Indiana Life & Health Insurance License Exam Overview
The Indiana Life & Health Insurance License Exam is administered by Pearson VUE on behalf of the Indiana Department of Insurance (IDOI). Indiana offers a stable, growing insurance market with Indianapolis serving as a major healthcare and insurance hub, home to major insurers like Anthem and OneAmerica.
Indiana's unique Healthy Indiana Plan (HIP) represents an innovative approach to Medicaid expansion that insurance agents must understand. With a 40-hour pre-licensing requirement, Indiana ensures candidates are well-prepared before taking the state exam.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice (combined exam) |
| Time Limit | 3 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Pearson VUE |
| Exam Fee | $69 |
| Pre-licensing Education | 40 hours required (20 Life + 20 Health) |
| Application Fee | $40 + $40 per line of authority |
Why Get Licensed in Indiana?
- Major insurance hub - Anthem, OneAmerica, and other carriers headquartered in Indianapolis
- Growing healthcare sector - Indianapolis is a regional medical center
- Stable economy - Diverse manufacturing, agriculture, and services industries
- Central location - Easy access to Midwest regional markets
- Affordable living - Lower cost of living than coastal states
- No state income tax on retirement income - Attracts retirees needing life and health products
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Key Topics Covered on the Exam
1. Life Insurance Products (30%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, requires additional licensing)
- Group Life Insurance
Indiana Life Insurance Provisions:
| Provision | Indiana Requirement |
|---|---|
| Grace Period | 30 days |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 10 days |
| Misstatement of Age | Adjustment of benefits |
| Reinstatement | 3 years |
Beneficiary Designations:
- Primary and contingent beneficiaries
- Revocable vs. irrevocable designations
- Per stirpes vs. per capita distributions
- Simultaneous death provisions
- Divorce and beneficiary rights in Indiana
2. Health Insurance Products (30%)
Major Health Coverage Types:
- Major medical insurance (HMO, PPO, EPO, POS)
- Disability income insurance (short-term and long-term)
- Long-term care insurance
- Medicare supplement (Medigap) policies
- Dental and vision coverage
Indiana-Specific Health Topics:
Healthcare.gov (Federal Marketplace):
- Indiana uses the federal health insurance marketplace
- Open enrollment period details
- Special enrollment qualifying events
- Metal tier options (Bronze, Silver, Gold, Platinum)
- Premium tax credit eligibility
Healthy Indiana Plan (HIP):
- Indiana's unique Medicaid expansion program (since 2015)
- HIP Plus vs. HIP Basic coverage tiers
- POWER Account (Personal Wellness and Responsibility) contributions
- Income eligibility up to 138% FPL for adults
- Managed care organizations: Anthem, CareSource, Managed Health Services
Hoosier Healthwise:
- Indiana's Medicaid managed care program for children, pregnant women, and low-income families
- Income limits up to 214% FPL for children
- Coordination with HIP for adults
2026 Medicaid Changes:
- MDwise terminated from Indiana Medicaid programs effective January 1, 2026
- Approximately 300,000 Hoosiers affected by carrier change
- Members assigned to Anthem, CareSource, or Managed Health Services
3. Annuities (15%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Indexed annuities
- Accumulation and annuitization phases
- Surrender charges and penalties
- Free look period: 10 days standard
- Annuity suitability requirements
4. Indiana Insurance Regulations (20%)
Regulatory Authority:
- Indiana Code Title 27 (Insurance)
- Indiana Department of Insurance (IDOI) authority
- Commissioner powers and duties
- Consumer protection regulations
Key Indiana Laws:
- Unfair claims settlement practices
- Replacement regulations for life insurance
- Advertising guidelines
- Privacy requirements (Indiana Code IC 27-2-18)
- Anti-discrimination provisions
Licensing Requirements:
| Requirement | Indiana Standard |
|---|---|
| Pre-licensing Education | 40 hours (20 Life + 20 Health) |
| Certificate Validity | 6 months from course completion |
| CE Requirement | 24 hours every 2 years |
| Ethics CE | 3 hours (Life & Health producers) |
| License Renewal | Biennial, birth month |
| Application Deadline | Within 6 months of passing exam |
