Jane Dotson
The California Life and Health Insurance exam is a challenging but rewarding test for aspiring insurance agents. It is a multiple-choice exam with 150 questions to be completed in 180 minutes, requiring a passing score of 60%. The exam covers a range of topics, including general insurance knowledge and state-specific regulations, with trick questions testing your ability to think beyond the basics. While the exam is not considered extremely difficult by most, thorough preparation is essential for success. California requires candidates to complete pre-licensing classes and pass the state licensing exam to obtain their insurance license. This exam is a crucial step towards a career in insurance, offering flexibility, good earnings, and industry growth.
| Characteristics | Values |
|---|---|
| Exam Format | Multiple choice |
| Number of Questions | 150 |
| Time Allowed | 3 hours |
| Passing Score | 60% |
| Cost | $88 plus a $33 convenience fee for each exam attempt |
| Attempts Allowed | 10 times within 12 months |
| Average Annual Salary for Life Insurance Agents | $70,589 |
| Average Monthly Salary for Life Insurance Agents | $5,882 |
What You'll Learn
California Life and Health Insurance Exam
The California Life and Health Insurance Exam is a pivotal step in becoming a licensed insurance agent in the state of California. The exam is administered by PSI Services, and you can register and book your exam through their website. The test can be taken online or in person, and there is a $33 convenience fee for in-person examinations.
The exam is 90 minutes long and consists of 75 questions, requiring a score of 60% or higher to pass. The exam covers both general insurance topics and California-specific insurance regulations and laws. The general topics include basic insurance concepts and principles, contract law, the insurance marketplace, types of life policies, taxation of life insurance and annuities, and group life insurance plans. The California-specific portion of the exam covers state insurance regulations and laws that insurance agents need to know to operate in the state.
To prepare for the exam, it is recommended to take a pre-license course, such as those offered by Kaplan Financial Education and ExamFX, which provide study packages and resources to help you pass the exam. These courses can be taken online or in-person and typically cover the necessary topics in detail, providing a solid foundation for your exam preparation. The average exam taker should expect to spend around 35 to 40 hours studying for the exam, and it is recommended to spread this study time over a few weeks rather than cramming.
In addition to the pre-license course, you can also utilize practice exams, study guides, and exam prep materials offered by various companies to reinforce your understanding of the material. It is important to focus on the topics with the most weightage on the exam and allocate your study time accordingly.
By following these preparation tips and putting in the necessary study time, you can increase your chances of passing the California Life and Health Insurance Exam on your first attempt.
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California Life and Health Insurance Guarantee Association
The California Life & Health Insurance Guarantee Association (CLHIGA) is a safety net for California residents who have purchased life and health insurance and annuities. It is a guarantee that, should an insurance company become insolvent, policyholders will be protected within certain limits.
CLHIGA is there to ensure that policyholders' medical and financial security is maintained. It is a trusted, empathetic, and reliable payer of claims to policyholders and claimants of insolvent licensed property and casualty insurance carriers.
CLHIGA steps in when an insurance company is placed in liquidation, taking on liability, auto, and workers' compensation claims. It assesses its member insurance companies for the money to pay the claims of insured persons living in California and, in some cases, to keep coverage in force.
There are some exclusions from coverage. For example, persons holding policies are not protected by CLHIGA if their insurer was not authorized to do business in California when it issued the policy or contract. Also, CLHIGA does not provide coverage for unallocated annuity contracts, employer and association plans to the extent that they are self-funded or uninsured, synthetic guaranteed interest contracts, or any policy or portion of a policy that is not guaranteed by the insurer.
CLHIGA provides detailed information on its website regarding its purpose and how it protects resident policyholders in the event of an insurance company insolvency.
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California Life Insurance License
California's life insurance license exam is a multiple-choice test with 150 questions that must be completed within 180 minutes (3 hours). The exam pass score is 60%, and the current pass rate is 64.8%. The exam can be taken online or in person at a PSI testing centre. PSI Bridge, a software with webcam audio and video monitoring, is used to administer the online exam. A compatibility check is necessary to ensure the software works on your device.
To obtain a life insurance license in California, you must:
- Obtain state-approved pre-licensing education.
- Take a Life, Accident & Health insurance licensing exam.
- Undergo fingerprinting for background checks.
- Process your license application.
- Once you obtain the license, you will need continuing education to keep it active.
The average exam taker should expect to spend about 35 to 40 hours studying for the exam. It is recommended that you spread your studying over a few weeks and avoid cramming. It is also important to remove distractions and focus solely on preparing for the exam. Practice exams are a great way to gauge your readiness and improve your pacing.
The exam will cover general insurance knowledge and state-specific knowledge. General insurance knowledge will test your understanding of types of policies, the constituencies of a contract, application, underwriting, taxes, and annuities. State-specific knowledge will cover regulations and laws pertaining to Life, Accident & Health insurance in California.
