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Successfully passing your state’s life and health insurance exam allows you to become a licensed insurance broker or agent. Understanding the life and health insurance exam pass rate of those attempting the test gives you a perspective of what is needed to properly prepare for the exam in order to pass the first time.
According to the U.S. Department Labor Bureau of Labor Statistics’s (BLS) Occupational Outlook Handbook, the median pay for insurance sales agents in 2016 was nearly $50,000 or $24 per hour. More than half a million jobs were available in the industry for life and health insurance broker-agents and the ten-year outlook for employment, according to BS data, is a growth of 10%, which is faster than the average for similar industries.
Exam Pass Rates
The National Association of Insurance Commissioners (NAIC), the organization that advocates in behalf of the state insurance regulators in each of the states, publishes information about the life and health insurance exam pass rate of those who take the life, accident and health examinations. According to NAIC’s most recent data (as of June 2015), of those states reporting some or all of their life and health insurance exam pass rate result information (44), the passing results of those attempting the life exam only, accident and health exam only, and the life, accident and health exam as one test were as follows:
– Life only exam pass rate (44 states reporting results): 62.9%
– Accident and Health only exam pass rate (43 states reporting results): 60.4%
– Life, Accident and Health exam pass rate (26 states reporting results): 64.8%
What Passing the Exam Means
Individuals that pass qualify to sell life and health insurance products. This gives them the ability to assist clients with their long-term care planning needs (when the client no longer has the ability to care for themselves without assistance), annuity products for retirement and savings, and the offer of custom tailored life insurance products designed to meet the financial needs of those affected by the loss of a loved one, in order to protect and maintain their lifestyle.
What it Takes to Pass
Passing the exam requires a committed schedule of study and the completion of several practice exams Achieving a pass rate of 80-85% on the practice exams will equate in a score of approximately 70-75% on the actual test (although individual results will vary).
The exam, which is from 75 to 150 questions in length, tests you in each of the areas the state deems necessary for you to demonstrate a minimum understanding and competency. Many exams administered also contain a component on ethics and the ethical dealings with clients, particularly older ones. Careful study, using a course that has a proven record of success in preparing individuals to pass on the first try, is one of the best ways to meet your pre-licensing and licensing requirement and begin to serve the needs of the public and your clients.
Source
https://www.bls.gov/ooh/sales/insurance-sales-agents.htm
http://www.naic.org/documents/committees_ex_pltf_producer_licensing_related_pass_rates_2015.pdf
