Insurance License Exam Study Guide

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How To Pass The Life Insurance Exam

Texas Life Insurance Pre-Licensing Practice Exam Questions 2021 Guide

First, its important to understand what youll get out of this test: If you pass, youll get your resident license to sell life and/or health insurance, which means you can practice within your state of residence. However, once you gain this resident license within your home state, you have the ability to pay for a non-resident license in any other state via the National Insurance Producer Registrywithout taking the licensure exam again! The fee varies by state for a non-resident license, and usually needs to be renewed every two years you can learn more about rules and fees here.

Before taking the test, find out the rules, regulations, and fee expectations for your state. Some states allow you to take the life insurance exam on its own, which usually takes 20 hours of studying and/or pre-licensing education . However, some states or agencies require you combine your life insurance exam with another license class to maximize the areas in which you can negotiate policies. Some of these license classes may include:

  • Accident and Health Agent
  • Travel Insurance Agent

There are single exams available that combine multiple categories above. Theyre longer and take longer to study for. Generally, if you see the word and in the exam category, plan on dedicating double the studying time to gaining that combo license40 hours or more.

Is The Insurance License Exam Hard

The answer to this question will obviously vary from person-to-person and state-to-state.

We know lots of folks who have passed the exams on their first shot, and we also know plenty who have taken each test several times. We dont say this to frighten you, rather prepare you.

There is no national average of pass-fail stats, but based on the states who publish results, the average number that we see is 55% of participants pass the exams on their first attempt. The pass rate is slightly higher for retake attempts.

What this tells us is that people tend to go into the test blind and wing it, hoping for the best results. If they fail, they hit the books a little harder, then come back and fair a little better.

Testing is a mind game, and you need to control the factors that you can to yield the best results.

Whether or not we like it, tests like these are sometimes more a measure of your ability to test well, rather than how well you know the material. This may not seem fair, but it is the truth, and we have to play by the rules that are set in front of us.

Be sure to read on, as we will give you our best ways to make sure that your ability to test is as effective as you can make it.


For pre-license education products and courses, StateRequirement recommends:Kaplan Education Company

Kentucky Life And Health Insurance Exam

Below you can find the topics that you will be tested on, as well as the number of questions that you will have to answer on each part.

We recommend using it as a checklist when working through your pre-license education course. This way, youll be absolutely sure that you havent missed any topic that you will be tested on later.

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Tools To Help You Pass

There are multiple online pre-licensing educational courses that you can take for a fee to help prepare you for this exam. Some states require you to take them before you schedule an exambut even if your state doesnt require one of these courses, we strongly recommend you try one. They offer comprehensive reading- and quiz-based materials that take you through the essential exam topics.

To help you pass your life insurance test, check out some of the following courses:

Reina Buys A Whole Life Insurance Policy With A Clause That Allows Her To Shop About And Get A Refund If She Finds A Better Deal Which Of The Following Statements About The Policy She Bought Is Correct

Property and Casualty Insurance License Exam Study Guide : Test Prep ...
  • Coverage is in effect once the policy is actually delivered
  • Coverage is active once the premium rates are paid
  • Coverage is effected once the receipt is issued
  • Coverage is activated once the group life insurance is settled
  • All of the above
  • ANSWER: All of the above

    Reina bought a policy with a free-look provision, which permits a policyholder to buy a life insurance policy and then shop around for better coverage if one is found.

    Following the actual delivery of the policy, these policies often give a ten to thirty-day review period.

    During the review time, the insured can conduct additional research into different policies to choose whether they want to keep their present policy or return it for a full refund of their premium.

    When the policyholder receives the real physical delivery and pays the premium, the free look review time begins.

    Before the free look time can begin, the insured must sign a delivery receipt that is dated, signed, and witnessed by the agent.

    Coverage is in effect as long as the premium is paid and the policy is delivered. When the policyholder receives the real physical delivery and pays the premium, the free look review time begins.

    Before the free look time can begin, the insured must sign a delivery receipt that is dated, signed, and witnessed by the agent.

    Coverage is in effect as long as the premium is paid and the policy is delivered.

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    How Much Does The Insurance License Exam Cost

    The price of the insurance exams depends on the state that you are applying in.

    The range of exam prices is anywhere from $40 to $150, averaging around $70 per attempt.

    Taking multiple attempts at the exams is possible, but can get rather expensive. We at StateRequirement highly recommend that you take your studying and test prep seriously and do everything you can to pass the exam on your first try.


