Becoming A Licensed Health Life Insurance Agent: A Step-By-Step Guide

If you're interested in becoming a licensed health life insurance agent, you'll need to get a Life and Health Insurance License. This license will allow you to sell health and life insurance policies and is granted by your specific state. The requirements to obtain this license vary depending on the state, but most require you to pass a state licensing exam and meet certain educational criteria. Some states also require a background check and fingerprints. It's important to review your state's specific guidelines and requirements before starting the process.

Research state-specific licensing requirements

To become a licensed health life insurance agent, you must research the specific requirements of your state. Each state has its own set of procedures for applying for a producer's license. The process will vary depending on the type of insurance, or "line of authority", that you intend to sell. While the exact procedures vary, many states require applicants to complete pre-licensing training courses, pass an exam, and submit to fingerprinting.

In most states, the requirements for becoming a producer will differ depending on whether you are a resident of the state in which you are applying, if you are a resident of a different state, or if you are already licensed but planning on relocating to a new state. It is important to carefully review the resident and non-resident requirements for your state.

For example, in Michigan, you must apply for a license with the National Insurance Producer Registry. This can be done online or in-person and costs $15 for each type of business you plan to sell. The application lasts for six months. During this time, prospective agents will enroll in specific education courses tailored to the content expected on the exam. Each pre-licensing course will be worth a set amount of credit hours. In Michigan, completion of Life, Accident, and Health coursework requires forty hours and is awarded a certificate necessary for taking the exam. From there, prospective life and health insurance agents in Michigan can attempt the exam for a fee of $40 per attempt.

Another example is New York, where a Life, Accident & Health agent or broker is licensed to sell, solicit, or negotiate life insurance annuities and/or accident & health insurance. To qualify for a license, the licensing candidate must meet the following prelicensing requirements: complete a Department-approved prelicensing education course totaling not less than 40 hours of instruction for the life, accident & health authority or not less than 20 hours for either life-only or accident & health-only authority; and pass, within 2 years of applying for the license, a licensing exam administered by PSI Services.

Complete pre-licensing education

To become a licensed health and life insurance agent, you will need to complete pre-licensing education. This is a requirement in most states, and it will prepare you for the licensing exam. The pre-licensing education will take the form of a course, which can be taken online or in person. The length of the course will depend on your state's requirements, ranging from a one-day class to 20-40 hours of online training. For example, in Michigan, the pre-licensing course for Life, Accident, and Health insurance agents requires 40 hours of coursework.

The course will cover the content that you need to know for the licensing exam. This includes state rules and regulations, insurance applications, underwriting, delivering policies, policy riders and exclusions, taxes and retirement, and types of policies. Understanding the material covered in the pre-licensing course will help you prepare for the multiple-choice licensing exam.

In some states, you will need to apply for a license before taking the exam and receiving your license. You may also need to complete a background check and fingerprinting as part of the pre-licensing requirements.

The pre-licensing course will be provided by a third-party organization, and the cost may be covered by your employer if you have already been hired by an insurance company. Otherwise, you will need to pay for the course yourself.

Once you have completed the pre-licensing course and fulfilled all other requirements, you will be ready to take the licensing exam and begin your career as a health and life insurance agent.

Pass the licensing exam

Passing the licensing exam is a crucial step in becoming a licensed health and life insurance agent. Here are some detailed tips to help you prepare for and pass the exam:

Understand the Exam Structure and Content:

The licensing exam will likely consist of multiple-choice questions, covering key terms, concepts, procedures, and state regulations related to health and life insurance. The exam typically includes a general section and a state-specific section. Familiarize yourself with the content outline provided by your state, as it will indicate the topics and their respective weightings on the exam.

Set a Study Schedule:

Create a study calendar and stick to it. The recommended study time for the exam is around 35 to 40 hours, spread over a few weeks. Break down the content into manageable chunks and allocate specific blocks of time each day to cover different topics. Give extra focus to sections with a higher number of questions.

Utilize Practice Exams and Mock Tests:

Practice exams and mock tests are invaluable tools to gauge your understanding and identify areas that need improvement. Attempt at least one practice exam under actual testing conditions to get a feel for the timing and environment. This will help you refine your pacing and identify any knowledge gaps.

Take a Prep Course:

Consider enrolling in a prelicensing education course, such as those offered by Kaplan. These courses will help you make sense of the material, stay on track with your study schedule, and prioritize the most important topics. They often include comprehensive resources like study manuals, state law supplements, practice question banks, and access to expert instructors.

Know the Exam Process:

Familiarize yourself with the exam process and procedures. On the day of the exam, you will need to arrive early, store your belongings, and follow the instructions provided by the proctors. Knowing what to expect can help reduce test-day jitters and ensure you are well-prepared and ready to perform at your best.

Take Care of Yourself:

In the lead-up to the exam, prioritize self-care. Get plenty of rest, eat nutritious meals, and stay physically active. Maintaining your physical and mental well-being will help you stay focused and energized during your studies and on exam day.

Remember, the licensing exam is a challenging but achievable milestone. By following these tips and staying dedicated to your goal, you'll be well on your way to becoming a licensed health and life insurance agent.

Submit your license application and background check

To become a licensed health life insurance agent, you will need to submit your license application and background check. This process can vary slightly depending on the state in which you are applying, so be sure to check the specific requirements for your state. Here is a general overview of the process:

Submitting Your License Application

Once you have passed the required state exam, you will need to submit your license application. In most states, you will apply for your license through the state's licensing provider. The application fee is typically around $50, but this can vary depending on the state. It's important to note that you must submit your application within a certain timeframe after passing your exam, which is usually one year. Failure to do so may result in having to retake the exam.

Completing Your Background Check

As part of the licensing process, you will also be required to undergo a fingerprint background check. Most states require licensed agents to be fingerprinted and to undergo a background check. You can usually complete your fingerprints at an on-site fingerprinting technician where you take your exam, or through a designated service such as IdentoGO. Be sure to submit the necessary receipts and documentation to the relevant state department.

Understanding State-Specific Requirements

It's important to remember that each state has its own rules and regulations for obtaining a health life insurance license. If you plan to work in multiple states, you will need to obtain a separate license from each of those states. Be sure to research and understand the specific requirements for the state in which you are applying, including any additional education or training requirements.

Maintaining Your License

To maintain a valid license, health insurance agents are expected to comply with any Codes of Conduct enforced by their state. It is also important to stay up to date with any continuing education requirements, as these are typically necessary for license renewal. Renewal periods can vary, but a two-year renewal is standard in many states.

Get appointed by an insurance company

Once you have passed your state insurance license exam, you will need to get appointed by an insurance company. This is a necessary step to becoming an insurance sales agent.

To do this, you will need to complete an application with each insurance company you plan to sell products for and be granted an appointment and binding authority, which is recorded on your state insurance license.

Some companies will pay for your exam if you agree to work for them. In some cases, you can take a company exam instead of the state exam.

It is important to note that a company appointment is not required to obtain an agent license. However, a notice of appointment must be electronically submitted to the Department within fifteen days from the date the agency contract is executed, or the first insurance application is submitted.

Frequently asked questions