Insurance License Exam Study Guide: L&H and P&C

Complete insurance license exam study guide covering Life and Health and Property and Casualty. Topics, tips, and free practice questions. No paywall.

Start Practice Exam Now → →

What Is the Insurance License Exam?

Insurance producer license exams are required in all 50 US states before you can legally sell insurance products. There are two primary license types: Life and Health (L&H), covering life insurance, health insurance, annuities, disability, and long-term care; and Property and Casualty (P&C), covering homeowners, auto, commercial property, liability, and workers compensation insurance. Many agents obtain both licenses.

Each state administers its own exam, but the national content is largely consistent. Most states require 20-40 hours of pre-license education before sitting for the exam. Exams are typically administered by Pearson VUE, PSI, or Prometric.

60-150
Questions (varies)
70%
Passing Score (most states)
~65%
First-Time Pass Rate
20-40
Pre-License Hours

Life and Health Insurance Exam Topics

Life Insurance Types and Policy Provisions
~30%
Annuities
~15%
Health Insurance and Managed Care
~20%
Medicare and Medicaid
~12%
Insurance Regulations and State Law
~23%

Property and Casualty Insurance Exam Topics

Insurance Concepts and Principles
~20%
Property Insurance (Homeowners, Dwelling, Commercial)
~25%
Auto Insurance (Personal and Commercial)
~20%
Liability Insurance and Workers Compensation
~15%
Insurance Regulations
~20%

Insurance Exam Study Tips

Nonforfeiture options are on every L&H exam. Cash surrender value, extended term insurance, and reduced paid-up insurance — know all three and when each is appropriate. These appear consistently across all state exams.

Homeowners policy forms are critical for P&C. Memorize the HO form numbers: HO-1 (basic named perils), HO-2 (broad named perils), HO-3 (special/open perils on dwelling), HO-4 (renters), HO-5 (comprehensive), HO-6 (condo). The HO-3 is the most common and most tested.

Understand subrogation cold. After the insurer pays a claim, it steps into the insured shoes to recover from the responsible third party. This prevents double recovery and appears on nearly every P&C exam.

Medicare has four parts. Part A (hospital), Part B (medical), Part C (Medicare Advantage), Part D (prescription drugs). Know what each covers, the enrollment periods, and the late enrollment penalties. Medicare questions appear on virtually all L&H exams.

Study your state module separately. State-specific content covers your state insurance department, producer licensing requirements, and state-mandated benefits. This content is entirely separate from national content and requires dedicated study time.

L&H vs P&C — Should You Get Both?

Many producers ultimately obtain both licenses, but starting with one makes sense. If you are joining an insurance agency focused on personal lines (home and auto), start with P&C. If you are entering financial services, employee benefits, or working with seniors, start with L&H. The licenses require separate exams but the foundational insurance concepts overlap significantly, so the second license typically requires less study time than the first.

Insurance Exam Practice Questions

Test your insurance knowledge with these sample questions covering Life and Health and Property and Casualty topics.

Q1A whole life insurance policyowner who stops paying premiums may elect which nonforfeiture option to keep some coverage in force?

A.Return of premium
B.Extended term insurance
C.Policy loan
D.Waiver of premium

Q2An insured's home is destroyed by fire. After paying the claim, the insurance company pursues the negligent neighbor who caused the fire. This is an example of:

A.Indemnity
B.Subrogation
C.Contribution
D.Adhesion

Q3Medicare Part A primarily covers:

A.Physician and outpatient services
B.Hospital inpatient care, skilled nursing facility care, and hospice
C.Prescription drugs
D.Medicare Advantage plans

Ready to Start Practicing?

Free Insurance practice exam — no signup, no paywall, no credit card.

Start Free Practice Exam →