Health and life insurance is a discipline that deals with accidental death or personal injury. To be a broker or agent in New York, you need a license, which requires you to meet the pre-licensing qualification rules. Here is an outline of the NYS life accident and health license course and exams.
Life Accident and Health Pre-Licensing Requirements
The pre-licensing requirements for the NYS life accident and health license course must be approved by the Superintendent of Insurance. The first requirement is that the applicant must be over the age of 18. You must also have a clean record that does not include a misdemeanor or a felony.
To acquire a license in NY, you must complete a 20-hour course for either a health or life accident authority. The other option for an applicant is to take 40 hours for the health and insurance lines: the 4 main lines are Property, Casualty, Life, and Health and Disability.
You have to take half of all courses in a live classroom, which is currently the most practical option due to COVID restrictions. You must complete each course and meet the minimum score before moving to the next one.
The live classes rule means the attendee has to take the class in real-time when it is scheduled. Attendees should receive the written materials from the provider before the class.
Your provider may offer courses in different formats such as Mp3, Mp4, or video-on-demand. But the participant must meet the requirements for live classes and self-study. Self-study can make up to half of all the course materials.
Exemptions for Pre-Licensing Requirements
The requirements may extend exemptions to a broker or agent employed in an insurance company for at least one year, as long as the employment period has been within the last three years.
During the period of employment, the applicant must have been working on issues relating to life insurance. That may include annuity contracts, employee coverage, and plans for estate conservation, amongst others.
Additionally, military personnel may qualify if they have completed one year of employment at an insurance company. That period must be within the three years before getting into the armed forces. The applicant can apply within one year after discharge.
If you are a lifeline broker, you can be exempt if you already have a license as an agent in New York or another state.
Applicants who qualify for exemptions do not have to meet the education requirements. They can go ahead and take the exam without attending classes.
Difference Between an Agent and a Broker
An agent represents insurance companies and acts as a go-between with their clients. They provide insurance information to clients for the organizations they serve.
NYS life accident and health insurance course and licensing rules do not require an agent license for employees. The only condition is the agent submit their contract of employment to the Department of Financial services within 15 days.
A broker represents clients rather than an insurance company. They are bound by fiduciary duty to the individuals they represent.
A licensed broker has the right to conduct business with any willing company in New York. However, some companies only engage agents that are already working for other organizations.
Exams to Obtain an NYS life Accident and Health License
Before you register for an exam, it is advisable to review the requirements thoroughly. Once you have met the pre-licensing requirements, the next step is to take an exam.
The exams for New York life & accident courses are administered by an independent service. To take the exam, you will be requested to visit a nearby test center.
A life accident and health exam license in New York typically takes two-and-a-half hours to complete. The test consists of two parts, the general and state sections.
The general section makes up half of the questions on the test. It primarily tests basic knowledge of insurance products. The state sections have questions on rules and regulations relating to insurance compliance in New York. The test confirms that you have the minimum prerequisite knowledge to be an insurance agent or broker.
At the center, books, portable devices, or laptops are prohibited. The participant should arrive at the location 30 minutes before the start of the exam to prepare adequately.
For life and accident lines of authority, the requirement is the completion of the 17-52 exam. Both agents and brokers have to complete the same examination.
The 17-52 exam takes two hours to complete and has 100 multiple-choice questions. The test may include experimental questions not covered in the pre-licensing course. However, these questions do not affect your final score.
Once you finish your exam, you will get feedback immediately whether you have passed or not. The passing mark is 70%. The system will send a report with either “pass” or “fail.”
Retaking Exams and Renewing your License
If you fail the examination, you will receive a report indicating your strengths and weaknesses. You can retake the test, but you have to wait 24 hours before making a new application.
Agents and brokers have to renew their licenses after every two years. The expiry is based on the applicant’s date of birth.
If born in an even year, you can expect your license to expire on your birthday in an uneven numbered year. Those born in odd years will have to renew by their birthday in an even year.
The rules for license expiration in New York mean that some applicants will have a license for less than two years. In those circumstances, you can pay half the fee, which is $40, as opposed to the regular charge of $80.
If you are not exempt from the pre-qualification rules, you will have to take the course through a provider. It is recommended that you check that your provider has approval from the Department of Financial Services. Some programs may include test exams and extensive coursework to prepare for the qualifying tests. Enroll in a life accident and health license course from our course listings today.