Life and Health Insurance Practice Test
All 50 states mandate a life and health insurance license for anyone discussing life insurance or health insurance rates with potential buyers. All life and health insurance sales professionals must be licensed, and often this requirement also extends to administrative staff at an insurance company or a brokerage firm. Even though administrators do not frequently make sales calls, they do often interact and discuss rate information with clients.
The life and health insurance licensing examination is computer-based and consists of 150 multiple-choice questions. Four possible answers are presented for every question. There are three different types of formats for these questions: a) direct questions, b) incomplete sentences, and c) answers that begin with “All of the following except…”
Candidates must correctly answer at least 70 percent of the questions in order to pass the examination and become a licensed life and health insurance professional. Candidates have 2 ½ hours to complete the examination and will be notified immediately upon completion whether or not they have earned a passing score.
The examination covers several different topics, below is a list of those topics and the weight each carries in the life and health insurance license examination:
- Insurance regulation: 5 percent
- General insurance: 5 percent
- Life insurance basics: 7 percent
- Life insurance policies: 7 percent
- Life insurance policy provisions, options, and riders: 8 percent
- Annuities: 6 percent
- Federal tax considerations for life insurance and annuities: 5 percent
- Qualified plans: 4 percent
- Health insurance basics: 5 percent
- Individual health insurance policy general provisions: 4 percent
- Disability income and related insurance: 3 percent
- Medical plans: 8 percent
- Health maintenance organizations: 3 percent
- Group health insurance: 7 percent
- Dental insurance: 2 percent
- Insurance for senior citizens and special needs individuals: 8 percent
- Federal tax considerations for health insurance: 3 percent
- Additional considerations for life and health insurance counselors: 10 percent
The life and health insurance license examination is offered at many testing centers throughout the United States. The test should be scheduled at least one week in advance. In many states, candidates are required to complete four working days worth of review classes prior to sitting for the examination. Requirements vary by state, but candidates generally have six months to take and pass the life and health insurance license examination from the time the review classes are completed.