The fee for the Life & Health Insurance exam is $88, plus a $33 convenience fee for each exam attempt.
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Exam preparation
The California Life and Health Insurance exam is a multiple-choice test with 150 questions to be completed in 180 minutes (3 hours). The passing score is 60%, and the current pass rate is 64.8%. The exam is not a walk in the park, but it is also not tricky for most.
To prepare for the exam, it is recommended to spend 35 to 40 hours studying over a few weeks rather than cramming the week before or the night before the exam. It is also advised to spend 2 to 3 days studying after your licensing course to keep the information fresh in your mind.
When studying, try to remove distractions and avoid multitasking to help your brain absorb new information. Setting a study schedule over a few weeks can help you dedicate time solely to preparing for the exam.
The exam will cover general topics such as life insurance general knowledge, life insurance policies, policy riders and options in life insurance coverage, life insurance tax issues, annuity policy tax issues, health insurance general knowledge, dental, individual and group policies, special needs individual insurance, Health Maintenance Organizations (HMOs), and health insurance tax issues.
The State Exam Outline will tell you how many questions are included in each section of the test. Focus more of your study time on the sections with more questions.
Once you have a good grasp of the material, utilize practice exams to gauge your understanding and identify areas that need improvement. Take at least one practice exam under testing conditions to determine if your pacing is on track to complete the exam within the allotted time.
Exam Format and Structure
The California Life, Accident, and Health exam is a multiple-choice test with 150 questions, and you will have 180 minutes (3 hours) to complete it. The exam pass score is 60%. The questions will likely be divided into two parts: testing your general insurance knowledge and state-specific knowledge.
General knowledge questions may include topics such as types of policies, the constituencies of a contract, application, underwriting, taxes, and annuities. State-specific knowledge questions will cover state regulations and laws related to Life, Accident, and Health insurance.
The exam will also include some "trick questions" to test your ability to perform as an Insurance Agent. These may be derived from dry information such as names of laws or important dates.
Exam Registration and Scheduling
The Life, Accident & Health licensing exam is scheduled through PSI Services LLC, a California company providing state-based licensure services. You can schedule the exam online, by phone, fax, or mail. When scheduling, you will need to provide personal details such as your full name, surname, government-issued ID, and social security number. You will also need to select your preferred mode of taking the exam: online or at a test center.
The exam fee is $88, plus a $33 convenience fee for each exam attempt.
Exam Day
If you choose to take the exam at a PSI testing center, arrive 30 minutes early for check-in and identity verification. Bring a government-issued ID, such as a driver's license, employment authorization card, or military ID. PSI's website has a detailed list of security protocols for the exam.
After check-in and verification, PSI will display a 15-minute introductory tutorial, followed by the computer-administered exam.
If you opt for the online examination, ensure your computer is compatible with PSI Bridge software, which includes audio and video monitoring. Check-in 30 minutes before the exam for identity verification and other procedures.
Retakes
If you do not pass the exam, you must wait at least 24 hours before registering for a retake. You can take the exam up to three times in any calendar year.
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Special-enrollment periods
Some of the most common qualifying life events include:
- Involuntary loss of health insurance, such as losing Medi-Cal, employer-sponsored, or student health coverage.
- Turning 19 or 26 years old and no longer being eligible for a child-only or parent's plan, respectively.
- Moving to California from another state or relocating within the state and gaining access to a new Covered California health insurance plan.
- Getting married or entering into a domestic partnership.
- Having a baby, adopting a child, or beginning to foster a child.
- Experiencing a natural or human-caused disaster, such as wildfires, resulting in a declared state of emergency in California.
- Returning from active military service and losing coverage.
- Gaining citizenship, nationality, or lawful permanent resident status.
- Domestic abuse or spousal abandonment.
- Being a member of a federally recognised American Indian tribe.
It is important to note that the effective date of coverage depends on the qualified life event and the date of application submission. Individuals typically need to enrol by the 15th of the month to receive coverage from the 1st of the following month. However, in cases of losing coverage, applying by the end of the month may still result in coverage starting on the 1st of the next month.
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Frequently asked questions
The California Life and Health Insurance exam is challenging, but most people find it easier than expected. The pass rate is 64.8% and the passing score is 60%. The exam consists of 150 multiple-choice questions to be completed in 180 minutes.
The average exam taker should expect to spend 35 to 40 hours studying for the exam. It is recommended to study over a few weeks rather than trying to cram.
The exam will cover general insurance knowledge and state-specific knowledge. Topics include types of policies, the constituencies of a contract, application, underwriting, taxes, annuities, and state-specific regulations.
You can schedule your exam through PSI Services LLC, either online, by phone, fax, or by mailing the application form. You will need to provide personal details and pay the application fee.
If you miss your exam or provide a late cancellation, your registration will become invalid and you will not receive a refund. If you anticipate missing the exam, you should cancel and reschedule at least two days in advance to avoid forfeiting your fee.
