Common Myths About the New York Insurance Exam

There's a lot of noise out there about the New York insurance licensing exam — and not all of it is accurate. If you're gearing up to take your test through PSI ServicesTest Takers, it helps to separate the myths from the facts so you can focus on what actually matters: preparation. The New York Department of Financial Services (NYDFS)Agents_and_brokers Home Apps_and_licensing sets clear rules — and knowing them puts you ahead.

Myth vs. Fact: What People Get Wrong

Myth	Fact
"You need to be an expert to pass."	You need a 70% competence, not perfection.
"The exam is full of trick questions."	Questions are straightforward and test applied knowledge.
"You can skip pre-licensing and just cram."	New York requires approved pre-licensing education before you can sit for the exam.
"If you fail, you can't retake it."	You can retake the exam — just pay the fee and reschedule through PSI.
"Passing the exam means you're instantly licensed."	You must still apply through NIPR, complete fingerprinting, and pass a background check.
"The state portion doesn't matter much."	General and state sections are scored together — both count equally toward your 70%.

Myth: "The New York Exam Is Nearly Impossible"

The New York exam is rigorous — with up to 150 questions and exams lasting up to 2.5 hours — but thousands of candidates pass it every year. The key differentiator isn't intelligence; it's preparation. Candidates who complete their pre-licensing hours and use proven study strategiesPre License How To Study Insurance Licensing Exam Resources report much higher first-attempt success rates than those who try to wing it.

Myth: "You Only Need to Study General Insurance Concepts"

This is one of the most common — and costly — mistakes. New York's exam includes a significant section on state-specific laws, regulations, and consumer protections governed by the NYDFS. Neglecting this material means leaving easy points on the table. Understanding the differences between license typesPre License Property And Casualty Vs Life And Health Vs All Lines Resources and their specific exam content outlines is essential.

Myth: "Pre-Licensing Education Is Just a Formality"

In New York, pre-licensing education isn't optional — it's mandatory. You need 20 to 90 hours depending on your license type. But beyond the requirement, quality courses do more than check a box. They build the foundational knowledge that carries you through the exam and into your career as an agentPre License How To Become An Insurance Agent With No Experience Resources.

Myth: "If You Fail, Your Career Is Over"

Failing on the first attempt is more common than people think — and it's not the end of the road. You can reschedule through PSI, review your score report to identify weak areas, and retake the exam once you've had more study time. Many successful agents passed on their second attempt after targeted review.

How New York Compares to Other States

New York's exam is more demanding than many states, especially those like Oklahoma and North Carolina that don't require pre-licensing education. With higher hour requirements and a detailed state law section, New York expects more from its candidates — but the payoff is access to one of the country's most lucrative insurance marketsPre License What Are The Best Paying Jobs In Insurance Resources.