This overview includes information to help you prepare for a Life and Health Insurance licensing exam. You will find details about state licensing requirements, common exam topics, registration, test-day procedures, scoring, retakes, and study resources.
Exam Structure
Combined or separate, depending on the state
Questions and Time
Set by the state testing program
Passing Score
Varies by state
Exam Fee
Varies by state and testing provider
What Is the Life and Health Insurance Exam?
Life and Health Insurance licensing exams are used by state insurance departments to evaluate candidates seeking authority to sell, solicit, or negotiate life, accident, health, sickness, or related insurance products.
The exact license name varies by state. Depending on the jurisdiction, the applicable line of authority may be called:
- Life
- Life and Annuities
- Accident and Health
- Accident, Health, and Sickness
- Life, Accident, and Health
- Life and Health
Some states administer one combined Life and Health exam. Other states require separate Life and Health examinations.
Before studying, confirm the exact license and examination required by your state. Preparing for a combined exam when your state requires two separate exams can lead to studying the wrong outline.
State-Specific Licensing Requirements
There is no single nationwide licensing process. State insurance departments establish their own requirements for resident insurance producers.
Depending on the state and license type, candidates may need to:
- Meet the state’s age, residency, or eligibility requirements.
- Complete an approved prelicensing education course.
- Submit an examination or licensing application.
- Complete fingerprinting or a criminal-background check.
- Register for the correct licensing examination.
- Pass the required examination or examinations.
- Pay the state licensing and application fees.
- Submit any remaining forms or supporting documents.
- Complete continuing education and renewal requirements after licensure.
Completing prelicensing education or passing the exam does not automatically issue a license. The state must approve the complete licensing application.
Exam Format
Life and Health Insurance licensing exams are generally computer-delivered. Depending on the state and testing provider, candidates may test at an approved testing center or through an authorized remote-proctoring system.
The number of questions, testing time, passing score, exam fee, available languages, and delivery options vary by state.
Combined Examination
A combined examination covers both life and health insurance concepts, producer responsibilities, and the applicable state laws in one appointment.
Separate Examinations
Some states require separate Life and Health examinations. Candidates may need to register, pay, test, and satisfy the passing standard for each exam independently.
General and State-Specific Questions
Many licensing exams include both general insurance knowledge and state-specific laws or regulations.
General Insurance Knowledge
Insurance concepts, policy types, provisions, underwriting, applications, taxation, producer duties, and federal programs.
State-Specific Knowledge
Licensing rules, department authority, policy requirements, unfair trade practices, replacement rules, continuing education, penalties, and state insurance laws.
Life Insurance Topics
Life insurance questions may require candidates to distinguish among different policies, provisions, riders, ownership arrangements, and settlement options.
Types of Life Insurance
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable life insurance
- Indexed life insurance
- Group life insurance
- Credit life insurance
Policy Provisions and Options
- Beneficiary designations
- Ownership and assignment
- Grace periods and reinstatement
- Incontestability and suicide provisions
- Policy loans and withdrawals
- Nonforfeiture options
- Dividend options
- Settlement options
Life Insurance Riders
- Waiver of premium
- Accidental death
- Guaranteed insurability
- Cost-of-living adjustment
- Child and spouse riders
- Accelerated death benefits
- Long-term care riders
Annuities and Retirement Concepts
- Immediate and deferred annuities
- Fixed, variable, and indexed annuities
- Accumulation and annuitization periods
- Annuity payout options
- Qualified and nonqualified plans
- Individual retirement accounts
- Tax treatment of premiums, cash value, and benefits
Health Insurance Topics
Health insurance questions may address medical expense coverage, disability income, long-term care, managed care, government programs, and policy provisions.
