Utah Life Insurance Brokerage: License Requirements And More

If you're looking to become a life insurance broker in Utah, you'll need to obtain a license. The process involves five steps, including taking a pre-licensing course, passing the state licensing exam, applying for a license, and getting a background check. While pre-licensing education is not mandatory, it's highly recommended to increase your chances of passing the exam. The Utah Insurance Department outlines these requirements, and you can expect to pay various fees along the way, such as for the exam, application, and fingerprinting services.

Pre-licensing education

Although the state of Utah does not require prelicensing education, it is highly recommended that aspiring insurance agents complete a pre-licensing course to increase their chances of passing the licensing exam on the first try. Pre-licensing courses are designed to enhance your understanding of the material, making you more comfortable and confident on exam day. These courses are typically offered in flexible formats, including live tutoring, study calendars, practice exams, instructional videos, interactive illustrations, and 24/7 access to streaming video lectures.

When choosing a pre-licensing course, consider factors such as flexibility, price, and the course's reputation and reliability. The cost of pre-licensing courses varies, but it's important to remember that cheaper options may not provide comprehensive preparation for the exam.

Several reputable companies offer pre-licensing courses in Utah, including:

• Kaplan Financial Education
• National Online Insurance School
• America's Professor
• ExamFX

These courses will cover various insurance concepts, definitions, insurance laws, and agent regulations outlined in the Utah Examination Content Outlines. By enrolling in a pre-licensing course, you will gain a solid understanding of the industry-specific knowledge that will be tested during the exam.

While pre-licensing education is not mandatory in Utah, it is a valuable investment that can save you time and money by increasing your chances of passing the licensing exam on your first attempt.

The Utah licensing exam

To obtain a life insurance brokerage license in Utah, you must pass the Utah Licensing Exam. Here is a detailed breakdown of the process:

Preparation:

The Utah Insurance Department does not require candidates to take an insurance exam prep course. However, due to the exam's difficulty and comprehensive nature, enrolling in a study course is highly recommended. Various companies offer prep courses, practice exams, and study guides to help you prepare for the Utah Licensing Exam. These courses are designed to familiarise you with insurance concepts, definitions, laws, and regulations.

Registration:

Once you feel prepared, the next step is to register for the exam. The Utah Licensing Exam is administered by Prometric, an independent testing service. You can register and schedule your exam online through the Prometric website or by calling their phone number: 888-226-8740. The exam fee varies depending on the number of lines of authority you select. For one line of authority (Life or Accident & Health), the fee is $32.00, while for two lines of authority (Life and Accident & Health), the fee is $44.00.

Exam Day:

On the day of your exam, arrive at the testing centre at least 30 minutes early to allow time for check-in procedures. Bring a current form of photo identification, such as a driver's license or passport, which must match the name on your exam registration. The passing score for the exam is 70%. The exam will cover various topics, including insurance regulations, general insurance concepts, life insurance basics, annuities, federal tax considerations, accident and health insurance basics, and more.

Results and Application:

After completing the exam, your score will be displayed on the screen, and you will receive a printed score report. If you pass the exam, you can apply for your license using the computer kiosk at the testing centre. The application fee is $75.00, which covers the cost of the FBI/BCI fingerprint fee required for a background check. You will need to print a confirmation page as proof of payment for the fingerprint fees and present it to the test centre supervisor.

Fingerprinting:

Fingerprinting is a mandatory step in the licensing process. It is done at a Prometric test centre using "live scan" technology, which digitally captures and transmits your fingerprints for a criminal history background check. There is a $6.00 Prometric fingerprint processing fee, payable separately from the FBI/BCI fingerprint fee included in the license application fee.

License Issuance:

After completing the exam, application, and fingerprinting, the Utah Insurance Department will evaluate your license application and background check results before issuing any license. Please note that passing the exam and submitting an application does not guarantee a license. The issuance of a license depends on the review and approval of all license application materials.

