficient to retain the license(s) obtained from other states. If your home state does not have a continuing education requirement, you will probably need to meet the continuing education requirements for each state in which you are licensed. Also, maintaining corporate authority usually requires making one or two filings each year. Make sure that you, your attorney, a consultant you have retained, or someone on your staff is assigned to monitor and ensure that all requirements are met when due, that all necessary filings are made in a timely manner. Demand that your files be clearly documented to show what must be done, what has been done, when it was done, who received copies, the check number, the date, the amount of any fees paid, etc. In summary, obtaining agent/broker licenses in new states can sometimes be a frustrating, humbling, time-consuming exercise which is nonetheless a necessary part of an agent/broker's success. In many ways, producer licensing is a lot like building a campfire: In the warmth of the glow, one can scarcely remember gathering the wood. STATE INSURANCE DEPARTMENT DIRECTORY Alabama, 135 S. Union St., Montgomery, AL 36130, (205) 269-3570 Alaska, P.O. Box 110805, Juneau, AK 99811, (907) 465-2515 Arizona, 2910 N. 44th St., #210 Phoenix, AZ 85018, (602) 912-8466 Arkansas, 1123 University Ave., #400 Little Rock, AR 72204, (501) 686-2900 California, 700 L St., 4th Floor, Sacramento, CA 95814, (916) 322-3555 Colorado, 1560 Broadway, #850, Denver, CO 80202, (303) 894-7499 Connecticut, P.O. Box 816, Hartford, CT 06142, (203) 297-3800 Delaware, 841 Silver Lake Blvd., Dover, DE 19901, (302) 739-4251 Dist of Columbia...) 266-8699 Wyoming, 122 W. 25th St., Cheyenne, WY 82002, (307) 777-7401 This article was written by Marcus Ramsey, CPCU, principal of Ramsey Consulting Services, 14026 Donart Drive, Poway, CA 92064, (619) 748-6315.

6 Tips For Succeeding As An Insurance Agent
How do you become an insurance agent? How do you get clients? Do you need to be educated in order to sell insurance? Do you need to know about Instagram Ads? These are all questions that many potential insurance agents have, but they shouldn't stop them from getting into the industry. With the right attitude and some helpful advice, you can succeed as an insurance agent regardless of your experience or lack thereof. Here are six tips that will get you started on the path toward success as an insurance agent. 1) Invite your friends and family As with many new professions, it helps to have a few people who are familiar with your work know what you're doing and who you're doing it for. It's especially helpful when they have a vested interest in your success (like family members). Make sure they know that you can do a good job representing them—and make sure they know how. Invite everyone you know to a grand opening party or event; give them free tickets to something big; ask their opinions about making key decisions. Let them feel like part of your team and part of your project. And don't be afraid to advertise—word-of-mouth is still one of the best ways people hear about new business ventures. 2) Have a good digital footprint Before you can even think about finding clients, you need to have a website. Your insurance website should include information about your background and history, describe your professional accomplishments, display your educational and certification credentials, provide a list of other satisfied customers, and direct potential clients to contact you with any questions they may have. Make sure it's mobile-responsive so people can find you on their phones. You also need a LinkedIn profile that includes links to your website and Twitter account. Update your digital footprint regularly—don't let it sit stagnant. If you don't keep things up-to-date people will forget who you are or what services you offer. 3) Know your product inside out You've probably heard a million times that the devil is in the details, but that's actually a good thing when it comes to insurance sales. That's because you don't want to be so concerned with selling policies, especially at first, that you forget to focus on all of those little details. This can seem frustrating at first if you feel like your money is tied up in details, but once you become more established and start earning bigger commissions, paying attention to detail can mean huge dollars in your pocket. Focus on things like complying with your state and company's specific processes and procedures; following up on leads within 48 hours; writing clear lead reports; and building solid relationships with both internal and external customers. 4) Use social media wisely Social media has become an integral part of today's business world. It's a great place to find clients and boost visibility. However, it's also a place where some insurance agents post unprofessional or too-promotional content—and turn off potential customers in their droves. To avoid these social-media slip ups, try to only post relevant content to your company's social channels and hire someone (or teach yourself) how to use photo editing software to make sure you always look sharp and in control. 5) Add value to other people's lives People buy products and services, not companies. You can increase your sales substantially by creating relationships with prospects and customers that focus on solving their problems. If you're looking to succeed in any business—not just insurance—this should be one of your top priorities. After all, what's better than selling something people want? Selling something people need. If your product or service is sold on its own merits, it becomes that much easier to sell. When you're helping someone solve a problem—that's when people tend to spend money. 6) Focus on the little things There's a popular saying that goes, A chain is only as strong as its weakest link. A chain with five or ten weak links will break quickly. The same holds true in business—every task you perform contributes to your overall goal of succeeding as an insurance agent. It may not seem like each individual task makes much of a difference, but they do; so focus on every little thing and see your progress snowball over time....

