Can You Be an Insurance Agent with a Felony and Still Succeed

Having a felony doesn't necessarily mean you're out of the running for a career as an insurance agent. Many states allow individuals with a felony to obtain a license, but the requirements vary widely.

Some states, like California, have a more lenient approach, allowing individuals with a felony to apply for a license after a certain period of time has passed since their conviction. In contrast, other states may have stricter requirements, such as a waiting period or additional education requirements.

To succeed as an insurance agent with a felony, you'll need to research the specific laws and regulations in your state and be prepared to disclose your conviction on your license application.

Worth a look: Sc Insurance Agent License Requirements

It's possible to become an insurance agent with a felony, but the process can be complex. In New York, for example, Martin received a certificate of disability from the court and was still able to obtain a life insurance agent license.

Not all states are the same, however. In Georgia, Eduardo Navarro has a federal felony for illegal importation of marijuana and is unsure if he can obtain an insurance license. Unfortunately, he may not be able to get his record expunged without a presidential pardon.

Missouri has recently passed a law allowing for the expungement of certain felonies, including Class E felonies like Kelli Evans Crow's possession charge from 2008. This could be a game-changer for people with similar convictions.

Some crimes are viewed more favorably by insurers than others. For example, crimes involving larceny or assault may be less of a problem than those involving drugs or alcohol.

If you've committed a felony of the first degree, a capital felony, a felony involving money laundering, fraud or embezzlement, or a felony directly related to financial services, you will be permanently barred from applying for an insurance license.

A fresh viewpoint: Felony Conviction

You can run a background check on yourself before applying for an insurance license to know exactly what will be discovered when the insurance commission does a background check.

Certain types of crimes, like insurance fraud, are more likely than others to lead to a denial of life insurance.

If you're currently being charged with a crime, you'll have to wait until afterward before applying for most life insurance policies.

A good independent agent will need to know the type of crime, severity of the offense, how long ago the crime was, number of offenses committed, and rehabilitation efforts to increase your chances of approval.

A 15-year disqualification applies to all felonies involving moral turpitude that are not specifically included in the permanent bar.

Repeat offenses and greater severity of crimes can contribute to application denial for life insurance.

You don't have to be defined by your crime; you can live an honest life, no matter how challenging it may seem.

Certain serious felonies, such as rape and murder, will preclude you from getting insured, no matter how long it's been.

The longer it's been since the crime, the less impact on your rates and chances of approval.

To become a life insurance agent with a felony, you'll need to meet the standard requirements for a life insurance agent, which include being at least 18 years old, a U.S. citizen, having a high school diploma, and residing in the state where you want to become an agent.

The good news is that some states have passed laws allowing individuals with certain types of felonies to obtain an insurance license, such as Missouri, which recently passed a law allowing individuals with certain types of felonies to have their records expunged.

However, not all insurance companies look at felonies the same way. According to the article, crimes that involve larceny or assault are less likely to be a problem with an insurer, whereas crimes related to drugs or alcohol are more likely to be a concern.

If you have a felony and want to become a life insurance agent, it's essential to check with the insurance company you're interested in working with to see if they have any specific requirements or restrictions. Some companies may be more open to hiring individuals with felonies than others.

Recommended read: Can Health Insurance Companies Deny Coverage

Here's a rough breakdown of the types of crimes that may be more or less of a concern for insurance companies:

Keep in mind that this is not an exhaustive list, and the specific requirements and restrictions will vary depending on the insurance company and state you're in.

If you've been denied a policy, don't get discouraged - there may still be options for you. Insurers use different criteria for eligibility, and some even specialize in policies for high-risk clients.

You can try to find out why you were denied and then shop around for an insurer that doesn't weigh that factor as negatively. For instance, if you have a criminal record, you may want to ask potential insurers upfront how that will impact your eligibility.

Many insurers have different policies when it comes to applicants with a criminal record, so it's always worth applying to multiple companies. Doing so may save you time and allow you to focus on applying only to those companies that won't deny you based on your record.

For more insights, see: Can I File a Claim with Two Insurance Companies

Before deciding on a policy, consider how much life insurance you need and what type of policy is right for you. Coverage limits represent the policy payout and determine how much you'll pay in monthly premiums.

You can also ask yourself what special features you need, such as an investment component in a permanent life policy. Whole life policies, for instance, often include an investment component.

Curious to learn more? Check out: Do You Need an Insurance Agent

Insurance companies have different policies when it comes to felons. Some specialize in policies for high-risk clients, so it's worth shopping around.