By following these steps and successfully completing the Utah Licensing Exam and subsequent requirements, you will be well on your way to obtaining your life insurance brokerage license in Utah.

Fingerprinting and background checks

To obtain a life insurance brokerage license in Utah, you must complete a fingerprint-based background check. This is a mandatory part of the application process and helps ensure that applicants do not have a criminal or social services background that would prevent them from becoming a licensed insurance agent.

The fingerprinting process is completed in-person at a Prometric test center using "live scan" technology. The total cost of fingerprinting is $34.25, which includes a $28.25 FBI/BCI fee and a $6 Prometric fingerprinting processing fee.

When scheduling your state exam, you can also schedule your fingerprinting appointment at the testing center. It is highly recommended that you do this, as it can delay your application if you need to reschedule. At your appointment, you will need to present a current government-issued photo ID and your passing score report from the exam.

After your fingerprints have been scanned, the results of your background check will be sent back to the Utah Insurance Department, which will re-evaluate them and make a decision on your application.

In addition to the fingerprinting and processing fees, there is also an application fee of $75, which covers the cost of the license application and the initial fingerprinting fees.

License applications

After passing the relevant insurance licensing exam, you will be ready to apply for your license. In Utah, applications are submitted electronically through Sircon or the National Insurance Producer Registry at the test centre kiosk immediately after you’ve finished your exam.

To submit your application, you’ll need to pay a $75 resident producer license fee as well as the fee for fingerprinting services. Once completed, you’ll need to print out the Sircon or NIPR confirmation page and keep it safe for the next step – this is your proof that you’ve paid the fingerprinting fees.

If you took the insurance exam at home using remote proctoring, you can submit your licensing application online through the websites linked above instead.

Note: To avoid having to retake your insurance licensing exam, you’ll need to submit this fingerprinting fee and license application prior to the expiration of your passing score – which occurs 90 days after passing.

After passing the relevant insurance licensing exam and submitting your application, the final step you’ll be required to take before getting licensed is to send a full set of your fingerprints to the Utah Department of Public Safety’s Bureau of Criminal Identification (BCI) and FBI.

This process, which is completed in-person at a Prometric test centre using “live scan” technology, costs $28.25 (plus a $6 processing fee) and will initiate a criminal history background check into your past conduct to confirm you meet the state’s insurance agent regulations.

Upon completing the online application, you’ll need to show your passing score report and printed Sircon or NIPR confirmation page in order to have your fingerprints scanned. The results of your background check will then be sent back to the Department, which will re-evaluate them and make a decision on your application.

While the fingerprinting fee will be paid as part of your licensing application submission, you’ll need to pay the $6 processing fee separately – either online at the Prometric website or by calling (888) 226 8740. While you are able to pay this earlier, we recommend waiting until after you’ve passed to do so because this money will be lost if you fail the exam.

Note: If you leave the test centre after passing your insurance exam but don’t have your prints taken, you’ll need to reschedule this appointment at a later date – which only delays your application.

After satisfying all the other requirements and submitting a license application to the Utah Insurance Department, all that’s left to do is wait. If everything on your application has been filled out correctly, your license approval should take place within a few weeks – this is the amount of time it typically takes for a license application and background check to be reviewed.

It’s important to be aware that the issuance of your insurance license can take a bit longer than this if there are any items from your background check that need to be looked over. However, the state will likely get in touch with you to give some context if they run into any issues.

In any case, the state will send you an email regarding the status of your license once this review has been completed, so keep an eye out for that!

Continuing education

To keep your insurance license valid in Utah, you must complete 24 hours of continuing education (CE) biennially. This means that every two years, you need to renew your license by completing 24 credit hours of CE, paying a renewal fee of $75, and submitting your application. Failure to renew your license before the deadline will result in the inability to act in a professional capacity until the license is reinstated.

Out of the 24 hours of CE, 12 hours must be in a classroom (or equivalent) setting, and three hours must cover ethics courses. It is recommended to complete the required CE hours at least 90 days before your license expires to avoid delays in the renewal process.

Frequently asked questions