The Life & Health Insurance exam is a standardized test designed to assess individuals’ knowledge and understanding of insurance products related to life and health coverage. This exam is typically required for individuals seeking to become licensed insurance agents or brokers specializing in life and health insurance. Whether you aspire to work as an independent …
The Life & Health Insurance exam is a standardized test designed to assess individuals’ knowledge and understanding of insurance products related to life and health coverage. This exam is typically required for individuals seeking to become licensed insurance agents or brokers specializing in life and health insurance. Whether you aspire to work as an independent agent, join an agency, or pursue a career in insurance sales, passing the Life & Health Insurance exam is a crucial step towards achieving your professional goals.
In this complete guide, we cover the specific contents of the Life & Health insurance exam, explain how its guidelines and fees differ depending on which state you reside in, provide tips on how to efficiently prepare for a passing score, and go over the steps you should take upon completion of the exam.
The Life & Health Insurance exam is an opportunity for candidates to demonstrate their ability to effectively advise clients on life and health insurance options. It covers a wide range of topics including regulations, policy types, and ethical practices. Passing the exam is a prerequisite qualifier to becoming a licensed insurance agent or producer, allowing individuals to sell life insurance, health insurance, and related products within their state.
The Life & Health Insurance exam is typically taken by people at life insurance companies (ie Northwestern Mutual), Health insurance companies (ie Humana) or by investment companies who offer variable annuities (ie Charles Schwab). Due to interconnectedness and overlap within the financial services industry, the Life & Health Insurance exam is often taken by the same individuals who pursue the Series 6 exam. Taking both allows them to expand their product offerings and provide clients with comprehensive financial planning services.
The Life Insurance and Health Insurance exams can be taken separately or as one combined test. Whether you decide to test for both licenses at different times or during one appointment depends on several factors including what your state allows and your goals, budget, overall readiness.
Combining both Life and Health Insurance into one exam allows you to save on time and registration fees, while also broadening your career prospects by qualifying you to sell two types of related insurance products. However, taking them separately can be a smart and strategic course of action, particularly for those that are new to finance or insurance concepts. This allows you to narrow down your focus, becoming fluent in one topic before moving onto the next. Focusing on either life or health insurance also helps you become exam-ready in a shorter period of time. This is especially helpful for those that only need one or the other to advance to the next stage of their career, for example, if you were specifically seeking a position as a Life Insurance Agent.
While the exact contents of the Life & Health Insurance exam varies due to state-specific rules and regulations, the vast majority of what will be on the exam remains the same no matter where in the United States you choose to get licensed. Below are the usual topics that will be covered during the Life & Health Insurance exam.
1) Insurance Regulation is typically the first and lengthiest part of the exam. It emphasizes the need for insurers to adhere to fair business practices, covering both state and federal regulation along with various facets of insurance sales including licensing, marketing, and record keeping.
2) General Insurance concepts that apply to all kinds of insurance are covered in this section, including risk management, legal contracts, and insurer types.
3) Life Insurance Basics goes over foundational concepts such as settlements, personal and business uses of life insurance, and policy classes.
4) This section goes deeper into Life Insurance Policies by discussing types of specialized or flexible premium policies as well as group plans.
5) As the second-largest portion of the Life Insurance Exam, the Life Insurance Policy Provisions, Options and Riders section covers standard provisions, beneficiaries, and disability riders in detail, along with settlement, nonforfeiture, dividend, policy loan and withdrawal options.
6) The Annuities section discusses different annuity principles, concepts, products, uses, and payment options.
7) The Federal Tax Considerations for Life Insurance and Annuities section covers taxation of personal life insurance, non-qualified annuities, and individual retirement annuities (IRAs)
8) Qualified Plans is a small section of the Life Insurance Exam, often taking up less than 5% of the exam’s contents. It covers three subtopics which are general requirements, federal tax considerations and finally, plan types, characteristics and purchasers.
1) If you choose to take the Life Insurance and Health Insurance exam separately, the Insurance Regulation section will be included both times. This portion does not focus on specific types of insurance, instead delving into fair business practices and various facets of lawful insurance sales including licensing, marketing, and record keeping.
2) General Insurance is another section that applies to both Life and Health Insurance as it covers foundational concepts including risk management, legal contracts, and insurer types.
3) The Accident and Health Insurance Basics section gets into topics that are specific to those kinds of insurance such as principal types of losses and benefits.
4) Disability Income and Related Insurance topics include types of benefits and coverage as well as how to qualify for them.
5) The Medical Plans section requires knowledge of HIPAA requirements along with various types of medical plans and providers.
6) Group Accident and Health Insurance touches on eligibility, employer plans and expenses, and how group insurance is impacted by regulations like ERISA and Medicare.
7) Dental Insurance is a small portion of the exam, but requires specific knowledge of dental treatment categories and terminology, for example, the difference between orthodontics and endodontics.
8) Various aspects of Medicare are covered in this section, such as standard policies and other options for individuals with Medicare.
9) Long-Term Care Insurance goes over elements of Long-term care (LTC) policies such as benefit eligibility, different levels of care, and required provisions.
