How to obtain a health insurance license

To get your life insurance license, you must pass an exam and meet other requirements. The questions most frequently asked about life insurance licensing and the exam—such as license requirements, exam difficulty, passing score, pass rates, questions, and topics—are answered in this article. Read on to get information that can help you plan for a successful career as a life insurance agent.

How do I earn a life insurance license?

You need to be at least 18 years old to earn your life insurance license, and in some states, you’ll be earning a joint life and health insurance license. Here are the steps to follow:

1. Complete any prelicensing education required by the state you want to become licensed in. The number of hours you’ll have to complete and the cost vary by state. Note: A few states do not require prelicensing education, so before you start the process for your state, check with the state’s insurance organization.
2. Pass the state insurance licensing exam for life insurance or life and health insurance. An  insurance license exam preparation can help.
3. Pass a background check. The process varies by state and, in some cases, includes fingerprinting.

Thinking about a career in insurance? Download this free Launching Your Insurance Career eBook.

What is the difference between a life insurance license and a life and health insurance license?

A life insurance license permits you to sell annuities, term, and cash value (commonly called whole or universal) life insurance. A life and health insurance license enables you to sell these life insurance products, plus policies that provide protection for medical expenses, loss of income due to a disability, and the need for long-term care.

Some states, like Alabama and Florida, offer the options of earning a life insurance license, a health insurance license, and a life and health insurance license. Each of the three types require passing a separate exam. Others, like North Carolina, have separate licenses for life and health but not a combination, and each requires passing a separate exam. Still others, like Missouri, have a combined life and health insurance license only.

What jobs can I get with a life insurance license?

A life insurance license enables you to become a life insurance agent. Life insurance agents sell life insurance policies and annuities and work with clients and beneficiaries to process claims.

Life insurance agents do a lot of selling, so it’s important to be interested in marketing and have a knack for it. Excellent interpersonal and communication skills are also required because life insurance agents have to explain the ins and outs of all the products they sell in a way that is easy to understand. Life insurance agents can either be “captive” and work exclusively for one insurance company, or they can be “independent,” selling products from multiple companies.

How hard is the life insurance exam?

Each state has its own insurance exam, so the tests vary, making this question complicated to answer. However, the overarching topics covered on the exam, as well as the passing scores, are similar for all states. No matter where you take it, the test is not a walk in the park. But if you have a good understanding of the topics, you have a good chance of passing the life insurance exam.

What are the life insurance exam topics?

The life insurance exam tests you on specific topics, and these topics are weighted. These are the life insurance topics you are most likely to be tested on in most states:

• Life insurance general knowledge
• Life insurance policies
• Policy riders and options in life insurance coverage
• Life insurance tax issues
• Annuities
• Annuity policy tax issues

If you are taking a combined exam, there will be health insurance topics as well.

What are the requirements for taking the life insurance exam?

To take the life insurance exam, you must:

1. Have a high school diploma or an equivalent.
2. Know where you want to sell insurance and what the state requires. If it’s not the state where you currently reside, check to see if you are required to be a resident for a certain amount of time before taking the exam. The bodies of government that regulate insurance have different names, depending on the state, so a good way to find out is to go to the official website of the state and search for the insurance licensing rules.
3. Meet the specific state exam requirements. In many states, you must complete a specified amount of prelicensing education hours. Visit the official website of the state insurance department or commission and search for the insurance licensing rules.
4. Register for the exam, which includes paying a registration fee determined by each state.

When is the life insurance exam?

You can choose the date and time of your life insurance exam in most states. Scheduling options are usually on the respective state’s department of insurance website. To give yourself time to study, schedule your exam at least two weeks in advance.

Is the life insurance exam paper- or computer-based?

The life insurance exam is computer-based in all states.

How many questions are on the life insurance exam?

The life insurance exam consists of between 105–150 multiple-choice questions, depending on the state, and whether it is a separate exam or combined with health.

How much time does it take to study for the life insurance exam?

Most candidates study for the life insurance exam for about 35 to 40 hours.

How much does it cost to take the life insurance exam?

The cost to take the exam ranges from $43–$150, depending on your state. You can find the fee on your state’s insurance licensing website. Note that license application fees are separate.

What is the passing score for the life insurance exam?

The passing score is 70 percent in all states.

What is the passing rate for the life insurance exam?

According to a 2016 NAIC document, the passing rate is broad. The lowest passing rate was in Maryland at 40 percent, and the highest was in Wyoming at 87 percent. The majority of states recorded passing rates in the range of 60–67 percent.

