Like most states, California requires you to pass a government-administered licensing exam before you can hang your shingle to sell insurance. Additionally, you must take up to 52 hours of pre-licensing training, which thankfully 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 each 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 thoroughly study your 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 riddled with 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 madness.

First of all, beware of tips and crazy suggestions

These are just some of the rumors about taking the state exam. For the most part, ignore these rants and tips:

“Taking an intensive class is all you need to pass” (Not true. See intensive courses below)

“They told me to skip all the questions on the state test. That way these same questions are locked out and the computer won’t throw up more difficult ones.” (A crazy conspiracy theory).

“A live teacher is the only way to pass. They point out the ‘bombshell’ words you need to pass. They tell you things you can’t put in writing” (Bunk . . . classes are state-supervised. And, needs more than buzzwords to pass).

“Use common sense to answer the exam questions.” (It will not work).

“By the process of elimination, you can arrive at the correct answer.” (Works sometimes, but you’d have to know the topic to weed out wrong answers.)

“I got 90% on my online practice exams…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 bed…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 search 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 specific to California. There are many generic practice tests and courses available online that will not prepare you for the state exam or even allow you to take the exam. 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 you to 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 state offices in San Diego, Los Angeles, and Sacramento.

On the day of the test, you must bring proper identification including a valid and unexpired 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 get a score of 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 taking the exam. And you need additional time to address the remaining procedures we recommend to prepare. Bottom line? Check out at least three weeks before you schedule an exam date.

test socket

There are some universal rules for taking any licensing exam. Basically, you need to familiarize yourself with the test mentality.

· Make sure you read every word in both the questions and answers provided! There are people who fail simply because they didn’t read the question correctly!

· Make sure you understand the gist of the question itself… what do they mean by the question? To answer a question correctly, you must 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

Don’t rush the exam. You have up to 3 hours for the accident or life/health exam. Answer all the questions you know. Please mark the questions you are sure about or skip them until later. Watch for words like except or not.

Study books, course content and state publications

The state exam has very broad 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 (their 20, 40 and 52 hour training courses). In fact, the State dictates what must be covered in all pre-licensing courses and 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. . .Correct? NO. Don’t spend too much time here. Sure, you need to read the materials to get your prelicensing certificate(s) and there are basics you can learn from these courses, but it’s highly doubtful that they will 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 say they are designed specifically to help you pass the state exam. Save your money and time. Sure, some may provide some guidance, mostly 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.

An exam prep workbook is KEY!

Well, we have reached the key to passing the state exam. Find a proven test prep workbook. We cannot stress how important this is to pass. It’s almost too simple, but license candidates tend to discount the effectiveness of practice tests. WHOSE.

A typical test preparation workbook contains up to 1000 questions and answers, i.e. 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 pressure 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 just to pass the exam, you need to refocus. Many people pass their exam only to lose their license or get sued for making stupid mistakes. Knowing the answers to a bunch of exam questions is not 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 not get in trouble. While these are not the subject covered here, know that they are as much 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 stay up to date with current industry events.

I wish you the best of luck in a very rewarding field.