100+ Free Life-Only Practice Questions

Pass your Life-Only Insurance License exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

60-80% Pass Rate

100+ Questions

100% Free

1 / 100

Question 1

Score: 0/0

Which of the following best describes a pure risk?

A risk that may result in either a loss or a gain

A risk that involves only the possibility of loss or no loss

A risk that can be eliminated by careful planning

A risk that is always uninsurable

to track

2026 Statistics

Key Facts: Life-Only Exam

100-125

Exam Questions

Varies by state form

70%

Passing Score

Standard across states

$50-75

Exam Fee Range

Pearson VUE/PSI

30-50 hrs

Recommended Study

Pre-licensing + practice

$60,370

Median Agent Salary

BLS 2024

400K

Retiring by 2026

BLS industry projection

The Life-Only producer exam is the standalone life-insurance license used in states like Arizona, Ohio, and Indiana when an agent does not need to sell health products. Most states use a 100-125 question Pearson VUE form with a 70% passing score and a 2-hour time limit. Fees typically run $50-75 plus a $40-60 fingerprint check. With 400,000 insurance professionals projected to retire by 2026 (BLS), demand for new life producers is strong; median agent pay is $60,370 (BLS 2024).

Sample Life-Only Practice Questions

Try these sample questions to test your Life-Only exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes a pure risk?

A.A risk that may result in either a loss or a gain

B.A risk that involves only the possibility of loss or no loss

C.A risk that can be eliminated by careful planning

D.A risk that is always uninsurable

Explanation: Pure risk involves only two possible outcomes: loss or no loss. There is no opportunity for gain. Insurance only covers pure risks (such as death, disability, or property damage), not speculative risks like investing or gambling.

2An applicant intentionally fails to disclose a recent heart attack on a life insurance application. This is BEST described as:

A.A physical hazard

B.A morale hazard

C.A moral hazard

D.An exposure

Explanation: Moral hazard is a tendency toward dishonesty that increases the chance of a loss for the insurer. Deliberate misrepresentation on an application is a classic moral hazard. A morale hazard is carelessness, and a physical hazard is a tangible condition (such as obesity or a hazardous occupation).

3Which of the following is NOT one of the elements required for a risk to be insurable?

A.The loss must be measurable in dollars

B.The loss must be due to chance

C.The loss must produce a financial gain for the insured

D.A large number of similar exposure units must exist

Explanation: Insurance is designed to indemnify, not enrich. A loss must NOT produce a financial gain for the insured; otherwise, the contract would create a moral hazard. Insurable losses must be measurable, due to chance, definite, and drawn from a large pool of similar exposure units.

4The principle that allows insurers to predict losses based on historical data and large groups of similar exposures is called:

A.Adverse selection

B.Indemnity

C.The law of large numbers

D.Subrogation

Explanation: The law of large numbers states that the larger the group of similar exposure units observed, the more closely actual losses will match expected losses. This statistical principle is the foundation of insurance pricing and underwriting.

5When must insurable interest exist for a life insurance policy to be valid?

A.Only at the time of the insured's death

B.Only at the time the policy is issued

C.Continuously throughout the life of the policy

D.Only at the time the beneficiary collects the death benefit

Explanation: Unlike property insurance, life insurance only requires insurable interest at the time the policy is issued (inception). Once the policy is in force, the insurable interest does not need to continue, which is why ex-spouses can remain beneficiaries on policies purchased during marriage.

6An insurer relies on the applicant to disclose all material facts on the application. The doctrine that places this duty on the applicant is:

A.Adhesion

B.Aleatory

C.Utmost good faith

D.Subrogation

Explanation: Insurance contracts operate under utmost good faith (uberrimae fidei): both parties must deal honestly and disclose material facts. The applicant must disclose everything the insurer needs to assess the risk, since the insurer cannot independently verify every detail.

7An insurance contract drafted by the insurer that the applicant must accept as written is BEST described as:

A.Aleatory

B.Unilateral

C.A contract of adhesion

D.Conditional

Explanation: A contract of adhesion is one drafted entirely by one party and offered on a take-it-or-leave-it basis. Because the insurer drafts the policy and the applicant has no power to negotiate terms, ambiguities in the policy are interpreted in favor of the insured.

8Which characteristic of an insurance contract reflects the fact that the insured pays a small premium for a potentially much larger benefit?

A.Aleatory

B.Conditional

C.Bilateral

D.Personal

Explanation: Aleatory contracts involve an unequal exchange of value: the insured pays a relatively small premium, while the insurer may have to pay a much larger benefit (or nothing at all). All insurance contracts are aleatory because performance depends on a chance event.

