Secrets to Passing the California Insurance Licensing Exam
Like most states, California requires you to pass a government-administered licensing exam before you can hang up your shingle to sell insurance. Also, you have to take up to 52 hours of pre-licensing training, which luckily can now be done online. Separate licensing exams and training courses are required to sell property and casualty insurance versus life and health policies. And, mandatory continuing education is required every two-year renewal period, as well as additional special training classes needed to sell specific insurance products such as flood insurance, long-term care insurance, and/or annuity investment policies.
If your plan is to pore over the state manuals, read and reread all of your licensing course materials, and take a crash course in test taking, I can almost guarantee that you still won’t pass the California Insurance Exam. These exams can be difficult, as they are full of confusing and convoluted questions. . . the trademark of most government or quasi-government licensing exams. So what does it take to get through? Well, that’s what we cover in this article. And, there is a method to the madness.
First of all, beware of crazy hints and hints
These are just some of the rumors about taking the state test. For the most part, ignore these rants and tips:
“Taking one crash class is all you need to pass” (Not true. See crash courses below)
“They told me to skip all the questions on the state test. That way, these same questions get locked out and the computer won’t throw up harder ones.” (A crazy conspiracy theory).
“A live teacher is the only way to pass. They point out the ‘bomb’ words you need to pass. They tell you things that can’t be put on paper” (Bunk . . . classes are supervised by the State. And, need more than buzzwords to pass).
“Use common sense to answer the test questions.” (It will not work).
“Through the process of elimination, you can arrive at the correct answer.” (It works sometimes, but you’d have to know the topic to weed out the wrong answers.)
“I got 90% on my online practice tests… I’m ready.” (Many of these 90 percent still fail. There are practice tests and there are practice tests. See below.)
“People who take online courses always fail.” (Bunk… our online school has a very high pass rate… it’s what you do with the material that counts.)
“Study the course materials . . . you will pass” (There is much more. It may be a variation of the material you learned that is required of you.)
“Just look for certain ‘buzz’ words for the answer.” (The State knows all the buzzwords…you won’t beat them this way.)
California Specific
It may seem obvious to many, but make sure the courses and test preparation materials you are studying are California-specific. There are many generic practice tests and courses available online that will not prepare you for the state test or even allow you to take the test. Sign up with a California approved provider and make sure you are taking the right course for the license you want.
the state exam
The state requires that you complete specific pre-licensing training BEFORE you can take the state exam. The certificates you earn from these courses are your “ticket” to the state exam currently given at the state offices in San Diego, Los Angeles, and Sacramento.
On the day of the exam, you must bring proper identification including a current and valid driver’s license, passport, military ID, etc. The state test is computer based. There are 75 questions for the Life Only License; 75 for Accidents and Health and 150 for Fires and Accidents.
You must score 70% or higher to pass. If you fail, you can retake the exam 3 consecutive times for a fee of $41 each. Your fourth attempt requires a 30-day waiting period. Of course, if you follow the advice in this article you won’t have to worry about failing.
You can schedule the state test online at any time. . . simply complete the required license application. However, you must complete the pre-licensing training courses required for the license you want BEFORE you take the exam. And you need extra time to tackle the remaining procedures we recommend for preparing. Bottom line? Get out at least three weeks before scheduling an exam date.
test shot
There are some universal rules for taking any licensing exam. Basically, you need to get familiar with the testing mindset.
· Be sure to read every word in both the questions and the answers provided! There are people who fail simply because they misread the question!
· Make sure you understand the gist of the question itself… what do they mean by the question? In order to answer a question correctly, you need to understand the idea behind the question!
Familiarize yourself with the exam format. The state test is taken on the computer. See a sample of how it works on the State’s website here. . . http://www.insurance.ca.gov/sample-test/Sample_Questions-General.htm
· Do not rush the exam. You have up to 3 hours for the accident or life/health exam. Answer all the questions you know. Check the questions you are sure of or skip them until later. Watch for words like except or not.
Study books, course content and state publications
The state exam has a very wide coverage. There will be many questions about codes, ethics, and other insurance topics that you may never need or experience throughout your insurance career. However, you have to know them to pass.
Then there are hundreds of pages of pre-licensing course materials (your 20, 40, and 52 hour training courses). In fact, the State dictates what must be covered in all pre-licensing courses and they publish “Educational Objectives” for each one. Now, you would think that if you studied these courses and the “objectives” very hard, you would be prepared for the exam. . .good? NO. Don’t spend a lot of time here. Sure, you need to read the materials to get your pre-licensing certificate(s) and there are basics you can learn from these courses, but it’s highly doubtful that they’ll play much of a role in helping you pass the state exam.
cramp racing
There are also dozens of generic guides and crash courses that claim to be specifically designed to help you pass the state exam. Save your money and time. Sure, some can provide some guidance, mainly on the test-taking techniques I discussed above, but you still need to know specific learning points to pass. That cannot be condensed into a small book or even an 8 hour crash course. I know, I have taken these classes and I wish I had spent the time studying instead.
A test prep workbook is KEY!
Well, we have arrived at the key to passing the state exam. Find a proven test prep workbook. We cannot stress how important this is to passing. It’s almost too simple, but license candidates tend to discount the effectiveness of practice exams. WHOSE.
A typical test preparation workbook contains up to 1,000 questions and answers, that is, practice tests. Of course, there are practice tests and there are practice tests. Like I said, find a proven system and ALLOW UP TO TWO WEEKS TO FULLY UNDERSTAND AND REMEMBER THE QUESTIONS AND ANSWERS IN YOUR WORKBOOK. Simply reading the workbook once or twice IS NOT ENOUGH. Study and remember EACH QUESTION at least 10 times or more. If you get the same questions wrong, highlight them and study them further.
Do not schedule the exam early
Do not schedule the state test until you have time to study the practice tests in the test prep workbook. Your boss and others may be pressuring you to take the state exam as soon as possible after your online training, but until you can remember the questions and answers, your chances of passing are slim.
Well that’s it. . now you know how to pass the insurance license exam. But, I have a warning: if your mental focus is only to pass the exam, you need to refocus. Lots of people pass their exam only to lose their license or get sued for making stupid mistakes. Knowing the answers to a bunch of test questions isn’t enough. . . you have to know what you are doing with that license and you need to acquire a sense of responsibility and ethics to win clients and stay out of trouble. While these are not the topic covered here, know that they are just as important a part of your career as getting your license. Therefore, please refer to the pre-licensing course materials for basic knowledge and refer to them frequently. Always expand your knowledge and keep up with current industry events.
I wish you the best of luck in a very rewarding field.