How to Become a Licensed Insurance Representative in Tennessee: Ultimate 2022 Guide

Last Updated: 21 January, 2022

How to Become an Independent Insurance Agent Tennessee

If you are wondering how to become an independent insurance agent in Tennessee, you have come to the right place! Let us find out how to become a licensed insurance representative.

Who is a Licensed Insurance Representative?

An independent Insurance Agent is an agent that represents multiple insurance agencies. They enjoy the freedom of selling various insurance lines such as personal lines and commercial lines. The nature of the job is more flexible compared to captive agents. Hence, clients prefer trusting independent agents comparatively more. According to the balance, more than 7100 independent agents are selling on behalf of different carriers in the USA.

How to Become a Licensed Insurance Representative?

An independent insurance agent plays a crucial role in selling insurance policies. Customers seek expertise view and help when it comes to insurance as they have little to no idea about how it works. Hence, they want to find an agent as advice from an independent agent is crucial to their insurance decisions. Furthermore, as independent agents provide more options than captive agents, clients consider their advice more reliable.

Steps to Start an Independent Insurance Agency in Tennessee 

Starting an insurance business and learning how to become an independent insurance agent can be tough for new starters. Initially, you will require adequate knowledge about insurance, money, time, and efforts to start an insurance agency. It may seem easy but building a good agency requires a high level of dedication. However, here are two options you can imply as a shortcut to making this process easier.

Book of Business 

The first option for you is to buy a book of business from an existing insurance agency. The cost may range from $250,000 to $500,000, or even more depending on its profitability. It is similar to having a sole proprietorship.

Become a Licensed Insurance Representative

This is the second option. Agency models exist to provide appropriate support and responsibilities. The agency will provide all the operational assistance your agency may require while selling insurance at the same time.

There are two options for these agency models you can consider:

The first option is a franchise that allows you to own your insurance business and how much you grow your book depends on you. It will provide access to insurance carriers along with required operational assistance. You will be associated with an established brand that will add to your company’s goodwill. However, the fees could be high. Due to the non-compete clause included in their contract, they do not necessarily give agents enough room to grow.

Another option is to work under an FMO model, which provides much of the same benefits as that of the franchise model. Generally, they split the commission with their agents as of 70/30. To sum up, FMO insurance models provide the same advantages as the franchise model but with a higher freedom level.

Hence, these are some of the commonly used ways how to become an independent insurance agent in Tennessee. Read our how to be the best insurance sales agent for more useful information.

Read more blogs on insurance brokerage, roles of an insurance broker, and what is an insurance aggregator to broaden your insurance knowledge.


Q. How much does it cost to get an insurance license in Tennessee?

A $50.00 application fee is required at the time of submission. Insurance producers' license renewal fees are $60.00 for a two-year license and $30.00 for limited insurance producers. The penalty is double the renewal price if the renewal is not received by the department by the license expiration date. Non-residents are subject to retaliation on all fees.

Q. Do you need a license to sell insurance in Tennessee?

Yes. You must finish an approved line of pre-licensing coursework and pass the state licensing exam if you want to sell insurance in Tennessee. There is no monitoring of the Certification Exam. You will obtain a Certificate of Completion after completing the Certification Exam with a score of 70% or above.

Q. How hard is the Tennessee insurance exam?

Licensure examinations in TN are demanding, and some candidates will have to retake them in order to achieve their goals. Applicants who fail the exam for the first time in Tennessee must wait 10 days before retaking it. An applicant must wait thirty days between each attempt before retaking the exam.

how to become an independent insurance agent