1.1 Life-Only Exam Facts & Format

Why the Format Matters

The Life-Only Insurance Producer License exam is the entry credential for selling life insurance and annuity products in states that offer a standalone life line, such as Arizona, Ohio, and Indiana. Knowing the format before you study lets you budget time correctly: you cannot pass a 70% bar by cramming, and most states require pre-licensing education (typically 20-40 hours) that you must complete before you are even allowed to schedule the test.

Structure and Scoring

Most states deliver the exam through Pearson VUE or PSI as a computer-based, multiple-choice test. While the National Association of Insurance Commissioners (NAIC) publishes model content standards, each state writes its own form, so the exact count varies.

Many states divide the form into a national (general) section covering insurance principles, policies, and provisions, and a state-law section covering that state's statutes, the commissioner's powers, and licensing rules. These are frequently scored separately, which means you must clear both halves on the same sitting. Passing the national portion but failing the state portion still counts as a fail, so do not neglect state-specific rules.

Scoring and the 70% Bar

Scoring is criterion-referenced: you are graded against a fixed standard, not curved against other candidates. Pretest (unscored) questions are sometimes embedded in the form, so the number of scored items can be slightly lower than the displayed count. You will usually receive a pass/fail result immediately at the testing center; failing reports often include a diagnostic showing which content areas were weak.

Worked example: Suppose a state form shows 115 questions, but 15 are unscored pretest items. You are graded on the 100 scored questions, and a 70% bar means you need 70 correct. Missing 30 of the 100 still passes; missing 31 fails. Because you cannot tell which items are pretest, treat every question as if it counts.

Common exam trap: Candidates assume "70%" is calculated on the displayed question count. It is calculated on scored items only, so do not waste time trying to guess and skip the pretest questions.

Retakes and Scheduling

• Scheduling: Register through the Pearson VUE or PSI portal for your state after finishing pre-licensing education. Bring two forms of ID, one government-issued with a photo.
• Retake wait: Most states let you retake after a short waiting period, often as soon as the next day or a few days later.
• After repeated fails: Several states impose a longer cooling-off period (commonly around 30 days) or additional education after three failed attempts.
• Cost: You pay the exam fee again for each attempt, so first-attempt preparation is the cheapest path.

What "Life-Only" Covers vs. Life & Health

The Life-Only license authorizes you to sell life insurance (term, whole, universal, variable) and annuities only. It deliberately omits health insurance, disability income, long-term care, and Medicare supplement products. The combined Life & Health (sometimes "Life, Accident & Health") license adds those health topics and a larger exam.

Because Life-Only removes the health section, it concentrates more questions on life products, policy provisions, contract law, and annuities than the combined test does. That is good news for focus but means you cannot lean on shallow knowledge of any life topic.

Blueprint Weights to Plan Around

Note: Selling variable life insurance or variable annuities also requires a securities registration (FINRA Series 6 or Series 7 plus Series 63), because those are securities, not just insurance products. The Life-Only license alone is not enough for variable products.

How to Study for This Format

The blueprint tells you exactly where to spend time. Combined, life basics and life policy types make up half the exam (50%), and provisions/riders add another 20%. That means 70% of your score rides on understanding products and contract mechanics; annuities, group/business cases, and regulation split the remaining 30%. Do not over-invest in the small 5% regulation slice at the expense of policy provisions.

A realistic plan looks like this:

• Weeks 1-2: Finish state-required pre-licensing education (20-40 hours). Read this guide's chapters in order; the topics build on each other.
• Week 3: Drill the high-yield memorization items cold: grace period (30-31 days), incontestability (2 years), suicide clause (2 years), nonforfeiture options, dividend options, and settlement options.
• Weeks 4-5: Complete at least 300 practice questions, review every miss, and take two timed full-length practice tests scoring 80% or higher before you schedule the real exam.

Because some states score the national and state sections separately, treat your state's specific statutes (commissioner powers, license terms, replacement rules) as a distinct study block rather than an afterthought.