    Grant Is Terminally Ill But He Has A Cash Surrender Value Life Insurance Policy That He Wants To Sell To A Private Individual Yodel Is Interested In Buying The Policy But Is Only Willing To Pay A Fraction Of Its Face Value What Is The Name Of The Procedure For Selling A Life Insurance Policy For Less Than The Death Benefit

  • Viatical settlement
  • Settlement of cash value
  • ANSWER: Viatical settlement

    A viatical settlement occurs when a policyholder sells a policy to a private individual for less than the amount of the death benefit.

    While the insured receives less than the death benefit, the insured receives more than the cash surrender value, making it an appealing option for policyholders who are chronically or terminally ill because it allows the insured to receive a lump sum settlement payment and live out the rest of their lives without worry about finances.

    When the insured dies, the purchaser of the policy becomes the new policyholder, and as long as the purchaser pays the required premiums, the purchaser will receive the entire death benefit.

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    Kentucky Insurance License Exam

    Passing your Kentucky insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Kentucky.

    In this guide, well break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Kentucky insurance licensing exam, and on what to do after you pass.

    Study Materials For The Arizona Insurance Exam

    Life and Health Insurance License Exam Study Guide – 100% Updated Content!

    If youre planning to take your Arizona insurance licensing exam, your next step is to study. Theres a lot of information to digest, and you need a score of 70 to pass the exam. The best way to prepare is to take an insurance exam prep course.

    The Arizona Department of Insurance doesnt require exam takers to enroll in a pre-licensing course. But not taking an exam prep course would be like trying to pass the bar exam without knowing a thing about law.

    Here are some things to consider when deciding which exam prep provider to use:

    • Make sure the exam prep course you choose covers all the material in the test content outline. The Arizona Test Content Outline is published by PSI Exams, the company that administers the insurance licensing exams in Arizona. The TCO covers all the topics youll be tested on. The study manual for the exam prep course you choose should cover all the topics listed in the TCO. Study manuals are usually split up into two sections: a national section and a state-specific section:
    • The national section covers basic insurance terminology and concepts that are applicable everywhere.
    • The state-specific section covers rules and regulations specific to Arizona.

    If you would like to see a sample video lecture of our Arizona insurance exam study materials, please .

    If you would like to know more about what is on the Arizona insurance licensing exam, please .

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    Ready To Start A Promising New Career

    After you pass the life insurance test, in most states, youre ready to begin your career. That means youll have a whole new set of things to learn, including how to grow your business by generating leads.

    For more resources on how to improve your skills and get the best out of your newly-minted life insurance license, check out more of the EverQuote Pro blog.

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    What If I Didnt Pass My Insurance Exam

    If you didnt pass this time, you now have a much better idea of what you are facing. In most states, the testing facility will give you a print out of which sections of the test you fared well on, and which you struggled with. Use this to your advantage.

    Dont beat yourself up over it. Like we said earlier, only about 55% of first-time participants pass the exam. Its a tough test, and you shouldnt feel any shame.

    Now that you know what youre up against, you can go back to your studies with a renewed vigor and zeal. Be sure to study hard on the parts of the test that you were less successful with.

    If you were close to passing, go ahead and schedule another sitting within a week or two.

    You know what you have to work on, so be sure you can explain the topics to a six-year-old, and go out and crush it the next time!

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    Which Insurance Paperwork Permits An Insured To Obtain Term Coverage For A Spouse

  • Spouse term insurance rider
  • All of the above
  • ANSWER: Spouse term insurance rider

    A spousal term insurance rider allows a whole life policyholder to add term coverage to their spouse.

    A minor death benefit is usually paid out by a term policy. It could also contain the opportunity to convert the term policy to a permanent policy without having to prove insurability when the spouse reaches specific ages as defined in the insurance contract.

    Another option is that if the insured dies within the premium-paying period, the spouses coverage will be converted to term coverage without the need to pay any further payment.

    A term life insurance policy flaunts a set premium and is only valid for a set period of time.

    In addition to the permanent full coverage in the main policy, term life riders provide term coverage for a set amount of time.

    When a life rider is added to a permanent life policy, the insured can convert his or her term life insurance coverage to permanent life insurance at any time.

    The insured saves money on premiums at the start of the policy term by having a portion of the coverage as a year term.

    A conversion does not, however, necessitate a further underwriting process or medical test.

    Whole life insurance and straight life insurance are other terms for ordinary life insurance.

    Ordinary life insurance is a policy that is assured to stay in full force for the duration of the insureds life, or until the policy maturity date, whichever comes first.