Insurance companies consider felons high-risk due to factors like high risk lifestyle, poor health from incarceration, increased chance of drug or alcohol abuse, and greater chance of accidental death. More than 50% of people released from prison will do time again within the first 3 years, according to the Bureau of Justice data.

Not all insurance companies look at felons the same way. Crimes like larceny or assault may be less of an issue than drug or alcohol related crimes. An exclusion might be added to the policy, stating that if the crime is repeated and results in death, the insurance company won't pay out the policy.

Here are some common types of crimes that may be considered by insurance companies:

Not all insurance companies view felonies equally. In fact, some crimes are more likely to be a problem with an insurer than others.

Crimes that involve larceny or assault are less likely to be a problem with an insurer, as seen in the case of Kelli Evans Crow, who was convicted of a class E felony for possession in 2008. Missouri recently passed a law that allows for the expungement of certain felonies, which may have helped her situation.

On the other hand, crimes that involve drug or alcohol-related offenses can be a major issue with insurers. Eduardo Navarro, for example, was convicted of a federal felony for illegal importation of marijuana in 2007 and was denied an insurance license.

It's worth noting that some insurers specialize in policies for high-risk clients, including those with a criminal record. Martin March, who received a certificate of disability from the court, was able to obtain a life insurance agent license in NY, despite his past conviction.

If you're looking for life insurance with a criminal record, it's essential to shop around and find an insurer that doesn't weigh your record as negatively. You may want to ask potential insurers upfront how your record will impact your eligibility, as suggested in the article on handling policy denials.

An exclusion in a life insurance policy can be a good thing, especially for those who were previously uninsurable. It's like a limitation that says if death is caused by a specific scenario, the insurance company doesn't have to pay the death benefit.

Certain exclusions can be placed in a policy, depending on the crime and insurance company. This can be a requirement or an option. Exclusions can be used to limit the policy's liability in specific situations.

If you're convicted of repeating the crime you were previously convicted of, and it results in death, the life insurance may not pay out the policy. This is an example of an exclusion that can be placed in a policy.

Having an exclusion in a policy can be beneficial for those who were previously uninsurable, but it's essential to understand what you're agreeing to.

Explore further: Can You Have More than One Life Insurance Policy

Time is your friend when it comes to finding an insurance agent who can help you with a felony conviction. Agents know up front that it will take more work to get a policy issued for someone with a felony.

You should speak with an independent agent who has access to multiple insurance companies. They are willing to do what it takes to get your policy issued, unlike typical call center agencies.

Independent agents have the experience to offer guidance on whether you're eligible for traditional life insurance or if you need "guaranteed issue" insurance. They know in advance whether you have a chance at traditional life insurance.

Agents who specialize in high-risk cases love the challenge and are willing to act on your behalf to remove roadblocks.

Broaden your view: Switch State Farm Agents

Specific felony-related issues can be a significant obstacle for aspiring insurance agents. Not all insurance companies view felonies the same way, which can impact your chances of getting hired or licensed.

Crimes that involve larceny or assault are less likely to be a problem with an insurer compared to drug or alcohol-related crimes. This is because serving time in prison, regardless of the crime, can be life-threatening.

Felony convictions involving money laundering, fraud, or embezzlement will permanently bar you from applying for an insurance license.

If you've committed a felony of the first degree or a capital felony, you're also looking at a permanent bar.

A 15-year disqualification applies to felonies involving moral turpitude that aren't specifically included in the permanent bar.

This 15-year disqualification also kicks in for felonies that aren't directly related to financial services.

A seven-year disqualification is in place for all felonies that don't fall under the permanent bar or 15-year disqualification.

Misdemeanors related to financial services will also trigger a seven-year disqualification.

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Drug-related felonies can be a major obstacle when trying to get traditional life insurance. Being in prison is considered life-threatening, so the amount of time that has lapsed between your application date and the date you were convicted or released from prison is critically important.

The underwriter will be looking for a demonstration of change in lifestyle. This is why answering questions about your past is crucial. You'll be asked about your jail time, how long you were incarcerated, and how long ago you were charged and convicted.

The nature of your charge and conviction is also important. Certain convictions have a higher recidivism rate than others, which means the underwriter can establish how likely it is that you will return to prison for another felony conviction.

Here are some key questions you'll be asked:

Your answers will help the underwriter determine if you're an acceptable risk.