Insurance Agents may:

Develop a clientele  

Compile or refer to lists of prospective clients  

Contact prospective clients to arrange appointments to discuss their insurance needs  

Advise clients as to financial needs  

Arrange loans on policies  

Assist clients with benefit claims  

Compute and collect premiums  

Explain features of policies  

Keep records of policies  

Agents should be trustworthy and ready to help in times of trouble. Life insurance agents are often first to visit a family when an insured person dies. They give comfort and support to the confused or grieving relatives.  

The tools, equipment, and materials used may include:

Insurance Agents usually work under minimum supervision. Offices are generally clean, comfortable, well lighted, and air-conditioned. They may spend much time in the homes and offices of clients. They may have to go out in all kinds of weather.  

Agents and Brokers arrange their own work schedules that often include weekend and evening appointments. Agents spend much time traveling throughout their area. The average workweek ranges from 48 to 60 hours.  

Insurance Sales Agents generally pay their own car and travel expenses. Those who own and operate independent businesses must pay office rent, clerical salaries, and other operating expenses.  

Insurance Agents may join professional associations. Members pay periodic membership fees.  

You Should Prefer:

• Activities involving business contact with people  

• Activities communicating ideas or information to others  

You Should Be Able To:

• Influence people and maintain good public relations  

• Understand information in written, spoken, graphic, and chart form  

• Rate information by measurable standards or personal judgment  

• Perform basic math  

• Plan, direct, and control activities  

• Collect data, establish facts, and make decisions  

• See details/recognize errors in numbers/spelling/punctuation  

• Work within precise limits or standards of accuracy  

Math Problem You Should Be Able to Solve:

The Brown Manufacturing Company has a credit insurance policy with a $5,000 normal loss and a 90% coinsurance clause. The limits are $40,000 for AA-A1 accounts and $30,000 for AA-1 accounts. Two debtors go bankrupt, each owing $35,000. One is AA-A1 and the other is AA-1. What will Brown recover under its credit policy?  

Reading Example You Should Be Able to Read and Comprehend:

Individuals who itemize deduction on their federal tax return may deduct 50% of the premiums paid for medical policies including those for Blue Cross, Blue Shield, HMO's, and Part B of Medicare, subject to a $150 maximum. In addition, premiums in excess of this $150 may be subtracted along with other medical expense costs to the extent that such expenses exceed 3% of the individuals adjusted gross income.  

Writing Example You Should Be Able to Produce:

Prepare a Summary of Underwriting Results--Statutory Profit or Loss for Brown Company.  

Thinking Skill You Should Be Able to Demonstrate:

Must be able to demonstrate organizational skills, analytical skills, and be detail oriented in counseling clients regarding financial information.  

Insurance Agents in Michigan must be licensed by the Insurance Bureau of the Michigan Department of Consumer and Industry Services. To qualify, Agents must be sponsored by an insurance company doing business in Michigan, pass a written test, and obey the rules and regulations of the Bureau. They must also complete an approved prelicensing education course from a school approved by the Bureau. Fees are: application, $10; testing fee $75.00; license, $5; change of address, $3. A driver's license is necessary because Agents travel. Some workers with related duties but different requirements for licenses are Surplus Lines, Insurance Agents; Insurance Counselor; and Insurance Solicitor. 

NOTE: On-The-Job Training provided by the employer or a High School Diploma or Equivalent or an Associate Degree (two years of study beyond high school) or a bachelor's Degree (four years of study beyond high school) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in the MOIScript:  

***SCHOOL SUBJECTS***

0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 1300 ENGLISH , 2200 MATH , 2800 PUBLIC SPEAKING , 3000 SOCIAL STUDIES , 3100 STUDY & WORK OPTIONS

***VOCATIONAL EDUCATION PROGRAMS***

There are no Vocational Education Programs related to this MOIScript  

***POSTSECONDARY PROGRAMS***

084 INSURANCE

Programs in Insurance provide opportunities to gain the knowledge and skills for careers in the insurance industry.  

Courses vary from school to school but may include:

155 SALES TRAINING

Programs in Sales Training provide opportunities to gain the knowledge and skills useful for employment selling insurance, real estate, or other products and services in a variety of different business settings. Individuals who teach retailing at the secondary school level must have a Michigan Teaching Certificate.  

Courses within this program will vary from school to school but may include:

State and local insurance associations may offer home study or evening courses. Some insurance companies may provide summer or part-time jobs in branch offices. Postsecondary programs in insurance and sales training may offer co-op or work experience programs through which experience may be gained.  

The most common methods of entry are direct application to employers and referral by experienced Agents. Most insurance companies offer tests that measure aptitude for insurance selling. Openings may be found by contacting college or high school placement offices and local offices of the Michigan Works! or by consulting newspaper want ads. In addition, you should access and search the Internet's on-line employment services sites such as:  

Beginners in the insurance business often are guaranteed moderate salaries, given a training allowance, or given advances on future commissions while they are learning the business. After they gain experience and are selling a required minimum amount of insurance, most Agents are paid on a commission basis. Some companies hold commissions in a "pool" and pay Agents a percentage of the amount of the pool "weekly". That way, if Agents do not sell a policy for a period of time, they will still have an income. Some companies prefer to hire college graduates although a college degree is generally not required.  

Nationally, the annual average pay, including commissions and bonuses, of insurance agents in 1998 was:  

Salaries of Insurance Agents in Michigan were similar to national wages. Some firms pay bonuses based on sales and/or have sales contests and award prizes such as vacation trips.  

Most insurance companies have benefit programs for full time Agents and may offer life, health, and hospitalization insurance and pension plans. Some Agents may also receive paid vacations. Some companies offer a profit-sharing plan. The size of most pensions depends on how much insurance an agent sells.  

For most Agents, advancement means increased earnings, usually as a result of experience and success in the business. An Agent might advance to insurance manager and then to agency manager. Some Agents may establish a company of their own.  

Nationally, there were about 408,700 Insurance Agents and Brokers employed in 1996. Employment in this occupation is expected to increase more slowly than the average for all occupations through the year 2006. About 30.1% of them were self-employed. The industry distribution for Insurance Agents looked like this:  

More people with more possessions such as homes and vehicles, and the growing number of businesses and public buildings will demand special insurance plans. Agents and Brokers who can supply special needs as well as broader services (selling mutual funds and other financial products) will be in demand. However, as more insurance products and services are offered directly to consumers via the Internet, employment opportunities for agents may decline.  

Approximately 11,475 Agents are employed in Michigan. Most of the Agents worked in urban areas.  

Employment of Insurance Agents in Michigan is expected to increase about as fast as the average for all occupations through the year 2005. An average of 320 job openings is expected annually, with 130 due to growth and 190 due to replacement of those who retire or leave the labor force for other reasons. Additional openings will occur as Insurance Agents change jobs or occupations. As Michigan's population continues to grow and the number of new families increases, the demand for insurance will grow. Additionally, many Insurance Agents are offering comprehensive financial planning services to their clients, particularly retirement planning services.  

MICHIGAN'S EMPLOYMENT OUTLOOK TO 2005  

Printed Occupational information is available upon written request from sources below.