10) Federal Tax Considerations for Accident and Health Insurance has the longest title, but it is often one of the smallest sections in the Health Insurance exam. It goes over personally-owned versus employer group health insurance, as well as Health Savings Accounts (HSAs) versus Health Reimbursement Accounts (HRAs).
The length of the Life & Health Insurance exam can vary depending on the administering organization and state requirements. However, they are typically around 150 questions long and take three hours to complete.
The registration fee for the Life & Health Insurance exam typically falls within the $100 to $200 range, but the exact amount varies depending on your state.
Compared to FINRA (Financial Industry Regulatory Authority) exams which are known for their complexity, the Life & Health Insurance exam is generally considered to be less challenging. However, this does not mean that it is easy or that everyone will pass on their first attempt. According to the National Association of Insurance Commissioners (NAIC), the pass rate for the Life & Health Insurance Exam is 64.8%.
Federal regulations, provider types, and underwriting principles are just a few of the topics that will be covered during the Life & Health Insurance exam, so all candidates must dedicate sufficient time and effort to thoroughly prepare for it. However, those with limited exposure to insurance concepts or complex regulatory requirements may face more difficulty and can greatly benefit from extra study time or even tutoring.
The National Association of Insurance Commissioners (NAIC) gathers data on seven distinct types of exams. Here is the national pass rate for each of the seven types of insurance exams:
The minimum score required to pass is yet another aspect of the Life & Health Insurance exam that depends on where you live. Your state’s Insurance Department is responsible for overseeing insurance licensing and examinations, so you can visit their website or contact them directly to inquire about the minimum score needed to pass. That said, typically the score required to pass is around 70%.
Most students should spend at least 35 hours studying for the Life & Health Insurance exam which includes any hours of prelicensing education required by your state. During this time, you should familiarize yourself with the fundamental principles of life and health insurance such as ethics and regulations.
Look up the content outline and exam objectives provided by the administering organization for the Insurance Life & Health exam in your state. This will give you a clear understanding of the topics covered on the exam and help you prioritize your study efforts. Break down the exam topics into manageable study units and allocate time each day or week to review and practice.
Invest in high-quality study materials written by finance industry experts and utilize practice exams to analyze your performance and identify opportunities for improvement. The Achievable Life & Health Insurance exam course contains everything you need to pass on your first try, including a comprehensive online textbook, practice questions, and professional tutoring.
Before registering, ensure you meet the eligibility requirements to take the Life & Health Insurance exam in your state, such as having completed pre-licensing education. Then identify the organization or testing center that administers the Life & Health Insurance exam in your state. Common exam providers include PSI Exams, Pearson VUE, and Prometric. Visit their website or contact them directly to learn about exam availability, scheduling options, and registration procedures.
Depending on where you live, the specific procedures for registering for the Life & Health Insurance exam will differ. It’s important to check your state’s insurance department or licensing authority website to understand what steps you need to take to get registered. Most candidates across the USA will be able to register online using the PSI Exams or Prometric website.
Visit www.prometric.com/test-takers/search and enter the name of your state to find a Prometric test center near you that offers the Life & Health Insurance exam. If you prefer to take the exam remotely, click the ‘Remote Assessment’ tab for information on how to schedule your ProProctor testing appointment.
Ensure that everything goes smoothly the day of your exam by bringing along the necessary items. Firstly, you must present a valid government-issued photo ID, such as a driver’s license or passport to verify your identity. Some states may also have you show proof that you have completed the pre licensing education requirements which qualify you to take the Life & Health Insurance exam.
In most cases, candidates will receive a pass or fail result immediately upon completion of the Life & Health Insurance exam. Then a score report containing more details such as how many questions were answered correctly will be emailed within two business days.
If you passed, congratulations! You can now proceed with any additional steps required to obtain your insurance license, such as submitting an application to your state insurance department or regulatory authority. If you did not pass, use the feedback provided in your score report to identify areas for improvement and dedicate additional time to study and preparation before retaking the exam.
After passing the Life & Health Insurance exam, register your insurance licensure by submitting an application to your state’s insurance department or regulatory authority. The application form may require personal information, details about your exam completion, educational background, employment history, and any additional documentation or disclosures required by the state.
Typically, you can expect your Life & Health Insurance license registration to be official within two to four weeks after completing the registration process, assuming all required documentation has been submitted accurately and timely. If you have any concerns about the status of your registration, you can contact the exam provider or your sponsoring organization for assistance.
In most states, there is no limit to the number of times you can take the Life & Health Insurance exam, but there are always exceptions. For example, if you fail the California insurance licensing exam, you can schedule an appointment to retake it as soon as 24 hours after your failed attempt. You may only retake the same exam up to 10 times within the same 12-month period or the CDI will ban you from retaking that license exam for a year after the date of your last failed attempt. It’s essential for candidates to review the specific regulations and policies applicable to their jurisdiction to understand the exact number of attempts allowed and the waiting period between each attempt.
Looking for insurance exam pass rates? Read on for property, casualty, health, and life insurance exam pass rates for the US and all fifty states.
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