There are numerous steps in getting an insurance sales license; these steps can be completed in two – eight weeks. The bulk of this time is spent completing your pre-education course and prepping for your licensing exam. Taking the exam more than once could increase the length of time it takes you to get your license.
Failure to complete your licensing application process within six months may require you to renew and pay an additional fee.
We advise you to schedule your licensing exam at most a week from when you finish your pre-license education course.
This ensures the information is still fresh in your mind and boosts your chances of clearing the exam in one attempt.
How To Get An Insurance License
The first step anyone should take is to research the state requirements for becoming a licensed insurance agent. Some states may require you to take specific courses asides from the pre-licensing exam; this is why it is important to know what is required by your state.
Finish Your Pre-License Education Course
To register for the licensing exam, you have to complete a pre-license education course; some states may even require you to present a course completion certificate on the day of the examination. On the other hand, certain states may not require a course.
Regardless of whether your state mandates you to take this test or not, it is always a good idea to prepare for your licensing exam. A pre-licensing education course is a sure-fire way to prep for your exam and pass.
Pre-license education courses usually involve:
1. Practice tests and assessments
2. Study calendars
3. Live sessions with tutors
4. Study guides
5. And even access to teachers for questions
These courses usually take 20 – 40 hours to be completed, and the material covered varies on what state you are in and what insurance you plan to sell.
Complete Your License Application
It is important to complete and submit your license application. These applications are state-specific, and most states use the National Insurance Producer Registry (NIPR) to submit and process applications.
Information required for your application includes basic information such as your legal name, social security number, criminal history, social security number, address, etc. Therefore, you must provide the correct information when submitting your application.
At this point, you should be aware of what type of insurance you want to register for so that your pre-license education requirements are evaluated correctly.
The types of insurance you can register for include:
1. Health Insurance
2. Life Insurance
3. Property Insurance
4. Casualty Insurance
5. Personal Lines Insurance
Complete A Background Check And Get Your Fingerprint Taken
As an applicant, it is your responsibility to have your fingerprint taken and submitted. Your state will direct you on how to go about this step. Usually, fingerprinting is done by a third-party agency or local law enforcement.
Fingerprinting costs around $35 – $75. Another key part of getting your license is a background check conducted by your state’s agency.
Take The Licensing Exam
Here is the most critical part of getting your license. It is the most difficult for many, and it requires the most preparation.
Various states display a content outline for the test on their website. However, a pre-license education course is the best way to prepare for the exam.
You can expect your exam to test you on:
1. State-specific laws and regulations
2. Duties and responsibilities of an insurance agent
3. Annuities and retirement plans
4. Traditional policies
5. Flexible policies
6. Contract law
7. Underwriting and application
Application Review And License
This is the final step in the process of getting our insurance license. After submitting all necessary documents and passing your licensing exam, your state insurance authority will review your application.
This final step can range from a few days to several weeks. Any questions that need answers will be communicated with the insurance agency.
If your application is approved, you will be notified, and a copy of your insurance license will be sent to you.
Always have your license information handy because anytime you apply for a position in the insurance industry, you will be required to provide your license number and National Produce Number (PCN).
Requirements For Getting An Insurance License
The major requirement for selling insurance is to complete the application process and secure your license. In addition, you may be required to take a state-approved continuing education annually.
Frequently Asked Questions
What Exams Should I Take To Get Licensed?
Selling insurance requires you to take the state licensing exam in the line of insurance you want to sell. For instance, if you want to sell health insurance in Ohio, you must take and pass Ohio’s licensing exam.
Some states allow you to combine multiple lines of insurance marketed together, such as health and life insurance.
How Hard Is Passing Insurance Licensing Exams?
The licensing exam is the most difficult step in securing your insurance license. While many find it difficult to navigate passing the exam, it can be easier if you take a test prep course. The licensing exam covers numerous sections, and being ill-prepared can make it easy to fail.
The average pass rate for all licensing exams averages about 60%. According to the National Association of Insurance Commissioners (NAIC), the individual pass rates for each section is:
| Insurance Type | Percentage |
| Life Insurance | 62.9% |
| Health Insurance | 60.4% |
| Life & Health Insurance | 64.8% |
| Property Insurance | 53.6% |
| Casualty Insurance | 62% |
| Property & Casualty Insurance | 54.9% |
| Personal Lines | 61.4% |
What Are The Costs Involved In Becoming An Insurance Agent?
This cost varies depending on your state, but you can expect to spend around $300. The fees you will pay include:
1. Pre-licensing education course
2. Licensing exam
3. Registration fee
4. Application processing fee
5. Fingerprinting
The application fee and registration fee are hardly refundable. A basic pre-license course will give you access to study modules, practice assessments, and a license exam manual. A more in-depth course will include videos or even a live classroom.
Conclusion
Becoming a licensed insurance sales agent ideally takes several weeks. Follow the steps we explained above to navigate how to secure your insurance license.
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