Life and Health Insurance Exam 2026: Complete Study Guide

Quick Answer

The life and health (L&H) insurance exam is the state licensing test required to sell life, health, and annuity products to US consumers. Candidates complete 20–40 hours of pre-licensing education (depending on line of authority) before sitting a 100–150 question state exam with a 70% pass mark. Total first-year cost ranges $200–$700 including course, exam fee, and license application; license is valid 2 years with 16–30 hours of continuing education per renewal (NAIC, 2026).

Data last verified September 2026 from the National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act and state Departments of Insurance.

Lines of authority and pre-licensing hours

Source: National Association of Insurance Commissioners (2026).

Exam format

Source: Pearson VUE and Prometric state insurance candidate handbooks (2026).

Sample Q&A — L&H exam practice (15 questions)

Q1. What is the contestability period on a life insurance policy?

The contestability period is the first two years after a life insurance policy goes into force, during which the insurer may investigate and deny claims for material misrepresentation on the application. After two years, the policy becomes incontestable (NAIC Model Life Insurance Policy Provisions, 2026).

Q2. What is the free-look period?

The free-look period is typically 10 days (some states allow 15–30 days) during which a new policyholder can cancel a life or health insurance policy and receive a full refund of premiums. The free-look period starts when the policy is delivered to the policyholder (NAIC, 2026).

Q3. What is a Medigap policy?

A Medicare Supplement (Medigap) policy is private health insurance that helps pay some of the out-of-pocket costs not covered by Original Medicare, such as deductibles, copayments, and coinsurance. Medigap policies are standardized in most states using plan letters A through N (Centers for Medicare and Medicaid Services, 2026).

Q4. What is the difference between term and whole life insurance?

Term life insurance provides coverage for a specific period (10, 20, 30 years) and has no cash value. Whole life insurance provides lifetime coverage with a guaranteed cash value accumulation that grows at a contractually specified rate. Whole life premiums are typically 5 to 10 times higher than term premiums for the same face amount (NAIC, 2026).

Q5. What is the elimination period on a disability income policy?

The elimination period is the waiting period between the start of a disability and the start of benefit payments. Common elimination periods are 30, 60, 90, or 180 days. Longer elimination periods result in lower premiums (NAIC, 2026).

Q6. What is long-term care insurance?

Long-term care (LTC) insurance covers the cost of custodial care (help with activities of daily living such as bathing, dressing, and eating) when the insured cannot perform these activities independently. LTC policies typically cover care in nursing homes, assisted living facilities, and home health care (NAIC Shopper's Guide to Long-Term Care Insurance, 2026).

Q7. What is the Affordable Care Act (ACA) individual mandate?

The ACA requires most US citizens and legal residents to have minimum essential health coverage or pay a tax penalty. The individual mandate penalty was set to zero at the federal level starting in 2019, but several states (including California, Massachusetts, New Jersey, and Vermont) have reinstated state-level individual mandate penalties (Centers for Medicare and Medicaid Services, 2026).

Q8. What is COBRA continuation coverage?

COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees and their dependents to continue their group health insurance coverage for up to 18 months after job loss, divorce, or other qualifying events. The former employee typically pays the full premium plus a 2% administrative fee (US Department of Labor, 2026).

Q9. What is the difference between HMO and PPO health insurance plans?

HMO (Health Maintenance Organization) plans require members to use in-network providers and select a primary care physician who coordinates care and provides referrals to specialists. PPO (Preferred Provider Organization) plans allow members to use out-of-network providers at higher cost without referrals (NAIC, 2026).

Q10. What is a Health Savings Account (HSA)?

An HSA is a tax-advantaged savings account available to individuals enrolled in a High Deductible Health Plan (HDHP). Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. The 2026 HSA contribution limit is $4,400 for self-only coverage and $8,750 for family coverage (Internal Revenue Service, 2026).

Q11. What is the difference between Medicare Part A and Part B?

Medicare Part A is hospital insurance that covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most beneficiaries pay no premium for Part A if they or their spouse paid Medicare taxes for 10+ years. Medicare Part B is medical insurance that covers doctor visits, outpatient care, durable medical equipment, and preventive services. Most beneficiaries pay a monthly Part B premium (Centers for Medicare and Medicaid Services, 2026).

Q12. What is the Medicare Part D coverage gap (donut hole)?

The Part D coverage gap is a temporary limit on what the Part D plan will cover for prescription drugs. In 2026, once the beneficiary and plan combined have spent $2,100 on covered drugs, the beneficiary enters the coverage gap and pays 25% of the cost of brand-name and generic drugs until out-of-pocket spending reaches $8,000, after which catastrophic coverage begins (Centers for Medicare and Medicaid Services, 2026).

Q13. What is a beneficiary in a life insurance policy?

A beneficiary is the person or entity designated to receive the death benefit of a life insurance policy upon the insured's death. Primary beneficiaries are first in line; contingent (secondary) beneficiaries receive the benefit if all primary beneficiaries predecease the insured (NAIC, 2026).

Q14. What is the suicide exclusion period in a life insurance policy?

The suicide exclusion is typically the first two years of a life insurance policy. If the insured dies by suicide within this period, the insurer refunds premiums paid but does not pay the death benefit. After two years, the full death benefit is payable (NAIC Model Suicide Provision, 2026).

Q15. What is a fixed annuity?

A fixed annuity is a contract with an insurance company where the owner makes a lump-sum payment or series of payments, and the insurer guarantees a specified rate of interest for a defined period. Fixed annuities offer principal protection and guaranteed minimum interest rates (NAIC, 2026).

Eligibility and application steps

• Age: 18+ in most states (NAIC, 2026).
• Pre-licensing education: Complete the state-required hours from an approved provider.
• Background check: Disclose criminal history; states run a fingerprint-based check for new producers.
• State exam: Pass the L&H state exam with the minimum score.
• Apply for license: Submit the state Department of Insurance application with exam results, fingerprints, and fees.
• Appoint with carriers: After license issuance, contract with one or more insurance carriers to begin selling.

Renewal and continuing education

L&H producer licenses must be renewed before the end of the license cycle (typically 2 years). Most states require 16 to 30 hours of continuing education per cycle, including 2 to 4 hours of ethics training. Continuing education courses must be approved by the state Department of Insurance. Failure to complete CE on time results in license lapse and a reinstatement process (NAIC, 2026).

Resources and next steps

For exam scheduling, contact Pearson VUE or Prometric based on your state. For pre-licensing course providers, the NAIC website lists state-approved providers. For license application status, your state Department of Insurance website provides online access. The Insurance Information Institute (III) publishes consumer education materials that complement producer training.