Questions on an insurance license exam are multiple choice questions asking the test taker to identify facts about mutual insurance companies, the function of nonexclusive agents and what solicitors may not do. Other questions describe a scenario and ask for identification of the type of insurance marketing system used. Some questions are more straightforward, asking questions such as, "Which insurance company department is responsible for paying insureds' covered losses?"
Insurance license exams must be taken for several types of jobs in the insurance field. Property and casualty insurance agents deal with clients who look to purchase policies to prevent loss in the event of fire, storms, automobile accidents or property damage. This field may also cover medical malpractice claims, product liability claims or claims made under workers' compensation. Life insurance agents help individuals purchase policies to be paid upon death or, in certain circumstances, can be cashed out to cover expenses; they also deal with annuities that provide income during retirement years. Health insurance agents deal with policies that cover medical costs, short and long-term disability, dental plans and policies that reimburse policyholders when their income is lost for medical reasons.
Individuals looking to work in the insurance field must be licensed in the states where they work. Not all insurances can be sold with the same license; certification is needed for different types of insurance. In order to obtain these licenses, 20 to 40 hours of insurance courses, six to 12 hours of ethics courses and numerous exams and quizzes must be taken before taking the state licensing examination.