Study Strategies For Louisiana Life Insurance Exam Success

To become a life insurance agent in Louisiana, you must pass the Louisiana Life Insurance Licensing Exam. While there is no mandatory pre-license education requirement, it is highly recommended that you take a pre-license course to prepare for the exam. The exam is 120 minutes long and consists of 100 multiple-choice questions. You must achieve a score of 70% or higher to pass. The exam fee is $38, and you can retake the exam as soon as 24 hours after your first attempt if you don't pass. It is important to allocate enough time to study for the exam, as the questions are purely factual and will test your knowledge and understanding of the material.

Pre-license course

A pre-license course is not a requirement in the state of Louisiana, but it is highly recommended to take one to help you prepare for the exam. A pre-license course will give you a solid understanding of your duties as a life insurance agent and provide specific industry knowledge that will be tested during the exam. There is very little information on the test that could be considered "common sense".

The time it takes to complete a pre-license course depends on the individual, but it is recommended to allocate around one to two weeks to prepare for the exam. This should allow you to go through all the material at least twice.

Louisiana Insurance Regulation

This section covers the laws and regulations specific to the state of Louisiana that you need to know to operate as an insurance agent.

Licensing and Regulation

This section covers the process of obtaining and maintaining an insurance license in Louisiana.

General Insurance Concepts

This section covers basic insurance concepts such as the classifications of insurers, elements of a contract, authority and powers of producers, and legal interpretations affecting contracts.

Life, Health, and Accident Insurance Basics

This section covers the fundamental concepts of life, health, and accident insurance, including personal and business uses, determining the amount of coverage, premium determination, company underwriting, and definitions of perils.

Types of Life Insurance Policies

This section covers the different types of life insurance policies available, such as whole life insurance, specialized policies, and group life insurance.

Life Insurance Policy Provisions, Options, and Riders

This section covers the various provisions, options, and riders that can be added to a life insurance policy, such as beneficiary designations, non-forfeiture options, policy loans, and riders covering additional insureds.

Annuities

This section covers the principles and concepts of annuities, including immediate vs deferred annuities and annuity payment options.

Individual Health and Accident Insurance Policy Provisions

This section covers the provisions and clauses typically found in individual health and accident insurance policies, including uniform required provisions, uniform optional provisions, and other general provisions.

Disability Income and Related Insurance

This section covers disability income insurance, including how benefits are determined, qualifications for disability, individual and group disability insurance, and social security disability.

Medical Plan Concepts

This section covers the concepts and provisions related to medical plans, including cost containment in healthcare delivery and the Health Insurance Portability and Accountability Act (HIPAA).

Group Health Insurance

This section covers group health insurance, including its characteristics and how it is offered by employers.

Health Insurance for Senior Citizens and Special Needs Individuals

This section covers health insurance options for seniors and individuals with special needs, such as Medicare supplement insurance, long-term care policies, and the Federal Tax Considerations for Health Insurance.

Federal Tax Considerations for Life and Health Insurance

This section covers the tax implications of life and health insurance, including the requirements for qualified plans, taxation of personal life insurance, and health insurance premiums and benefits.

While the above outline provides a general idea of the topics covered in a pre-license course, the specific content may vary depending on the course provider. It is essential to choose a reputable course provider that covers all the relevant topics for the Louisiana life insurance exam.

Exam registration and cost

To register for the Louisiana Life Insurance Licensing Exam, you must first complete a pre-licensing course. While this is not a requirement in Louisiana, it is highly recommended to prepare you for the exam. Kaplan Education Company offers a pre-licensing course for $149+.

Once you have completed your pre-licensing course, you can register for the exam with PSI Exams. The exam fee is $38, which you must pay at the time of reservation by credit card, debit card, or voucher.

The state of Louisiana also requires fingerprinting and background checks with your insurance agent licensing application. You will be charged a fingerprinting fee of $39.25 to cover the cost of comparing your prints against criminal history records.

The total cost of the exam and associated fees is $115.25.

