Get Active Life And Health Insurance License: Steps And Tips

If you're looking to become an insurance agent, one of the first things you'll need to do is get licensed. The type of license you'll need depends on the type of insurance you want to sell. For health insurance, you'll need a valid, current health insurance license that allows you to sell insurance to individuals, families, businesses, and other qualifying entities. For life insurance, you'll need a life insurance license to sell life insurance policies. In some states, you can obtain a combined life and health insurance license, while in others, you'll need to obtain separate licenses for each type of insurance.

To obtain a license, you'll typically need to complete pre-licensing education, pass a state licensing exam, undergo a background check, and apply for your license. The specific requirements vary by state, so it's important to check with your state's insurance organization to determine the exact steps you'll need to take.

Research state-specific requirements

To obtain a life and health insurance license, you must first research the specific requirements of the state in which you plan to obtain your license. Each state has its own set of rules and regulations that you need to comply with. Here are some important state-specific considerations to keep in mind:

Prelicensing Education Requirements:

Before taking the state insurance licensing exam, you must complete any prelicensing education mandated by your state. The number of hours and the cost of these courses vary across states. For example, in Michigan, you must complete forty (40) hours of Life, Accident, and Health coursework to be eligible for the exam. However, some states do not require prelicensing education, so be sure to check with your state's insurance organization.

State Licensing Exam:

Each state has its own insurance licensing exam, which you must pass to obtain your license. The exam format and content may differ, but they generally consist of multiple-choice questions covering insurance-related topics. The number of questions can range from 50 to 200, and the exam duration is typically around 2.5 to 3 hours. The cost of the exam also varies by state, ranging from $40 to $150.

Background Check and Fingerprinting:

Most states require you to undergo a background check as part of the licensing process. This process can vary, and some states may require fingerprinting. Be sure to check your state's specific requirements to ensure you comply with their background check and fingerprinting guidelines.

License Application:

After successfully passing the state exam, you will need to apply for your license through the appropriate state licensing provider. This process can take a few weeks, depending on their processing time. There may be additional requirements, such as registration fees, so be sure to review your state's guidelines.

Continuing Education Classes:

Many states mandate continuing education classes to maintain your license. These classes ensure that you stay up-to-date with industry laws and procedures. The number of hours required for these classes varies, and you may need to demonstrate compliance with these requirements when renewing your license.

License Renewal:

The license renewal period and process differ by state, but a typical renewal period is two years. Renewal fees can range from $15 to $200 per line of insurance. Remember to review your state's specific renewal requirements to ensure you remain compliant.

Complete pre-licensing education

To get a health and life insurance license, you must complete pre-licensing education. This requirement varies from state to state, so it is important to check the specific requirements of the state in which you plan to obtain your license. Some states do not require pre-licensing education, so it is worth checking this before you begin the process.

Pre-licensing education will provide you with the knowledge and skills needed to sell health and life insurance policies. The number of hours of education required will depend on the state, and you will need to pay a fee to complete the courses. You can choose from in-person seminars, virtual seminars, or online self-study courses to complete your pre-licensing education. These courses will cover a range of topics, including health and life insurance general knowledge, policies, tax issues, and agent protocol.

It is important to choose a reputable provider for your pre-licensing education. Some providers offer exam preparation packages to help you prepare for the state insurance licensing exam. You can also find study aids and resources to help you prepare for the exam.

Once you have completed your pre-licensing education, you will be ready to take the state insurance licensing exam. This exam will test your knowledge of health and life insurance topics, and you will need to pass it to obtain your license. The exam may include anywhere from 50 to 200 multiple-choice questions, depending on the state.

Completing pre-licensing education is a crucial step in obtaining your health and life insurance license. It will provide you with the knowledge and skills you need to successfully sell insurance policies and meet the requirements of the state in which you plan to work.

Pass the state exam

Passing the state exam is a critical step to becoming a licensed life and health insurance agent. Here are some detailed instructions to help you prepare for and pass the exam:

Know Your State's Requirements:

Each state has its own insurance licensing requirements, so it is essential to understand the specific rules and regulations of the state where you plan to obtain your license. Visit your state's official website or insurance department website to learn about the exam outline, content, and any pre-licensing education requirements. Some states offer a combined life and health insurance exam, while others have separate tests. Knowing your state's specific requirements will help you tailor your preparation accordingly.