How do I pass the life insurance exam?

Follow these steps to increase your chances of passing the exam:

1. Learn your state’s requirements and get the exam outline. Check with the department of insurance in your state (or the state where you’ll be working) for the requirements and the outline and print it out.
2. Have a study plan. Cramming for the life insurance exam is not recommended. Instead, have a realistic plan that spreads your study time over several weeks and is easy for you to stick to. An insurance certification study package can help you stay on track so you don't cram at the last minute.
3. Follow the state exam outline, which has a list of the topics that will be covered and how they are weighted.
4. Prepare and practice. Review courses and reading can help you prepare. However, you should also take practice exams. These will help you determine how well you have absorbed the material and what still needs your attention.
5. Know the exam center process. Visit the test center before the exam—see how long it takes to get there and get a feel for the testing area. Find out what forms of identification are needed.
6. Stay calm while taking the exam. Read each question carefully and thoroughly before answering it. Find the questions you know the answer to, and answer them first. If you find yourself stuck on any question, move on and come back to it later.

If I fail the life insurance exam, what is the wait time before I can retake it?

You will find out if you passed or failed the exam at the testing center. However, you cannot register to take it again at that time. Instead, you must wait 24 hours before you can register again. You can take the exam three times in one year. If you fail it all three times, you will have to complete prelicensing education again before you can take it for a fourth time the following year. This process may vary by state.

Ready to Earn Your Life Insurance License?

We hope this article answers your pressing questions about the life insurance exam and license. If you’re interested in taking the exam, we have life and health exam preparation packages.

On this page, you will find all of the state-specific information for Insurance Licensing in the state of New York. This information pertains to resident license applicants. For additional information for resident licensing, or for non-resident license information, please refer to the New York State Insurance Department website at http://www.ins.state.ny.us. Information is subject to change, and we will do our very best to make the process of completing your licensing education requirements as simple as possible.

Insurance DivisionOne Commerce Plaza, Suite 2003 Albany, New York 12257Phone: 518-474-6630Fax:  518-474-5048

Website: http://www.dfs.ny.gov

New York requires those seeking an insurance license to complete prelicensing before taking the state licensing exam. Prelicensing courses with Kaplan give you the best chance to pass—our pass rates are among the highest in the industry. 

Prelicensing Education Hour Requirements

• Life, Accident & Health: 40 Hours (for live class approvals, minimum of 20 classroom hours required).
• Life (only): 20 Hours (for live class approvals, minimum of 10 classroom hours required).
• Accident & Health (only): 20 Hours (for live class approvals, minimum of 10 classroom hours required).
• Property & Casualty: 96 Hours (for live class approvals, minimum of 90 classroom hours required).
• Personal Lines: 43 Hours (for live class approvals, minimum of 40 classroom hours required).

Acceptable Methods of Education

• Classroom (Traditional or Live Online)
• Online

Live Class Requirements

• Pre-Class Study (must be completed prior to attending the live class): 10 hours (Life only 20 hour class and Health only 20 hour class), 20 hours (Life & Health 40 hour class)
• In-Class Exam: In New York, an in-class graded exam is given in the Life & Health class to test your readiness for the state exam. The test must be passed with a 70% or greater in order to receive a certificate of completion. You must pass the final exam in one sitting in a 90-minute time limit.

Online Course Requirements

• Forced Progression: This requires the user to successfully complete each page of the online course before being allowed to proceed to the next. 
• Effective 11/3/2020, the New York Department Of Insurance has permanently eliminated the requirement for an end of course exam proctor/monitor. Students will however still be required to complete the end of course exam.
  

Prelicensing Education Exemptions

Candidates with the following designations or certifications are exempt from prelicensing education requirements and Part 1 of the exam. In order to be licensed: 

• CLU® designees need only take the Life & Health Laws and Regulations exam.
• CPCU® designees need only take the Property & Casualty Laws and Regulations exam.
  

2. Pass Your New York Licensing Exam

After completing your required prelicensing course, you must pass a state licensing exam. Kaplan’s prelicensing content is based directly on the New York licensing exams, so you will be prepared to pass the first time. 

Certificate of Completion Requirements

• To be issued a School Certificate, candidates must comply with all prelicensing course attendance requirements and pass the final course exam (minimum score of 70% required).
• Candidates must permanently retain the certificate, but it is not needed at exam.
• When submitting a license application, applicant must present evidence that they possess a school certificate.
• Certificates are good for a lifetime.
• The state requires those who enroll in the Premium Live Online Package to answer attendance verification polling questions for the entire live online class to earn credit.

