Updated for 2024
Having a health insurance license is essential for anyone looking to legally sell health insurance products. This certification, issued by state regulatory authorities, confirms that a person has the knowledge and training to guide clients in selecting health insurance plans. It’s not just about meeting legal requirements—getting licensed also builds trust with clients and opens doors to a rewarding career in health insurance.
Whether you’re exploring a new career path or aiming to expand your expertise, understanding the steps to becoming a licensed insurance broker is critical. This article will explain what a health insurance license is, why it’s necessary, and provide a clear, step-by-step path to becoming licensed. Let’s explore how you can take this important step toward a successful career in health insurance.
What is a Health Insurance License?
A health insurance license is a state-issued certification that permits you to legally sell health insurance products. It ensures you have the training to advise clients responsibly and comply with state regulations. Holding this license not only demonstrates your expertise but also builds trust with clients and employers, paving the way for a professional career in health insurance.
Do You Need a License to Sell Health Insurance?
Yes, you will need a license in every state where you do business. The licensing requirement ensures that anyone advising clients on health insurance has a solid understanding of the products, policies, and regulations necessary to make sound recommendations. Licensed agents can offer guidance on various insurance options, helping clients select plans that suit their needs and budgets.
In addition to legal compliance, having a license provides credibility and professional recognition, making you a trusted resource for clients navigating complex health insurance options. Some states, like California, have specific requirements for obtaining and maintaining a license, which may include pre-licensing courses, passing an exam, and meeting continuing education requirements to renew the license.
Without a license, selling health insurance or advising clients on coverage options is not permitted and can result in fines or penalties. So, if you’re serious about a career in health insurance, acquiring your license is essential for both legal and professional reasons.
How to Get Your Health Insurance License
If you’re interested in becoming a health insurance agent, one of the first things you need to do is take the licensing exam required by your state regulator. In California, that’s the California Department of Insurance (DOI). In Nevada, it’s the Nevada Division of Insurance (a part of the Department of Business and Industry).
Below are six steps in getting your health insurance license in California or Nevada.
Step 1: Determine what type of insurance license do you want to get
You must get your insurance license in each state where you conduct business. You can choose a business entity or individual license. In California, there are more than 30 types of license classifications issued by the Producer Licensing Bureau in the Department of Insurance. If you’ll be selling health insurance, you’ll need an Accident and Health Agent (A&H) license or a Full Life Agent license (which includes Life, Accident, and Health).
With an A&H license, you are generally allowed authority in California to sell products offering coverage for sickness, bodily injury, or accidental death (that may include disability income benefits). The licensee may also transact 24-hour care coverage and Long Term Care insurance.
Important Resource Links:
- Types of Insurance Licenses in California
- The complete list of California producer license types
- In Nevada, you can earn a Producer License, which is also available on an individual or business entity basis.
- Details on Nevada licensing
Step 2: Complete the fingerprinting process
Individuals applying for a license in many states must furnish a complete set of fingerprints, which may be shared with law enforcement authorities, including a state repository for criminal records and the Federal Bureau of Investigation. California and Nevada both require fingerprinting prior to taking the license examination – even before submitting your license application.
Here are the California guidelines on fingerprinting:
- If you would like to have your fingerprint impressions taken before your license examination, you may schedule your fingerprint impressions using the California Department of Insurance (CDI) contracted fingerprint vendor by calling Accurate Biometrics at (866) 361-9944, to find a fingerprint location near you. When you go to have your fingerprint impressions made, please take with you a completed Live Scan Request, form LIC 442-39A.
- At the time you take the license examination at the designated site, you may also have your fingerprint impressions made.
- While it is subject to change, the current total processing fee for the fingerprint impressions taken at the exam site is $58.30, which includes the FBI processing fee of $17.00, Department of Justice (DOJ) processing fee of $32.00, and the CDI’s contractor’s rolling fee of $9.30. An applicant may pay by money order, cashier’s check, personal check, or credit card (VISA, MasterCard, American Express, or Discover Card). Cash is not accepted.