9The four elements required to form a legally binding insurance contract are:

A.Offer, acceptance, consideration, and legal purpose

B.Premium, policy, peril, and proof of loss

C.Application, underwriting, issue, and delivery

D.Insured, insurer, beneficiary, and producer

Explanation: All legal contracts (including insurance) require offer and acceptance, consideration (something of value exchanged), competent parties, and legal purpose. The application is the offer, the insurer's policy issue is the acceptance, and the premium plus statements are the insured's consideration.

10Adverse selection refers to the tendency of:

A.Insurers to deny claims to reduce losses

B.Producers to sell only to high-net-worth clients

C.Higher-risk individuals to seek out insurance more than lower-risk individuals

D.Beneficiaries to be selected based on insurability

Explanation: Adverse selection is the tendency of those most likely to experience a loss to apply for insurance more often than the average person. Insurers control adverse selection through underwriting, medical exams, exclusions, and waiting periods.

About the Life-Only Exam

The Life-Only Insurance License exam covers life insurance principles, policy types (term, whole, universal, variable life), policy provisions and riders, annuities, group life, and state regulations. This standalone license lets you sell life insurance and annuity products without testing on health insurance topics.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$50-75 (State Insurance Commissioner / Pearson VUE or PSI)

Life-Only Exam Content Outline

25%

Life Insurance Basics & Risk

Insurance principles, pure vs speculative risk, insurable interest, contract elements, and underwriting

25%

Life Insurance Policies

Term, whole life, universal life, variable life, and indexed universal life products

20%

Policy Provisions, Riders & Options

Grace period, incontestability, suicide clause, nonforfeiture, dividend and settlement options, and riders

15%

Annuities

Fixed, variable, immediate, and deferred annuities; accumulation, payout phases, and tax treatment

10%

Group Life & Business Uses

Group term life, conversion privilege, key person, buy-sell, and split-dollar plans

Regulations & Ethics

State licensing, producer responsibilities, replacement, and prohibited practices

How to Pass the Life-Only Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: $50-75

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Life-Only Study Tips from Top Performers

1Memorize policy provisions cold: 30-31 day grace period, 2-year incontestability, 2-year suicide clause, and nonforfeiture options (cash surrender, reduced paid-up, extended term).

2Master the four dividend options (cash, reduced premium, accumulate at interest, paid-up additions) and four common settlement options (lump sum, interest only, fixed period, fixed amount, life income).

3Compare term, whole, universal, and variable life across premium flexibility, cash value, death benefit, and investment risk - exam questions love these contrasts.

4Learn annuity mechanics: accumulation vs annuity (payout) phase, exclusion ratio, and the difference between fixed, variable, immediate, and deferred annuities.

5Know the prohibited practices: twisting, churning, rebating, misrepresentation, and unfair discrimination - these appear on every state form.

Frequently Asked Questions

What is the Life-Only insurance exam pass rate?

Life-Only exam pass rates generally fall between 60% and 80% depending on the state and provider. States with longer pre-licensing requirements tend to see higher pass rates. Working through 300+ practice questions and scoring 80%+ consistently before exam day significantly improves first-attempt pass odds.

How hard is the Life-Only insurance exam?

The exam is moderately difficult. Most candidates struggle with policy provisions (grace period, incontestability, nonforfeiture), universal life mechanics, and annuity tax treatment. Because there is no health portion, the Life-Only test concentrates more questions on life products and contract law than the combined Life & Health exam.

How many questions are on the Life-Only exam?

Most states use a 100 to 125 question Pearson VUE or PSI form for the Life-Only license, with a 2 to 3 hour time limit. Passing requires roughly 70% (about 70-88 correct answers depending on form length). Some states split the form into a national content section and a state-law section with separate scoring.

What topics are covered on the Life-Only exam?

The exam covers life insurance basics and risk (~25%), life policy types including term, whole, universal, and variable life (~25%), policy provisions and riders (~20%), annuities (~15%), group life and business insurance (~10%), and state regulations and ethics (~5%). Focus heavily on policy provisions, dividend options, and nonforfeiture.

How long should I study for the Life-Only exam?

Plan for 30 to 50 hours over 3 to 5 weeks. Most states require 20-40 hours of pre-licensing education before you can sit for the exam. Complete at least 300 practice questions, review every miss, and take two timed full-length practice tests scoring 80% or higher before scheduling.

What is the career outlook for life-only producers?

The BLS projects roughly 47,000 annual openings for insurance sales agents through 2033, and about 400,000 insurance professionals are projected to retire by 2026. Median pay is $60,370 with top 10% over $135,000. Many life-only producers later add health, Series 6, or Series 7 to expand into annuities and variable products.