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How to Start a Health Insurance Company or Agency

By Edited May 9, 2014 0 0

Take These steps to start a health insurance company

Start An Insurance Company or Agency

Prez (38679)
Starting Health Insurance Company is a very difficult and challenging feat. Before you begin, make sure you have your business plan set up that will guide you every step of the way. You will need a great deal of cash in reserve as well. Needless to say, it is not something that is completed overnight. It is something that must be done with the detailed planning and follow through. With the signing of the Health Care Affordability act signed into law by President Barack Obama, the health insurance filed has become much more competitive. Therefore, it is a perfect time to get into the health insurance business.

Consult with an attorney in your city and state about city, state and federal laws concerning this venture. You will need to do this BEFORE writing your business plan. Do all of your research about the cost involved, the liabilities involved, the different risks and your competition.

Write your business plan. This is not something you want to do on your own. If you are not a professional with an MBA or a CPA, then I would suggest that you invest the money to have a professional help you in this area. Starting a business this complex should be done in the most professional of manner, regardless of the cost. Trying to save money by buying a business plan software and doing it yourself if you are not qualified will only lead you to trouble later. Leave it to the professionals.

Register with your state. This is just like any other business; you have to register with your state department. Your attorney should be able to guide you through this process, which is why getting an attorney should be step one in this whole process.

Pay a visit to your state's insurance department. You will need to complete the application process for becoming a licensed health insurance agency in your state. Since each state has different requirements, you should visit them or call them to get these specifics. They will have a list of everything you need in order to complete the process, so you do not have to worry about missing anything. Just follow their checklist.

You will also need to apply for a Uniform Certificate of Authority certification or UCAA. This allows you to be able to submit your licensing application in different states simultaneously. You can apply for the UCCA certification at the same time you apply for your licensing.

Register with the National Insurance Producer Registry, or NIPR. Some people thing of the NIPR as a credit bureau for health insurance companies and agencies. Being registered with the NIPR means that the regulators can easily find you.

You will also need a National Association of Insurance Commissioners or NAIC number. This number allows consumers to verify your license. It is on every piece of paperwork from your health insurance company to your insured. Without this number, you cannot do business legitimately.


Important References

National Association of Insurance Commissioners

National Association of Insurance Commissioners: Uniform Certificate of Authority Certification (State Specific Applications)

The National Insurance Producer Registry




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