Exam content and format

The Louisiana Life Insurance Examination consists of 100 multiple-choice questions, which must be completed within a time limit of 2 hours. To pass, you need a score of 70% or higher. The exam covers a range of topics, including:

• Louisiana insurance regulation
• Federal tax considerations for life insurance
• Life insurance basics
• Life insurance policies
• Life insurance policy provisions, options, and riders
• Annuities
• Qualified plans
• Health insurance basics
• Individual health insurance policy general provisions
• Disability income and related insurance
• Medical plans
• Group health insurance
• Dental insurance
• Insurance for senior citizens and special needs individuals
• Federal tax considerations for health insurance

The Louisiana Health and Accident Insurance Examination also consists of 100 multiple-choice questions, with a time limit of 2 hours and a passing score of 70%. The content of this exam includes:

• Insurance regulation
• General insurance
• Health and accident insurance basics
• Health and accident insurance policies
• Health and accident insurance policy provisions
• Disability income and related insurance
• Medical plans
• Group health insurance
• Medicare supplement insurance
• Long-term care policies
• Federal tax considerations for health insurance
• HIPAA

If you are taking the combined Life, Health and Accident or Sickness Insurance Examination, this will consist of 150 multiple-choice questions, with a time limit of 2 hours and 40 minutes. Again, a score of 70% or higher is required to pass. The content of this exam includes all the topics mentioned above for the Life and Health and Accident Insurance Examinations, as well as:

• Life insurance policy provisions, options, and riders
• Annuities
• Qualified plans
• Federal tax considerations for life insurance and annuities

The Louisiana Property Insurance Examination and the Louisiana Casualty Insurance Examination are separate exams, each consisting of 100 multiple-choice questions, with a 2-hour time limit and a passing score of 70%. However, if you are taking the combined Property and Casualty Insurance Examination, this will consist of 150 multiple-choice questions, with a time limit of 3 hours. The content of these exams covers:

• Louisiana insurance regulation
• Licensing and regulation
• General insurance concepts
• Property and casualty insurance basics
• Dwelling policy concepts
• Homeowners policy concepts
• Personal automobile policy
• Commercial automobile policy
• Commercial property policies
• Commercial general liability
• Commercial crime
• Workers' compensation insurance
• Other types of property and casualty insurance

It is important to note that the Louisiana insurance license exams are not based on common sense or critical thinking. All questions are factual and will test your knowledge and understanding of the relevant insurance regulations, laws, and concepts. Therefore, it is crucial to allocate sufficient time to study and prepare for these exams.

Post-exam steps

Once you have passed the Louisiana life insurance exam, there are several steps you need to take to obtain your license and start your career as an insurance agent. Here are the steps you need to follow:

Get a fingerprint-based background check

After passing the exam, you must undergo a fingerprint-based background check. This can be done through PSI Exams, and the fee for this service is $39.25. You can submit your fingerprints electronically at one of the PSI Louisiana sites without an appointment. The results of your background check will be sent directly to the Department of Insurance.

Complete a Louisiana life insurance license application

The next step is to apply for your Louisiana life insurance license. The application must be submitted online via the National Insurance Producer Registry (NIPR). There is an application fee of $75, as well as a transaction fee of $5.60. To be eligible for a license, you must be at least 18 years old and have passed the licensing exam. It is also recommended that you create a user account on Louisiana's Industry Access portal to manage your online filings.

Watch for your application results

After submitting your application and completing the background check, the Division of Producer Licensing at the LDI will review your application. You can check the status of your application by visiting your Industry Access account. Once your license is approved, you can print it from the Industry Access portal or the NIPR website. There is no charge for printing your license.

Obtain relevant securities licenses

If you plan to sell advanced life insurance products, you will likely need to obtain the relevant securities licenses, such as the Securities Industry Essentials (SIE) exam and additional licenses like Series 6, 7, and 63. This step will allow you to offer a wider range of products to your clients.

Choose your means of selling

You will need to decide whether you want to work as a captive agent for a single company or run your own business as an independent agent. Working as a captive agent can be a good starting point, especially if you are new to the industry.

Develop your marketing approach

To succeed as an insurance agent, it is essential to adopt an effective marketing approach. Finding a niche and organizing client appointments at the start of the week can improve your client conversions.

Keep your license valid

In Louisiana, you must complete 24 hours of continuing education (CE) every two years to renew your insurance license. Three of those hours must focus on ethics. Additionally, if you sell annuity products, you will need to complete a one-time, four-hour training course. License renewal can be done online through the Industry Access portal or the NIPR website, and the renewal fee is $50.

Maintaining your license

Once you have your license, you will need to take steps to keep it valid. In Louisiana, you must take 24 hours of continuing education (CE) every two years to renew your insurance license. Three of those hours must focus on ethics. If you sell annuity products in Louisiana, you will also need to complete a one-time, four-hour training course. This requirement is separate from the CE requirements for a licensee and applies to both resident and non-resident producers.

To avoid delays in renewing your license, you must complete your required CE hours at least 90 days before your license expires. You can renew your license online by using either the Industry Access portal or the NIPR website. The renewal fee is $50.

In Louisiana, you only need to file a single license renewal to renew all eligible lines on your license. Licenses renew on the last day of your birth month, with your license number determining the renewal year.

Frequently asked questions