- At PSI test centers, the fingerprint vendor will also have an authorized technician available to complete the fingerprint impression requirement. At these facilities, the total processing fee for the fingerprint impressions taken is $68.95, which includes the FBI processing fee of $17.00, DOJ processing fee of $32.00, and a rolling fee of $19.95. The $68.95 fee is to be paid at the PSI test center. Payment may be made via VISA or MasterCard or money order, cashier’s check, or company check payable to PSI. Personal checks and cash are not accepted at PSI’s test centers.
- The DOJ maintains a listing of authorized Live Scan Fingerprinting Vendors available to California resident license applicants.
Applicants using a vendor on this list will need to pay a fingerprint fee that covers the following services: FBI processing fee of $17.00, DOJ processing fee of $32.00, and an additional rolling fee charged by the DOJ-authorized vendor. The rolling fee will vary depending on the vendor and is noted on DOJ’s listing of authorized Live Scan Fingerprinting Vendors. License applicants are encouraged to contact the Live Scan provider in advance to verify current operating hours, location, fees, and the acceptable method of payment.
More information on fingerprinting for California resident licensing can be found at the California Department of Insurance.
Here are the Nevada guidelines on fingerprinting:
In Nevada, all individuals applying for a resident license must furnish a complete set of fingerprints and attach a completed Fingerprint Background Waiver to the application.
Applicants must pay a processing and agency fee for this service. Applicants may have their fingerprints taken by a law enforcement agency or authorized vendor.
LiveScan Digital Fingerprints, also used in California, is the preferred resource for fingerprint processing. LiveScan Digital Fingerprinting services are also conveniently available through Pearson VUE, the Nevada resource for testing. (See below.) Applicants may register to have fingerprints taken at the same time they register for the Nevada state exam. Although subject to change, the current LiveScan fingerprinting fee is $36.25 plus the vendor’s processing fee. Applicants will be provided a receipt that indicates the date the prints were submitted to the Nevada Criminal History Records Repository. An applicant must provide the receipt to the Nevada Division of Insurance upon request.
Applicants who utilize hard copy fingerprint cards may experience delays due to the time required to manually process a paper filing. They must also provide a money order or cashier’s check in the amount of $36.25 made payable to the Department of Public Safety (DPS).
Hard copy prints must include the printed name, signature, address, Social Security Number, date of birth, place of birth, weight, height, sex, hair color, citizenship, and home and business addresses of the person being fingerprinted as well as the date fingerprinted and signature of official taking fingerprints.
Nevada fingerprint reservations may be made by calling 1-866-761-8069. More information and a list of fingerprinting vendors for Nevada resident licensing can be found at the Nevada Division of Insurance
Step 3: Prepare for your health insurance licensing exam
California requires a minimum of 20 hours of approved pre-licensing study. A new resident applicant who had a current Accident and Health license in another state within the last 90 days and has a current non-resident license in California – or an applicant holding a Life Underwriter Training Council Fellowship (LUTCF), Chartered Life Underwriter (CLU), Certified Insurance Counselor (CIC), Certified Employee Benefit Specialist (CEBS), Fellow, Life Management Institute (FLMI), Health Insurance Associate (HIA), Registered Employee Benefits Consultant (REBC) or Registered Health Underwriter (RHU) designation – is exempt from the 20 hours of pre-licensing education.
California also requires 12 hours of approved pre-licensing on code and ethics.
Nevada has a similar requirement. Candidates must satisfactorily complete an approved course of education (of 20 hours) in each field of insurance for which they plan to be licensed.
Step 4: Take your insurance licensing exam
You must be at least 18 years of age and you must pass your state’s resident or non-resident licensing exam to earn a license. The exam is multiple choice, closed book.
