For those interested in a career in the insurance industry, one of the first steps in the process of becoming an agent is passing an insurance exam. An insurance exam tests the knowledge and understanding of those who wish to become an insurance agent. The cost of these exams can vary greatly.
As an independent insurance broker, I had to take an insurance exam before starting my career in the insurance industry. These exams are designed to test your knowledge and understanding of the insurance industry before you can become an insurance agent.
While mandatory, these exams are not free, and the cost of them can vary greatly depending on a variety of factors. In this article, we will cover the types of insurance exams, pricing factors, and how to prepare for your exam. Let’s get started!
Table of contents
The Best Insurance Exam Providers And Costs
The largest insurance exam providers in the US are Prometric, Pearson VUE, and Kryterion. State insurance departments contract these companies to administer licensure exams to individuals seeking to become insurance agents or brokers. They provide a range of services, including test development, administration, and scoring.
| Provider | Services | Test Types |
|---|---|---|
| Prometric | Test development, administration, and scoring | Life, Health, Property and Casualty |
| Pearson VUE | Test development, administration, and scoring | Life, Health, Property and Casualty, Securities, and Professional Licensing |
| Kryterion | Test development, administration, and scoring | Life, Health, Property and Casualty, Securities, Professional Licensing, IT and Certifications |
- Exam Fee: The average licensing exam fee across the United States is $63.63 for each test you take. For instance, if you take the property and casualty exam, on average, it will cost $63.63, but if you also want to take the life and health exam, it will cost an additional exam fee.
- Background Fee: On top of exam fees, some states require a fingerprint and background check, which also costs money. The average cost of background and fingerprinting is between $30-$60 across the United States.
- Application Fee: Lastly, if you are getting licensed, you will need to submit your application to the state/s you want to get licensed in. For instance, if you are applying to Maryland, your application fee is $54, compared to Massachusetts, which is $300.
| State | Exam Fee | Background Fee | Application Fee |
| Alabama | $75 | $48 | $80 |
| Alaska | $89 | $63 | $75 |
| Arizona | $56 | $42 | $120 |
| Arkansas | $100 | $24 | $20 |
| California | $55 | $69 | $188 |
| Colorado | $48 | N/A | $89 |
| Connecticut | $105 | N/A | $140 |
| Delaware | $90 | $75 | $100 |
| Florida | $44 | $48 | $50 |
| Georgia | $63 | $53 | $120 |
| Hawaii | $75 | $67 | $200 |
| Idaho | $60 | $70 | $80 |
| Illinois | $103 | N/A | $180 |
| Indiana | $69 | $15 | $40 |
| Iowa | $69 | N/A | $50 |
| Kansas | $64 | $60 | $30 |
| Kentucky | $50 | $25 | $40 |
| Louisiana | $65 | $58 | $75 |
| Maine | $77 | N/A | $25 |
| Maryland | $70 | N/A | $54 |
| Massachusetts | $49 | N/A | $300 |
| Michigan | $40 | N/A | $15 |
| Minnesota | $39 | $67 | $80 |
| Mississippi | $54 | N/A | $100 |
| Missouri | $49 | N/A | $100 |
| Montana | $68 | $54 | $0 |
| Nebraska | $49 | N/A | $50 |
| Nevada | $49 | $60 | $185 |
| New Hampshire | $65 | N/A | $210 |
| New Jersey | $45 | $66 | $170 |
| New Mexico | $75 | $44 | $30 |
| New York | $33 | N/A | $40 |
| North Carolina | $45 | $38 | $132 |
| North Dakota | $49 | $69 | $100 |
| Ohio | $42 | $72 | $10 |
| Oklahoma | $41 | N/A | $60 |
| Oregon | $55 | $61 | $75 |
| Pennsylvania | $53 | $24 | $55 |
| Rhode Island | $80 | $5 | $120 |
| South Carolina | $45 | $51 | $25 |
| South Dakota | $95 | N/A | $25 |
| Tennessee | $59 | $42 | $50 |
| Texas | $62 | $30 | $50 |
| Utah | $44 | $34 | $75 |
| Vermont | $65 | N/A | $65 |
| Virginia | $51 | $15 | $15 |
| Washington | $66 | $49 | $60 |
| Washington DC | $75 | $50 | $100 |
| West Virginia | $88 | $46 | $50 |
| Wisconsin | $75 | $39 | $75 |
| Wyoming | $113 | $39 | $100 |
Note: The figures in the above chart are rounded to the nearest integer (the pricing) and subject to change at the discretion of the state, which requires the licensing/background/application fees.