How to become an insurance agent.
Should Graduates Get Into The Insurance Sector? Some insurance is mandatory, some is life-saving, and some is there as a “just in case”. The reality is that there’s insurance for pretty much everything, and the industry is booming, making it a great career option for graduates, regardless of what they’ve studied. Graduating with a degree in insurance is ideal, but it isn’t necessary, as there are some basic skills that are desirable too, such as numeracy, good communication, and analytical skills. Anyone can work in insurance It really doesn’t matter what you got your degree in: anyone can go on to work in insurance. So, if you spent years studying psychology and then decide it isn’t for you, switching to insurance is a good move. Plus, your degree shows that you can commit to your education, which employers will value and be likely to invest back into your career. The reality is that insurance is everywhere, and your degree will always be relevant in one way or another. Everyone needs and has some sort of insurance, from medical and home insurance to car and pet insurance. This means that specializing in another area is very likely to be relevant to the insurance sector in one way or another. Do you need to go to university to work in insurance? The short answer here is no, but it can do wonders for you if you do. Many universities offer degrees in insurance, so if you know it’s the sector you want to get into, get your degree in it and let the insurance companies compete for you, offering you higher pay based on your education, and they’ll be sure to progress you once you prove yourself to them, as you’ve already acquired the knowledge and skills. This will help you to pay off your student loans. The best student loan consolidation companies can save you money on interest and change your term length to suit you based on how much you’re earning and can afford to pay. Once you work your way up to higher paying roles, you can pay your debts off quicker, and the investment into your insurance degree will be well worth it. Ideal skills to gain alongside your degree Whether you’re working in insurance as a broker, claims manager, underwriter, or loss adjuster, all roles involve negotiating with clients or on their behalf. At the heart of this is providing good customer service and communicating well with other employees. While you’re earning your degree, you could work part-time in any role that requires great customer service to gain valuable experience. You’ll need to good numeracy skills, particularly for actuary’s work, but all work in insurance needs this. This can be gained through your education or even shop work where you handle numbers to a certain extent. Other desirable skills include being organized, having attention to detail, and analytical skills. Insurance is a great industry for graduates to get into. It has plenty of progression opportunities, varied roles and pays well, especially if you have the skills needed for the job and a degree in insurance....

... Liquidity Ratio, And Why Should It Be Important For An Insurance Agent?
Evaluating your operating statement provides an excellent snapshot of your agency’s financial health. It’s almost embarrassing to say, but many insurance agents don’t pay attention to the operating statements (profit & loss statements) produced by their expensive agency management systems — and most don’t even print their balance sheets because they don’t recognize the importance of the information they contain. A few minor alterations to your operating statement (eliminating such non-cash items as bad debt and depreciation and amortization from the P&L; and adding such non-operating cash needs as debt principal payments) will give you your cash flow situation at any time. And that’s just a small step short of actually being able to project future cash flow at least one month in advance. Wouldn’t that be nice to know each month! Even more important, the liquidity ratios that can be drawn from your balance sheet truly tell you the health of your business at the moment that the balance sheet is drawn. Although an operating statement is useful as a budgeting and year-to-date tool for profitability and cash flow, the balance sheet’s purpose is the same as a complete physical exam: To determine both your general health and specific indicators of the functions of your system. A balance sheet provides the data to test the liquidity of your business. All you need are the formulas and benchmarks to convert this data to meaningful results. Here are the formulas and liquidity ratio benchmarks that you should apply monthly to your Balance Sheet. Running a balance sheet without applying these ratios is like collecting data but never evaluating it: CURRENT RATIO The general liquidity ratio measures your agency’s short-term health. If current assets can’t meet current liabilities (within 12 months), you need to strengthen your liquidity. Formula: Current Assets/Current Liabilities Benchmark: At least 100% ACID TEST The acid test is a primary liquidity measure used to determine whether the firm