Insurance Licensing Exam Information For Different States

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

The insurance test that you take to become a licensed insurance agent will differ, depending on the state where you live. Twenty-five of the fifty United States use the Pearson VUE insurance licensing exam. While many people fail the exam on their first try, and the difficulty of the test seems to vary according to different people, adequate preparation plays a large role in the potential for successfully passing the exam on the first try.

Although this same type of exam is used in 25 states, there are still differences that pertain to each specific state. Some of the features that set the state tests apart include:

  • Set-up of the test
  • Format the questions are presented in
  • Score needed to pass
  • Cost of exam
  • Pre-licensing requirements
  • Amount of time permitted for completion
  • Information that is pertinent to the state

One feature that is common on the insurance license exam for most states is that there are 4 basic exams, including: Life, Accident & Health, or Sickness & Disability, Property, and Casualty. Each exam presents its own challenge with different areas considered the most difficult in various states. Overall, however, any “Accident & Health” or “Sickness and Disability” policy is more complex than a life insurance policy, while the Property insurance exam is easier than the Casualty insurance policy. The state portions of the exams are where variations determine the complexity of the exam due to the specifics that relate to that state's regulations.

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.

Preparation courses are designed to help test takers learn the state-specific information that may be included on the exam. The more comprehensive a course is, the more likely you will be to know everything needed to attain a passing score. The use of practice exams and questions gives potential test takers the opportunity to test their knowledge. This allows them to determine how well they know the material and what areas they might need to cover again.

When practicing for the exam, it is important to take a course that is specific for the state where you live. Since the state-specific material may be the most challenging of all the information needed on the test, you will need to focus on this area during the insurance license prep course. Since most state exams today are computerized, preparing online will also give you a realistic idea of what it will be like to take the real exam.

There are no shortcuts to learning the material, or alternatives to knowing it. There are no shortcuts to taking the tests, such as learning test-taking strategies. The only way to get the right answers is to know the information that you will be tested on, including the general information, and that which pertains to the state. One of the most effective ways to accomplish this is through a quality pre-licensing course that provides the needed information, and which gives you options for testing yourself on it after it has been learned.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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