How long do Providers Have to Bill Insurance | A Brief Guide

Many insurance providers have a long-term care plan that requires them to bill insurance for their entire life. This can be a challenge because there’s usually a provision in the plan that sets the measure of your benefits. Are you trying to buy health insurance, or, like many people, you don’t know how to bill insurance for yourself? Let’s learn how long do providers have to bill insurance?

A well-written bill can avoid some of the hassles and wait time. Here, we’ll show you how to create a well-made bill without any headaches.

Most of that time is spent studying for the licensing exam and meeting the pre-licensing education course because the life insurance and health insurance licenses are closely linked (most people receive both).

The Life and Health Insurance License (along with the Property and Casualty Insurance License) is one of the two essential insurance licenses.

How long do Providers Have to Bill Insurance?

How Long Do Providers Have To Bill Insurance

Because of the very close relationship between life and health insurance, the answer is that providers must bill both promptly. There are times when providers will bill a life insurance company first (i.e., before the provider bills any health insurance carrier).

The problem with this is that the provider could end up losing money on those policies if it is not paid through a health insurance carrier or if the policy is canceled.

You can send your invoices to a self-insured employer-sponsored health plan, but there are no legal limitations or safeguards that ensure the submission of invoices to yourself. Each plan sets its time limit, frequently set at 90 days. There are also no protections for patients with employers’ self-insured plans.

What is a Life and Health Permit?

The first step in being an insurance broker in your area and marketing life and health coverage is to get your health and life coverage certification. After completing your state’s test, you’ll get a license that authorizes you to apply for and start a life and health policy book of business in that state.

This means you may either work for an insurer and offer their brand of goods, or you can work as an individual broker and sell various brands.

Support staff at an agency, such as call center staff or assessors, should be incentivized to earn their licenses since they will be responsible for much of the regulatory administration.

License to Sell Life Insurance

A life insurance certification qualifies you to sell life cover as a licensed producer in your state. Then you’ll explain, promote, and write about this field of work.

License for Health Insurance

Once you get your health insurance license, you will be allowed to write about the health insurance policies accessible in your state. You are competent to talk, market, and write about health insurance products if you hold a health insurance license.

Is it necessary for me to get both licenses?

How long do Providers Have to Bill Insurance

Health coverage licenses may be obtained independently of life insurance licenses and vice versa. Because they may write two business lines for the same customer, most new agents opt to get them both simultaneously.

Life and health lines may be integrated into a single pre-licensing course and test in certain jurisdictions. It’s good to look up state rules to determine what each license enables you to sell.

How to Measure up to the Life and Health Insurance Examination

The prerequisites for earning an insurance license vary by state, but the most typical initial step is to prepare for the state test.

For example, you must first apply for a permit with the National Registry of Insurance Producers in Michigan. This may be done online or in person, and each kind of company you wish to sell costs $15. For six (6) months, the application is valid.

During this time, prospective brokers will enroll in particular training courses related to the examination’s subject matter. Each pre-licensing class will be assigned a certain amount of credit hours. In Michigan, you must complete forty (40) hours of study in life, disaster, and health insurance before taking the test, and they will grant you a certificate.

What can be done by taking a life and health insurance leave?

How long do Providers Have to Bill Insurance

Knowing that the policy exam is a proctored, multiple-choice test can help you prepare more successfully. This test is proctored, which means someone will be present while you take it, either in a body or computer. This prevents the use of any help during the test.

A multiple-choice test, such as the life insurance exam, will benefit from most of your typical study methods. Estimate how much time you’ll need to grasp the subject thoroughly. It takes considerable knowledge of the topic to recognize the proper response in the context of other facts.

It is also good to research the exam company before the exam. Usually, third-party companies have the right to give your state insurance commissioner the exam.

Life Insurance License

A life and health policy license authorizes you to sell and manage life and health insurance contracts in a particular state. It certifies you as a life insurance provider, enabling you to lawfully discuss, sell, and trade on these plans.

Both forms of insurance payout if a claimant suffers a financial loss due to a medical crisis or death.

The policy issuer mainly determines the conditions of the individual coverage you sell. Working for a small independent organization or broker offers you access to many different insurance providers.

