All exams have a passing score of 70%, and using exam preparation tools can help you know if you are on track to pass on the first try. If you want to work in the life and health insurance market, you must first pass the required life and health insurance exam. Let’s find out how hard is the insurance license exam?
They created this exam to ensure a candidate’s success as a licensed insurance producer by testing their knowledge and understanding of life and health insurance laws and requirements.
There is a lot of material to cover; mastering it will take some time. The average exam taker must devote between 35 and 40 hours of study to pass the life and health insurance exams.
How Hard Is the Insurance License Exam?
The test is covered in parts. You take the section in one day and bring your school book two reference books (one on insurance and one on general knowledge). On most exams, you can look back through previous questions for guidance.
Use the GroupOK Pro app to grade your K card and ready it for computer testing. See if you’re over-prepared and/or free of unnecessary information, avoid grammar errors, and title your answers logically.
Life & Health Insurance: Life insurance
- Two major exams (INS I)
- Top-Exam 20 questions 695 Power Score
- 88 Exam Details Close Exam One
- Unit 12: Face Value 20 Questions Insurer liability & recovery procedures 60%
- Broker agreements 60% Expiration 1 Day 3 Hours 5 Minutes 24 Testing Facilities
- LNAT is an online test offered by DATABUS, an instructional company based in Milwaukee, WI.
It’s a multiple-choice test based on insurance law (including sales requiring a license). The LNAT provides much more detailed information than this.
LNAT will test the knowledge you can count on when using your actual workday experience. Improve your score with accurate notes from real LIC CE classes. Then review the question key carefully. These are the physical questions only, with their answers are done online by computer (not on paper).
Good test-taking tips are right below that reading, which takes a few minutes to read and comprehend the detailed notes in this post. You’ll need the complete index at the left of that page to search what you’re looking for – 25 current questions of critical importance BEFORE you know what answer a question is testing! Prepare by plugging in critical info from its actual study questions.
Adequate turning/pricking time, so don’t forget to Plugbook questions (remember from LNAT fake) into Turnitin Question Trees and Roundest green-Hubbard questions into Round Grid for SAME DAY CRITERIA that you get online.
I didn’t prepare as well as I should have – like vetting 700 objectives, doing practice exams (5-10 with 100 multiple choice test questions), and taking other courses to drastically eliminate distractors. While you do your real math homework, make adjustments between classes if the comparable material might be missing.)
What is Covered on the Life and Health Exam?
Individuals sitting for the life and health exam are expected to study the following topics:
- Fundamentals of life and health insurance
- Life insurance policies
- Health policy provisions
- Medicaid and Medicare tax considerations
- State regulations that apply
Each state’s insurance department regulates the life and health insurance exam. The main essentials covered in the exam are, for the most part, consistent from state to state; however, it is crucial to keep in mind that each state has its own set of rules and laws.
How hard is the Life and Health Insurance Exam?
The complexity of the exam will be determined by your current knowledge, previous work experience, and preparation. You must prepare with an online training provider and build a solid study program.
The state insurance license exam includes:
- Types of policies.
- Policy riders, provisions, alternatives, and exclusions.
- Application completion, underwriting, and delivery of policies.
- Taxes, retirement, and other insurance-related topics.
Is The Insurance License Exam Hard?
We know many people who have passed the exams on the first try and many who have taken each exam multiple times. We don’t say this to scare you but to prepare you.
There is no “national average” pass/fail statistic, but the average number of test-takers who pass the exams on their first attempt is 55%, according to the states that release the results. Repeat attempts have a significantly higher pass rate.
Exams are a mental game where you have to control as many variables as possible to get the best results.
Basics of Insurance Exams
What Is The Format Of The Insurance Exam?
Insurance exams take the form of a timed, proctored multiple-choice test with between 50 and 180 questions. The actual length of each exam will depend on the state in which you are testing and the license you are applying for.
In most states, the exams are administered by outside companies such as Pearson Vue or Prometric.
The exam is a multiple-choice test with four answer alternatives in most cases. This indicates that you can get the answer right even if you are unsure of a question.
Your insurance license exam will not include an essay section since the laws on which your exam is based are not subject to interpretation or opinion.
The state and testing center will determine how much time you have to complete each exam.
How Many Insurance Tests Am I Required To Take?
The number of exams you must take will be determined by the types of lines of licenses you apply for, as well as the state in which you are licensed.
Example 1: In Missouri, you will take one exam with two portions if you seek a life and health license. You must pass both sections in one sitting, or you will have to retake the entire exam.
Example 2: In Tennessee, the exams for each line are separate. This means there are an independent exam for life insurance and an additional exam for accident and health insurance. Although the exams can be taken “back-to-back,” they are distinct in the sense that you can pass one but not the other. All you have to do is retake the exam you failed in such circumstances.
If you want to get both a life and health license and a property and casualty license, you may have to take two to four exams, depending on the permissions you want, if you only want to get one line (for example, a life insurance license), you will only have to take one exam.
Another thing to keep in mind is that you can apply for one license and then apply for another one later. Depending on the state you use, this could have various repercussions.
How Much Does The Insurance License Exam Cost?
The cost of insurance exams varies depending on the state you apply to. Examination fees range from $40 to $150, with an average of approximately $70 for each attempt.
