Can You Retake Life Insurance License Exams?

Author:Shelden SmollanChief Experience Officer
Shawn Redford
Reviewed by:Shawn RedfordChief Business Development Officer
May 24, 2023
14 Minute Read

You have another chance to pass your life insurance license exam in the USA. Here’s how to do it and how Experior Financial can guide you.

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Why You Should Become a Licensed Life Insurance Agent in the USA

Becoming a life insurance agent is an exciting career path that requires specialized knowledge and a state licensing exam. Each state has its own unique set of requirements and processes for obtaining a life insurance license.

Regardless of the state, passing the life insurance exam is crucial, as it tests your knowledge of life insurance products, procedures, and regulations. The key to success is to start preparing early, study diligently, and take practice exams. With the right preparation, you can maximize your opportunity and be on your way to becoming a licensed life insurance agent!

Becoming a life insurance agent in the USA can be a rewarding and fulfilling career choice for many people. Here are some of the benefits of becoming a life insurance agent in the USA:

  • Flexible schedule: As a life insurance agent, you can set your own hours and work at your own pace. You can choose when and where to meet your clients, whether it is at their home, office, or a coffee shop. You can also decide how much time to spend on marketing, prospecting, and servicing your existing customers. You have the freedom and flexibility to balance your work and personal life according to your preferences and goals.
  • Unlimited income potential: As a life insurance agent, you can earn as much as you want, depending on your skills, efforts, and results. You can earn commissions from selling policies, renewals from existing customers, bonuses from meeting performance targets, and incentives from participating in contests and promotions. You can also build residual income from your book of business that can provide you with financial security and stability for years to come.
  • Helping people protect their families: As a life insurance agent, you can make a positive difference in the lives of your clients and their loved ones. You can help them plan for their future, protect their assets, and provide for their families in case of death, disability, or illness. You can also educate them on the benefits and features of various life insurance products and help them choose the best one for their needs and budget. You can build long-term relationships with your clients and earn their trust and loyalty.

Can You Retake Life Insurance License Exams?

If you’re interested in pursuing a career in the life insurance industry, you may be wondering if it’s possible to retake your insurance license exam if you fail the first time. Whether you’re a new agent who failed the exam on your first attempt or a seasoned professional who needs to renew your license, this question can be critical to your success in the industry. 

To answer the question, yes, you can retake an insurance licensing exam if you do not pass on your first attempt. This is important for individuals who wish to become licensed life insurance agents, as passing the state licensing exam is a requirement to sell life insurance policies. Retaking the exam provides an opportunity to improve your understanding of the material and increase your chances of passing on your next attempt. This is crucial for those who seek to have a successful career in the industry and earn commissions.

Why You Might Want to Retake an Exam: A List of Reasons

Some possible reasons for retaking an exam are:

  1. To improve your score or grade: If you are not satisfied with your performance on the exam, you may want to retake it to achieve a higher score or grade. This can help you boost your academic record, meet the requirements for a course or program, or qualify for scholarships or awards.
  2. To refresh your knowledge or skills: If you have not used or practiced the knowledge or skills that were tested on the exam for a long time, you may want to retake it to refresh your memory and update your understanding. This can help you prepare for future exams, courses, or projects that are related to the same subject or field.
  3. To challenge yourself or learn something new: If you are interested in the subject or field that was covered on the exam, you may want to retake it to challenge yourself or learn something new. This can help you expand your horizons, discover new perspectives, or explore new topics that were not covered on the original exam.
  4. To expand your market or product line: If you want to sell insurance policies in a different state or offer different types of insurance products, you may need to retake the exam to meet the specific requirements or regulations for that state or product line. This can help you increase your customer base, diversify your income sources, or specialize in a niche market.
  5. To reinstate your license or avoid expiration: If your license has been suspended, revoked, or expired for any reason, such as failing to pay fees, complete continuing education, or comply with ethical standards, you may need to retake the exam to reinstate your license or avoid expiration. This can help you resume your business, protect your reputation, or avoid penalties or fines.
  6. To demonstrate your competence or credibility: If you want to prove your knowledge or skills to your clients, employers, colleagues, or competitors, you may want to retake the life and health exam to demonstrate your competence or credibility. This can help you build trust, confidence, or respect among your stakeholders and enhance your professional image or brand.
  7. To move to another state: If you want to relocate to another state and continue your career as an insurance agent, you may need to schedule your exam to obtain a state insurance license in that state. This can help you comply with the state laws, regulations, and standards that govern the insurance industry and avoid any legal issues or complications.

