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FINRA · 2026 · Free

Free Life and Health Insurance Practice Exam

Life and Health insurance license practice exam with questions on life insurance types, policy provisions, annuities, health insurance, Medicare, disability, and state regulations. 70% to pass.

150Questions
2–2.5 hrsTypical Time
60–70%Passing Score
PSI / PearsonAdministered By
20–52 hrsPre-License Ed.

Or choose a specific topic below to drill a domain.

About the Life & Health Insurance Exam

The Life and Health insurance producer license exam is required in all 50 states and Washington D.C. before selling life insurance, health insurance, annuities, disability income insurance, or long-term care insurance. While each state administers its own exam, the national content is largely consistent across all states — covering life insurance policy types and provisions, health insurance plans, annuities, disability and LTC insurance, and the federal laws governing insurance.

Most state L&H exams contain 150–165 questions with a time limit of 2–2.5 hours. Passing scores typically range from 60–70% depending on the state. This national practice exam prepares you for the content that appears in every state, supplemented by state-specific practice exams for your jurisdiction's unique laws and regulations.

150–165Questions
2–2.5 hrsTypical Time
60–70%Passing Score
PSI / PearsonAdministered By
20–52 hrsPre-License Ed.

Life & Health Insurance Exam Topic Breakdown

TopicApprox. WeightKey Areas
Life Insurance~30%Term, whole, universal, variable life; policy provisions; beneficiaries; underwriting
Health Insurance~25%Medical expense, HMO/PPO/EPO, disability income, critical illness
Annuities~15%Fixed, variable, indexed annuities; accumulation and payout phases; suitability
Long-Term Care Insurance~10%LTC benefit triggers, elimination periods, inflation protection, tax treatment
Federal Laws and Regulations~10%ACA, ERISA, HIPAA, COBRA, Medicare Parts A–D
Insurance Concepts and Principles~10%Insurable interest, indemnity, subrogation, utmost good faith, contract law

Sample Life & Health Insurance Exam Questions

1. Which of the following best describes the 'insurable interest' requirement in life insurance?

  • A. The insured must own the policy
  • B. The policyowner must have a financial or emotional interest in the continued life of the insured at the time the policy is issued
  • C. Both parties must be related by blood or marriage
  • D. The insurable interest must be demonstrated at each policy renewal
Correct: B. Insurable interest in life insurance must exist at the time the policy is applied for and issued — the policyowner must have a legitimate economic or sentimental interest in the insured's continued life. Common examples: spouses, business partners (key person insurance), or creditors (for the amount of the debt). Unlike property insurance, insurable interest in life insurance does not need to exist at the time of the claim — only at policy inception.

2. A whole life insurance policy has a cash value of $50,000 and a death benefit of $250,000. The policyowner takes a policy loan of $30,000. If the insured dies before the loan is repaid, the beneficiary receives:

  • A. $250,000
  • B. $220,000
  • C. $50,000
  • D. $280,000
Correct: B — $220,000. Outstanding policy loans are deducted from the death benefit at the time of the claim. The beneficiary receives the face amount minus the outstanding loan balance and any accrued interest: $250,000 − $30,000 = $220,000. The cash value is not separately paid — it is already reflected in the policy's structure. Policy loans do not require repayment during the insured's lifetime, but they reduce both the cash value and death benefit if left outstanding.

3. Under the Affordable Care Act (ACA), health insurance plans on the individual market are required to cover which of the following without cost-sharing?

  • A. All preventive services recommended by a physician
  • B. Preventive services rated A or B by the U.S. Preventive Services Task Force
  • C. Elective procedures deemed medically necessary
  • D. All prescription drugs on the formulary
Correct: B. The ACA requires non-grandfathered health plans to cover preventive services rated A or B by the U.S. Preventive Services Task Force (USPSTF), as well as immunizations recommended by the Advisory Committee on Immunization Practices (ACIP) and preventive care guidelines for women and children — all without cost-sharing (no copay, coinsurance, or deductible). However, a 2022 federal court ruling created uncertainty about some of these requirements; the ACA framework remains the testable standard.

Study Tips for the L&H Insurance Exam

Life insurance policy provisions are tested on every state exam — know the grace period (30 or 31 days for most policies), reinstatement provisions, incontestability clause (typically 2 years), misstatement of age adjustment, and the suicide exclusion (typically 1–2 years). These standard provisions appear consistently regardless of which state's exam you take.

For health insurance, know the difference between HMO, PPO, EPO, and POS plan structures, including referral requirements, network restrictions, and out-of-network coverage. Medicare Parts A, B, C, and D — what each covers, the premiums, and the coverage gaps — is heavily tested in every state. Don't overlook disability income insurance: own-occupation vs. any-occupation definitions, elimination periods, and benefit periods are consistent exam topics.

Preparing for a specific state? See our state exams for California, Florida, New York, and Texas. Also pursuing property lines? See the P&C insurance practice exam, and use the insurance license study guide for a full prep plan.

Frequently Asked Questions — L&H Insurance Exam

What is covered on the national Life & Health insurance exam?

The national portion covers life insurance (term, whole life, universal life, variable life, policy provisions), health insurance (medical expense plans, HMO/PPO/EPO, disability income, LTC), annuities (fixed, variable, indexed), and key federal laws (ACA, ERISA, HIPAA, COBRA, Medicare). State-specific exams add coverage of that state's insurance code, producer licensing rules, and state-specific requirements.

How many questions are on the Life & Health insurance exam?

The number of questions varies by state: most states have 150–165 questions. California has 75 questions; Florida has 165; New York has 150; Texas has 150. The time limit is typically 2–2.5 hours. Passing scores range from 60% (California) to 70% (Florida, New York, Texas).

What is the difference between an HMO and a PPO?

An HMO (Health Maintenance Organization) requires members to choose a primary care physician (PCP), get referrals to see specialists, and stay within the network for covered services. A PPO (Preferred Provider Organization) does not require a PCP or referrals, allows out-of-network care (at a higher cost), and is generally more expensive in premiums. EPOs are similar to HMOs but don't require referrals; POS plans combine HMO and PPO elements.

What is the incontestability clause in life insurance?

The incontestability clause prevents an insurer from denying a claim or voiding a policy based on misstatements in the application after the policy has been in force for a specified period — typically 2 years. After the incontestability period, the insurer cannot challenge the policy even if material misrepresentations were made in the application, except in cases of outright fraud. The clause protects beneficiaries from having claims denied long after the policy was issued.

What are the Medicare parts and what does each cover?

Medicare Part A covers inpatient hospital care, skilled nursing facility care, hospice, and some home health services (funded by payroll taxes, no premium for most). Part B covers outpatient medical services, physician visits, preventive care, and durable medical equipment (monthly premium required). Part C (Medicare Advantage) is a private plan alternative that combines A and B coverage. Part D is prescription drug coverage offered by private insurers.

What is an annuity and how is it tested on the exam?

An annuity is a contract between an individual and an insurance company in which the individual pays premiums (lump sum or periodic) and the insurer pays a series of income payments. Annuities accumulate funds on a tax-deferred basis. The exam tests the accumulation phase vs. payout phase, fixed vs. variable vs. indexed annuity differences, surrender charges and free withdrawal provisions, and suitability requirements for annuity sales.

What is the pre-license education requirement for Life & Health insurance?

Pre-license education requirements vary significantly by state: California requires 52 hours, Florida requires 40 hours, New York requires 40 hours, and Texas requires 40 hours. Most states require courses covering life insurance, health insurance, annuities, and the state's insurance code. After passing the exam, you must complete continuing education (typically 24 hours every 2 years) to maintain your license.

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