can meet its current obligations. Formula: (Cash + Receivables)/Payables Benchmark: At least 90% RECEIVABLES TO PAYABLES A poor receivables-to-payables ratio indicates a poor collector. Formula: Trade (Co.) (or All) Receivables/Trade (premiums) (or All) Payables. Benchmark: Less than 75% TANGIBLE NET WORTH (TNW) The 'book' value of your company (not the Book of Business value, which is excluded). Formula: Total Owners Equity (Treasury Stock subtracted) less Intangible Assets (such as Goodwill, Purchased Renewals or Expirations, Covenants) and any loans to officers or owners that arent likely to be repaid. Benchmark: Should be a positive number unless the agency is in the process of being perpetuated (causing negative TNW). But in that instance it should be a positively growing number each year toward an eventual positive number. WORKING CAPITAL Measures the extent to which the excess of current assets over current liabilities can cover operating expenses. Formula: Current Assets less Current Liabilities. Benchmark: Take the Average Daily Cash Expenses of the agency Total Expenses of the prior year, less non-cash items (Bad Debt and Deprec & Amort divided by 365) and divide it into the Working Capital. 30 days should be the minimum required. Forty-five to 60 days defines a cash-healthy agency. These formulas will assist you in determining the health of your agency. You should run them on your balance sheet every month and gauge your progress. If you have problems in one or more areas of liquidity, take remedial action. Dont be afraid to get a 'Check-Up' for your agency regularly. If bad things are happening, there are solutions. Its far worse to wait until you cant make payroll or cant pay the carriers to find out about your liquidity problems....

Follow Up On Certificates Of Insurance
FOLLOW UP ON CERTIFICATES OF INSURANCE by the IIABA Virtual Faculty Many insurers don’t want their agents to copy them on certificates they issue. Other carriers have expressed their intent to NOT copy certificate holders on cancellations. In some instances, even insureds don’t want certificate holders notified. So, what’s an agency to do? The IIABA Faculty examines whether you should be the one following up on all of those certificates.   In every E&O class you’ve ever attended, you were probably told to copy your insurers when issuing certificates of insurance. Invariably, someone chimed in that their insurers had told them they didn’t want a copy and the instructor probably said something like, 'Send ‘em anyway.' Because of the cost and risk involved, some carriers have indicated that they won’t notify certificate holders of policy cancellations. In one recent instance, the carrier advised some agents that it was their responsibility to notify certificate holders (this communication was later retracted as erroneous). We recently received this e-mail from an agent: 'We’ve recently been advised by one of our insurance companies that they’ll no longer send out notices to certificate holders in the event of a policy cancellation. Under these circumstances, what’s the agent’s exposure from an E&O perspective if the company doesn’t ‘endeavor to’ notify the certificate holder.' In some cases, insureds have gotten angry when a certificate holder was notified of policy cancellation or nonrenewal. As we all know, some cancellations and nonrenewals are issued when there’s a change in carriers, and notifying certificate holders might create unnecessary confusion, distress, and work. So, to quote an old Karl Malden commercial for American Express travelers checks, 'What will you do, what will you do?' Four primary ACORD forms are used to prove that insurance exists: ACORD 24 ? Certificate of Property Insurance ACORD 25-S ? Certificate of Liability Insurance ACORD 27 ? Evidence of Property Insurance ACORD 75-S ? Insurance Binder This article doesn’t address the ACORD 75-S or ACORD 27 (the latter of which says that the company will give notice of cancellation or policy changes that would affect the additional interest if required to do so by the policy or law). Instead, we’ll focus on the ACORD Certificates 24 and 25-S, particularly the latter. Both of these forms include three key provisions: 'This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the policies below.' This statement attempts to establish that the certificate holder has no contractual rights under the certificate. It also points out that, regardless of what the certificate might say or imply, if there’s a discrepancy between the certificate and policies, the latter govern. 'Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies.' Again, the certificate affords no contractual rights even if referenced or made a part of another contract between the insured and certificate holder. Even if the other contract establishes that certain coverages or conditions must be provided, and the certificate is provided as evidence, this contractual requirement doesn’t apply to the certificate. 