Each state handles its own insurance licensing process. Not all jurisdictions publish exam pass rates in the states that provide that statistics. The total pass percentage for all insurance examinations is 60%. Taking a course of study and preparation is the greatest way to join this majority.
The National Association of Insurance Commissioners (NAIC) gathers information on seven tests. The pass rates for the various tests are below:
- 62.9 percent of the population has life insurance.
- 60.4 percent of the population has health insurance.
- 64.8 percent of the population has life and health insurance.
- Real estate insurance: 53.6 percent.
- Damage insurance accounts for 62 percent of the total.
- 54.9 percent of the population
- 61.4 percent for individual lines.
How Much Time Do People Spend Preparing?
Many states require pre-licensing training, which can take 20 to 40 hours. Ideally, it would help to spread out the training modules to have enough time to master the subject matter and practice for the exams. You should set aside a month to study for the insurance license exam.
Passing the Insurance License Exam
To pass the insurance license exam, you will need a score of at least 70. Each state examines the difficulty of the exam questions, equating and scaling the raw scores to account for version variations.
If the state exam version is more complex than the other, the more complex version will require fewer real questions to demonstrate the same level of knowledge.
Raw scores are assigned a value using a standard scale.
A passing score of 70 indicates that you have demonstrated the minimum knowledge, not that you answered 70 questions correctly or that you answered 70% of the questions correctly.
You will receive a “PASS” or “FAIL” rating at your testing center after taking the insurance license exam at one of your state’s independent testing centers. If you fail the exam, you will only be given a numerical score. Before you sign up to retake the exam, this can help you know what to focus your study on.
Insurance Pre-License Education Course
Because the insurance licensing exam is state-specific, it is critical to enroll in a pre-licensing education course that covers the exam topics in your state. As part of your course enrollment, exam preparation providers will ask you which state you wish to take the exam.
Primary self-directed study (printed or online materials, practice exams, self-paced units) to live online or in-person courses are possibilities (cohorts of test-takers, online modules, practice tests, live interaction with instructors). Think about your study style and other obligations to determine which type of insurance exam prep course is ideal for you.
Insurance Exam Study Tips
To pass the insurance licensing exam and become a licensed insurance agent, you’ll need a basic understanding of the insurance industry, as well as particular study and test-taking strategies.
Taking a practice exam before the big day will help you relax if this is your first time using this format. As long as you have thirty minutes at the testing center to finish a tutorial, you’ll probably be ready to get started with the test. The more comfortable you are with taking a computer-based exam, the more confident you will be when it comes time to take the exam.
The topic outline for your state’s insurance license exam is a helpful tool because it details everything tested on the exam. If you are familiar with all of the content, you will be ready for the exam.
Make exam preparation a priority by setting aside time each day to study if you already have a lot on your mind. Just be sure to schedule study time and stick to it.
Frequently Asked Questions
How Much Time Do People Spend Preparing?
Several states require a pre-licensing training course, taking 20 to 40 hours. It would help if you spent a month studying for the insurance licensing exam.
How Do I Pass the Insurance License Exam?
The key to passing the insurance licensing exam is preparation. Even if your state does not require you to take a pre-licensing education course, doing so is the most efficient way to learn and understand the material you will need for the exam.
What Is the State Insurance Exam?
Two things will decide the type of exam you take: your state and the type of insurance you want to sell. Once you have decided what kind of career you want to take, you can start working toward becoming a life insurance agent in that industry.
What is covered on the Life and Health Exam?
Those taking the Life and Health exam must know the following topics:
- Fundamentals of life and health insurance 2.
- Life insurance policies
- Health-related policies
- Policy provisions
- Two government-funded health care programs are Medicare and Medicaid.
- Applicable state regulations
When can I expect my exam results?
The exam gets its results from a desktop computer system, and as soon as the exam is complete. Your official score record generates and provide to you. It will display the words PASS or FAIL.
The score report will provide you with your score, as well as a diagnostic breakdown of your exam. The diagnostic examination shows how you performed on the different parts of the exam.
To become a licensed insurance practitioner, you must pass a state-mandated exam. However, you will require much reading, comprehension, and memorization for that exam.
People use a variety of study methods when learning something new. The vast majority of people are unaware of their preferred learning style.
Knowing your preferred learning method will help you make the most of the time you have to learn something new. There are numerous options accessible for each type of learning.
This is a multiple-choice test. Many of the questions come differently, with vocabulary you have not heard before in your studies. In addition, they contain two possible answers, one of which is more correct than the other.
You must read the questions carefully because it is easy to misunderstand them and assume that the question asks for something different (even if it contains the exact answer to the question you think you are answering), resulting in many incorrect answers.
It’s not easy, but it’s an exam that is 90% memorization, with a pass rate of 70%. Instead of adjusting your answers, trust your intuition. Always choose all the options mentioned. 70% of the time, this is the correct answer. Never select any of the above options. It’s the same thing but in reverse.
Nicholas J. Banks has been an expert in the Insurance industry for over 10 years. He is well-versed in all aspects of insurance, and he has worked on Allstate Ins Group since 2006.
He attended the University of Pennsylvania with an undergraduate degree in Business Administration, followed by a Master’s degree from the University of Southern California to further his career in Insurance Management.
His experience working with many different companies has helped him develop valuable insight into how to succeed in this exciting field, which he now shares through our blog “Pro Insurance Info.”