What Is a Life and Health Insurance Exam?

1/29/2026

For anyone aspiring to a career in the insurance industry, the Life and Health Insurance Exam is the final and most critical hurdle before earning a professional license. This comprehensive test is designed to be a rigorous assessment of your knowledge, ensuring that you are qualified to guide clients through some of the most important financial decisions of their lives. It serves as the gatekeeper to a rewarding career, verifying that you have the competence and ethical grounding required to sell life and health insurance products.

Passing this exam is a non-negotiable step in the licensing process. It signifies to state regulators and, more importantly, to your future clients that you have mastered the fundamental principles of insurance, from policy types and provisions to the complex laws that govern the industry. Understanding the structure of the exam, the topics it covers, and the best strategies for preparation is the key to walking into the testing center with confidence and walking out with a passing score.

This guide will break down every aspect of the Life and Health Insurance Exam. We will explore its purpose, detail the content you will be tested on, offer proven study strategies, and provide a clear picture of what to expect on exam day, setting you on a direct path to success.

The Purpose of the Life and Health Insurance Exam

The requirement to pass a state-administered exam is not arbitrary; it serves a vital purpose in maintaining the integrity of the insurance industry and protecting the public. Life and health insurance policies are complex financial instruments, and the advice an agent gives can have a profound, long-lasting impact on a family's financial security.

The primary objectives of the exam are to:

Ensure Professional Competency: The test verifies that every licensed agent possesses a baseline level of knowledge about the products they sell. This includes understanding the mechanics of different policies, their tax implications, and how they fit into a client's overall financial plan.
Protect Consumers: By mandating this exam, states ensure that the public is served by qualified professionals. This minimizes the risk of consumers being sold unsuitable products or receiving incorrect information, which could lead to devastating financial consequences.
Uphold Ethical Standards: A significant portion of the exam focuses on the laws, regulations, and ethical obligations that govern an agent's conduct. This reinforces the fiduciary duty an agent has to act in the best interest of their clients.
Standardize Knowledge: The exam establishes a consistent standard of knowledge for all new agents across the state, ensuring a level playing field and a reliable measure of qualification.

Ultimately, the exam is about building trust. It certifies that you are not just a salesperson, but a knowledgeable and ethical advisor ready to handle the significant responsibility of protecting people's futures.

Deconstructing the Exam: Structure and Format

While the specifics of the Life and Health Insurance Exam can vary from state to state, the general structure and format are quite consistent across the country. Understanding what to expect can significantly reduce test-day anxiety.

General Format

The exam is a timed, proctored, multiple-choice test administered on a computer at a designated testing center. You should anticipate the following:

Number of Questions: Most state exams consist of 100 to 150 questions.
Time Limit: You will typically have between 2 and 3 hours to complete the exam. Time management is crucial, so it's important to pace yourself.
Passing Score: The passing score is almost universally 70%. This means you must answer at least 70% of the questions correctly.
Question Types: The questions are designed to test both rote memorization of facts (like definitions and regulations) and your ability to apply concepts to hypothetical scenarios.

Combined vs. Separate Exams

In most states, the Life and Health license is a combined credential, and you will take a single exam that covers both subjects. However, some states allow you to test for a Life-only or Health-only license, in which case you would take a shorter, more focused exam. For professionals seeking to offer the most comprehensive advice, pursuing the combinedLife & Health Insurance License is the standard and most recommended path.

Pre-Test Questions

It is important to know that many exams include a small number of unscored "pre-test" or "pilot" questions. These are new questions that the testing authority is trying out for future exams. You will not know which questions are scored and which are not, so you must answer every question to the best of your ability.

What Topics Are Covered on the Exam?

The Life and Health Insurance Exam is divided into two main sections: general insurance principles and state-specific regulations. The bulk of the exam focuses on the general principles, which are further broken down into Life Insurance and Health Insurance categories. A thoroughpre-licensing education course will cover all of these topics in detail.

Part 1: General Insurance Knowledge

Life Insurance Topics

This portion of the exam covers the products designed to provide financial protection against loss of life. Key areas include:

Types of Life Insurance Policies: You will need to know the features, benefits, and drawbacks of Term Life, Whole Life, Universal Life, and Variable Life insurance.
Annuities: Understand the difference between immediate and deferred annuities, fixed and variable annuities, and their role in retirement planning.
Policy Provisions, Options, and Riders: This is a critical section covering the standard clauses in a life insurance contract (e.g., grace period, incontestability clause) and optional add-ons (e.g., waiver of premium, accidental death benefit).
Taxation: Be prepared for questions on the tax treatment of premiums, cash value growth, and death benefits.
Underwriting and Risk Classification: Understand the process by which insurers assess risk and assign classifications like preferred, standard, and substandard.
Group Life Insurance: Know the differences between individual and group policies, including enrollment and eligibility rules.