Medical Expense Insurance
- Basic and major medical coverage
- Deductibles and coinsurance
- Copayments and out-of-pocket limits
- Preferred provider organizations
- Health maintenance organizations
- Point-of-service plans
- High-deductible health plans
Disability Income Insurance
- Total and partial disability
- Own-occupation and any-occupation definitions
- Elimination and benefit periods
- Presumptive disability
- Residual disability
- Business overhead expense coverage
- Key-person disability coverage
Long-Term Care and Related Policies
- Eligibility for benefits
- Activities of daily living
- Cognitive impairment
- Elimination periods
- Inflation protection
- Nonforfeiture benefits
- Medicare supplement insurance
Government and Social Insurance Programs
- Medicare Parts A, B, C, and D
- Medicaid
- Social Security disability benefits
- Workers’ compensation
- COBRA continuation coverage
- Coordination of benefits
Applications, Underwriting, and Policy Delivery
Candidates should understand the producer’s responsibilities during the application, underwriting, premium collection, and policy-delivery process.
- Completing applications accurately and completely
- Explaining the importance of truthful application answers
- Identifying insurable interest
- Understanding field underwriting
- Collecting initial premiums
- Using conditional or binding receipts correctly
- Protecting confidential applicant information
- Delivering the policy and explaining its provisions
- Confirming continued insurability when required
- Following replacement, disclosure, and suitability requirements
Underwriting Factors
Underwriters may evaluate factors such as age, health history, occupation, hobbies, financial information, tobacco use, medical records, prescription history, and other information allowed by law.
Candidates should understand the difference between preferred, standard, substandard, and declined risks, as well as the producer’s role in gathering information without making underwriting decisions.
Insurance Contracts and General Concepts
Risk and Insurance
- Pure and speculative risk
- Perils and hazards
- Risk avoidance
- Risk reduction
- Risk transfer
Contract Characteristics
- Aleatory
- Adhesion
- Unilateral
- Conditional
- Personal
Contract Elements
- Offer and acceptance
- Consideration
- Competent parties
- Legal purpose
- Representations and warranties
State Insurance Laws and Producer Responsibilities
State-law questions are a major reason candidates should use an outline written for their own jurisdiction.
State-Specific Topics May Include
- Powers and duties of the insurance commissioner or department
- Producer licensing and appointments
- License renewal and continuing education
- Fiduciary handling of premiums
- Advertising and marketing rules
- Policy replacement procedures
- Free-look periods
- Unfair trade practices
- Rebating, twisting, and misrepresentation
- Defamation and unfair discrimination
- Privacy and record-retention requirements
- Disciplinary actions, penalties, suspension, and revocation
- State guaranty association rules
General insurance knowledge is not enough. A candidate can understand the policies and still fail by overlooking state-specific licensing laws and prohibited practices.
Registration, Fees, and Testing Locations
Registration procedures depend on the state. Insurance licensing exams may be administered by Pearson VUE, PSI, Prometric, or another testing organization selected by the state.
Registration Checklist
- Locate your state insurance department’s licensing instructions.
- Identify the exact license and line of authority.
- Download the current candidate handbook and exam outline.
- Complete any required prelicensing education.
- Submit an application or obtain authorization when required.
- Create an account with the authorized testing provider.
- Select the correct exam title and language.
- Choose a testing center or remote option when available.
- Pay the examination fee.
- Review the confirmation email and identification requirements.
Exam fees are separate from other possible expenses, including:
- Prelicensing education
- State license applications
- Fingerprinting
- Background checks
- Remote-proctoring or testing-center charges
- Retesting
- License issuance or appointment fees
Do not register through a testing company until you have confirmed that it is the provider currently authorized by your state.
Testing Accommodations
Candidates who need testing accommodations should review the state and testing provider’s procedures before scheduling.
The process may require:
- An accommodation-request form
- Supporting documentation
- Approval before scheduling
- Testing at a physical testing center
- Additional scheduling time
An accommodation approved for classroom instruction or prelicensing education may not automatically apply to the licensing exam.
What Should I Expect on Test Day?
Test-Day Checklist
- Confirm the examination title, date, time, and delivery method.
- Arrive or begin online check-in at the required time.
- Bring the required government-issued identification.
- Make sure the identification name matches the registration record.
- Bring any required authorization or prelicensing documentation.
- Store phones, smartwatches, notes, books, bags, and unauthorized electronics.
