Frequently Asked Questions
- Do I have to quit my job while Iím in the State Farm agent process?
- What about insurance licenses?
- Do I need a college degree?
- Can I select my agency location?
- What does it cost to become an agent?
- What is the success rate of new State Farm agents?
- If I have to move, are there relocation benefits?
- What retirement plan is provided to agents?
You are not required to quit your job to go through the selection process, but time off needed may vary as you move forward. Please work with your recruiting contact on specific days and dates.
State Farm pays for your licenses. Insurance producer licensing takes place after you have been selected for a specific location or market area.
A college degree is not required.
Once you are an Approved Candidate, you can compete for opportunities as they become available in the market area(s) of interest to you. In addition to traditional opportunities created by retirements, there are new market opportunities and some that are a combination of traditional and new market. Once selected for an opportunity, you work with leadership in your local Agency Field Office to determine the exact location of your office.
Investment amounts can vary greatly by market, just as the cost of living varies. Once youíve been selected, you begin a paid internship with State Farm employee benefits. Once appointed as a 12-Month Term Independent Contractor Agent (TICA), you receive a generous signing bonus; then an additional bonus at the beginning of your second year. As an independent contractor agent, you are responsible for all business expenses.
State Farm provides significant support to help manage those expenses:
- Furniture and equipment at a low monthly price
- Competitive-rate loans to assist with start-up costs
- Computers, phones, and related tools at little or no cost
Almost 84 percent of agents appointed since January 2001 were still agents or in agency field leadership positions by the end of 2008. State Farm has one of the highest new agent retention rates in the industry.
Relocation benefits may be offered to homeowners and renters hired from outside of State Farm. Benefits include:
- Lump-sum payment ($4,000 renters, $10,000 homeowners)
- Movement of household goods
- Temporary storage (if needed) for up to 90 days
- Home marketing and home-finding assistance
- Spousal employment assistance
State Farm employee candidates may also be eligible for relocation assistance.
To assist agents with retirement, State Farm offers an Annual Investment Payment Program (AIPP). A percentage of your commission is returned to you in the beginning of your seventh year.