Basic Life Insurance Exam Information

How much does it cost to retake an insurance licensing exam in the USA?

The price to take the exam varies from state to state and can cost anywhere from $43 to $150. To determine the exact cost of the exam in your state, you can visit your state’s insurance licensing website. It is important to keep in mind that beyond the exam fee, there may be additional fees associated with the license application process, such as fingerprinting and background checks, which vary by state.

The number of questions on the life insurance exam is usually between 50 and 100, with a time limit of one to two hours. The number of questions varies depending on the state you reside in and where you are taking your exam. You must answer every question on both general and state-specific topics and apply your knowledge in some cases. 

In order to obtain your life and health insurance license in each state, you must achieve a passing score of 70% or higher on the exam. Scoring at least 60- 70% (depending on your state) is as good as receiving a perfect score of 100%, anything lower will require you to retake the exam. Pass rates for the exam can vary based on the state and specific test taken. The National Association of Insurance Commissioners (NAIC) tracks pass rates for each state and exam type. Typically, pass rates for life and health insurance exams range from 60% to 70%.  

The state exam covers the insurance type of your choice, such as health insurance, and it is proctored to ensure that you follow all of the rules. Once you pass the state exam, you will be able to apply for a health insurance license or another type of insurance license, and you can begin selling insurance in your state.

When you complete the life insurance exam, your test results will be available at the testing center. If you do not pass the exam on your first attempt,  you won’t be able to register for the exam again immediately. You need to wait for 24 hours before registering for the exam again. 

Typically, you are allowed to take the state exam up to three times within a year, and if you don’t pass after three attempts, you may need to complete prelicensing education again before new exam attempt in the following year. Please note that this insurance examination process can vary from state to state.

Prerequisites to Qualify for the Life Insurance Exam

In addition, many states require an insurance pre-licensing education course as a prerequisite to taking the exam. If you want to excel in the test, consider an instructor-led study course to gain comprehensive knowledge and improve your chances of passing on the first attempt.

Enrolling in a license training course is an essential step for aspiring insurance agents, regardless of the specific type of insurance they plan to sell. This is a state-approved course that is designed to cover the fundamentals of insurance and help prepare candidates for the licensing exam. Once you have completed your pre-licensing education, you will need to register for the licensing exam at an approved test center. 

It’s important to note that some states require additional continuing education courses for licensed agents to maintain their licenses. These courses can range from a few hours to several days, depending on the state and the course requirements.

The length of time it takes to complete life insurance courses can vary, but most pre-licensing education courses range from 20 to 40 hours. It’s important to research the requirements in your state to ensure that you are meeting all the necessary education requirements to become a licensed life insurance agent.

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Life Insurance Exam Study Tips

To pass the life insurance exam and get licensed, it’s essential to create a solid study plan. First, obtain the exam outline and learn your state’s requirements from the department of insurance website. The exam outline will help you determine what topics will be covered and how they are weighted.

  • Don’t cram for the exam; instead, spread your time to study over several weeks. You can use an insurance certification study package to keep you on track. 
  • While it’s important to study and review course material, taking practice tests is crucial in evaluating your understanding of the content and identifying areas that require further attention.
  • Familiarize yourself with the state insurance licensing exam process by visiting the testing center before the exam. Make sure you know what forms of identification are needed. 
  • During the exam, remain calm and read each question carefully before answering it. Start with the questions on your exam you are already familiar with and save the more difficult ones for last. 

