If you’re a newer insurance agent looking to partner with an agency or FMO, you’re probably doing so because you’re looking for the training necessary to sell your new products. But what if an agency wants to charge you for access to this information?

FMO’s exist in the insurance industry to be the middle-man between the insurance carriers and the independent agent. FMO’s are the back-office support to agents to help them better sell their products and policies. Because FMO’s earn a commission from the insurance carrier when one of their downline agents makes a sale, the FMO benefits from the experience of agents.

But what about a newer agent? If a newer agent doesn’t have the book of business that a more experienced agent does, then the upline agency (or FMO) isn’t yet benefiting from the small business of the inexperienced agent. So are FMO’s or agencies charging agents for training and other information?

In short? NO. (Or at least not reputable agencies.) If an agency is charging agents for access to training information or Powerpoint Presentations, run the other way. Agencies and FMO’s are supposed to be the support to the agent to help them grow their business; when an agent makes a sale, everyone wins.

Agents have a variety of licenses, certificates, and policies of their own that they will need to obtain prior to being able to sell insurance products. Agencies and FMO’s do not charge the agent these fees, because these licenses must be earned prior to obtaining contracts from insurance carriers. 

Some of these might include;

• • Property & Casualty Insurance License (Home, Auto, Business)

• Average cost-$200-300

• • Life & Health Insurance License (Life, Annuities, Medicare, Healthcare)

• Average cost (varies by state)- Approximately $15 application fee for each type of business then $40 for each exam attempt. Renewals can cost anywhere from $15-200 per line

• SIE Securities License (Investments)

• • Cost

• • SIE (Security Industry Essentials) Exam- $60

• • Series 6 Exam- $40

• • Series 7 Exam- $245

• • Series 63- $145

• • Series 65- $175

• • Series 66 (Series 63 & 65 Combined)- $165

• AHIP Certification (Medicare) 

• • • See also; Gorman and/or PinPoint exams

• • Cost- $175

• NAIC Annuity Suitability Training (Annuities)

• • • Only required by certain states, Michigan being one

• • Cost- $19 per course (Kaplan Financial Education)

• Variable Lines (Life & Annuities)

• • Cost-$41 (PSI Exam Online)

• Adjuster License (Through NIPR)

• • Cost- $15 Application fee with $5 transaction fee

• LH Consulting Agent (Type B) License

• • Cost (Through LARA)

• • New application- $70

• • Relicensure- $90

• • Renewal fee- $40

As previously stated, FMO’s are the main support for agents, and help facilitate their success through providing training, back-office support, and even help with underwriting. FMO’s can also provide agents with personalized marketing materials including flyers, business cards, table coverings for events, and much more. Many FMO’s will provide these materials at no cost to the agent. These upline agencies will provide these materials because they are investing in their agents.

Here at Insurance Advisors Direct, we invest in our agents because we know that they have uncapped potential to produce business. Selling comes down to passion and product knowledge; we believe that agents can become more passionate about their products through increased knowledge. An agent’s passion translates to their consumer in a positive way.

Contact us today if you’re looking for more information on FMO’s and the services that IAD can provide you with to help you grow your business. Call to schedule an office tour and come meet the IAD team today!