In California, PSI Services, LLC, a California-based company providing state-based regulatory licensure services, handles the scheduling of examinations for individuals. Individuals may schedule their examinations with PSI either online or by telephone. PSI offers more than 20 sites statewide where individuals may take their qualifying license examination and provide the required fingerprints. Visit the California Department of Insurance for more information on PSI. Here are some frequently asked questions about the California application process that you may also have when getting started.
In Nevada, Pearson VUE is the Insurance Division’s only authorized testing vendor. Appointments may be made up to one calendar day prior to the day you wish to test, subject to availability. You can review the Pearson VUE scheduling options for Nevada here. Testing times vary from about two hours to about three and one-half hours, depending on the license for which you’re applying.
On the day of the exam, you’ll want to arrive 20 to 30 minutes early and bring two forms of identification (ID) that include a signature. Your name on the ID must exactly match the name on your registration. The primary identification must be government-issued and photo-bearing ID with a signature, and the secondary identification must also contain a valid signature. (Identification must be in English.)
Generally, acceptable, non-expired primary IDs (with photograph and signature) include:
- Government-issued Driver’s License
- U.S. Dept. of State Driver’s License
- U.S. Learner’s Permit (plastic card only with photo and signature)
- National/State/Country ID card
- Passport
- Passport Card
- Military ID
- Military ID for spouses and dependents
Acceptable, non-expired secondary IDs (with a signature) include:
- U.S. Social Security card
- Debit (ATM) or credit card
- Any form of ID on the primary ID list above
Step 5: Get Errors & Omissions (E&O) Coverage
After you’ve earned your license, you will need to secure professional liability insurance, also known as Errors & Omissions (E&O) coverage. This insurance protects you in your role as an advisor to your customers – in the event a negligence claim is made in connection with your client service. CalSurance® offers affordable E&O to Word & Brown brokers, and it takes just minutes to apply. Ask us for details, or go here for more information.
Step 6: Earn Continue Education (CE) Credits
After you’ve earned your license, you usually need to earn Continuing Education Credits to maintain it. In California, you’re required to satisfactorily complete approved courses or programs of instruction or attend seminars equivalent to 24 hours of instruction during each two-year license period, including at least three hours of ethics training, before your license can be renewed.
Nevada requires 30 hours of Continuing Education Credits every three years, including three hours of ethics courses.
Word & Brown, our carrier partners, and the state and regional health underwriter associations offer a variety of CE courses throughout the year to help you meet your mandated licensing renewal requirements. To get information on courses, recorded webinars, and events, visit the Word & Brown Newsroom.
What is The Cost For Getting Your Health Insurance License?
Yes, there are costs involved in getting your health insurance license, which can vary based on your state and the specific requirements. Here’s a breakdown of some typical expenses you might expect:
- Pre-Licensing Education: Most states require pre-licensing course work before taking the licensing exam. This can range from $100 to $300, depending on the course provider and the state’s requirements.
- Application Fees: States charge an application fee when you submit your licensing application, generally ranging from $50 to $200.
- Exam Fees: The licensing exam itself usually has a fee, often between $50 and $100, though this can vary by state.
- Fingerprinting and Background Check: Some states require fingerprinting and a background check, which typically costs around $30 to $100.
- License Renewal and Continuing Education: To maintain your license, most states require continuing education (CE) courses and renewal fees, typically every two years. CE costs depend on the provider, while renewal fees can range from $50 to $150.
While these costs can add up, many brokers view them as an investment in a potentially lucrative career. Some employers may also offer financial assistance for licensing expenses, especially if you’re joining an agency. Be sure to check your specific state’s requirements and fees, as they can vary significantly.
Word & Brown General Agency is Available for Help
You don’t have to go it alone. Word & Brown is committed to helping individuals who want to enter the exciting – and evolving – world of health insurance sales. Brokers have been working with Word & Brown since 1985. We are as passionate about your success as you are. We’re committed to providing you with the tools, resources, tech, and exceptional service necessary to keep clients coming back – and to help you earn referrals for additional business.
If you’re not already working with us, call us today at 800-869-6989, or fill out our online form to get started.
