Life Insurance Practice Test
What additional credentials does a life and health insurance advisor need before they are permitted to sell variable annuities?
- a. Certified risk manager
- b. Accredited advisor in insurance
- c. Securities license
- d. Associate in claims
Question 2 of 10
2 . Question
A life insurance policy beneficiary has the option to work with the life insurance provider to convert a death benefit payout into an annuity. The downside to this payout method is:
- a. The money is taxable
- b. Takes time to pay it out
- c. It’s expensive to withdraw money
- d. All of the above
Question 3 of 10
3 . Question
Withdrawals from the cash value of a life insurance policy are usually non taxable until:
- a. The insured reaches age 65
- b. The cash value reaches $10,000
- c. The insured cancels the policy
- d. The cash value exceeds the total premiums paid into the policy
Question 4 of 10
4 . Question
The IRS requires taxes to be paid on which types of payments to beneficiaries?
- a. Base policy benefit
- b. Base policy benefit plus gains from interest
- c. Gains from interest
- d. None of the above
Question 5 of 10
5 . Question
Money that an employer pays to an insurer for some or all of an employee’s health insurance coverage is:
- a. Taxable
- b. Not taxable
- c. Taxable up to $10,000
- d. Taxable up to $25,000
Question 6 of 10
6 . Question
Health Reimbursement Accounts (HRAs) are not taxable as long as it is 100% employer-funded AND:
- a. Employees have minimum essential coverage (MEC)
- b. Limited to $1200 annually
- c. It is paired with a PPO insurance plan
- d. Is paired with an HMO insurance plan
Question 7 of 10
7 . Question
Which of the following details compensation amounts for specific health care services?
- a. Certificate of insurance
- b. Waiver of coverage
- c. Schedule of Benefits
- d. Summary Plan Description
Question 8 of 10
8 . Question
As related to an insurance agent’s relationship with , the term, “Expressed authority”, means:
- a. The insurance agent appears to have the authority to act on a client/customer’s behalf.
- b. A client/customer has given an insurance agent authority by means of an explicit oral or written agreement to act on his or her behalf.
- c. The insurance agent has the necessary authority intended by the client in order to carry out expressed authority
- d. None of the above.
Question 9 of 10
9 . Question
The primary purpose of a general agency in insurance is:
- a. To sell insurance products to insurance brokers
- b. To collect premiums of insured individuals
- c. To closely regulate interactions between insurance brokers and their clients
- d. To eliminate disputes between policyholders and their beneficiaries
Question 10 of 10
10 . Question
What type of insurance policy is recommended that insurance agents before advising clients on insurance matters?
- a. Stop-loss
- b. Errors and omissions
- c. Key-man
- d. General liability
This is just a sample quiz. If you want more free life insurance practice tests, click here.
All Life Insurance Practice Tests
Take a life insurance practice test below. Make sure to review the answer explanations at the end of each exam to learn key concepts.
Health and Life Insurance Exam Overview
The life and health insurance exam are for anyone who wants to be able to sell or continue selling life insurance.
By passing this exam, the test taker is then licensed to sell life and health insurance in whatever state they live in, but they must renew their licensing every two years.
How Many Questions are on the Life Insurance Exam?
The number of questions on the life insurance exam varies from state to state. Some states give a separate exam with different sections. Some states give a combined exam that includes everything.
- Separate Exam: 50 to 110 Questions for Each Section. 1-3 Hours Long Per Section.
- Combined Exam: 85 to 170 Questions. About 2 Hours Long.