Health Insurance Topics

This section covers products that protect against the financial burdens of illness and injury. Expect questions on:

Types of Health Insurance Plans: Master the characteristics of HMOs, PPOs, EPOs, and POS plans, especially regarding provider networks and out-of-pocket costs.
Disability Income Insurance: Understand how policies are structured to replace income, including definitions of disability and benefit periods.
Long-Term Care (LTC) Insurance: Know the triggers for LTC benefits, types of care covered, and policy features.
Federal Regulations: A deep understanding of the Affordable Care Act (ACA), COBRA, and HIPAA is essential.
Group Health Insurance: Learn about the underwriting and administration of employer-sponsored health plans.
Medicare and Medicaid: While you won't need to be a specialist, you must understand the basics of these government programs and how private insurance like Medicare Supplements (Medigap) works with them.

Part 2: State-Specific Laws and Regulations

In addition to general product knowledge, you will be tested on the specific laws and regulations for the state in which you are seeking a license. These questions are integrated throughout the exam. Topics include:

State Insurance Department Powers: The authority and duties of the state's chief insurance regulator.
Licensing Requirements: The rules for obtaining and maintaining an insurance license, includingcontinuing education requirements.
Unfair Trade Practices: Laws that prohibit deceptive or unfair marketing and sales practices.
Agent Ethics: Your responsibilities as a licensed professional, including your fiduciary duty to the client.
Policy-Specific Regulations: State rules regarding grace periods, required provisions, and replacement of policies.

It is absolutely crucial that your study materials are tailored to your specific state to ensure you are prepared for this portion of the exam.

How to Prepare for and Pass the Exam

Success on the Life and Health Insurance Exam comes down to one thing: preparation. The pass rates for first-time test-takers can be daunting, but with a structured study plan and the right resources, you can confidently achieve a passing score.

Step 1: Enroll in a Quality Pre-Licensing Course

This is the single most important step. A state-approved pre-licensing course is not just a requirement; it is your roadmap to passing the exam. These courses are designed by experts to cover every topic on the test outline in a logical, easy-to-understand format. When choosing a provider like AB Training Center, look for:

State-Specific Content: Ensure the course is tailored to your state's exam.
Flexible Formats: Choose a format that fits your learning style, whether it's an in-person class, a live online webinar, or a self-paced online course.
Comprehensive Materials: The course should include a textbook, video lectures, and other study aids.

Step 2: Create a Study Schedule

Do not try to cram for this exam. The sheer volume of information makes it impossible. Instead, create a realistic study schedule that spans several weeks. Dedicate a specific block of time each day to studying, and stick to it. Consistency is far more effective than last-minute binge sessions.

Step 3: Master the Concepts, Don't Just Memorize

While some memorization is necessary (especially for regulations and definitions), a true understanding of the concepts is what will allow you to answer the tricky scenario-based questions. As you study, constantly ask yourself "why." Why does a whole life policy build cash value? Why do PPOs offer more flexibility than HMOs? This deeper level of understanding will serve you well on the exam.

Step 4: Use Practice Exams Strategically

Practice exams are your most valuableinsurance exam preparation tool. Use them to:

Simulate the Real Test: Take practice exams in a timed, quiet environment to get used to the pressure.
Identify Weak Areas: After each exam, review your results to see which topics you struggled with. Focus your subsequent study sessions on these areas.
Learn the Question Style: Practice exams help you get familiar with the way questions are worded and the types of "distractor" answers you might see.

Aim to consistently score in the 80-85% range on practice tests before you sit for the real exam. This buffer will give you confidence and account for any test-day nerves.

What to Expect on Exam Day

Knowing the logistics of exam day can help calm your nerves and allow you to focus on the test itself.

Arrive Early: Plan to arrive at the testing center at least 30 minutes before your scheduled appointment. This gives you time to check in, store your belongings, and relax.
Bring Proper ID: You will be required to present two forms of valid, government-issued identification. Check the testing center's specific requirements beforehand.
No Personal Items Allowed: You will have to store all personal belongings, including your phone, wallet, and even a watch, in a locker. The testing center will provide everything you need, including a calculator and scratch paper.
Get Your Score Immediately: In most cases, you will receive your official score report immediately after completing the exam. It will simply indicate "Pass" or "Fail."

If you don't pass on your first attempt, don't be discouraged. Your score report will often include a diagnostic breakdown showing how you performed on each section of the exam. Use this valuable feedback to refocus your studies and prepare for your next attempt.

Your Gateway to a Professional Career

The Life and Health Insurance Exam is a challenging but achievable milestone on your path to becoming an insurance professional. By dedicating yourself to a structured study plan, utilizing high-quality preparation materials, and understanding the exam's purpose and format, you can conquer this test and unlock the door to a stable and fulfilling career.

Ready to take the first step? Explore the comprehensive, state-specificinsurance licensing programs offered by AB Training Center. Our expert-led courses and proven study tools are designed to give you the knowledge and confidence you need to pass your exam on the first try.