    What Kind Of Income Does Someone Insured Have If He Or She Is Unable To Work

    Property &  Casualty Insurance License Exam Study Guide: Test Prep and ...

    ANSWER: Unearned

    Unearned income, such as interest payments or investment income, is income that persists even if a person is unable to work.

    Unearned income may be used to calculate how many disability payments a person is eligible for.

    An adhesion contract is one offered by an insurance firm on a take it or leave it basis, though the word is not confined to the insurance business.

    The insured has the option of accepting or rejecting the contract. However, any ambiguities in the contract are construed against the drafter of the contract and in favor of the insured, which means that the insured will be given the respect deserved if there is any question about what a policy term is supposed to entail.

    As a result of this hypothesis, insurance companies are encouraged to make policy terms as plain as feasible.

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    What Type Of Skills Do I Need

    Since insurance agents determine the needs of their clients, excellent analytical skills are a big plus. Insurance agents regularly talk with clients, youll need to be a very skilled communicator. You need to be self-confident and be willing to take the initiative since youll be seeking out new clients.

    Check out Mometrix’s Life & Health Study Guide

    Get practice questions, video tutorials, and detailed study lessons

    Texas Insurance Agent Exam Online Test Center And Question Bank

    Our Online Test Center and Question Bank is the best tool you can find to prepare for the Texas Insurance Exam. Uniform Property and Casualty and Texas-Specific content is included. Keep track of your progress and master areas for the real exam.

    Simulate the test with test-day timing conditions in an interface that looks and feels just like the real exam. If you are not taking practice questions with an online test center, you are not adequately preparing for the exam. Work through exam questions and answers by topic, and then take entire timed practice tests, just like the real insurance exam.

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    An insurance firm issues a certificate of insurance to prove that insurance coverage is in place.

    The coverage provisions are also included in the paper, which includes the kind of insurance, coverage terms, the effective date of coverage, and any limitations or exclusions.

    The COI could be used to demonstrate that a specific medical practice is covered.

    An insurer may request an independent medical examination to verify claims made by an insureds personal doctor.

    Before the IME, the IME doctor had not treated the insured.

    Its a second thought.

    The qualities of a health maintenance organization and a preferred provider organization are combined in a point of service plan .

    In a Point-of-Service plan, members who receive health services from plan providers are typically reimbursed 90-100 percent of the cost, compared to roughly 70% for non-plan providers.

    The insured is responsible for the difference between the cost and the reimbursement amount.

    A POS is a sort of managed care that provides lower medical costs in exchange for a limited provider selection.

    Life And Health Insurance Regulations

    Life Insurance License Exam Notes Pt. 1

    This sample lesson from our Insurance License Exam Manual will help you:

    • Understand the role of the Insurance Commissioner in insurance regulation
    • Describe the role of company ratings and how such information may be used with prospects
    • Explain the role of state guaranty associations
    • Identify the requirements for maintaining a producer license

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    What To Bring On Test Day

    Each state and testing company will differ slightly on what is required to bring on test day, but the basics are:

    • In states where pre-license education is required, a completion form from the education company

    You are not allowed to bring your study material, cell phone, wallet, or any other personal effects into the test room. Some test centers have lockers or other storage space where you can keep things while testing.

    If you attempt to bring something into the proctoring room and are caught, you will be removed from the testing center and forfeit your testing fee.

    How To Pass The Insurance Exam Faq

    What score do you need to pass the insurance exam?

    In most states, the passing score for an insurance exam is 70% correct answers. Some states have a slightly more difficult scoring design, but they too fall around 70%.

    How do I study for an insurance exam?

  • Take a good insurance pre-license education course.
  • Read the How To Study section of this article.
  • How do I pass the Life and Health Insurance Exam?

    Be sure that you take the time to study properly using the tactics in this article, and go into the exam with confidence that you have what it takes to pass. For more information on passing the life and health insurance exam, read our Life and Health Insurance License Exam Guide.

    How do I pass the Property and Casualty Insurance Exam?

    Same as the Life and Health exam, be sure that you take the time to study properly using the tactics in this article, and go into the exam with confidence that you have what it takes to pass. Check out our guide on Property and Casualty License Exam Prep for more details on the P& C insurance exam.

    How many questions are on the Life and Health Insurance exam?

    The Life and Health insurance exam typically has around 150 questions. However, the number of questions totally depends on the state you are in. Choose your state to find out more about the test you will be taking.

    How many questions are on the Property and Casualty Insurance exam?

    How much is the insurance license exam?

    How long should you study for the insurance exam?

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