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Insurance Career Paper

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While doing my research, I found that being an insurance agent for Farmers
Insurance Group would be a very intriguing career field for me. Some of the attributes of a good insurance agent are a willingness to learn, competitiveness, strong communication skills, organizational skills, along with honesty and integrity. I feel that I fit that mold and could be successful in this career field. According to the website www.glassdoor.com, a Farmers Insurance agent’s salary can range between $10,160 to $110, 397 annually. Some of the liabilities I would have in this career field are the loans (which I will address later), the rent payment, utilities, etc. The assets appear to far outweigh the liabilities. I would have to acquire a license to sell …show more content…
The cost is also $50 for the license and
$62 to take the exam. In addition to the two licenses previously mentioned, there is another license I would pursue which would allow me to sell financial services such as mutual funds, variable annuities, and retirement plans. It is called the Series 6 and 63 exam. Acquiring this license is more expensive because it requires you to be sponsored by a member of FINRA. The cost is $1, 000 to open to exam window and
$100 to take the exam. Because this exam has a lot of information that must be learned, I would need to take an exam preparation course which would cost $129. Due to the fact I would be starting at the ground floor, any capitol provided would come from my personal savings. I have allotted at least $1, 500 dollars to do so. This would allow me to purchase business cards, buy internet leads for sales, purchase flyers, and buy ink pens or key chains to hand out to prospective clients.
I can think of several items needed that would fall under the capital asset requirements category. As the business grows, I would need to move into my own office space or share space with another agent. This would require me …show more content…
The financing would come from me reinvesting any commission I make and any additional finances I can contribute from my current employer.
Farmers promotes what they call a Reserve Agency Program. What this program does is allows a prospective agent to continue with their current employer while pursuing a career with the Farmers Insurance Group. A reserve agent is required to sell forty property and casualty policies along with four life insurance policies within a three-month window. If the agent does not meet this metric at the end of the third month, the agent starts over with zero policies. Once the agent meets the criteria, they are awarded a contract with Farmers and given a loan of $15, 000 to help start their own agency. Any revenue earned during this time, will also be invested back into the agency to increase marketing and resources to aid in growing the agents book of business. I have attached a balance sheet which delineates the financial accounting demands of a start-up insurance agency. All figures have been rounded up and should express the health of the independent agency I will be launching.
Balance Sheet for an Independent Insurance Agent

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