The life and health insurance licensing exam is a state-administered test you must pass before you can legally sell life insurance, health insurance, or both in your state. Every state requires it. The exam is typically administered by a third-party testing provider — most states use Pearson VUE, Prometric, or PSI — and covers a combination of general insurance concepts and state-specific regulations.
Most states offer a combined life and health exam (one sitting, one fee) though some allow you to take them separately if you only want to sell one product type. The combined exam is almost always the better choice if you plan to sell both, since it's more efficient and some employers require both licenses anyway.
The test typically runs 150–175 questions, though the exact count varies by state. Most states set a 70% passing score, meaning you need to answer roughly 105–122 questions correctly. Some questions are experimental or unscored, but you won't know which ones — answer all of them as carefully as you would a scored question.
Exam content is divided between general insurance concepts (which are consistent across states) and state-specific laws and regulations (which vary). Here's what the general content covers:
Life Insurance Section:
Health Insurance Section:
State-Specific Law Section:
This portion varies by state but typically covers state insurance department regulations, producer licensing requirements, unfair trade practices, ethics rules, and state-specific policy provisions or requirements. Most prep courses include a state law module for the specific state you're testing in — don't skip it. It's typically 15–30% of the exam.
Most candidates need 40–80 hours of study to pass the life and health insurance exam on the first attempt. Where you fall in that range depends on your prior knowledge — if you've worked in financial services, you likely already know some of the concepts. If this is your first exposure to insurance, budget toward the higher end.
Step 1: Choose a pre-licensing course. Most states require completion of a state-approved pre-licensing education course before you can sit for the exam. These courses range from 20 to 40 hours of content depending on state requirements. The course content typically aligns closely with what's tested, so treat it as your primary study material, not just a box to check.
Step 2: Read actively, not passively. Insurance concepts build on each other. If you don't understand how whole life insurance works, the policy loan provisions won't make sense. Don't rush through content to meet a deadline — understanding is faster than memorization when it comes to applying concepts on the exam.
Step 3: Take practice tests early and often. Practice exams serve two purposes: they identify your weak spots, and they familiarize you with the question format. Insurance licensing exams use a specific style of question — often scenario-based, testing whether you can apply a rule to a situation rather than just recall a definition. You'll want to be comfortable with that format before test day.
Step 4: Focus extra attention on confusing areas. Most candidates have a few topics that just don't stick initially — annuity taxation, Medicare Supplement plans, and disability income elimination periods are common stumpers. Identify yours early and return to them repeatedly rather than hoping they'll click on test day.
Step 5: Review state law last. State law is mostly memorization — specific provisions, producer licensing rules, complaint deadlines. Review it in the final week before your exam when it'll stay fresh. Don't frontload state law prep at the expense of conceptual understanding.
The life and health insurance exam rewards genuine understanding over rote memorization — the scenario-based questions are specifically designed to test whether you can apply concepts, not just recall them.
Some content areas appear frequently on the exam and are worth investing extra study time. Here are the highest-priority topics for most state exams:
Term vs. permanent life insurance differences: You'll see multiple questions testing whether you understand the fundamental structural difference between term (pure death benefit, no cash value) and permanent life insurance (death benefit plus cash value accumulation). Know the specific variations within each category — especially universal life's flexible premium structure.
Policy loans and surrender values: How policy loans work (non-taxable, interest accrues, reduces death benefit if unpaid), what a cash surrender value is, and when the policy will lapse due to outstanding loans are all common exam topics.
Medicare basics: Part A (hospital), Part B (medical), Part C (Medicare Advantage), Part D (prescription drug). Who's automatically enrolled, when you need to actively enroll, and what the penalties for late enrollment are. Medicare Supplement (Medigap) plans — what they cover and what they don't.
Coordination of benefits: How health insurance works when a person has coverage under more than one plan. Which plan is primary, which is secondary, how claims are processed. This topic trips up many candidates because the rules have multiple layers.
HIPAA and COBRA: HIPAA portability provisions (pre-existing condition limitations, certificate of creditable coverage), COBRA continuation coverage eligibility and duration, and qualifying events. These are heavily tested because they're legally significant and commonly misunderstood.
Understanding what goes wrong for candidates who don't pass on the first attempt helps you avoid the same pitfalls:
Underestimating state law: Candidates who coast through the state law module and focus only on concepts often find it's what brings their score below passing. The state law section is usually more memorization-intensive than conceptual, which means it responds well to structured drilling — but you have to actually do it.
Not taking timed practice exams: The exam is timed, and time management matters. Candidates who've only studied concepts without simulating the testing experience sometimes run out of time or rush the final section. Take at least two or three full-length timed practice exams before test day.
Overthinking scenario questions: Scenario questions describe a client situation and ask what the agent should recommend or how a provision applies. Over-thinkers sometimes eliminate the obviously correct answer in favor of a more elaborate one. Read carefully, identify the specific rule being tested, and apply it directly.
Scheduling too soon: Some candidates schedule their exam before they're genuinely ready to hit the pressure of a study deadline. Take practice exams first — aim for 75%+ on multiple practice tests before sitting. If you're scoring 65%, you're not ready yet.
Using the how to get health and life insurance license resources alongside practice tests gives you the complete picture — what you need to do procedurally and what you need to know conceptually.
Most states administer the life and health insurance exam at Pearson VUE, Prometric, or PSI testing centers. You'll check in, show government-issued ID, and complete a biometric check-in before being escorted to a workstation. No personal items are allowed in the testing room — no phones, notes, or study materials.
The exam is computer-based with multiple-choice questions. Questions are presented one at a time, and most testing platforms allow you to flag questions for review and come back to them before submitting. Use this feature. If you're unsure about a question, flag it and move on rather than spending five minutes on it and running short on time.
After you submit, most testing platforms display your result immediately — you'll know if you passed or need to retake. You'll receive a printed score report showing your performance by content category, which is valuable information if you need to retake.
The experience is less intimidating than most candidates expect, especially if you've taken full-length timed practice exams and know exactly what to expect from the format. Pre-exam nerves are normal; thorough preparation is the antidote.
After passing, your next steps are applying for your state producer license through your state's Department of Insurance, completing any remaining fingerprinting or background check requirements, and getting appointed by an insurance carrier before you can legally sell their products. The exam is a gateway — once you're through it, the career path opens up quickly. Building your knowledge of the life and health insurance license requirements for your state ensures you don't hit any surprises after the exam is done.