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The life insurance market has become more and more prominent over the last several years with several people opting to take out a policy. Because of this, the need for qualified life insurance agents has grown exponentially.
Knowing how hard the Texas Life Insurance Exam is and what you need to do to prepare can help you take the first step into becoming a licensed agent. Keep reading to learn more about what is on the exam and how you should prepare.
What is the Texas Life Insurance Exam?
The Texas Life Insurance Exam is the deciding factor in whether or not you can market and sell life insurance policies within the state. The exam, which covers everything you need to know to become a reputable agent, is a requirement to become an agent in the state of Texas.
The governing agency, the Texas Department of Insurance, or TDI, outlines the process you have to take to get your life insurance license for the state. This process typically includes a 5-step process that you have to go through.
How Do I Become a Licensed Life Insurance Agent in Texas?
The 5-step process to become a licensed life insurance agent in Texas is regulated by the TDI and designed to ensure that individuals have the knowledge and skills needed. The steps take some time to accomplish but will allow you to understand what it takes to market and sell life insurance policies in the state.
To learn more about the specific steps it takes to become a licensed life insurance agent in Texas, keep reading.
Step 1: Take a Pre-Licensed Course
Although this is not a requirement that is mandated by the Texas Department of Insurance, it is highly recommended. This is because those who have attempted to take the course in the past and who were ill-prepared often did not pass the test.
Several organizations offer the course to learn the knowledge and skills it takes to not only pass the exam but also to be an effective life insurance agent. Keep in mind that while you can enroll in various courses offered, others choose to self-study by purchasing books and setting their study schedule.
Whichever you choose to do, you will need to spend some quality time studying the topic and the various skills you will be asked for on the test. It is important to keep in mind that anytime you are learning a new topic, it can be seen as difficult, so taking the time to study will be worth your while in the long run.
Step 2: Register for the Exam
Once you have spent ample time studying for the Texas Life Insurance Exam, you should be ready to register to take it. The registration process is relatively straightforward and can be scheduled at a time convenient for you.
Pearson VUE is the testing organization that is used to proctor the exam in the state of Texas and must be done in a monitored environment. You can register for the test on their website and choose where you would like to take it.
It is important to know that the test has about 80 questions that are divided into two sections which include a general and state-specific set of questions. The general portion is for basic questions about the profession in general, while the state-specific question is focused on regulations you should know about the state.
On the day of the test, you will have about 120 minutes to answer the 80 questions that include product knowledge questions and many others. You will be asked to answer questions about laws, regulations, terminology, and various guidance.
Step 3: Get Fingerprinted
The next step in the process to become a Texas Life Insurance Agent is to have your fingerprints taken for a criminal history and background check to be done. This is required before you can apply for your agent license and must be sent to the TDI for review.
Identogo is an organization that is used in the state of Texas to take your fingerprints and then send them to the Department of Public Safety and the FBI. You will need to make an appointment with Identogo and then pay a fee of about $37.50 for the process to be done.
Once it is complete, they will issue you a receipt which you are then required to send to the TDI to prove that you have had your fingerprints taken. This receipt will be turned in when you apply for your life insurance license.
Step 4: Apply for Your Texas Life Insurance License
After you have passed your exam and have been fingerprinted for the criminal background check, you are ready to apply for your agent license. This process is done through two different organizations, which include either Sircon or NIPR, and can be done online with a $50 fee.
Once the TDI has verified your information and your identity, they will then issue your Texas Life Insurance Agent License as long as you are over 18 years of age. Keep in mind that you have to apply for licensure within 1 year of having taken the exam, or you will be required to take it again.
Step 5: Wait for Your Application to Be Processed
This step is typically the most difficult since you know that all of the requirements have been met and are now required to wait. The process for the Texas Department of Insurance to review your application can take several days to weeks, depending on the time of the year.
It is important to note that the process of reviewing your application is long since they have to verify not only your test scores but also your background check, identity, and other application information.
Rest assured that as soon as they have reviewed your application and verified everything, they will issue your license as soon as possible. Since this is the last step in the process, you will then be able to not only market but also sell life insurance in the state of Texas.
Do You Have to Complete a Course Before You Take the Exam in Texas?
As previously stated, while some states require that you complete a pre-licensed life insurance course before being allowed to take the test, Texas does not. Although this is true, the Department of Insurance still highly suggests that you spend some time studying before taking the exam.
The exam itself can be difficult, especially if you have never worked in the insurance industry before. This is why it is important to have more than a cursory knowledge of not only the rules and terminology but also any laws and regulations that exist in the state.
Keep in mind that you can either sign up for a course either in person or online through many organizations. If you choose to self-study, you can pick up a book for the exam at your local bookstore or library.
What Types of Questions are On the Texas Life Insurance Exam?
The Texas Life Insurance Exam has 80 questions that range from a wide variety of topics within the life insurance industry. These questions include half that are general knowledge questions and the other half state-specific questions.
The general knowledge questions are designed to cover life insurance as a product and measure an individual's understanding of such. This is the section that will demonstrate how much you know about life insurance.
The state-specific questions dig much deeper and are designed to test whether or not you know about state regulations, laws, and guidance when it comes to life insurance. This section will require that you not only know about life insurance but also how the state views and regulates it.
How Hard is the Texas Life Insurance Exam?
The question that most people want to know about the Texas Life Insurance Exam is whether or not it is hard. The answer to that question depends on how much time you have spent studying for it.
If you make a snap decision to take the exam thinking that it is going to be easy for you to get a license and start selling right away, you are not likely to do well. This is because, like other industries, life insurance agents need to be knowledgeable enough to be seen as an expert in the field.
As a general rule, out of those who have taken the exam in the past, not only in Texas, the passing rate has been about 50%. While Texas is not known as the most difficult exam, it is still comprehensive enough to challenge even the well prepared.
Tips on Taking and Passing the Texas Life Insurance Exam
As you are preparing to take the Texas Life Insurance Exam, there are a few tips that you should consider. These are designed to help you be the most successful and become the licensed agent you want to be.
Here are some of the best tips on taking and passing the Texas Life Insurance Exam:
- Either take a course or purchase study materials
- Take a few practice tests before scheduling your exam
- Do not rush the process
- On the test day, make sure you are well-rested and nourished
Reference Legal Explanations
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"How Hard is the Texas Life Insurance Exam?". Legal Explanations. Accessed on February 29, 2024. https://legal-explanations.com/blog/how-hard-is-the-texas-life-insurance-exam/.
"How Hard is the Texas Life Insurance Exam?". Legal Explanations, https://legal-explanations.com/blog/how-hard-is-the-texas-life-insurance-exam/. Accessed 29 February, 2024
How Hard is the Texas Life Insurance Exam?. Legal Explanations. Retrieved from https://legal-explanations.com/blog/how-hard-is-the-texas-life-insurance-exam/.