Getting A Life Insurance License: New York Requirements

If you're looking to become a life insurance agent in New York, there are a few key steps you need to take to obtain your license. The process is relatively straightforward and will ensure you are well-equipped to sell life insurance policies and annuities. The New York State Department of Financial Services (DFS) outlines the requirements, which include completing a pre-licensing course, passing the state licensing exam, and submitting your license application. Let's take a closer look at each of these steps in more detail...

Complete a prelicensing course

To obtain a life insurance license in New York, you must complete a prelicensing course. This is the first step in the process of becoming a life insurance agent in the state.

The New York State Department of Financial Services (DFS) requires all individuals selling insurance in the state to hold an insurance license. Before you take the licensing exam, it is important to complete a prelicensing course to give you the knowledge to pass the exam on your first attempt.

The prelicensing course will provide specific industry knowledge that will be tested during the exam. There is very little on the test that could be considered "common sense". Prelicensing courses are self-paced and include study materials such as practice exams and flashcards.

The number of hours of prelicensing education required depends on the type of license you are applying for. For a life insurance license, you must complete a 20-hour pre-license course. For a life, accident, and health license, you must complete 40 hours. For an accident and health license, you must also complete 20 hours, and for a personal lines license, 40 hours. A property and casualty license requires 90 hours of prelicensing education, and a public adjuster license requires 40 hours.

After completing your course content, you will need to pass a Certification Exam to demonstrate completion of the prelicensing requirement. This exam is not monitored, and you will need to pass with a score of 70% or higher to receive your Certificate of Completion. This certificate is good for a lifetime and must be submitted with your license application.

Prelicensing courses are available through providers such as Kaplan and A.D. Banker.

Pass the New York life insurance exam

To pass the New York life insurance exam, you must complete a prelicensing course before taking the exam. This is a requirement in the state of New York. The prelicensing course must be approved by the Superintendent of Insurance and be a minimum of 20 hours in length.

Kaplan offers prelicensing courses that will prepare you to pass the state exam on your first attempt. Their pass rates are among the highest in the industry. The cost of a pre-license course with Kaplan is $149 or more.

A.D. Banker also offers prelicensing courses that can be supplemented with webinars, flashcards, and study manuals.

The New York life insurance exam is administered by PSI Services and costs $33. It must be taken within two years of applying for your license. The exam contains 100 scored questions covering general and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to New York.

You will have 120 minutes to complete the exam. It is proctored, meaning an official proctor will closely monitor you in a controlled environment.

If you fail the exam, you can retake it as soon as 24 hours later. There is no limit to the number of attempts you can make.

To pass, you need a score of 70% or higher.

Complete a background check

To obtain a life insurance license in New York, you must complete a fingerprinting and background check process. This is the fourth step in the process of getting a life insurance license in New York, and it must be done before submitting your insurance agent license application.

The background check is initiated through IdentoGO, which will take your fingerprints to verify your identity and run a background check on your past conduct. This is to confirm that you meet the New York State insurance agent regulations.

To organise a fingerprinting appointment, you can go to the IdentoGO website or call (877) 472-6915. It is important to note that not all IdentoGO sites are equipped to take your fingerprints, so be sure to only book at a New York State Authorised IdentoGO Centre.

When booking your appointment, you will need to use one of the following Service Codes:

• Employee Applicant: 1544H9
• Life Settlement Intermediaries: 1544K7
• Licensing of Life Settlement Providers: 1544NR
• Principal, Executive, Director of Life Settlement Providers: 1544Q5

Using the correct Service Code is crucial, as using the wrong one will invalidate your fingerprints and require you to restart the process, including paying the fee again. If you are unsure about which Service Code applies to you, you can contact the New York State Department of Financial Services (DFS) at (800) 342-3736.

After your fingerprinting appointment, you will receive two receipts. One of these needs to be attached to your insurance license application sent to the DFS, and the other is for your records.

It is important to act quickly after your fingerprinting appointment, as the DFS will discard any scanned fingerprints if they do not receive a related application within 10 days.

The background check and application review process typically takes between three to five weeks. If there are any issues with your background check, the state will likely contact you to provide more context. Once the review is complete, the state will send you an email regarding the status of your license.

Submit your application

Once you have passed the relevant New York Insurance Licensing Exam(s), you can apply for your license. Applications must be received within two years from the date of passing the exam. The status of your submitted license can be checked at any time with the New York Department of Financial Services.

The application fee is $40 for New York residents, while non-residents should refer to the Department's Application Fee Schedule to determine the fee. The fee can be paid by credit card, electronic funds transfer (e-check), or paper check. However, if you pay by paper check, the application will remain pending until the Department receives and processes the check. There is a $20 fee for any e-check or paper check returned by the bank for insufficient funds.

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 proper licensing exam. You should submit your completed license application within 12 months of passing the exam.

To apply for a life insurance license in New York, make sure you comply with the insurance licensing requirements as defined under the New York Insurance Law and New York Administrative Code. Send any questions or supporting documents to [email protected].

After you complete the application, the New York State DFS will review it. This process usually takes one to five business days from the date you submit your application. Once the review is finished, the DFS will email you with its decision or ask you to provide more information.

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

Plan for continuing education

To maintain your New York insurance license, you must complete continuing education (CE) requirements. These requirements vary depending on the type of license you hold.

CE Requirements for Resident Licensees

According to the New York State Department of Financial Services, resident insurance licensees in New York, including producers and public adjusters, must complete 15 hours of continuing education every two years. This period begins on the effective date of the license. If you hold both a life/health and a property/casualty license, you must complete 30 hours of CE, with 15 hours in each license area.

The following topics are mandatory:

• Insurance Law (1 hour minimum)
• Ethics and Professionalism (1 hour minimum)
• Diversity, Inclusion, and Elimination of Bias (1 hour minimum)
• Flood Insurance (1 hour minimum if the licensee sells property/casualty insurance)
• Enhanced Flood Insurance (3 hours minimum if the licensee sells flood insurance through the NFIP)

CE Requirements for Non-Resident Licensees

Non-resident producers are exempt from New York's CE requirements if their home state has its own CE requirements and they are in good standing. If their home state does not have CE requirements, they must comply with New York's standards.

Non-residents looking to sell long-term care partnership (LTCP) insurance must fulfill New York's LTCP CE requirements regardless of their home state's regulations.

CE Course Formats

CE courses are offered in various formats, including:

• Classroom
• Webinar
• Self-directed study (online or via textbook)
• Computer-based training
• Print correspondence

CE Course Providers

You can find approved CE course providers and specific courses using the Continuing Education Provider Search and the Continuing Education Course Search on the DFS Portal.

Reporting and Certificates

You must report your CE hours within 30 days of completing a course. If you receive a certificate of completion, be sure to retain the original for future reference.

Frequently asked questions