Indiana Life and Health Insurance Guaranty Association:
| Coverage Type | Maximum Benefit |
|---|---|
| Life Insurance Death Benefits | $300,000 |
| Cash Surrender/Withdrawal Values | $250,000 |
| Health Insurance Benefits | $500,000 |
| Disability/Long-Term Care | $300,000 |
5. Ethics and Producer Responsibilities (5%)
- Fiduciary duty to clients
- Needs analysis and suitability requirements
- Full disclosure obligations
- Premium handling requirements
- Reporting misconduct to IDOI
- Unfair trade practices prohibitions
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 15-20 |
| Week 2-3 | Health insurance and HIP/Medicaid | 15-20 |
| Week 3-4 | Annuities and retirement products | 10-12 |
| Week 4-5 | Indiana regulations and ethics | 10-12 |
| Week 5-6 | Practice exams and comprehensive review | 15-20 |
Total recommended study time: 65-85 hours
Free Practice Questions Available
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Indiana-Specific Exam Tips
1. Master the Healthy Indiana Plan (HIP)
The HIP program is unique to Indiana and heavily tested:
- HIP Plus - Full benefits with POWER Account contributions
- HIP Basic - Limited benefits when contributions are missed
- POWER Account - Member contribution account similar to HSA
- Managed Care - Anthem, CareSource, Managed Health Services (no MDwise in 2026)
2. Know These Indiana Numbers
| Topic | Indiana Requirement |
|---|---|
| Grace period (life) | 30 days |
| Free look period | 10 days |
| Incontestability | 2 years |
| Pre-licensing | 40 hours |
| CE requirement | 24 hours/2 years |
| Ethics CE | 3 hours (L&H producers) |
| Passing score | 70% |
| Exam fee | $69 |
| Certificate validity | 6 months |
3. Understand Guaranty Association Limits
Indiana Guaranty Association protections are important:
| Protection | Limit |
|---|---|
| Life insurance death benefit | $300,000 |
| Annuity present value | $250,000 |
| Health insurance | $500,000 |
| Disability/LTC | $300,000 |
4. Review 2026 Medicaid Changes
Critical for 2026:
- MDwise terminated from Indiana Medicaid
- Three remaining carriers: Anthem, CareSource, MHS
- 300,000 members affected by transition
- 90-day window to change plans after January 1, 2026
Common Mistakes to Avoid
- Underestimating the HIP program - Indiana's unique Medicaid expansion is heavily tested
- Ignoring the Guaranty Association - Know the coverage limits
- Skipping Indiana Code Title 27 - State regulations are significant
- Not completing pre-licensing - Must have certificate before scheduling exam
- Missing the 6-month deadline - Apply for license within 6 months of passing
- Cramming - Spread study over 4-6 weeks for best retention
- One online attempt only - Retakes must be in-person at Pearson VUE
After Passing Your Exam
- Apply through NIPR or Sircon - Submit license application within 6 months
- Pay application fee - $40 base + $40 per line of authority
- Background check - Criminal background report required
- Receive license - Processing takes approximately 5-10 business days
- Affiliate with carriers - Complete carrier appointments
- Complete CE - 24 hours required every 2 years by birth month
2026 Indiana Updates
Medicaid Changes:
- MDwise terminated from HIP and Hoosier Healthwise programs
- Three managed care organizations remain: Anthem, CareSource, MHS
- New 2026 income limits take effect April 1, 2026
- 2.8% COLA increase applied to Medicaid limits
Testing Updates:
- Online proctoring available through Pearson VUE OnVUE
- Only ONE online attempt allowed; retakes must be in-person
- 48-hour wait required between exam attempts
- Unlimited in-person retakes
Income Limits for 2026:
- HIP adults: 138% FPL (approximately $21,603/year individual)
- Hoosier Healthwise children: 214% FPL
- Long-term care Medicaid: $2,982/month for individuals
Start Your Indiana Insurance Career Today
Indiana's growing insurance market and central location make it an excellent place to build your insurance career. With 40 hours of pre-licensing education, you'll be well-prepared to pass the exam and serve Hoosier clients.
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Our free study materials include:
- Complete topic coverage for the combined Life & Health exam
- Practice questions with detailed explanations
- Indiana-specific regulations and HIP content
- Study guides and summaries
- AI-powered study assistance
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