PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for Life & Health

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
425+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Life & Health Insurance

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

California Life & Health Insurance

Practice Questions647 questionsStudy Guide88 topicsCheat Sheet80 factsFlashcards50 cardsGames43 termsCourse Playlist79 videosVideos3 videosBlogs4 blogsFree CE

Alabama Life & Health Insurance

Practice Questions625 questionsStudy Guide13 topicsCheat Sheet187 factsFlashcards50 cardsCourse Playlist79 videosVideos1 videoBlogs4 blogsFree CE

Florida Life & Health Insurance

Practice Questions596 questionsStudy Guide88 topicsCheat Sheet176 factsFlashcards50 cardsGames44 termsCourse Playlist79 videosVideos2 videosBlogs4 blogsFree CE

Texas Life & Health Insurance

Practice Questions649 questionsStudy Guide26 topicsCheat Sheet128 factsFlashcards50 cardsGames43 termsCourse Playlist79 videosVideos2 videosBlogs3 blogsFree CE

Mississippi Life & Health Insurance

Practice Questions655 questionsStudy Guide81 topicsFlashcards50 cardsCourse Playlist79 videosVideos1 videoBlogs2 blogsFree CE

Georgia Life & Health Insurance

Practice Questions625 questionsStudy Guide19 topicsCheat Sheet224 factsFlashcards50 cardsCourse Playlist79 videosVideos1 videoBlogs2 blogsFree CE

More From This Family

Videos and articles for deeper review.

Video100+ FREE Life Insurance Sales Roleplay Drills (2026)This examVideo9 Science-Backed Study Methods for Certification Exams (2026)This examVideoAccelerated Death Benefit ExplainedThis examVideoActual Cash Value (ACV) ExplainedThis examArticleLife & Health Exam 2026: Hardest Topics and Study Plan18 min readArticleCertification Exam Study Schedules 2026: Six Weekly Plans20 min readArticle100+ FREE Life Insurance Sales Roleplay Drills (2026)12 min readArticleFree Life & Health Insurance Practice Questions 2026: 400+ Exam Questions12 min read
Exam Review

Key Facts: Life & Health Exam

60%

California Passing Score

California Department of Insurance

Scaled 70

Illinois Passing Score

Pearson VUE Illinois handbook

150

California Combined Exam Questions

California Department of Insurance

$62,280

Median Agent Salary

BLS May 2025

43,100

Annual Job Openings (2025-35)

BLS

The Life & Health insurance producer exam is a state licensing test, so its length and passing standard vary by state. California's combined Life, Accident and Health exam has 150 questions and requires 60% to pass, while Illinois gives a General and a State exam for each line and requires a scaled score of 70. Median insurance agent salary is $62,280 (BLS, May 2025).

Sample Life & Health Practice Questions

Try these sample questions to review concepts for the Life & Health exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 425+ question experience with AI tutoring.

1Which of the following is an example of a pure risk?
A.Investing in mutual funds
B.Starting a new restaurant
C.The possibility of becoming disabled
D.Buying lottery tickets
Explanation: The possibility of becoming disabled is a pure risk because there are only two outcomes: you either become disabled (loss) or you don't (no loss). There's no opportunity for gain. The other options are speculative risks because they involve the possibility of financial gain as well as loss.
2An applicant lies about their smoking history on a life insurance application. This is an example of:
A.Physical hazard
B.Moral hazard
C.Morale hazard
D.Speculative risk
Explanation: Lying on an insurance application is a moral hazard because it involves intentional dishonesty. The applicant is deliberately misrepresenting information to obtain insurance or pay lower premiums. Physical hazards are tangible conditions, morale hazards involve carelessness, and speculative risk is a category of risk, not a hazard.
3A person doesn't bother to lock their front door because they have homeowners insurance. This is an example of:
A.Pure risk
B.Moral hazard
C.Morale hazard
D.Physical hazard
Explanation: This is a morale hazard—carelessness or indifference to loss because insurance coverage exists. The person isn't being dishonest (moral hazard), but they're being careless because they know insurance will cover any theft. Remember: morale hazard = carelessness, moral hazard = dishonesty.
4A person decides to install a home security system to reduce the chance of burglary. This is an example of:
A.Risk avoidance
B.Risk reduction
C.Risk retention
D.Risk transfer
Explanation: Installing a security system is risk reduction—it decreases the likelihood of a burglary occurring, but doesn't eliminate the risk entirely. Risk avoidance would mean not owning valuable property at all. Risk retention would mean accepting the loss yourself. Risk transfer would mean buying insurance.
5When a policyholder chooses a $2,000 deductible instead of a $500 deductible, they are engaging in:
A.Risk avoidance
B.Risk reduction
C.Risk retention
D.Risk transfer
Explanation: Choosing a higher deductible is risk retention. By accepting the $2,000 deductible, the policyholder is agreeing to pay the first $2,000 of any loss themselves. They're retaining more of the risk in exchange for lower premium payments.
6The primary purpose of purchasing insurance is to:
A.Avoid all risks
B.Reduce the likelihood of loss
C.Transfer the financial consequences of loss to another party
D.Eliminate hazards
Explanation: The primary purpose of insurance is risk transfer—shifting the financial consequences of a loss from the policyholder to the insurance company. Insurance doesn't avoid risks or prevent losses from occurring; it provides financial compensation when covered losses happen.
7The law of large numbers states that:
A.Insurance companies must insure large numbers of people
B.As the number of exposure units increases, actual results more closely match predicted results
C.Large losses are more predictable than small losses
D.Insurance premiums must be based on large numbers
Explanation: The law of large numbers states that as the sample size increases, actual results more closely approximate expected (predicted) results. This allows insurance companies to accurately predict losses and set appropriate premiums when they have many similar policyholders.
8Which of the following is NOT a requirement for an insurable risk?
A.The loss must be accidental
B.The loss must be definite and measurable
C.The loss must guarantee a profit for the insurer
D.The loss must not be catastrophic
Explanation: There is no requirement that an insurable risk must guarantee a profit for the insurer. The requirements for an insurable risk are: due to chance (accidental), definite and measurable, statistically predictable, not catastrophic, and economically feasible. Insurance involves the possibility of loss for both parties.
9Risk pooling works because:
A.It eliminates all risk from the pool
B.The premiums of many pay for the losses of a few
C.It guarantees that no one in the pool will have a loss
D.It reduces the cost of individual claims
Explanation: Risk pooling works because the premiums collected from many policyholders are used to pay for the losses experienced by the few who have claims. Individual uncertainty is replaced by group predictability, and each person's small premium contribution helps cover the significant losses of others.
10In a mutual insurance company, who owns the company?
A.Stockholders
B.The board of directors
C.Policyholders
D.The state insurance commissioner
Explanation: In a mutual insurance company, the policyholders are the owners. When you purchase a policy from a mutual company, you become a part-owner. Profits (surplus) are returned to policyholders as dividends, and policyholders can vote on company matters.

