Jeffrey Wade
Life and health insurance agents are intermediaries between insurance companies and clients, ensuring individuals and businesses have the protection they need against various life and health risks. To sell life and health insurance, an agent must have an appropriate license issued by the state where they sell insurance. While some states issue life and health insurance licenses separately, many offer a combined license that covers both. To obtain a license, an exam must be passed, and other requirements must be met.
| Characteristics | Values |
|---|---|
| License type | Life and Accident and Health or Sickness Agent License |
| License fee | $188 |
| License renewal fee | $188 |
| Life license coverage | Human lives, benefits of endowment and annuities, death benefits, dismemberment by accident, and benefits for disability income |
| Accident and Health or Sickness license coverage | Sickness, bodily injury, accidental death, and benefits for disability income |
| Prelicensing education requirements | 20-hour product-specific course and a 12-hour code and ethics course (32 hours total) |
| Continuing education requirements | 24 hours of continuing education credit prior to each license renewal |
| Long-term care insurance | Authorized to sell with both Life and Accident and Health or Sickness licenses or only the Accident and Health or Sickness license |
| Annuity products | Authorized to sell with both Life and Accident and Health or Sickness licenses or only the Life license |
| 24-Hour Care Coverage | Authorized to sell with Life and Accident and Health or Sickness licenses or only the Accident and Health or Sickness license |
What You'll Learn
Life insurance license requirements
The requirements for a life insurance license vary depending on the state. In California, for example, the fee for applying for a life insurance license is $188, and the prelicensing education requirement is a 32-hour course consisting of a 20-hour product-specific course and a 12-hour course on code and ethics. In Georgia, the application fee is $63, and the prelicensing requirement is a 40-hour course. In addition, applicants must pass a background check and submit fingerprints electronically.
In most states, you need to be at least 18 years old to earn a life insurance license, and you must pass an exam. The exam will be specific to the state, but it will cover topics such as life insurance general knowledge, life insurance policies, policy riders, and tax issues. The passing score is 70% in all states.
Some states, like Alabama and Florida, offer the options of earning a life insurance license, a health insurance license, or 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.
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Accident and Health or Sickness license requirements
Accident and Health or Sickness insurance is known as health insurance in some states. This type of license gives agents the legal right to sell this insurance in certain states. To obtain an Accident and Health or Sickness license, you must:
- Familiarize yourself with the state standards. Each state has its own unique requirements, so it's important to research the specific rules and requirements for the state in which you plan to obtain your license.
- Pass the state exam. To obtain your license, you must pass a timed, multiple-choice exam at your state's provider. The exam will cover topics such as traditional insurance sources, reinsurance, risk classification, underwriting, errors and omissions, and more.
- Undergo fingerprinting. In many cases, there will be an area at the testing center where you can do this on-site.
- Pass a background check. The process for this may vary depending on the state.
- Apply for a license. After passing the examination, you can apply for your accident and sickness license. It usually takes a few weeks to receive your license in the mail.
- Satisfy continuing education requirements. Many states require license holders to take continuing education courses every two years or so to maintain their license.
- Observe the Codes of Conduct that govern the profession in the state.
The requirements for the Accident and Health or Sickness license are similar to those for a Life Agent license. The filing fee for applying for this license is $188, and it must be renewed every two years for the same fee. To obtain this license, you must complete a 32-hour prelicensing course that includes a 20-hour course specific to the product and a 12-hour course on code and ethics.
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Life insurance exam topics
The life insurance exam is a requirement for anyone wanting to become a life insurance agent. The exam is designed to test your knowledge of the insurance industry, and the passing score is 70% in all states. The exam is not easy, but with a good understanding of the topics, you have a good chance of passing. Here is a list of topics that are likely to be covered in the exam:
- Life insurance general knowledge
- Life insurance policies
- Policy riders and options in life insurance coverage
- Life insurance tax issues
- Annuity policy tax issues
- Health insurance topics (if taking a combined exam)
In addition to these topics, the exam may also cover:
- HMOs (health maintenance organizations)
- Health insurance tax issues
- Annuities
- Dental coverage
- Medical plans
- Insurance regulations
- Ethics related to insurance
- Types of health insurance
- Marketing and sales practices
The number of questions on the exam varies from state to state, ranging from 105 to 150 multiple-choice questions. The time limit for the exam also differs by state, ranging from 1.5 to 2.5 hours. It is important to check the specific requirements and topics covered in your state before taking the exam.