Check the table below to see what your state requirement is.
| State | Number of Questions | Time Allotted (Minutes) | Test Style |
|---|
| Alabama | 100 | 120 | Combined |
| Alaska | 220 | 310 | Separate |
| Arizona | 150 | 150 | Combined |
| Arkansas | 180 | 300 | Separate |
| California | 150 | 180 | Separate |
| Colorado | 191 | 225 | Separate |
| Connecticut | 145 | 150 | Combined |
| Delaware | 211 | 270 | Separate |
| Florida | 165 | 175 | Combined |
| Georgia | 135 | 150 | Combined |
| Hawaii | 191 | 240 | Separate |
| Idaho | 170 | 260 | Separate |
| Illinois | 206 | 270 | Separate |
| Indiana | 150 | 180 | Combined |
| Iowa | 187 | 240 | Separate |
| Kansas | 156 | 180 | Combined |
| Kentucky | 100 | 120 | Separate |
| Louisiana | 150 | 160 | Combined |
| Maine | 161 | 210 | Combined |
| Maryland | 140 | 150 | Combined |
| Massachusetts | 200 | 240 | Separate |
| Michigan | 150 | 150 | Combined |
| Minnesota | 145 | 180 | Combined |
| Mississippi | 140 | 240 | Separate |
| Missouri | 170 | 180 | Combined |
| Montana | 205 | 255 | Separate |
| Nebraska | 150 | 150 | Combined |
| Nevada | 170 | 215 | Combined |
| New Hampshire | 150 | 150 | Combined |
| New Jersey | 181 | 420 | Separate |
| New Mexico | 150 | 150 | Combined |
| New York | 150 | 150 | Combined |
| North Carolina | 120 | 150 | Separate |
| North Dakota | 220 | 300 | Separate |
| Ohio | 150 | 150 | Combined |
| Oklahoma | 155 | 210 | Combined |
| Oregon | 150 | 160 | Combined |
| Pennsylvania | 150 | 170 | Combined |
| Rhode Island | 92 | 120 | Combined |
| South Carolina | 100 | 150 | Combined |
| South Dakota | 145 | 150 | Combined |
| Tennessee | 164 | 210 | Separate |
| Texas | 150 | 150 | Combined |
| Utah | 150 | 150 | Combined |
| Vermont | 155 | 150 | Combined |
| Virginia | 150 | 150 | Combined |
| Washington (state) | 150 | 195 | Combined |
| Washington D.C. | 85 | 120 | Combined |
| West Virginia | 180 | 240 | Separate |
| Wisconsin | 200 | 240 | Separate |
| Wyoming | 150 | 150 | Combined |
Topics Tested on the Life and Health Insurance Exam
While the types of questions vary from state to state, the subject areas covered on each exam will be relatively similar. Here are the topics you can expect to see when you take any life and health insurance exam:
- General insurance (5%)
- LI Basics (7%)
- LI Policies (7%)
- Insurance regulation (5%)
- Policy provisions, options, and riders (8%)
- Qualified plans (4%)
- HI basics (5%)
- Medical plans (8%)
- Individual health insurance policy general provisions (4%)
- Group health insurance (7%)
- Dental insurance (2%)
- Disability income and related insurance (3%)
- Insurance for senior citizens and special needs individuals (8%)
- Health maintenance organizations (3%)
- Annuities (6%)
- Federal tax considerations for life insurance and annuities (5%)
- Federal tax considerations for health insurance (3%)
- Additional considerations for life and health insurance counselors (10%)
Scoring of the Life and Health Insurance Exam
You will need a 70% or higher on your exam to pass. If you live in a state that administers 100 questions, you would need to answer 70+ questions correctly to pass.
Keep in mind that a perfect score and a 70% both get you the same result. When studying, make sure you grasp the core concepts first and then get more granular with your studies.
Benefits of Using a Life Insurance Practice Exam
Using a life insurance practice test is one of the best ways to study for your state’s life and health insurance exam. Here are some benefits:
- Efficient Studying: By utilizing old life insurance test questions, you become a more efficient studier. You can see which areas you struggle with and can focus your studies on those areas.
- Familiarity with the Exam: You can become a faster test taker by using life insurance sample questions. They help you familiarize yourself with the questions so you can understand what is being asked and how to answer.
- Detailed Answer Explanations: You can learn key concepts and why an answer was correct or incorrect with our explanations. This will help you be better prepared on exam day.
