California Life and Health Insurance Practice Exam

What type of license is needed to charge a fee for reviewing someone's life insurance policy?

1. Property and casualty license

2. Life and disability analyst

3. Insurance broker license

4. Independent agent license

The correct answer is: Life and disability analyst

To charge a fee for reviewing someone's life insurance policy, a life and disability analyst license is necessary. This license specifically allows individuals to provide analysis and recommendations regarding life and disability insurance policies. The activities of a life and disability analyst involve assessing the existing policies of clients, providing them with insights into their insurance needs, and potentially recommending changes. This type of license is distinct from other licenses, as it focuses explicitly on reviewing and analyzing life and disability insurance products. Other licenses, such as property and casualty, insurance broker, or independent agent licenses, do not encompass this specific role. An insurance broker license permits the sale of insurance products, while an independent agent license allows agents to work with multiple insurance companies. However, neither of these licenses directly authorizes a person to charge fees for policy reviews. By holding a life and disability analyst license, individuals can operate within the regulatory framework that governs the advisory and assessment of life insurance products, ensuring compliance with state laws while advising and charging clients for their expertise.