To sell life and health insurance, you need a license from your state, and that means passing your state's producer licensing exam. The questions below cover basic ideas that show up on most life and health exams.
Exam at a glance
Question count, time limit and passing score depend on your state's testing vendor and insurance department. Check your state's candidate handbook for the current numbers. (Checked as of Oct 9, 2026.)
8 free Life & Health practice questions
1. In a life insurance policy, the beneficiary is:
- A. The person whose life is insured
- B. The person who receives the death benefit
- C. The insurance agent
- D. The state regulator
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Answer: B. The beneficiary receives the proceeds. The insured is the person whose life is covered.
2. Which life policy builds cash value and lasts for the insured's whole life if premiums are paid?
- A. Term life
- B. Whole life
- C. Credit life
- D. Accident-only
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Answer: B. Whole life is permanent coverage with a guaranteed cash value. Term life covers a set period with no cash value.
3. Insurable interest in a life policy must exist:
- A. At the time of application
- B. At the time of death only
- C. Every year at renewal
- D. Never
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Answer: A. For life insurance, insurable interest is required when the policy is issued, not at the time of the claim.
4. A health plan pays 80% of covered costs after the deductible, and you pay 20%. Your 20% is called:
- A. A premium
- B. Coinsurance
- C. A rider
- D. A grace period
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Answer: B. Coinsurance is the percentage split of covered costs after the deductible is met.
5. The grace period in a life insurance policy means:
- A. The insurer can cancel at any time
- B. Coverage stays in force for a set time after a missed premium
- C. The policy can't be contested
- D. Benefits are doubled
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Answer: B. During the grace period, the policy remains in force even though the premium is late.
6. An HMO usually requires members to:
- A. See any doctor without referrals
- B. Choose a primary care physician who gives referrals
- C. Pay no premiums
- D. Only use hospitals abroad
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Answer: B. HMOs typically use a primary care physician as a gatekeeper for referrals to specialists.
7. Disability income insurance mainly replaces:
- A. Medical bills
- B. Lost income when you can't work
- C. Funeral costs
- D. Property damage
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Answer: B. Disability income coverage pays a portion of income while illness or injury keeps you from working.
8. A rider on an insurance policy is:
- A. An amendment that adds or changes coverage
- B. A type of beneficiary
- C. A premium tax
- D. A claim denial
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Answer: A. Riders modify the base policy, for example by adding a waiver of premium or accidental death benefit.
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