Get Licensed To Sell Life Insurance In South Carolina

If you're looking to sell life insurance in South Carolina, you'll need to get a license. The process is straightforward but requires dedication. Here's a step-by-step guide to help you get started on your journey towards becoming a licensed life insurance agent in the state of South Carolina.

Choose your line of authority: health, life, property, or casualty insurance

To get licensed in South Carolina for life insurance, you must first choose your line of authority. This will determine the scope of your insurance practice and the types of insurance products you can sell. Here is a detailed overview of the four main lines of authority to choose from: health, life, property, and casualty insurance.

Health Insurance:

The health insurance line of authority qualifies you to explain, sell, and write health insurance products in South Carolina. This includes a range of insurance plans that cover medical expenses, hospitalization, prescription drugs, and other health-related costs.

Life Insurance:

The life insurance line of authority allows you to specialize in life insurance products. This includes insurance policies that provide financial protection to the policyholder's loved ones in the event of their death. Life insurance can help replace lost income, cover outstanding debts, and ensure financial security for dependents.

Property Insurance:

If you choose the property insurance line of authority, you will be authorized to sell insurance products that protect individuals and businesses from financial losses due to damage to their property. This includes homeowners insurance, commercial property insurance, and specialized policies for specific types of property, such as vehicles or equipment.

Casualty Insurance:

Casualty insurance, also known as liability insurance, covers individuals and organizations against legal liability for injuries or damage caused to other people or their property. This line of authority includes a range of insurance products, such as auto insurance, professional liability insurance, and general liability insurance.

When selecting your line of authority, consider your career goals, interests, and the type of insurance products you want to focus on. Each line of authority has its own specific exams and licensing requirements, so be sure to review the South Carolina Department of Insurance (SCDOI) guidelines for the chosen line of authority to ensure you meet the necessary qualifications and complete the required steps for licensing.

Complete a pre-licensing course

To get a life insurance license in South Carolina, you must complete a pre-licensing course. This is not a legal requirement, but it is highly recommended, as the state licensing exam covers specific industry information, insurance products, and state insurance laws.

A.D. Banker and Kaplan both offer pre-licensing courses that are cross-referenced with the exam content outlines. These courses are designed to suit all learning styles and will prepare you to pass the exam on your first attempt. America's Professor also offers a pre-licensing course for the South Carolina Life Pre-Licensing Course, which includes books, video lectures, review questions, and free extensions until you pass.

The exams are multiple-choice and tend to focus on three types of questions:

• Terminology (definitional) questions
• Number/day questions
• Short story problems, where you must apply the knowledge gained in your pre-licensing course to a practical situation

The South Carolina Life Insurance Producer exam lasts 2 hours and has 100 questions. To pass, you need a score of 70% or higher. You must score 70% or higher to pass your state licensing exam. You are required to pay an additional exam fee to retake the test, so it is important to pass the first time.

Pass the state licensing exam

Passing the state licensing exam is a pivotal step in becoming a licensed life insurance agent in South Carolina. Here is a detailed guide to help you prepare for and pass the exam:

Exam Preparation:

Although South Carolina does not require prelicensing education, it is highly recommended that you complete an exam preparation course. Kaplan and ExamFX offer comprehensive exam prep courses that cover the material on the South Carolina licensing exams. These courses significantly increase your chances of passing and help you get accustomed to the extensive content that you need to memorize.

Exam Format:

The South Carolina insurance licensing exam is administered by Pearson VUE, and you can register and book your exam through their website. The exam can be taken online or in person at a physical Pearson VUE examination center. The exam consists of multiple-choice questions and is conducted on a computer.

The exam includes both general and state-specific material. The general section tests your knowledge of federal insurance products and agent knowledge, while the state-specific section covers South Carolina insurance regulations and laws that you must know to operate as an insurance agent.

The number of questions on the exam varies depending on the specific license you are testing for. For example, the Life, Accident, and Health insurance exam consists of 150 questions, while the Casualty Producer and Property Producer exams have 80 questions each.

Exam Day:

On the day of your exam, remember to arrive early, especially if you plan to take the exam in person. Bring a valid form of government-issued identification, such as a driver's license, passport, or military ID, which must include your photograph and signature.

Exam Results:

Immediately after completing your insurance exam, you will see your score on the screen, and a score report will also be emailed to you. A passing score is 70% or higher. If you do not pass, your score report will include a diagnostic report to help you identify areas for improvement.

Retake Policy:

You can take each insurance exam up to six times per year in South Carolina. If you need to retake the exam, use the diagnostic report to focus on your weaker areas, and consider retaking an exam prep course to improve your chances of passing.

Passing the state licensing exam is a crucial step in obtaining your life insurance license in South Carolina. By following the preparation tips, understanding the exam format, and being well-organized on the exam day, you increase your chances of success.

Apply for a license

Once you have passed your state licensing exam, you are ready to apply for a South Carolina insurance license. You can apply for a license online at the National Insurance Producer Registry (NIPR). Paper applications are only accepted in certain situations and may be returned to the applicant without being processed. The license fee is $25. It is not pro-rated and is non-refundable and non-transferable.

To transfer a non-resident license to a resident license, you must:

• Cancel your SC non-resident license (if applicable).
• Cancel the license in your previous home state.
• Apply online at NIPR.
• Upon receipt of the application, the Department will send an email with instructions on scheduling a fingerprint appointment.

To be exempt from the state licensing examination, the producer must submit an application within 90 days of canceling their license in their previous home state. Otherwise, they are required to take the South Carolina licensing examination.

Pre-need producers are only required to pass the life exam and need to submit:

• A copy of your South Carolina funeral director's license
• A letter of employment from a South Carolina-licensed funeral home

Get fingerprinted

To get fingerprinted as part of your South Carolina life insurance license application, you must first apply for a resident producer license. Once you have done this, you will receive an email with instructions on how to schedule a fingerprint appointment.

Beginning in January 2017, all resident producers were required to submit fingerprints as part of the licensing process. This is a mandatory step, as the submission of fingerprints allows the South Carolina Department of Insurance (SCDOI) to complete a statewide criminal background check with SLED and a national criminal background check with the FBI.

You only need to submit your fingerprints once. After your fingerprints have been successfully submitted and processed, you do not need to be re-fingerprinted for future license renewals. However, once fingerprint records are on file, new criminal charges for licensed insurance producers are automatically reported to the SCDOI.

It is important to note that fingerprints should only be obtained after or at the time of application for new resident producer applications. If you obtain fingerprints for any other type of application, your fingerprint results will be destroyed.

Frequently asked questions