Exam Provider: PSI

Frequently Asked Questions About the New York Licensing Exam

After completing my prelicensing, how should I prepare for exam day? 

Exam Preparation

The following suggestions will help you prepare for your examination. 

• Planned preparation increases your likelihood of passing. 
• Start with a current copy of the Candidate Information Bulletin and use the examination content outline as the basis of your study. 
• Read study materials that cover all the topics in the content outline. 
• Take notes on what you study. Putting information in writing helps you commit it to memory and is also an excellent business practice. Underline or highlight key ideas that will help with a later review. 
• Discuss new terms or concepts as frequently as you can with colleagues. This will test your understanding and reinforce ideas. 
• Your studies will be most effective if you study frequently, for periods of about 45 to 60 minutes. Concentration tends to wander when you study for longer periods of time. 
• You can take a practice exam online at www.psiexams.com to prepare for your New York Insurance Examination. Please note that practice exams are intended only to help testing candidates become familiar with the general types of questions that will appear on a licensing examination, and do not contain actual questions that are asked on the exam. Practice exams ARE NOT a substitute for proper education and study. Scoring well on the practice exam does not guarantee that you will pass an actual licensing examination. 
  • Note: You may take the practice exams an unlimited number of times; however, you will need to pay each time.

Exam Day 

On the day of the examination, you should arrive at least 30 minutes before your appointment. This extra time is for sign-in, identification, and familiarizing yourself with the examination process. If you arrive late, you may not be admitted to the examination site and you will forfeit your examination registration fee. 

Required Identification 

Candidates must register for the exam with their LEGAL first and last name as it appears on their government issued identification. The required identification below must match the first and last name under which the candidate is registered. Candidates are required to bring one (1) form of valid (non-expired) signature bearing identification to the test site. If the candidate fails to bring proper identification or the candidate names do not match, the candidate will not be allowed to test and their examination fee will not be refunded. 

Primary Identification (with photo)—Choose one  

• State issued driver’s license  
• State issued identification card  
• US Government Issued Passport  
• US Government Issued Military Identification Card  
• US Government Issued Alien Registration Card  
• Canadian Government Issued ID 

Note: ID must contain candidate’s photo, be valid, and unexpired. 

Security Procedures

The following security procedures apply during examinations: 

• You will be given a piece of scratch paper and a pencil. These will be returned to the proctor at the end of your examination. 
• You will have access to an online calculator. 
• Only non-programmable calculators that are silent, battery-operated, do not have paper tape printing capabilities, and do not have a keyboard containing the alphabet will be allowed in the examination site.
• All personal belongings of candidates should be placed in the secure storage provided at each site prior to entering the examination room. Personal belongings include, but are not limited to, the following items: 
  • Electronic devices of any type, including cellular / mobile phones, recording devices, electronic watches, cameras, pagers, laptop computers, tablet computers (e.g., iPads), music players (e.g., iPods), smart watches, radios, or electronic games. 
  • Bulky or loose clothing or coats that could be used to conceal recording devices or notes. For security purposes outerwear such as, but not limited to: open sweaters, cardigans, shawls, scarves, hoodies, vests, jackets and coats are not permitted in the testing room. In the event you are asked to remove the outerwear, appropriate attire, such as a shirt or blouse should be worn underneath. 
  • Hats or headgear not worn for religious reasons or as religious apparel, including hats, baseball caps, or visors. 
  • Other personal items, including purses, notebooks, reference or reading material, briefcases, backpacks, wallets, pens, pencils, other writing devices, food, drinks, and good luck items. 
• Person(s) accompanying an examination candidate may not wait in the examination center, inside the building or on the building's property. This applies to guests of any nature, including drivers, children, friends, family, colleagues or instructors. 
• No smoking, eating, or drinking is allowed in the examination center. 
• During the check in process, all candidates will be asked if they possess any prohibited items. Candidates may also be asked to empty their pockets and turn them out for the proctor to ensure they are empty. The proctor may also ask candidates to lift up the ends of their sleeves and the bottoms of their pant legs to ensure that notes or recording devices are not being hidden there. 
• Proctors will also carefully inspect eyeglass frames, tie tacks, or any other apparel that could be used to harbor a recording device. Proctors will ask to inspect any such items in candidates’ pockets. 
• If prohibited items are found during check-in, candidates shall put them in the provided secure storage or return these items to their vehicle. PSI will not be responsible for the security of any personal belongings or prohibited items. 
• Any candidate possessing prohibited items in the examination room shall immediately have his or her test results invalidated, and PSI shall notify the examination sponsor of the occurrence. 
• Any candidate seen giving or receiving assistance on an examination, found with unauthorized materials, or who violates any security regulations will be asked to surrender all examination materials and to leave the examination center. All such instances will be reported to the examination sponsor. 
• Once candidates have been seated and the examination begins, they may leave the examination room only to use the restroom, and only after obtaining permission from the proctor. Candidate will not receive extra time to complete the examination.