Should you fail an examination attempts three times, you will be required to complete pre-licensing education again before you can take the exam the next year. Once you pass the exam, a wide variety of opportunities open up for you in the insurance industry. You can either work for an insurance company or become an independent insurance agent, allowing you to set your own schedule and work from anywhere.

Improve Your Performance With Practice Tests

Practicing with a life insurance practice exam is an excellent way to enhance your exam preparation. This is especially true for computer-based exams. You have the option of purchasing practice exams individually or as part of a study package.

To get the most out of practice tests, it’s best to approach them as if you were taking the real exam. This entails closing your study notes, finding a peaceful place to take the pretest, and setting a timer to certain amount of time to simulate the exam’s time constraints. This will give you a better sense of how well prepared you are for the actual exam.

How to Prepare For the Life Insurance Licensing Exam in the USA in 30 Days

To become a licensed life insurance agent in the United States, you must pass the state licensing exam. This exam measures your knowledge and skills on a range of topics connected to life insurance policies, products, and regulations. The test can be hard, and you need to study and practice a lot before it. If you don’t have much time to study, you can still pass the exam on the examination date and time by sticking to a 30-day study plan that covers all the important topics and skills that are tested. These steps will help you study for the US life insurance test in 30 days:

  • Day 1: Register for the exam and find out the exam requirements, cost to take, and procedures for your state. You can use the [National Insurance Producer Registry] website to find the relevant information for each state. You can also download or order the exam outline or content guide that provides a detailed breakdown of the topics and subtopics that are covered on the exam.
  • Day 2-7: Enroll in an online course or buy a book that covers all the topics that are tested on the exam. You can choose from various options, such as [Kaplan Financial Education], [EverQuote], [Tests.com], etc. You can also use other resources, such as podcasts, videos, blogs, etc. that explain the concepts and terms in an easy and engaging way. Study one topic per day and take notes of the key points and definitions.
  • Day 8-14: Review your notes and reinforce your learning by taking practice tests or quizzes on each topic. You can use the practice tests or quizzes that are provided by your online course or book, or you can find other sources, such as [ExamFX], [CompuCram], [Insurance License Exam Tutor], etc. You can also use flashcards or apps that help you memorize the facts and formulas. Try to answer as many questions as possible and check your answers and explanations.
  • Day 15-21: Identify your strengths and weaknesses by taking a full-length simulated exam that mimics the format and difficulty of the actual exam. You can use the simulated exam that is provided by your online course or book, or you can find other sources, such as [Exam Edge], [Pass Perfect], [Testeachers], etc. You can also use online proctoring services that monitor your test-taking behavior and provide feedback and tips. Analyze your results and focus on improving your weak areas.
  • Day 22-28: Repeat the steps above for each topic and take another full-length simulated exam. Compare your results with your previous ones and see if you have improved your score and accuracy. Review your mistakes and learn from them. Keep track of your progress and confidence level.
  • Day 29: Take a break from studying and relax your mind and body. Do some activities that make you happy and calm, such as listening to music, meditating, exercising, etc. Avoid any stress or distractions that may affect your mood or concentration.
  • Day 30: Review your notes and flashcards briefly and take one last practice test or quiz to refresh your memory and boost your confidence. Make sure you have everything you need for the exam day, such as your identification, confirmation number, calculator, etc. Get enough sleep and eat a healthy breakfast before heading to the exam center.

By following this 30-day study plan, you can prepare for the life insurance licensing exam in the USA in a short period of time and increase your chances of passing it on your first or second try. Remember to stay focused, motivated, and positive throughout your study journey. Good luck!

What Happens When You Pass?

After passing the life insurance exam and submitting your application, it will go through a review process. If everything is in order and you meet all the state requirements, you will be notified of your approved life insurance license and be provided with an electronic copy. 

Be sure to keep a printed copy of your license and score report for your records and to use as you begin your career as a life insurance agent. The wait time it takes for your license to be approved can vary by state, so be sure to check with your state’s insurance department for an estimated timeline.

