Kelly’s Korner-insurance license for F&I?
Q. Why do F&I personnel need to have an insurance license? After all, they do not write insurance.
A. You may be correct that in the automobile arena many F&I professionals do not write automobile insurance policies. They do however, present GAP, unemployment insurance, and tire and rim policies. In many states these products fall into the category of casualty products. As such, they require an insurance license to sell them. California is in the midst of change and will require that F&I professionals be licensed to sell casualty products such as tire guard. The only alternative to licensing is for the tire and rim protection policies to merge with a roadside assistance program in order to be sold under the nameplate of roadside assistance.
What do you need to do obtain a casualty license? You guessed it: Paperwork. First, contact your state department of insurance and request a casualty license application. Next, make an appointment with the casualty company you wish to represent to the public. Testing is the third step. However, if your state requires education hours before you test, you may have to attend classes. Somewhere along the way you will also have to be finger printed. After you pass the test, you may also need to acquire continuing education units to maintain your license. Yes, all this activity will cause you to lose some valuable time at work. It goes with the territory.
There has been some discussion about requiring F&I personnel to have a casualty license in order to present service agreements to customers. While this has not yet moved from talk to action, my recommendation is to buck up and get your casualty insurance license and life & disability license now. It’s the best way I know to be ready when the mighty winds of change roar through your state.
OIADA Squeaky Wheel Newsletter, July 2004, p. 5