Health Insurance License

The goal of life insurance is to guarantee that the covered and their heirs get a certain payout in the case of death. Life insurance plans’ premiums and coverage amounts vary based on the range’s term.

Term life insurance, for example, has cheaper premiums and covers a defined period in the case of death. The Whole Life modality, on the other hand, protects the insured for the remainder of his life for a more significant premium.

The whole insurance policy is a long-term asset since it includes a cash component.

What can be the restrictions for a life and health insurance license?

In your state, you’ll be allowed to offer HMO, PPO, HSA, and other forms of health insurance if you have a health insurance license. These are several forms of healthcare coverage, but they all have the same goal: to compensate claimants for medical expenditures incurred due to an accident or disease.

Enrollees and their families have access to a network of physicians, hospitals, and specialists via an HMO. A PPO provides you with more choices since it will cover you regardless of seeing a doctor who isn’t part of the health insurance plan.

HSAs are investment vehicles for policyholders with higher deductibles who want to put money aside for uninsured medical bills. Depending on your state, a health insurance permit may also enable you to offer disability insurance.

What is the limit of a life and health insurance license?

What is the limit of a life and health insurance license

You can only sell life and health insurance with your life and health policy license; you can’t sell a car, house, title, property, or casualty insurance. The state will require these additional forms of insurance to pass their licensure examinations and meet their conditions.

Variable whole life policies, for example, might be connected to financial assets alternative investments, which need a FINRA license to sell and market. Permits for FINRA Series 6 and 63 are available.

Frequently Asked Questions

What jobs are available with a life insurance license?

Life insurance and annuity agents sell policies and interact with customers and beneficiaries to process claims.

How hard is the life insurance exam?

Since each state has its insurance exam, the results differ, making this question challenging to answer. However, the general topics of the exam, as well as the passing scores, are the same in all states. The exam is not easy to pass, regardless of where you take it. However, if you understand the concepts well, you have a good chance of passing the life insurance exam.

What are the life insurance exam topics?

In most states, the exam will test you on the following topics related to life insurance:

  • Basic understanding of life insurance 2.
  • Life insurance policies
  • Additional policies and life insurance coverage alternatives: 4.
  • The Tax Effects of Life Insurance
  • Annuities
  • The tax consequences of annuity policies

What are the requirements to take the life insurance exam?

The requirements to sit for the life insurance exam are as follows:

  • You must have a bachelor’s degree or its equivalent.
  • Know the needs of the state and location where you want to sell insurance.
  • Meet your state’s specific exam prerequisites. Many states require completing a certain number of hours of pre-licensing instruction.
  • Look up insurance licensing rules on the official website of the state insurance department or commission.
  • Register for the exam, which includes payment of a state-specific registration fee.

When is the life insurance exam?

In addition, there are many options for scheduling your life insurance exam at a time that works best for you. The respective state insurance department’s website usually has scheduling alternatives. Plan your test at least two weeks in advance so that you have enough time to study.

Is the life insurance exam paper- or computer-based?

In all states, the life insurance exam is through a computer.

How many unknowns does the life insurance exam contain?

Depending on the state and whether the exam is stand-alone or coupled with the health exam, the life insurance exam consists of between 105 and 150 multiple-choice questions.

How much time does it take to study for the life insurance exam?

Most candidates spend between 35 and 40 hours studying for the life insurance test.

How much money does it cost to take the life insurance test?

The cost of taking the exam varies by state and ranges from $43 to $150. The fee you see on your state’s insurance licensing website and are aware that the prices for applying for a license are different.

Bottom line

Suppose you’ve discovered what a life insurance agent does and are thinking about pursuing a career in the industry. In that case, you’re undoubtedly wondering, “How difficult is the life and health insurance exam?” It is more difficult to answer since each state has its insurance exams and criteria. However, the general exam topics and the passing scores are the same in all states.

In 13 calendar days, you can complete the required 96 hours of in-person classroom instruction, two crash courses, fingerprinting, and three state boards (life and health, property and casualty, and ethics).

Each state is unique. Before you apply for your license, keep in mind that the training you receive will not teach you everything you need to learn to be a fantastic insurance agent. Get a mentor who will save you 5–10 years of learning and get you to the income level you want right away.



Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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