Is Your Insurance Agent Licensed by the State?

These days you can never be too careful about who you work with, and for something as important as insurance you want to make sure you only share your personal information with a trusted source. Since there are a lot of scams out there, you want to make sure that your insurance agent is licensed by the state before you even begin the process of choosing a coverage policy. Fortunately, finding out this information is fairly easy for buyers, which can eliminate some the stress of finding an insurance company you can trust.

First, contact the department of insurance in your state. The professionals who work in this area of your state government will be able to verify the insurance company you are considering and determine important information that may affect your decision to work with them. Their records will not only indicate whether or not they have a legal license to practice, but also exactly what region they are able to conduct their business. Furthermore, the record should display the company's dates of inception and expiration of their license, so you can verify whether or not the authorization is still valid.

In addition to having a license, insurance agents are required to pass a specific test administered by the state as well as a credit and background check before they receive full authorization. You will want to verify all of this information with the employees of your state's department of insurance. In addition to uncovering this information, you can find out how trustworthy the company is by researching their rating by organizations such as A.M. Best, J.D. Power and Associates, and Standard and Poor's. Finally, meet with the insurance agent in person to get a good idea of how they conduct business and whether or not they come off as trustworthy. Ask them yourself whether or not they are authorized and if they have the documentation to prove this. If you ever feel uncomfortable, never give our your personal information until your have verified the company's certification.