Kentucky Life & Health Insurance License Exam Overview
The Kentucky Life & Health Insurance License Exam is administered directly by the Kentucky Department of Insurance (DOI) with testing services previously provided by PSI and now managed through the DOI's eServices system. Kentucky offers a growing insurance market with kynect, the state's relaunched health insurance exchange, and a significant Medicaid expansion population.
Louisville serves as Kentucky's healthcare and insurance hub, with major employers like Humana and Kindred Healthcare. With 40 hours of pre-licensing education required, Kentucky 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 | 190 minutes (3 hours 10 minutes) |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Kentucky DOI via eServices |
| Exam Fee | $50 (initial); $50 retake |
| Pre-licensing Education | 40 hours required (20 Life + 20 Health) |
| Application Fee | $40 + $40 per line of authority |
Why Get Licensed in Kentucky?
- State-based exchange - kynect marketplace relaunched in 2022
- Growing Louisville - Major healthcare and insurance industry hub
- Medicaid expansion - Large covered population since 2014
- Central location - Access to regional Midwest and Southern markets
- Affordable living - Lower cost of living attracts residents
- Humana headquarters - Major insurer based in Louisville
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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
Kentucky Life Insurance Provisions:
| Provision | Kentucky Requirement |
|---|---|
| Grace Period | 30 days |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 10 days (20 for replacements) |
| 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
- Kentucky divorce and beneficiary rights
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
Kentucky-Specific Health Topics:
kynect Health Coverage (State Exchange):
- Kentucky's state-based health insurance marketplace
- Relaunched in 2022 after using Healthcare.gov from 2017-2021
- Metal tier options (Bronze, Silver, Gold, Platinum)
- Open enrollment: November 1 - January 23 annually
- Starting fall 2026, open enrollment ends December 15
- Three insurers for 2026 (CareSource no longer participating)
- Savings of $15+ million annually vs. federal exchange fees
Kentucky Medicaid:
- Kentucky expanded Medicaid under ACA starting in 2014
- Coverage for adults up to 138% FPL
- Children up to 218% FPL through KCHIP
- Pregnant women up to 200% FPL (12-month postpartum coverage)
- Application through kynect.ky.gov
KCHIP (Kentucky Children's Health Insurance Program):
- Coverage for children in families with income too high for Medicaid
- Income limits up to 218% FPL
- No premiums or cost sharing
- Coordinated enrollment through kynect
2026 Medicaid Changes:
- Six-month eligibility checks starting December 2026
- Work requirements (80 hours/month) for adults 19-64 starting 2027
- New income limits effective April 1, 2026
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
- Kentucky annuity suitability requirements
- 4-hour Annuity Training required before selling
4. Kentucky Insurance Regulations (20%)
Regulatory Authority:
- Kentucky Revised Statutes Chapter 304
- Kentucky Department of Insurance (DOI) authority
- Commissioner powers and duties
- Consumer protection regulations
Key Kentucky Laws:
- Unfair claims settlement practices (KRS 304.12-230)
- Replacement regulations for life insurance
- Advertising guidelines
- Privacy requirements
- Anti-discrimination provisions
Licensing Requirements:
| Requirement | Kentucky Standard |
|---|---|
| Pre-licensing Education | 40 hours (20 Life + 20 Health) |
| Education Validity | 1 year from course completion |
| CE Requirement | 24 hours every 2 years |
| Ethics CE | 3 hours required |
| Line of Authority CE | 6 hours in licensed lines |
| Annuity Training | 4-hour one-time requirement |
| License Renewal | Biennial, birth month |
| Testing Window | 120 days, unlimited attempts |
Exam Scheduling and Testing:
- Schedule through Kentucky DOI eServices account
- No walk-ins; appointment required
- Testing at DOI-approved locations
- No remote testing available in Kentucky
- $50 retake fee; unlimited attempts within 120 days
5. Ethics and Producer Responsibilities (5%)
- Fiduciary duty to clients
- Needs analysis and suitability requirements
- Full disclosure obligations
- Premium handling requirements
- Reporting misconduct to DOI
- 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 kynect | 15-20 |
| Week 3-4 | Annuities and retirement products | 10-12 |
| Week 4-5 | Kentucky 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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Kentucky-Specific Exam Tips
1. Master kynect Health Coverage
The kynect marketplace is central to Kentucky health insurance:
- State exchange benefits - Lower fees than federal marketplace
- Plan options - Bronze, Silver, Gold, Platinum tiers
- Subsidies - Premium tax credits and cost-sharing reductions
- Coordination - How kynect works with Kentucky Medicaid
- 2026 changes - Three insurers (CareSource exiting)
2. Know These Kentucky Numbers
| Topic | Kentucky Requirement |
|---|---|
| Grace period (life) | 30 days |
| Free look period | 10 days (20 for replacements) |
| Incontestability | 2 years |
| Pre-licensing | 40 hours (20 per line) |
| CE requirement | 24 hours/2 years |
| Ethics CE | 3 hours |
| Line of Authority CE | 6 hours |
| Passing score | 70% |
| Exam fee | $50 |
| Pre-licensing validity | 1 year |
| Testing window | 120 days |
3. Understand Medicaid Expansion
Kentucky's Medicaid expansion is significant:
- Coverage - Adults up to 138% FPL
- KCHIP - Children up to 218% FPL
- Pregnant women - Up to 200% FPL with 12-month postpartum coverage
- 2026 changes - Six-month checks, work requirements coming 2027
4. Review Kentucky-Specific Provisions
Key differences from other states:
- 20-day free look for replacement policies (vs. 10 days standard)
- State-administered exam (not third-party vendor for testing)
- No remote testing option available
- Criminal background check through Kentucky AOC required
Common Mistakes to Avoid
- Underestimating kynect coverage - The state exchange is heavily tested
- Ignoring free look differences - 10 days standard, 20 days for replacements
- Skipping KRS Chapter 304 - Kentucky statutes are significant on exam
- Not completing pre-licensing first - Must have certificate before applying
- Missing the 120-day testing window - Must pass within 120 days of application
- Cramming - Spread study over 4-6 weeks for best retention
- Expecting remote testing - Kentucky does NOT offer online proctored exams
After Passing Your Exam
- Receive immediate results - Computerized exams graded on completion
- Apply through DOI eServices - Submit license application
- Pay application fee - $40 base + $40 per line of authority
- Criminal background check - Required through Kentucky AOC (valid 60 days)
- Receive license - Processing takes approximately 5 business days
- Complete CE - 24 hours required every 2 years by birth month
2026 Kentucky Updates
kynect Exchange Changes:
- CareSource no longer offering marketplace plans for 2026
- Three insurers remain for individual/family coverage
- Starting fall 2026, open enrollment ends December 15 (previously January 23)
- All plans selected during open enrollment effective January 1
Medicaid Changes:
- Six-month eligibility checks begin December 2026
- Work requirements (80 hours/month) for adults 19-64 starting 2027
- New 2026 income limits effective April 1, 2026
Testing Updates:
- PSI Services contract ended July 1, 2024
- Exams now administered directly through Kentucky DOI eServices
- In-person testing only; no remote proctoring available
- Unlimited retakes within 120-day testing window
Premium Changes:
- Significant premium increases for 2026 due to federal subsidy expiration concerns
- Congressional action may affect subsidy availability
Start Your Kentucky Insurance Career Today
Kentucky's growing insurance market, state-based exchange, 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 Kentucky clients.
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Our free study materials include:
- Complete topic coverage for the combined Life & Health exam
- Practice questions with detailed explanations
- Kentucky-specific regulations and kynect content
- Study guides and summaries
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