Types Of Insurance Exams
As a licensed insurance agent, I think it important for those who want to become an insurance agent to understand the types of exams available. There are several types of insurance exams that individuals may need to take in order to become a licensed insurance agent.
The most common types of exams include:
- Life And Health Insurance Exam: This exam tests the knowledge and understanding of individuals who want to sell life and health insurance policies.
- Property And Casualty Insurance Exam: This exam tests the knowledge and understanding of individuals who want to sell property and casualty insurance policies.
- Personal Lines Insurance Exam: This exam tests the knowledge and understanding of individuals who want to sell personal lines insurance policies, such as automobile and homeowners insurance.
Each type of exam will have its own set of requirements and associated costs. For example, the cost of a life and health insurance exam may differ from that of a property and casualty insurance exam.
It’s important to research the specific requirements and costs for the type of exam you plan to take.
Additionally, you should be aware that each state has its own insurance regulatory agency that sets requirements for insurance licensure and exams, therefore, you should check with your state’s insurance regulatory agency for specific requirements and costs for the type of exam you plan to take.
Factors That Affect Insurance Exam Cost
The insurance exams are not free. As an insurance professional, I can tell you that the price of your exam can be difficult to predict. The cost of an insurance exam can be influenced by a number of factors, including:
- Location: The cost of an insurance exam may vary depending on the location of the testing center. For example, the cost of an exam may be higher in a large city compared to a smaller town.
- Type Of Exam: As mentioned earlier, different types of insurance exams have different costs. It’s important to research the specific cost associated with the type of exam you plan to take.
- Study Materials: The cost of study materials, such as textbooks, practice tests, and study guides, can also affect the overall cost of an insurance exam. Some study materials may be more expensive than others, so it’s important to shop around and compare prices before making a purchase.
- Testing Fees: The fees associated with the exam itself such as application fees, testing fees, and retesting fees.
- Time And Travel: If you need to travel to take the exam or if you need to retake the exam, these costs can add up as well
How To Prepare For An Insurance Exam?
As a licensed insurance agent, I took this exam before starting my career in the insurance field. I can honestly tell you that knowing the information on the exam is important, but so is preparing for the exam properly. Preparing for an insurance exam can be a daunting task, but with the right approach, it can be manageable.
Here are a few tips and strategies to help you prepare for your insurance exam:
- Understand The Exam Format: Research the format of the exam you plan to take and become familiar with the types of questions that will be on the exam. This will help you focus your study efforts and ensure you’re prepared for the types of questions you’ll encounter.
- Use Study Materials: Purchase or borrow study materials such as textbooks, practice tests, and study guides. These materials can be especially helpful in helping you to understand the material and identify areas where you need additional study.
- Create A Study Schedule: Set aside dedicated time each day or week to study for your exam. Create a schedule that works for you and stick to it.
- Take Practice Tests: Practice tests can help you understand your strengths and weaknesses, and help you identify areas where you need additional study.
- Find A Study Group: Joining a study group or finding a study partner can be a great way to stay motivated and stay on track with your studies.
- Get Enough Sleep And Eat Healthy: Taking care of your physical and mental well-being is crucial for your ability to retain information and do well on the exam.
Conclusion
As a licensed insurance agent, I know that taking your insurance exam is an important part of starting your insurance career. Understanding the different types of exams available and their cost, as well as the factors that affect them, is essential in helping you budget and plan in the most cost effective way. Be sure to follow the preparation tips outlined in this article to make sure you are as prepared as possible to pass your exam!
If you liked this blog check out our other insurance articles on:
