Becoming A Life Insurance Agent: Navigating New York's Requirements

Becoming a life insurance agent in New York requires a license, which can be obtained by completing a few mandatory steps. These include taking a pre-licensing course, passing the relevant licensing exam, completing a fingerprint and background check, and submitting a license application. The process also involves a set of fees, including the cost of the pre-licensing course, the exam fee, and the license application fee. The requirements and steps to obtain a life insurance license in New York are outlined in detail by the New York State Department of Financial Services (DFS).

Complete a pre-licensing education course

To become a life insurance agent in New York, you must complete a pre-licensing education course. This is a requirement for all applicants and must be approved by the Superintendent of Insurance. The minimum number of hours for the course depends on the type of insurance license you are applying for. For a life, accident, and health agent license, the course must be at least 40 hours. If you are applying for a life-only agent license, the course must be a minimum of 20 hours.

The pre-licensing education course will provide you with the knowledge and tools to prepare for your licensing exam. It will cover industry-specific knowledge that will be tested during the exam. There are very few common-sense topics on the test, so the pre-licensing course is crucial. The courses are self-paced and include study materials such as practice exams and flashcards.

Over 81% of applicants use Kaplan's online courses, which have a 93% pass rate. The cost of the course starts at $149.

Pass the relevant New York Insurance License Exam(s)

To become a life insurance agent in New York, you must pass the New York Life Insurance Agent/Broker Examination. This is a multiple-choice exam, taken on a computer, and consists of 100 questions. You will have 2 hours to complete the exam and you need to score 70% or more to pass.

Before taking the exam, you must complete a prelicensing course. The prelicensing course for a life insurance agent in New York is 20 hours long. You can take this course online or in a classroom. The course will cover the topics that will appear on your exam.

Once you have completed the prelicensing course, you can register for your exam. You will need to register with PSI Services LLC, and the fastest way to do this is online at PSI or by calling (855) 579-4637. You can take the exam at a physical PSI examination center or via a remote online proctored exam.

On the day of your exam, you must bring two valid forms of government-issued ID, one of which must be a photo ID. You will not be able to take the exam without these documents.

Submit a completed license application

To become a life insurance agent in New York, you must complete a four-step process, including submitting a completed license application. Here is a detailed guide on submitting your license application:

Once you have passed the life insurance exam, you can apply for your New York life insurance license by submitting a completed license application. The application fee is $40 for New York residents, and you must apply online via the DFS Secure Portal.

The New York State DFS will issue a life insurance license to individuals who are at least 18 years old and have passed the licensing exam. It is recommended that you submit your completed license application within 12 months of passing the exam.

To apply for a life insurance license in New York, ensure that you comply with the insurance licensing requirements as defined by the New York Insurance Law and New York Administrative Code.

You can send any questions or supporting documents to [email protected].

After submitting your application, the New York State DFS will review it. This process typically takes one to five business days from the date you submit your application.

Once the review is complete, the New York State DFS will email you with its decision or request additional information.

You can then print your license from the DFS Secure Portal, free of charge.

Additional Steps:

There are a few additional steps to keep in mind after securing your New York life insurance license:

• Obtain relevant securities licenses: If you plan on selling advanced life insurance products, you will likely need to pass the Securities Industry Essentials (SIE) exam and obtain relevant securities licenses (e.g., Series 6, 7, and 63).
• Choose your means of selling: Decide whether you prefer working as a captive agent for a single company or running your own business as an independent agent.
• Develop a marketing approach: Adopt a marketing strategy that suits your strengths and helps you build relationships with clients.
• Maintain your license: In New York, you must complete 15 hours of continuing education (CE) every two years to renew your license. Try to complete the required CE hours at least 120 days before your license expires to avoid delays in renewal. The renewal fee is $80.

Pay the licensing fee

To become a life insurance agent in New York, you must pay a licensing fee. The fee for New York residents is $80 for a full fee and $40 for a half fee. The full fee is charged when a license is issued for a period of more than one year, while the half fee is charged when a license is issued for a year or less.

The licensing fee can be paid by credit card, electronic funds transfer (e-check), or paper check. However, if you choose to pay by paper check, your application will remain pending until the Department of Financial Services receives and processes the check. There is also a $20 fee for any e-check or paper check returned by the bank for insufficient funds.

It is important to note that all licensing fees are non-refundable. Therefore, it is essential to ensure that you meet all the requirements and are ready to commit to the licensing process before submitting your payment.

The license will be issued for up to two years and will expire on the licensee's birthday. If the licensee was born in an even-numbered year, the license will expire on their birthday in an even-numbered year. Conversely, if they were born in an odd-numbered year, the license will expire on their birthday in an odd-numbered year.

Watch for your application results

Once you've completed the previous steps, including taking the life insurance exam and applying for your license, the New York State DFS will review your application. The department reviews applications in the order they are received, and this process usually takes one to five business days from the date you submit your application.

After the New York State DFS finishes reviewing your application, it will email you with its decision or ask you to provide more information.

You can print your license from the DFS Secure Portal. There is no charge to print a license.

You are now ready to get started as a life insurance agent in New York.

However, there are a few steps you'll need to take to maintain your license and excel as an insurance agent.

Firstly, obtain all relevant securities licenses. If you plan on selling advanced life insurance products, you'll likely need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses (e.g., Series 6, 7, and 63).

Secondly, choose whether you prefer working as a captive agent employed by one company or running your own business as an independent agent.

Thirdly, develop your marketing approach. To succeed as an insurance agent, you'll need to adopt a marketing strategy that works for you. Finding and sticking to a niche and organizing all client appointments for the start of your week are two great ways to do this.

Lastly, keep your license valid. In New York, you must complete 15 hours of continuing education (CE) every two years to renew your license and keep it in good standing.

Frequently asked questions