'Should any of the above described policies be cancelled before the expiration date thereof, the issuing insurer will endeavor to mail _____ days written notice to the certificate holder named to the left, but failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representatives.' Although this provision states that the insurer 'will endeavor to' provide notice of mid-term cancellation, it’s not obligated to do so and no liability for failure to do so will be imposed. More on this later. In addition, page two of the ACORD 25-S includes this provision: 'The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend, or alter the coverage afforded by the policies listed thereon.' This attempt to establish that the certificate is not a contract is crucial to upholding the provisions cited above. Again, this statement reiterates that the certificate isn’t part of the insurance contract and, thus, can’t modify it. It’s clear that the certificate doesn’t, and can’t, modify the policies. Several insurance departments have held that certificate language can’t be modified in conflict with policy language (including that regarding cancellation) and at least one state requires certificates to be filed and approved just like policy forms. For more information, check out our article 'Additional Insureds and Certificates.' Courts have generally held that a certificate of insurance doesn’t grant any contractual rights to the certificate holder. In United States Pipe & Foundry Co. v. United States Fidelity & Guaranty Co., 505 F.2d 88 (5th Cir. 1974), the court ruled that the certificate didn’t grant contractual rights since there had been no exchange of consideration as required to effect a valid, enforceable contract. One wonders, though, if at some point a certificate holder might allege that the consideration provided was the granting, for example, of a construction contract in exchange for the certificate and assurance of coverage, cancellation notice, etc. In Lezak & Levy Wholesale Meats, Inc. v. Illinois Employees Insurance Co., 460 N.E.2d 475 (Ill. Ct. App. 1984), the court refused to permit the coverages implied on the certificate to supercede those actually provided under the insurance contract based on the fact that the certificate, according to its clear wording, was not part of the policy. The court made a similar ruling in Pekin Insurance Co. v. American Country Insurance Co., 572 N.E.2d 1112 (Ill. Ct. App. 1991). However, where there’s an implication that the certificate might be a part of the policy or controlling it, several courts have ruled in favor of the certificate holder. Such cases include White Motors Corp. v. Northland Ins. Co., 315...Supp. 689, 693 (D. S.D. 1970), J.M. Corbett Co. v. Insurance Co. of N. Am., 357 N.E.2d 125 (Ill. Ct. App. 1976), and International Amphitheatre v. Vanguard Underwriters Ins. Co., 532 N.E. 2d 493 (Ill. Ct. App. 1988). In the International Amphitheatre case, the court contrasted its decision with their earlier Lezak and Pekin decisions (see above) because the certificates in those cases clearly stated that they weren’t part of the insurance contract. These cases (together with insurance department directives) illustrate why it’s important that agents neither unilaterally revise certificate wording nor issue proprietary certificates. Attorneys and risk managers will often counsel their employers or clients to reword certificates to clearly state that they’re part of the contract and that they grant an enforceable interest in the policy to the certificate holder. Beware! Similarly, in Horn v. Transcon Lines, Inc, 7 F3d 1305 (7th Cir. 1993), the court found that the certificate was so misleading that the limitations on the scope of coverage in the policy were unreliable. These cases illustrate that, although there’s a general legal consensus that certificates don’t create contractual obligations or rights, there are exceptions based on unique circumstances. In addition, a certificate holder could conceivably seek redress based on other legal grounds when certificates are inaccurate or imply rights due to their proprietary nature or diversion from 'standard' wording. For additional information, check out the article 'Certificates Of Insurance in Construction Accident Coverage Litigation: The Disclaimer Language Is Effective,' which cites several other court cases and concludes, 'However, where the certificate of insurance does not contain the disclaimer (or where the agent/broker modifies the standard disclaimer in such a way as to eliminate the operative language), the insurer cannot rely on policy provisions inconsistent with the terms of the certificate of insurance.' Finally, the arguments above apply to an agent’s obligation to notify certificate holders of cancellation, In fact, in at least one decision (Permanent General Assurance Corp. v. Jones, a 1994 Tennessee Court of Appeals case), the court ruled that, 'The agent is under no duty to inform the client of policy cancellation if the client knew or should have known of cancellation by other means.' Although 'client' refers to the insured, in general, the certificate holder has no greater rights than the insured. If there’s a contract between the insured and certificate holder, it should