You have QUESTIONS, we have ANSWERS.
Do I have to quit my job while I’m in the Agent Opportunity process?
No, you are not required to quit your job to go through the approval process.
How many days of work should I take off to continue in your process?
Time off may vary as you move forward. Please work with your Agency Recruiting contact on specific days and dates.
Do I need a college degree?
No, a college degree is not required to become a State Farm agent.
Do I need Insurance Producer Licenses before I can be hired?
No, you do not need to have your licenses to compete for an Agent Opportunity. Licensing is a required part of the Internship process that takes place after you have been selected for a specific location or market area.
Does State Farm pay for my licenses?
Yes, State Farm will pay for your licenses during Internship.
What are the specifics on Internship?
Internship includes approximately six to nine months of licensing, training, and field development activity (hands-on experience with an existing State Farm agent). Internship focuses on:
- Foundational skills
- Being a leader
- Business planning
- Team management and development
- Business systems
- Product fundamentals
- Activities and expectations
- Final assessments
- Agent preparation symposium
When can I open an agency?
After becoming an Approved Candidate, you can compete and be selected for a specific opportunity. You will be required to complete the Internship program prior to opening an agency.
Can I select my agency location?
Once you are an Approved Candidate, you can compete for opportunities when they become available in the market area(s) of interest to you. In addition to traditional opportunities, like those created when a State Farm agent retires, there are also new market opportunities in areas where strong P&C growth is projected. Another agency scenario offers a combination of traditional and new market opportunity features. There are also opportunities for Approved Candidates who have the flexibility to begin their Internship while waiting for assignment to a specific location.
How do I determine the location of my office?
Once selected for an opportunity, you will work with Agency Field Leadership to determine the location of your office.
Can I buy a retiring agent’s book of business?
No, you cannot purchase a book of business. The policies that constitute a book of business are the property of State Farm Insurance Companies®.
Will I be required to retain the current office staff?
No, as an independent contractor, you have the option of retaining or selecting your own staff.
If relocation is required, what relocation benefits apply?
The following relocation benefits may be offered to homeowners and renters who are hired from outside State Farm as a part of the Agent Opportunity program:
- 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
What retirement plan is provided to agents?
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, based on your annual production earnings in your sixth year as a State Farm agent.
Time served as a TICA counts toward the 60-month eligibility threshold to begin qualifying for AIPP payments. AIPP payments are paid for up to 20 years, as long as you do not terminate as an agent for any reason. Payments are based on the previous year’s commissions, which are paid in January of the next year.
Does State Farm provide training for agents and their teams?
Yes, State Farm has ongoing training available to agents. Team member training is also available at a cost.
Do I have the opportunity to incorporate my agency?
That is up to you. State Farm contracts solely with individuals and expects agents to hold themselves out to the public as individual agents of the Company. State Farm will not control how agents structure their business operations and cannot provide counsel on how to structure business operations.
How do I file taxes?
As an independent contractor, you need to work with your own accountant or tax professional.
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