About the Life & Health Exam

The life and health insurance exam covers insurance principles, life insurance products, health insurance, annuities, and state regulations. This license is essential for selling life insurance, health insurance, annuities, and Medicare products.

Exam sponsor: State insurance department; testing vendors vary (Pearson VUE in Illinois, PSI in California). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

Varies by state (California combined exam: 195 minutes in the PSI bulletin; Illinois Life: 75 minutes general + 50 minutes state)

Passing Score

Varies by state (California 60%; Illinois scaled score of 70)

Exam / Certification Fees

Varies by state (California $55 per exam; Illinois $92 for a line's General and State exams ordered together)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Life: Types of Policies

Whole, universal, variable and term life, annuities (15 of 50 Illinois Life general questions)

30%

Life: Provisions and Riders

Provisions, beneficiaries, nonforfeiture, dividend and settlement options, riders (15 of 50 Illinois Life general questions)

24%

Life: Application and Underwriting

Application, underwriting, receipts and delivery (12 of 50 Illinois Life general questions)

16%

Life: Retirement and Other Concepts

Ownership, group life, retirement plans and taxation (8 of 50 Illinois Life general questions)

32%

Health: Types of Policies

Disability income, medical expense, group, dental and LTC (16 of 50 Illinois Accident and Health general questions)

30%

Health: Provisions and Riders

Mandatory and optional provisions, clauses and riders (15 of 50 Illinois Accident and Health general questions)

38%

Health: Social Insurance and Underwriting

Medicare, Medicaid and Social Security (6), other concepts (5), field underwriting (8) of 50 Illinois Accident and Health general questions

Varies

State Law Section

Separate state outline: 31 scored questions for Illinois Life, 39 for Illinois Accident and Health

Preparing for the Life & Health Exam

What You Need to Know

  • Passing score: Varies by state (California 60%; Illinois scaled score of 70)
  • Assessment: Question count not published by the exam provider
  • Time limit: Varies by state (California combined exam: 195 minutes in the PSI bulletin; Illinois Life: 75 minutes general + 50 minutes state)
  • Exam / certification fees: Varies by state (California $55 per exam; Illinois $92 for a line's General and State exams ordered together) Official sources

Using Our Practice Resources

  • Work through all 425 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Life & Health: Suggested Study Strategy

1Master policy provisions - know grace periods, incontestability, nonforfeiture options, and settlement options
2Understand the differences between term, whole life, and universal life insurance
3Learn Medicare Part A, B, C, D coverage and Medigap policies thoroughly
4Study annuity types and their tax treatment - fixed vs variable, immediate vs deferred
5Know prohibited practices: twisting, rebating, misrepresentation, and unfair discrimination

Frequently Asked Questions

What is the Life & Health insurance exam pass rate?

There is no single national pass rate: each state runs its own exam and reports its own results. The passing standard also varies. California requires 60% on every producer exam, while Illinois uses a scaled passing score of 70 that is not a percentage of questions answered correctly. Practice with full-length question sets and review your state-law section before testing.

How hard is the life and health insurance exam?

It is a moderately difficult state licensing exam. Policy provisions, annuities, health plan rules and Medicare questions take the most practice for many candidates, and the state-law section varies from state to state. Plan steady study time and use practice questions to find weak areas before you schedule.

How many questions are on the life and health exam?

It depends on the state. California's single-line Life and Accident & Health exams each have 75 questions, and its combined exam has 150 (the PSI bulletin allots 195 minutes for the combined exam). Illinois gives a General and a State exam for each line: Life has 50 scored general questions in 75 minutes and 31 scored state questions in 50 minutes, plus unscored pretest items.

What topics are covered?

In the Pearson VUE Illinois outline, the Life general exam covers types of policies (15 of 50 questions), provisions, riders and options (15), application and underwriting (12) and retirement and other concepts (8). The Accident and Health general exam covers types of policies (16), provisions (15), social insurance (6), other concepts (5) and field underwriting (8). Each state adds its own law questions.

How long should I study for the Life & Health exam?

Study time depends on your background and schedule. Some states require pre-licensing education first: Illinois requires 20 hours each for Life and for Accident and Health, while Pennsylvania has required none since April 29, 2025. Complete plenty of practice questions before scheduling your exam.

What is the job outlook for insurance agents?

The BLS projects about 43,100 openings per year for insurance sales agents from 2025 to 2035. Median salary is $62,280 with the top 10% earning more than $138,140 (BLS, May 2025).