Get A Life Insurance License: South Carolina Requirements

If you're thinking about becoming a life insurance agent in South Carolina, you'll need to obtain a license. The process is relatively straightforward and can be completed in a few weeks. Here's an overview of the steps you'll need to take to get started:

1. Complete a pre-licensing course: While South Carolina doesn't require pre-licensing education hours, it's highly recommended to take a course to prepare for the licensing exam. These courses are designed to give you the knowledge and tools needed to pass the exam on your first attempt.

2. Pass the South Carolina Life Insurance Licensing Exam: This exam is administered by Pearson VUE and costs $44. It consists of 85 scored questions covering topics such as insurance regulation, life insurance basics, and federal tax considerations.

3. Complete a South Carolina Life Insurance License Application: The application fee is $25 plus a $5.60 transaction fee, and you must apply online via the National Insurance Producer Registry (NIPR).

4. Get a Fingerprint-Based Background Check: After applying, you must undergo a fingerprint-based background check through IdentoGO for $50.50.

5. Watch for Your Application Results: The South Carolina Department of Insurance (SCDOI) will review your application and background check, and you'll receive an email with their decision or a request for more information.

Pre-licensing education

To get a life insurance license in South Carolina, you must complete a prelicensing course to prepare for the state licensing exam. While prelicensing education is not a requirement in South Carolina, it is highly recommended by sources such as Kaplan Financial Education due to the difficulty and nature of the exam.

A.D. Banker and Kaplan both offer prelicensing courses that are cross-referenced with the exam content outlines. These courses are designed to suit all learning styles and will prepare you to pass the exam on your first attempt. America's Professor also offers an online training course with comprehensive video lectures, review questions, and a study guide to help you learn and retain the material needed to pass the exam.

The South Carolina life insurance exam outline contains a total of 85 scored questions across seven sections:

• Insurance Regulation
• Life Insurance Basics
• Life Insurance Policies
• Life Insurance Policy Provisions, Options, and Riders
• Federal Tax Considerations for Life Insurance and Annuities

You will have 120 minutes to complete the exam. It is recommended that you spend a full week (35-40 hours) studying for the exam, if possible. If this is not feasible, set a strict study schedule and stick to it. Review the materials right up until the night before the exam, and avoid cramming.

Exam preparation

The South Carolina life insurance exam outline contains a total of 85 scored questions that include seven sections:

• Insurance Regulation
• Life Insurance Basics
• Life Insurance Policies
• Life Insurance Policy Provisions, Options, and Riders
• Federal Tax Considerations for Life Insurance and Annuities

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

The exam is multiple-choice and tends to focus on definitions (terminology) and numbers (dollar amounts and number of days). Around a third of the questions are terminology (definitional) questions, a third are number/day questions, and a third are short story problems, in which you must apply the knowledge gained in your pre-licensing course to reason through a practical situation.

The best way to prepare for the exam is to take a pre-licensing course. These courses are designed to enhance your understanding of the material, making you more comfortable and confident on the day of the exam. They include features such as live tutoring, study calendars, and hundreds of practice exams.

Kaplan Education Company is a popular choice, with over 81% of readers using their online courses, which come with a 93% pass rate.

Application process

To obtain a life insurance license in South Carolina, you must fulfill the pre-licensing requirements, pass the state licensing exam, undergo a background check, and apply for your license. Here is a detailed breakdown of the application process:

Pre-licensing Education

Before you can sit for the state licensing exam, you must complete a pre-licensing education course that is approved by the South Carolina Department of Insurance. You have the option to complete this course in a traditional classroom setting or through an online self-study program. The course must cover the necessary insurance topics and be a minimum of forty hours for life insurance.

Background checks

South Carolina requires fingerprint impressions from all applicants prior to licensure. These will be submitted for a background check. After applying for a resident producer license, you will receive an email with the directions on how to schedule a fingerprint appointment.

The background check is completed through IdentoGO and costs $50.50 to $51.75. This fee covers the cost of comparing your prints against criminal history records.

To set up a fingerprinting appointment, go to the IdentoGO website and use the service code "SC920124Z-DOI Producer Licensing/Renewal" when making your appointment.

At your fingerprinting appointment, you will receive a receipt. Keep the original receipt for your records and send a copy via email to the South Carolina Department of Insurance (SCDOI).

Post-application

After submitting your application, there are a few more steps to complete before you can start selling life insurance in South Carolina. Here's a detailed guide on what to do after applying for your life insurance license:

Get a fingerprint-based background check:

You will need to get fingerprinted for a background check as part of the licensing process. In South Carolina, you can schedule a fingerprinting appointment with IdentoGO. The fee for this service is around $50. After your appointment, you will receive a receipt, which you should keep for your records. You will also need to send a copy of this receipt to the South Carolina Department of Insurance (SCDOI).

Watch for your application results:

Once you have completed the previous steps, the SCDOI will review your application and background check. This process typically takes one to five business days from the date you submit your application. You will be notified by email once the review is complete, and they may ask you to provide additional information if needed.

Print your license:

After your application has been approved, you can print your license from the National Association of Insurance Commissioners (NAIC) State Based Systems (SBS) License Manager website. There is no charge to create an account or print your license. If you don't remember your license number, you can use the NAIC SBS Lookup tool by selecting "South Carolina" as the jurisdiction and "Licensee" as the search type.

Obtain relevant securities licenses:

If you plan on selling advanced life insurance products, you will likely need to obtain additional securities licenses. This includes passing the Securities Industry Essentials (SIE) exam and obtaining licenses such as Series 6, 7, and 63. These licenses will allow you to provide your clients with a wider range of products, including those tied to the securities market for their retirement and life insurance plans.

Choose your means of selling:

You have the option to work as a captive agent for a single company or run your own business as an independent agent. If you are just starting, you may benefit from working for a company first to gain experience before branching out on your own.

Develop your marketing approach:

To be a successful insurance agent, you will need to adopt an effective marketing strategy. One recommendation is to find and stick to a niche market and organise all client appointments at the start of the week to improve your overall client conversions.

Keep your license valid:

In South Carolina, you must complete 24 hours of continuing education (CE) every two years to renew your license. Of these 24 hours, three must focus on ethics, and eight must cover life insurance. It is recommended to complete the required CE at least 90 days before your license expires to avoid delays in the renewal process. The renewal fee is $25, and the late fee is $75.

Frequently asked questions