Get Licensed: Health And Life Insurance Basics

If you're interested in selling insurance, you'll need to get licensed. The type of license you need depends on the type of insurance you want to sell. For example, if you want to sell health insurance, you'll need a health insurance license, and if you want to sell life insurance, you'll need a life insurance license. If you want to sell both types of insurance, you can get a dual license called a life and health insurance license. The requirements for obtaining a license vary by state, but typically include completing a pre-licensing education course, passing a state licensing exam, and undergoing a background check. Some states also require fingerprinting. It's important to check the specific requirements for the state in which you plan to sell insurance before starting the licensing process.

Research state-specific requirements

The requirements for obtaining a health and life insurance license vary from state to state in the US. Here are the state-specific requirements you need to know:

Alabama

Alabama offers 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.

Florida

Florida has three types of health and life insurance licenses:

• 2-15 Florida Health & Life (Including Annuities & Variable Contracts) Agent License
• 2-14 Florida Life (Including Annuities & Variable Contracts) Agent License
• 2-40 Florida Health Agent License

To obtain any of these licenses, applicants must be residents of Florida, be at least 18 years old, and have a Social Security Number. They must also complete a pre-licensing course, pass the state license exam, register for electronic fingerprinting, and submit an application.

Michigan

In Michigan, the first step in obtaining a health and life insurance license is to apply for a license with the National Insurance Producer Registry. This can be done online or in person, and the application costs $15 for each type of business you plan to sell. Prospective agents then need to enroll in specific education courses and pass the state's examination.

North Carolina

To get a life and health insurance license in North Carolina, candidates must complete pre-licensing courses, pass the state's licensing exam, submit an application, and pay a fee.

Arizona

In Arizona, applicants must provide two forms of identification at the exam. Non-residents licensed and in good standing in their home state do not need to pass a test.

California

California requires 50 hours of pre-exam training for life, accident and health, property, casualty, property and casualty, and personal lines.

General Requirements

In most states, requirements for becoming a producer will differ depending on whether you are a resident of the state in which you are applying or if you are already licensed in another state. Some states also require applicants to complete pre-licensing training courses, pass an exam, and submit to fingerprinting.

It is important to review the specific requirements for your state before applying for a health and life insurance license.

Pass the state exam

Passing the state exam is a crucial step in obtaining a health and life insurance license. Each state has its own exam, so it's important to consult the relevant state's insurance department for specific information. However, there are some general guidelines and strategies that can help you prepare for and pass the exam.

First, it's important to complete any prelicensing education required by your state. The number of hours and the cost of this education can vary, so be sure to check with your state's insurance organization. This prelicensing education will cover topics such as insurance principles, ethics, policy types, and regulations.

Once you've completed the necessary education, it's time to register for the state exam. This typically involves paying a registration fee, which can range from $43 to $150, depending on your state. In some states, you can choose the date and time of your exam, and it's recommended to schedule it at least two weeks in advance to allow for adequate study time.

To increase your chances of passing, create a study plan that spreads your preparation over several weeks. Make sure you understand the topics that will be covered on the exam, which typically include insurance general knowledge, policies, riders, options, and tax issues. Review courses, reading materials, and practice exams can help you prepare and identify areas that need further attention.

On the day of the exam, arrive at the test centre with plenty of time to spare. Stay calm and read each question carefully before answering. If you're stuck on a question, move on and come back to it later.

The passing score for the exam is typically 70% in most states, and you will usually have a limited number of attempts per year, so be sure to prepare thoroughly.

After passing the exam, you will need to apply for your license through the state's licensing provider, which may involve additional steps such as fingerprinting and background checks.

Get fingerprinted and pass a background check

To obtain a health and life insurance license, you will need to get fingerprinted and pass a background check. This is a requirement in the majority of states, including Florida, North Carolina, and California. The process for doing so will vary depending on the state and may involve different steps.

In Florida, for example, you will need to register for electronic fingerprinting with MorphoTrust. This can be done online or by phone, and the cost is $48.55. Once you have made a reservation, you will need to visit a physical location to have your fingerprints taken onsite. The results of your criminal history check will then be submitted electronically to the Florida Department of Financial Services.

In North Carolina, on the other hand, you will need to submit your fingerprints electronically through Live Scan after submitting your license application. There are numerous law enforcement agencies in the state where you can do this. The process costs $38 and will initiate a background check to confirm that you meet the state's insurance agent regulations.

It is important to note that even if your resident state does not require a background check or fingerprinting, you may still be required to undergo these processes by insurance carriers or agencies as part of their due diligence requirements. Additionally, if you plan to apply for a nonresident state insurance license, you may need to submit fingerprints and undergo a background check for that state as well.

The background check process can vary in depth, with some states conducting general background checks and others performing criminal background checks or FBI background checks. Be sure to research the specific requirements for the state in which you plan to obtain your license.

It is also important to be transparent and honest in your license application. If there is any information in your background check that may raise concerns, it is advisable to disclose this information upfront. This can improve your chances of getting your license approved.

Apply for your license

Once you have completed your pre-licensing education, passed the state licensing exam, and met any other state-specific requirements, you can start the application process for your health and life insurance license. The application process can vary slightly depending on the state, so it is important to check the specific requirements for your state. Here is a general overview of the steps involved in applying for your license:

• Find the relevant application form: This is usually available on the website of your state's insurance department or licensing provider.
• Complete the application form: Provide all the required information, including personal and professional details.
• Submit the application: Include any required supporting documents and pay the application fee. The fee amount may vary depending on your state.
• Wait for processing: The time it takes to process your application may depend on the volume of applications being handled by the licensing provider. This could take a few weeks.
• Receive your license: Once your application is approved, you will be notified, and your license will be issued. In some cases, you may be able to print your license directly from the licensing provider's website.

It is important to note that there may be additional steps or requirements for the application process, so be sure to review the specific instructions provided by your state's licensing authority. Additionally, there may be ongoing requirements to maintain your license, such as continuing education classes and renewal periods.

Take any required continuing education classes

Once you have obtained your health and life insurance license, you will need to take continuing education classes to maintain your license. These classes are necessary to ensure that you stay up-to-date with industry changes, new products, and evolving regulations. The requirements for continuing education vary by state, so it is important to check with your state's insurance department for the specific requirements and procedures.

To help you fulfill your continuing education requirements, there are several online courses and training providers available. These providers offer flexible and convenient learning environments, allowing you to complete your courses at your own pace. Some providers include Kaplan Financial Education, At Your Pace Online, and Experior Financial.

When choosing a continuing education course, it is important to select one that is state-approved. This ensures that the course meets the requirements set by your state's insurance department. The cost of continuing education courses can vary, but they typically involve a fee for the course itself and additional fees for things like reporting and exams.

It is worth noting that some states may have specific requirements for the number of hours needed to complete your continuing education. For example, Texas requires 24 hours of continuing education to renew a license, while Arizona requires 48 hours. These hours can be completed through online courses, webinars, or in-person classes, depending on what is offered by the education provider.

Completing your continuing education requirements is crucial to maintaining your health and life insurance license. By staying up-to-date with industry changes and new products, you can provide accurate and reliable information to your clients. Additionally, these courses can help you expand your knowledge and stay informed about evolving regulations, ensuring that you are providing the best possible service to your clients.

Frequently asked questions