- Use only the materials permitted by the testing program.
- Complete the tutorial and testing agreement.
- Follow all directions from the testing-center staff or remote proctor.
- Monitor the testing clock and answer every question before time expires.
Remote Testing
Remote testing is available only when authorized by the state and testing provider. Candidates may need:
- A compatible computer
- A working webcam and microphone
- A reliable internet connection
- A private and quiet room
- A cleared desk and testing area
- Permission to install or run secure testing software
Remote-proctoring rules may prohibit physical scratch paper, calculators, additional monitors, headphones, food, drinks, or leaving the camera’s view.
How Is the Exam Scored?
Passing standards are determined by the state testing program. Some programs report a percentage, while others use a scaled score or report only pass-or-fail status.
A candidate should not assume that a commonly cited score, such as 70%, applies in every state.
Results may be displayed immediately after a computer-based examination. Depending on the program, candidates may receive:
- An onscreen pass-or-fail result
- A printed score report
- A diagnostic breakdown of weaker areas
- An electronic score sent directly to the state
- Instructions for completing the license application
Passing the exam does not necessarily mean that the license is active. Candidates must complete the remaining state application and approval steps.
Retaking the Life and Health Insurance Exam
Candidates who do not pass may normally register for another attempt, but retake requirements differ by state.
Retake Rules May Include
- A mandatory waiting period
- A new examination registration
- Payment of the full exam fee
- A limit on attempts during a stated period
- Additional education after multiple unsuccessful attempts
- A new application or eligibility approval
- Expiration of previously completed prelicensing education
Review the score report before retesting. Separate mistakes involving general insurance knowledge from mistakes involving state law, because each requires a different study approach.
How Can I Prepare?
Begin with the official content outline for your state. The outline identifies the exam name, subject categories, state-law content, and approximate emphasis of each area.
Build your study plan around two distinct areas:
General Insurance Content
Policy types, provisions, riders, underwriting, applications, taxation, annuities, medical coverage, disability income, long-term care, and government programs.
State Law and Regulation
Licensing rules, department authority, prohibited practices, replacement requirements, policy standards, continuing education, and disciplinary actions.
Life and Health Study Checklist
- Confirm whether your exam is combined or separated by line.
- Download the current state content outline.
- Review insurance contracts, risk, hazards, and insurable interest.
- Compare term, whole, universal, variable, and indexed life insurance.
- Study life policy provisions, riders, nonforfeiture options, and settlements.
- Review annuities, retirement plans, and taxation.
- Compare medical, managed-care, disability, and long-term care policies.
- Study Medicare, Medicaid, Social Security, and COBRA.
- Review applications, underwriting, premium receipts, and policy delivery.
- Memorize the state’s prohibited practices and replacement rules.
- Complete timed practice using the format listed in your handbook.
- Review every missed answer and every correct answer obtained through guessing.
Question Strategy
- Identify whether the question concerns Life, Health, general insurance, or state law.
- Read carefully for words such as except, not, always, and required.
- Distinguish the insurer’s duties from the producer’s duties.
- Separate policy-owner rights from beneficiary rights.
- Watch for differences between individual and group coverage.
- Base state-law answers on your jurisdiction rather than general practice.
- Use elimination when an option describes an illegal or unethical practice.
Time-Management Strategy
- Calculate your average available time per question before test day.
- Answer straightforward definition and policy questions efficiently.
- Flag lengthy scenario questions when the system permits it.
- Do not spend excessive time on one unfamiliar state-law detail.
- Reserve time to review unanswered or flagged items.
- Answer every question unless your state handbook instructs otherwise.
Life and Health Insurance Study Resources
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Life and Health Insurance licensing requirements are established by state insurance departments and licensing authorities. State insurance departments, NIPR, Pearson VUE, PSI, Prometric, and other testing providers are not involved with or affiliated with Mometrix Media LLC or StudyGuideZone.com, nor do they endorse or sponsor products or services offered by Mometrix Media LLC or StudyGuideZone.com.