be the insured’s legal responsibility to advise of cancellation, not the insurer’s and certainly not the agent’s. (Keep in mind that even the ISO additional insured endorsements don’t add provisions for notice of cancellation. This is just one of the reasons that OCP and Railroad Protective Policies are sometimes used rather than AI endorsements.) Related to this issue is the ACORD wording that 'the issuing insurer will endeavor to' provide notice of cancellation. As stated in the ACORD form, the certificate is neither part of the policy, nor a contract with the holder, and the insurer is under no obligation to notify. However, if this wording is deleted or modified, as is often the case, or a proprietary form is used, it’s possible that such an obligation could be created. In addition, one wonders why the 'will endeavor to' language exists at all. According to Merriam-Webster’s Collegiate Dictionary, 'endeavor' means: endeavor, v., (1) to strive to achieve or reach; (2) to attempt (as the fulfillment of an obligation) by exertion of effort. Although, to our knowledge, this hasn’t been tested in courts (at least successfully), could this very language imply that a contract exists since the insurer appears to be making a promise to at least try to notify in fulfillment of an obligation? And, does such wording create at least a 'moral' or ethical obligation? If the insurer, as some have stated, has no intention of notifying the certificate holder of cancellation, why imply that it will try? And, if the agency takes it on itself to provide notice, does it create a greater exposure to E&O claims when it fails to do so? In abiding by this wording, does the agency create an obligation separate from that in the policy? A plaintiff could conceivably argue that, in order to retain a client (and, thus, effectively accept such as consideration of the insured or certificate holder), the agency has created a contract or legal obligation apart from the policy. One public works bid document required an opinion from the contractor’s insurance agent (or legal counsel) that 'he has read the applicable insurance requirements and the coverage provided complies there with.' Could this create a separate obligation? Since we’re not attorneys, we can’t say for sure, but it certainly doesn’t keep you from being sued on such basis. In Bradley Real Estate Trust, et al. v. Plummer & Rowe Insurance Agency, Inc., 609 A2d 1233 (Sup. Ct. NH, 1992), the court said, 'In effect, the certificate is a worthless document; it does no more than to certify that insurance existed on the day the certificate was issued. We leave it to the legislature or to the future bargaining of the parties to rectify inequities in the notification process.' In Mountain Fuel Supply v. Reliance Insurance Co., 9333 F2d 882 (10th Cir. 1991), the court ruled that, 'The language in the notice of cancellation clause appears to be phrased so as to avoid creating any firm obligation to give notice. It states that the insuring company ‘will endeavor’ to mail notice to the certificate holder, ‘but failure to mail such notice will impose no obligation or liability of any kind upon the company.’' According to Bud Lyons of Alpine Risk Management, the agent was subject to an E&O claim for not requesting the carrier to send notice. The recommendation was that the agent remind the carrier that they should notify, thus 'endeavoring' to notify. So, when it comes to certificates of insurance, 'what will you do, what will you do?' First, never modify a certificate in any way, shape, or form without getting the insurer to sign off on it. We know, agents (e.g., your competitors) do it all the time — and we wonder why more and more companies don’t want to have anything to do with certificates!). In a case one of our faculty members dealt with, the agent unilaterally (without the insurer’s knowledge) issued a certificate without the 'endeavor to' wording and provided 60 days notice of cancellation to the certificate holder. According to the agent, the insured told him another agent said he could do it, so this agent 'had' to do it for 'competitive' reasons. In another instance of 'market realities,' the agent was asked to issue a certificate that indicated coverages that didn’t exist. Although the agent had no market for such coverages, he stated that his 'interpretation' was that the existing policies would cover the exposure and, if they didn’t, his E&O policy would. He said he wasn’t concerned because he was certain that a loss would never happen — and it didn’t. But, folks, it’s only a matter of time. For more information on certificates, check out the article 'Additional Insureds and Certificates.' Also, read the article 'Certificates of Insurance' from the Florida Association of Insurance Agents. Reproduced, with permission, from the VuPoint Newsletter of the IIABA Virtual University. For more information on the Virtual University, click here. The members of the University Faculty offer expertise in every aspect of agency management and marketing. Many of these faculty members are available for in-house training or consulting.