Life And Health Insurance Exam: How Long Does It Last?

The life and health insurance exam is a pivotal step in becoming a licensed insurance agent. The exam is state-specific, and each state has its own set of tests and requirements, although the overarching topics covered and passing scores are similar across states. The exam covers a range of topics, including insurance general knowledge, policies, policy riders, tax issues, and various types of insurance such as dental, individual, group, and special needs insurance. The average exam taker should expect to spend around 35 to 40 hours studying for the exam, and the exam itself can range from 75 minutes to over two hours.

The length of the exam

The length of the life and health insurance exam varies depending on the state and the exam format. While some states offer a combined life and health insurance exam, others require separate tests for life insurance and health insurance. The number of questions and the time limit for each exam will also differ.

In Texas, for example, the Life, Accident, and Health exam is 150 minutes long, while the Property and Casualty exam is also 150 minutes. The number of scorable questions for the Life exam is 80, for Life and Health it is 130, and for Property and Casualty, it is 130.

The California Department of Insurance (CDI) offers various licensing examinations with different time limits and numbers of questions. However, the specific time limit for the Life, Accident & Health or Sickness exam is not explicitly mentioned.

It is important to note that the time limit and number of questions are not the only factors that determine the length of the exam. The complexity of the questions, the format of the exam (computer-based or paper-based), and the individual test-taker's pace can also influence the overall exam duration.

To ensure you are well-prepared for the exam, it is recommended to allocate sufficient time for studying and preparation. This includes completing a pre-licensing education course, familiarizing yourself with the exam content outline, and practicing with sample questions or mock exams.

How to prepare for the exam

Preparing for the life and health insurance exam involves several steps, from understanding the exam structure and requirements to adopting lifestyle adjustments. Here is a detailed guide to help you get ready for the exam:

Understand the Exam Topics and Format:

Each state has its own insurance exam, so the specific topics and requirements may vary. However, some common topics covered include life insurance policies, policy riders, tax issues, health insurance policies, special needs insurance, and health maintenance organizations (HMOs). Familiarize yourself with the State Exam Outline to know the weightage of each topic and focus your studies accordingly.

Allocate Sufficient Study Time:

The average exam-taker should expect to spend around 35 to 40 hours studying for the life and health insurance exam. It is recommended to spread out your preparation over a few weeks rather than cramming. Dedicate 2 to 3 days of study time after your licensing course to keep the information fresh in your mind.

Minimize Distractions:

When studying, create an environment free from distractions like phones, TV, or the internet. Staying focused will help your brain absorb new information more effectively. Consider setting a study schedule to ensure dedicated time for exam preparation.

Practice with Mock Exams:

Utilize practice exams to gauge your understanding of the material. Take at least one practice exam under testing conditions to evaluate your pacing and readiness for the actual exam. This will help you identify areas that need further revision.

Adopt Healthy Lifestyle Habits:

In the weeks leading up to the exam, make some healthy adjustments to your diet and lifestyle. Drink plenty of water, limit salt and alcohol intake, and consume more whole grains, fruits, vegetables, and low-fat dairy products. These changes can help lower your blood pressure and improve your overall health before the exam.

The Day Before the Exam:

Avoid alcohol, nicotine, and red meat, as these can increase your blood pressure and cholesterol levels. Get a good night's sleep, as adequate rest is essential for maintaining healthy blood pressure.

On the Day of the Exam:

• Avoid caffeinated drinks, strenuous exercise, and refrain from intense physical activity, as these can raise your blood pressure and heart rate.
• Stay hydrated by drinking plenty of water, which will also make it easier to provide urine and blood samples.
• Bring a government-issued photo ID, such as a driver's license, state ID, or passport.
• Have your medical information readily available, including a list of medical conditions, treatments, prescription medications, and contact details for your physician.
• Wear short sleeves or clothing that can be easily rolled up to facilitate the blood draw.