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Insurance Agent Careers With Experior Financial Group

Join Experior Financial Group and start your career as a licensed insurance agent. In order to help you quickly become licensed and stay current with industry trends and regulations, we offer affordable licensing courses. Our company does not require previous experience, so anyone can become part of our team. There are also opportunities for advancement and the ability to become an expert agent in the industry. Learn more today and start helping clients protect their financial futures with top-notch insurance policies!

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FAQ: Frequently Asked Questions About Life Insurance License Examination

What Are The Life Insurance Exam Topics?

If you’re planning to take the life insurance license exam, it’s essential to know that the test content is state-specific, but there are some topics that are tested in all fifty states. Generally, the exam consists of a general life insurance section and a state-specific section. 

To maximize your chances of passing, it’s important to structure your studying to cover all of the topics included in your state’s content outline. In the life insurance exam, many states cover a range of topics such as different types of life insurance, policy provisions, life insurance premiums, annuities, options, and various other features. The exam also covers general life insurance topics along with state-specific sections.

The life insurance exam covers state-specific regulations and rules that pertain to the life insurance policy. These regulations can include requirements for contract language, disclosures, and other important details. As you prepare for the exam, it’s crucial to study your state’s rules and regulations in order to complete the exam. This knowledge will not only help you pass the exam but will also prepare you to sell life insurance policies in your state, always keeping the best interests and fair treatment of consumers in mind.

What Is The Number Of Questions On The Life Insurance Exam?

For the life and health insurance exam, the number of multiple-choice questions typically ranges from 50 to 100, and the time limit is usually between one and two hours. The details of the life insurance exam you must complete can vary based on the state and testing location, including the number of questions and the time limit allotted for the exam. Visit your state official website for more information available for examinee.

How Long Are The Courses For The Life Insurance Exam?

The length of life insurance courses can vary depending on the state and the type of course. Most states require pre-licensing education courses for life insurance agents, which typically range from 20 to 40 hours of instruction.

The exact length of time needed to complete the courses will depend on your study habits, the pace of the course, and any prerequisites required by the state. Some courses are self-paced, while others are taught in a classroom or online setting with a set schedule.

Why Were The Questions On The State Exam Different From The Pre-licensing Course?

Understanding why the questions on the state exam may differ from those in your pre licensing course can help you prepare better. It’s worth highlighting that the state exam questions are not accessible to pre-licensing providers.

As a result, the questions in your pre licensing course may not be identical to the ones that appear on the state exam. It’s designed to test your overall knowledge and understanding of the life insurance policy and industry, and it may include questions that were not covered in your pre-licensing course.

Is The Life Insurance Exam Paper Or Computer Based?

All states offer the life insurance exam in a computer-based format to ensure that the applicant can easily navigate the test and efficiently process the information provided.

What Is The Score Needed To Pass A Life Insurance Exam?

To obtain your life and health insurance license in each state, you must achieve a passing score of 60- 70% (depending on the state) or higher on the exam. Scoring at least 60-70% is equivalent to receiving a perfect score of 100%, as anything lower will require you to retake the exam.

What Is The Hardest Insurance Exam To Pass?

The insurance licensing exams can pose a significant challenge for any test taker. Although both the Life and Health insurance exams require a thorough understanding of key concepts, many students have reported that the Health insurance exam is more difficult.

This is mainly due to the complexity of health insurance policies, which cover a wider range of topics compared to life insurance policies.

Shelden Smollan
Shelden Smollan, Experior Financial Group's Chief Experience Officer, has spent more than 45 years working in the fields of Life Insurance and finance. He is an excellent insurance sales and management executive with exceptional strategic thinking, marketing, and leadership abilities. He has been Experior Financial Group Inc.'s Chief Experience Officer for the past six years, and his vision and expertise have been instrumental in the company's growth and development. By arranging meetings between agents and carriers so that our team of associates can learn from them and draw inspiration from them, he has assisted our IMO in expanding.