What is the exam like? 

• The examination will be administered via computer. You will be using a mouse and computer keyboard. 
• You will be directed to a semiprivate testing station to take the examination. 
• When you are seated at the testing station, you will be prompted to confirm your name, identification number, and the examination for which you are registered. 
• Before you start your examination, an introductory tutorial to the computer and keyboard is provided on the computer screen. The time you spend on this tutorial, up to 15 minutes, DOES NOT count as part of your examination time. Sample questions are included following the tutorial so that you may practice using the keys, answering questions, and reviewing your answers. 
• The “function bar” at the top of the test question screen provides mouse-click access to the features available while taking the examination. 
• One question appears on the screen at a time. 
• During the examination, minutes remaining will be displayed at the top of the screen and updated as you record your answers. 
• IMPORTANT: After you have entered your responses, you will later be able to return to any question(s) and change your response, provided the examination time has not run out. 

How is the exam scored?

Exam Evaluation

PSI, in cooperation with the New York State Department of Financial Services, will be consistently evaluating the examinations being administered to ensure that the examinations accurately measure competency in the required knowledge areas. 

While taking the examination, examinees will have the opportunity to provide comments on any questions by using the comments key on the keyboard. These comments will be analyzed by PSI examination development staff. PSI does not respond to individuals regarding these comments, all substantive comments are reviewed. This is the only review of examination materials available to candidates. 

Score Reporting

Your score will be given to you immediately following completion of the examination. In order to pass the examination, you must achieve a minimum score of 70%. Your results will be given to you immediately following completion of the examination. 

If you pass, you will receive an examination result report which will indicate “PASS”. If you do not pass, you will receive a diagnostic report indicating your strengths and weaknesses. 

3. Apply for a New York Insurance License

You will be assigned an NPN. This unique identifier is assigned through the licensing application process and is used to track individuals and business entities on a national basis. The NPN is used by many states to replace a producer license number.

License Application

After passing the license examination (if an examination is required), you must submit your license application to the Department, along with any other required paperwork for the type of license you are seeking. You may obtain license application information from the Department’s website here. 

Important: Applications must be received within two years from the date of passing the examination. Incomplete applications or applications without the required fee will not be accepted or placed on file. 

Retesting Requirements

If you were licensed previously but have not been licensed within the two years immediately preceding the application date, you must: 

• Pass the appropriate licensing exam administered by PSI; and 
• Submit an application and any required documentation noted in the appropriate application sections noted below. 

License Requirements Based on Residency

Requirements for licensing vary depending on whether you are a resident or nonresident. A resident licensee is one who has declared New York as the Home State. 

A nonresident licensee is one who has declared a state other than New York as the Home State and is licensed in good standing for the lines of authority for which one is applying for in New York. 

Home State is defined as the District of Columbia or any state or territory of the United States in which the applicant maintains a principal place of residence or principal place of business. 

Resident Licensing Requirements 

Generally, to qualify to receive a New York resident insurance license, you must: 

• Be at least 18 years old. 
• Complete any necessary prelicensing education requirements. 
• Pass the appropriate license examination(s), if required. 
• Apply to the Department for a license within two years of passing your examination. 
• Pay the appropriate licensing fee. 

Nonresident Licensing Requirements 

If you wish to obtain a New York state nonresident license, you must submit a nonresident license application and the appropriate fees. You must currently be licensed and in compliance in your declared home state.

4. Plan to Complete Required Insurance Continuing Education (CE) Credits

Every insurance producer must adhere to their home state’s CE requirements. Stay on top of your CE and ahead of the competition with 365 days of unlimited course access when you enroll in a CE library with Kaplan. 

Learn how to renew a New York insurance license by clicking here: https://www.kaplanfinancial.com/insurance-continuing-education/new-york/state-requirements