What to do after passing the exam

Congratulations on passing your life and health insurance exam! Here are the steps you should take after passing:

Check your state's requirements

Each state has its own insurance exams, and the requirements vary, so it is essential to consult your state's Department of Insurance guidelines. They will outline the minimum requirements that need to be met, such as the minimum number of hours of class time before applying for a license. Understanding your state's specific path to becoming a licensed insurance agent is critical.

Apply for your insurance license

You are now ready to apply for your insurance license. The exam pass results page usually includes the exact steps to take to apply for a license. Test providers often have handbooks or bulletins that highlight the steps and required forms. Newly approved insurance agents should apply as soon as possible to start selling insurance quickly.

Take out a bond (if required by your state)

Some states require new insurance agents, especially independent agents, to take out a bond in favor of the state's people. This ensures the state can recoup money in case of fraudulent practices or damages caused by the agent. If required, provide the state insurance office with proof of the bond.

Register with the state

Provide the state insurance office with identifying information, such as your social security number, photo identification, and fingerprints. The exact requirements vary by state, but collecting this information is common practice to verify identity, check criminal records, and keep licensed individuals' information for future reference.

Follow your state's official guidelines

To ensure your insurance agent licensing procedure is correct, refer to your state's official guidelines. Adhering closely to these guidelines will help expedite your application process.

Get appointed by an insurance carrier

Once you have your license, you will need to get appointed by an insurance carrier to sell their products. Most people will work for an agency first to gain experience before becoming an independent agent.

The cost of the exam

The cost of the life and health insurance exam varies depending on the state. For example, in North Carolina, each insurance exam costs $45, while neighbouring Virginia charges a $35 fee per exam. If you choose to take the life and health insurance exams separately, you will need to pay for two exam fees and may need to complete two separate pre-licensing education courses.

In Texas, the Department of Insurance charges $50 for all license types, including life and health insurance licenses, or $150 for a temporary license. On top of the exam fee, there is also a separate fee for fingerprinting and a background check, which is required to become fully licensed as a life and health insurance agent. The electronic fingerprinting fee is around $41.

In California, the Accident and Health Agent (AH) license has an application fee of $311 per qualified manager.

It is worth noting that some insurance carriers require agents to have a life insurance license as well as a health insurance license. Many agents choose to obtain both licenses at the same time so that they can provide their clients with a wider range of insurance products.

The difficulty of the exam

The difficulty of the life and health insurance exam varies depending on the state. Each state has its own exam, with different tests and requirements, although the overarching topics covered and passing scores are similar across all states. The pass rate for the exam is 64.8%, with a passing score of 70% across all exams.

The exam is not easy, and it is recommended that you spend 35 to 40 hours studying over a few weeks to prepare. The exam covers a wide range of topics, including life insurance general knowledge, life insurance policies, policy riders and options, life insurance tax issues, annuity policy tax issues, health insurance general knowledge, dental, individual and group policies, special needs individual insurance, health maintenance organizations, and health insurance tax issues.

The testable areas of the exam include the benefits of insurance, how to work with clients, and state and federal regulations. There are also specific policies, provisions, and regulations that pertain to individual lines of insurance. For example, the life insurance exam may cover types of individual life insurance, annuities, policy provisions, group contracts, tax-qualified retirement plans, and legal and tax implications of premiums, benefits, and withdrawals. The health insurance exam, on the other hand, may cover disability insurance policies, basic medical expense insurance policies, major medical insurance policies, managed care, accident and health insurance provisions, group health insurance, and social security disability.

Additionally, the state-specific content will vary depending on the state. For example, the Texas Insurance License Exam includes state-specific questions on the Texas insurance regulations and laws. Similarly, the California Department of Insurance offers different types of licensing examinations, with varying numbers of hours allotted and questions on the examination.

To prepare for the exam, it is recommended to take a pre-licensing education course, which can help you get accustomed to the extensive amount of content that you will need to memorize. These courses can be taken in-person or online, and typically cover the testable information outlined by the state's insurance authority on the insurance exam content outline. Practice tests are also highly recommended, as they can help you become familiar with the format of the exam and identify areas that need improvement.

Frequently asked questions