Create a Study Plan:

Developing a disciplined study plan is crucial for effectively preparing for the state exam. It is recommended to study for a minimum of 40 hours for the life and health insurance exam. Start early, create a study schedule, and stick to a timeline. Break down the material into manageable chunks and set realistic milestones. This will help you stay focused and avoid last-minute cramming.

Take Practice Exams:

Practice exams are an excellent way to assess your readiness for the actual state exam. They help you identify your strengths and weaknesses and become familiar with the exam format and types of questions asked. Practice exams also help you improve your comprehension and long-term retention of the material. ExamFX, for example, offers practice exams, study guides, flashcards, and tip sheets to aid your preparation.

Understand Exam Logistics:

Familiarize yourself with the testing policies and procedures of your state's designated testing provider, which could be one of the three national testing centers: Prometric, PSI, or Pearson VUE. Know the prohibited items for the exam room, such as personal electronic devices, study materials, bulky outerwear, bags, and weapons. You may also want to visit the test center before the exam day to estimate your travel time and familiarize yourself with the testing area.

Prepare with a Quality Exam Prep Course:

Enrolling in a top-quality exam prep course can significantly enhance your chances of passing the state exam. ExamFX, for instance, offers an interactive learning platform with video learning and live online instruction. Other options include in-person courses, workbooks, self-guided online courses, or facilitated online courses. These courses will help you gain a comprehensive understanding of the material and provide guidance from experienced instructors.

Stay Calm and Focused During the Exam:

When taking the exam, remember to stay calm and focused. Read each question carefully, and answer the ones you know first. If you get stuck on a question, move on, and come back to it later. The state exam will test your knowledge of insurance benefits, working with clients, state and federal regulations, and specific policies related to life and health insurance.

Remember, passing the state exam is a crucial step towards obtaining your life and health insurance license. With dedication, a solid study plan, and effective preparation, you will be well on your way to becoming a licensed insurance agent.

Pass a background check

To get a life and health insurance license, you will need to pass a background check. This is because insurance providers are entrusted with clients' sensitive information and financial positions, and so insurance companies need to ensure that their employees are trustworthy.

The background check process varies by state, and in some cases, it includes fingerprinting. Some states require fingerprinting and a background check, while others require only one of these or neither. For example, Alabama, Alaska, Arizona, California, Florida, Georgia, and Hawaii are among the states that require both fingerprinting and a background check. Arkansas, Delaware, Illinois, Iowa, and Kentucky are among the states that require only a background check.

If you are applying for a license in a state that requires fingerprinting, you will usually find an on-site fingerprinting technician at the location where you take your exam. Fingerprints can be scanned against the FBI's Criminal Database to reveal any criminal history.

If you are applying for a license in a state that does not require fingerprinting or a background check, it is still important to fully vet your insurance provider. You can do this by checking for "A" ratings from M. Best, Fitch, Moody's, and Standard & Poor's, which indicate financial strength and creditworthiness. You can also read reviews and ask for recommendations from friends and family.

Apply for your license

Once you have passed the relevant exams and completed any other requirements, you can apply for your license. The application process varies depending on the state and the type of license you are seeking.

In Texas, for example, you can apply for a resident agent license or a resident agency license. The application fee for both is $50, and applications must be submitted within a year of passing the exam. For a resident agent license, you must pass the state licensing exam before applying. For a resident agency license, you will need to provide information on the agency's operations and financial responsibility, among other things.

In Michigan, the first step is to apply for a license with the National Insurance Producer Registry, which can be done online or in-person, with a fee of $15 for each type of business you plan to sell. This application is valid for six months.

Some states, like Alabama and Florida, offer the options of earning a life insurance license, a health insurance license, and a life and health insurance license. Each of the three types requires passing a separate exam. Others, like North Carolina, have separate licenses for life and health but not a combination, and each requires passing a separate exam. Still, others, like Missouri, have a combined life and health insurance license only.

If you plan to work in multiple states, you will need to obtain a separate health insurance license from each of those states.

Frequently asked questions