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Accident and Health or Sickness Agent license coverage
The Accident and Health or Sickness Agent license is a type of insurance license that allows the holder to transact coverage for sickness, bodily injury, accidental death, and benefits for disability income. This license is distinct from the Life Agent license, which covers human lives, benefits of endowment, annuities, death benefits, and dismemberment by accident.
To obtain an Accident and Health or Sickness Agent license, one must complete the necessary prelicensing education, which includes a 20-hour product-specific course and a 12-hour course on code and ethics, totaling 32 hours of prelicensing education. The filing fee for this license is $188, and it can be applied for online through the Sircon website. The license must be renewed, and there is no separate renewal fee if one also holds a Life Agent license.
The license allows the holder to sell long-term care insurance and 24-hour care coverage but does not authorize the sale of annuity products. To sell annuities, one must hold either a Life license or both the Accident and Health or Sickness Agent license and the Life license.
It is important to note that the requirements and specifics of the Accident and Health or Sickness Agent license may vary by state, so it is essential to check with the relevant state's insurance organization for the most accurate and up-to-date information.
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Life and Health insurance exam training
Life and health insurance are two separate policies that protect the finances of an individual and/or their family in the event of the policyholder's death (life insurance) or a medical issue that requires professional treatment (health insurance). To sell life and health insurance, an agent must have an appropriate license issued by the state in which they sell or discuss insurance.
Life and health insurance agents act as intermediaries between insurance companies and clients, ensuring individuals and businesses have the protection they need against various life and health risks. They educate clients about the various types of insurance policies available and make policy recommendations. For example, a life insurance agent might explain the difference between whole, term, and universal life insurance and recommend a product to a client based on their family's needs.
Similarly, a health insurance agent might explain the difference between different types of health insurance plans (PPO, HMO, EPO, etc.) and help a person determine the best option for them based on their financial situation and health needs. This might involve finding a policy that covers specific medical conditions, preferred doctors, or medications.
Life and Health Insurance Licensing Exam Requirements
To obtain your license, you must pass a life and health insurance exam. The exam covers a variety of topics, including:
- Insurance regulation
- Life insurance basics
- Health insurance basics
- Disability insurance
- Group health insurance
- Federal tax considerations for health insurance
The exam is challenging and consists of around 100-150 multiple-choice questions, with a passing score of 70% in most states. The best way to ensure you pass is to take an exam preparation course.
Prelicensing Requirements
Before taking the exam, you must complete any prelicensing education required by your state. The number of hours and the cost vary, so check with your state's insurance organization. For example, California requires a 32-hour prelicensing requirement for both life and accident and health or sickness licenses.
How to Prepare for the Exam
To prepare for the exam, you should:
- Learn your state's requirements and get the exam outline.
- Have a study plan and stick to it.
- Follow the state exam outline.
- Prepare and practice with review courses, reading, and practice exams.
- Know the exam center process.
- Stay calm while taking the exam.
Exam Retakes
If you fail the exam, you must wait 24 hours before registering again. You can take the exam three times in one year. If you fail three times, you will have to complete prelicensing education again before taking it for a fourth time the following year.
There are several providers of life and health insurance exam training, including:
- ExamFX
- XCEL
- America's Professor
- Kaplan Financial Education
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Frequently asked questions
A life insurance license allows you to sell annuities, term, and cash value life insurance. A health and sickness insurance license enables you to sell these life insurance products, plus policies that cover medical expenses, loss of income due to a disability, and long-term care.
Requirements vary by state, but generally, you must be at least 18 years old, complete pre-licensing education, and have a high school diploma or equivalent. You will also need to register for the exam and pay the associated fee.
The exam covers a range of topics, including insurance regulation, life insurance basics, health insurance basics, disability insurance, group health insurance, and federal tax considerations for health insurance.
The exam is challenging, with specific requirements varying by state. You can expect around 100-150 multiple-choice questions, and the passing score is typically 70% or higher.
The filing fee for the health and sickness insurance license is $188 in California. This fee is the same whether you apply for this license alone or in combination with a life agent license.
