VIP TRAINING — MODULE 01/10← All modules
MODULE 01

Insurance 101

Before you can sell to insurance agencies you need to speak the language. This module covers the vocabulary you'll hear on every single call. Don't memorize, just get familiar.

WHAT IT IS

Insurance Is a Bet

An insurance company collects small payments from many people, then pays out big amounts to the few who have something bad happen. They make money when the math works in their favor over thousands of customers.

CUSTOMER Pays premium AGENCY (broker) Earns commission CARRIER (insurer) Holds the risk Premium $ Premium minus commission If something bad happens: carrier pays the claim back to the customer
Money flows left to right. The agency is the middle person who shops carriers and earns a commission.
CORE TERMS

The 10 Words You'll Hear Constantly

Premium

The amount the customer pays for coverage. Usually monthly, semi-annual, or annual.

Deductible

What the customer pays out of pocket before the carrier covers the rest of a claim. Higher deductible = lower premium.

Policy

The actual contract. Spells out coverage, exclusions, limits, and term.

Claim

When something bad happens and the customer asks the carrier to pay.

Bind

The moment the carrier accepts the risk and the policy goes live. "Bound" = sold.

Quote

An estimate of what the policy will cost. Not a sale yet. Most quotes never close.

Renewal

When a policy ends and the customer signs up again. Usually every 6 or 12 months.

Coverage limit

The maximum the carrier will pay. Anything above is on the customer.

Underwriting

The carrier evaluating whether they want this risk and at what price.

Endorsement

An add-on or modification to a policy. Costs extra premium.

You don't need to memorize these. When a prospect says "we bound 8 policies last week," you should know they mean they sold 8 policies. That's the bar.
THE 5 LINES OF BUSINESS

What Insurance Agencies Sell

Every agency specializes in one or more lines. Knowing which line they're in tells you what their pain points look like.

LineWhat it coversSales cycleRenewal cycle
Personal LinesAuto, home, umbrella, rentersDays6 or 12 months
Commercial LinesBusiness policies (BOP, GL, workers comp, commercial auto)Weeks to months12 months
LifeTerm, whole, universal lifeWeeksLong-term, low churn
Medicare & ACASenior health plans, marketplace plansDaysAnnual enrollment windows
Final ExpenseSmall whole-life ($5K-$25K) for funeral costsHours to daysLong-term
Our ICP is Personal Lines. If a prospect says they're a P&C agent, that's our person. P&C = Property & Casualty = Personal + Commercial Lines. We focus on the Personal side.
KEY INSIGHT

Why Agencies Are Stressed

An insurance agency is a tiny business. Most have 1 to 10 people. They're juggling:

Most of them are drowning in service work and have no time for sales. That's the wedge we sell against.

HELPFUL VIDEOS

Watch These To Reinforce This Module

Each link opens a YouTube search. Pick whichever video looks best in the results.

Ready for the next module?

Each module builds on the previous one. Hit next when you're ready.