2021 Version

Life & Health Insurance Agent Certification Test

A free Life & Health Insurance Practice Test to help you prepare..... To get certified or licensed to sell life and health insurance as an agent, a candidate has to pass a state licensing exam offered by a state licensing board.  Certification as a life and health insurance agent requires passing an exam and meeting other educational requirements.  

To prepare for your licensing exam, use the full-length Life & Health Insurance Agent Practice Exam with answers fully explained for ideal study. 

The practice exam is written by Susan Wright, CLU, ChFC, RHU, REBC, CSA, CLTC, CCFC, CSS, who has over 20 years of experience in the insurance industry.

The following practice exam is a sample from the full-length test.  


General Life Insurance Basics, Insurable Interest, Parties and Regulations

1. Which of the following is typically the lowest cost type of life insurance?
2. What is, in part, the primary purpose of insurance regulation?

Types of Life Insurance Policies and Individual versus Group Life Insurance

3. What are the two primary classes of life insurance?
4. Bob wanted to purchase life insurance coverage. He recently suffered an adverse health condition. Which type of life insurance will Bob have the easiest time qualifying for?

Life Insurance Application and Underwriting

5. Which of the following is considered to determine how a life insurance applicant will be rated by the insurance company as well as the premium that will be charged?
6. Most life insurance applicants fall into which of the following underwriting risk categories?

Selling Life Insurance, Determining Coverage Needs and Issuance and Delivery

7. Insurance agents have a responsibility to all of the following EXCEPT:
I. The insurance company
II. The applicant
III. The policy holder
IV. The beneficiary

8. Acceptable methods for delivering a life insurance policy to the newly insured include:
I. In person
II. Mail
III. Email

Life Insurance for Business Owners and in Estate Planning

9. Who names the beneficiary in a split dollar plan?
10. A new start-up internet company, Ecompany, applied for a business loan. The bank was concerned with the company's lack of assets and asked that its executives take out life insurance policies with the bank as a beneficiary. The bank's request violated the Federal Insurance Office Act of 2010 under Dodd-Frank.

Policy Components, Riders and Non-forfeiture Options

11. Which of the following will prevent a life insurance policy from lapsing for failure to pay the premium?
12. On a whole life insurance policy, as time goes on, more of the premium goes towards the cost of providing the ____________.

Claims, Settlement Options and Tax Concepts

13. What kind of expenses are funeral and cemetery costs?
14. When a policy holder uses the cash surrender non-forfeiture option, the insurance company will pay the cash surrender value to the insured. When the insured receives the cash surrender value, it will be taxed as ordinary income.

Living Benefits and Viatical and Life Settlements

15. If a life insurance policy holder accesses a portion of his or her life insurance proceeds, he will be able to use them for which of the following?
16. In many cases, the insured on a life insurance policy must be ____________ before the policy can be sold in a viatical settlement transaction.

General Health Insurance Basics, Regulation and Social Health Insurance

17. Which of the following health insurance policies allow insureds to choose which doctor and hospital they want when they need medical services?
18. When those who experience greater health risks apply for and continue their coverage in a health insurance plan it is referred to as __________.

Types of Health Insurance Policies and HMO and PPO

19. Which of the following tend to promote healthier life choices and preventive care?
20. Frank is ineligible for a traditional fee-for-service health insurance policy due to his heart disease. Which of the following must accept Frank?

Health Insurance Policy Components and Exclusions

21. Which of the following is a cost to an insured to transfer risk to an insurance company?
22. The parties to an individual health insurance contract include

Selling Health Insurance, Issuance and Delivery and Tax Considerations

23. According to the IRS, if an individual is paying out-of-pocket for employer group health coverage under the COBRA health coverage continuation law, the premium is not considered as a medical expense for tax purposes.
24. Who determines the cost of insurance premiums in an insurance policy?

Deductibles and Copayments

25. In most cases, health insurance policies with higher deductibles will have __________ premiums.
26. If an insurance company requires 20% coinsurance and the total bill comes to $1,500, the policy holder will be required to pay __________ and the insurance company would pay __________.

Health Insurance Claims and Indemnity vs. Reimbursement

27. Which of the following is a stop-loss provision that prevents medical bills from financially devastating consumers?
28. Which type of long-term care insurance policy will pay the policy holder a fixed amount of dollars per day, up to a fixed amount of benefits, regardless of the expense incurred?

Disability and Related Insurance and Seniors and Special Needs Individuals

29. Ed and Erma, a married couple, have recently enrolled in Medicare Parts A and B. Both are age 65, yet both still work full-time. The couple files their income taxes as joint filers. How will their Medicare Part B premium be calculated?
30. Originally, there were __________ Medicare Supplement policies that enrollees could choose from.

Risk Management and Legal Concepts

31. Which of the following is a statement by the issuing insurance company in an insurance contract that sets out the essential elements of insurance?
32. Which of the following could be a predicate for a condition precedent in an insurance contract?

Types of Insurance Entities and HIPPA

33. Under the Affordable Care Act, how long is a health insurance plan allowed to look back for a condition that was present before the start of coverage in a group health insurance plan?
34. HIPAA requires that all employers offer health insurance coverage.

Fraud and Unauthorized Entities

35. Ted deliberately "staged" a soft tissue injury for the purpose of gaining a claim check from his health insurance company. What type of insurance fraud was he involved with?
36. Some examples of insurance fraud include all of the following EXCEPT:

Life & Health Exam

Quality starts with who wrote the material.
Our practice exam writer
, has worked in the insurance and financial services industry for over 20 years, where she has focused, in part, on producing training and educational materials. She has held roles at several large insurance and investment companies. Ms. Wright has been licensed as an insurance agent and an NASD/FINRA securities broker. She has earned nine industry professional designations, including: Chartered Life Underwriter, Registered Health Underwriter, Registered Employee Benefits Consultant, Certified Senior Advisor and Certified in Long-Term Care.
Our practice exam covers life and health insurance exam subject areas that are common across the country and is not specific to any one state but rather applicable to all states. It covers all of the following areas which are typically covered in your actual state Life & Health Insurance examination:
  • General insurance
  • Insurance regulation
  • Life insurance basics
  • Life insurance policies
  • Life insurance policy provisions, options, and riders
  • Annuities
  • Federal tax considerations for life insurance and annuities
  • Qualified plans
  • Health Insurance basics
  • Individual health insurance policy general provisions
  • Disability income and related insurance
  • Medical plans
  • Health maintenance organizations
  • Group health insurance
  • Dental insurance
  • Insurance for special needs individuals and senior citizens
  • Federal tax considerations for health insurance