The insurance industry is state regulated which means that the licensing requirements will vary by state. All states, however, require an individual to pass an entry-level insurance licensing exam.
What do I need to know to pass the Life and Health Insurance exam?
To become licensed as a Life and Health insurance producer, you will need to demonstrate entry-level knowledge of the industry by passing a state licensing exam. The testable topics include types of life insurance policies, annuities, qualified and nonqualified retirement plans, medical expense and managed care plans, disability income and long-term care insurance, Medicare, Medicaid, and Social Security benefits, group life and health insurance, policy provisions and applicable riders, the application and underwriting process, federal tax considerations and federal initiatives under the Affordable Care Act. You will also be tested on general insurance concepts, insurance contract terminology, and state-specific regulations based on the state where you are applying for a license.
Steps to Get Your Life and Health License
1. Enroll in a life and health insurance prelicensing course
Even though not all states have a prelicensing certification requirement, it is highly recommended that all license applicants complete a program of study to successfully pass the state licensing exam.
2. Register for the state exam through your state’s designated exam provider
When preparing for your state exam, it is recommended that you schedule your exam in advance and study toward your exam date. The exam testing vendor for each state publishes an examination content outline. This outline provides a breakdown of the testable topics along with the number of questions for each area of concentration.
3. Complete the life and health insurance prelicensing requirements for your state
Licensing candidates can expect this process to take a minimum of 40 hours. The course will provide the general product and state specific information needed to pass the state exam. Since this program is self-paced, it is important to outline your study plan so you can stay on track and pass the first time!
4. PASS your state exam with confidence!
To prepare for exam day, make sure you have the correct address and directions to the test center and plan to arrive early in case you run into any unexpected delays. On examination day, familiarize yourself with the test center rules and procedures. Ask for ear plugs if you are easily distracted and take time to go through the testing demo to calm your nerves. Remember, don’t change any answers unless you are 100% sure of the correct answer.
5. Follow your state requirements to apply for your license!
Congratulations, you are on your way to becoming a licensed life and health insurance producer!