Texas Life and Health Insurance Exam – How to Pass

Are you considering getting your Texas Life and Health insurance license?

If you are searching for information about how to pass the Texas Life and Health insurance exam, you have come to the right place. As you will see, this page is the #1 resource for everything you need to know about how to pass the Texas Life & Health exam. My name is Scott Schultze, and I am the director of insurance licensing content here at PassMasters. For over 20 years, my family has been teaching people in Texas how to get their insurance licenses.

Read on to find answers to the most commonly asked questions related to taking this exam. Do you have a question that isn’t answered below? If so, submit it to us on our Contact Us page and we will get right back to you and add your question to this page. If you have been studying to pass this exam and just aren’t getting it, or have taken the exam and failed, we can help. You can sign up with us here.

How to Pass a Life & Health Insurance Exam in Texas

Who gives the Texas insurance license exam?

Since insurance is regulated by state law, it is the Texas Department of Insurance, or TDI, who decides who administers the insurance licensing exam in Texas. Did you know, in some states the insurance exam is actually given by the Department of Insurance itself? Well, not in Texas. In Texas, the TDI has secured Pearson VUE, which is an IT service management company that has secured many state insurance license exam contracts throughout the nation. Pearson VUE also administers licensing exams for many other professions in Texas.

It is Pearson VUE that comes up with the exam questions you will encounter on your life and health insurance licensing exam. Essentially, Pearson VUE administers the entire insurance license exam process for Texas, on behalf of the TDI.

Pearson VUE Texas Insurance Licensing Candidate Handbook

What types of insurance can I sell with a Texas Life and Health insurance license?

Once you obtain your license you will be able to sell fixed life insurance products, such as fixed life insurance and annuities. Additionally, you will be able to sell health insurance products, such as medical expense, disability income, and dental insurance.

What is the Texas General Lines – Life, Accident & Health Exam Code?

You will need to know this information when you schedule your test. In Texas, there are two versions of the General Lines – Life, Accident, and Health test. One version is delivered in English and one is in Spanish. Here are the exam codes for each version:

English – InsTX-LAH05

Spanish – InsTX-LAH25

How many questions are on the health and life insurance exam in Texas?

There are 150 questions total on the Texas Life & Health insurance licensing exam. The exam is made up of two parts as follows:

Part 1 – General Knowledge100 scoreable questions plus 15 pretest questions

Part 2 – State-Specific Content (Texas Insurance Regulations) – 30 scoreable questions plus 5 pretest questions

What is a pretest question? Well, before Pearson VUE can consider a test question statistically valid, they must test it out using the test takers (you) as a guinea pig. If everyone gets the answer right, or wrong, the question is deemed invalid and is not used any further.

You WILL NOT know which questions are pretest questions. However, they do not count towards your score. They are usually related to newer laws and concepts, so if you see a question out of left field, just assume it is a pretest question, do your best, answer it, and move on.

View the Texas Life & Health Insurance Exam Outline

What is the time limit for the exam?

The exam has a 150-minute time limit. This breaks down to one minute per question, which should be more than enough time. We have never had a study run out of time. However, it’s not a race. If you go too quickly you are guaranteed to miss a question or two simply because you misread it. Take your time and read the entire question before you look at any answers. There are no scheduled breaks during this exam, however, if you need to use the bathroom, or get a drink, do it!

How much does it cost to take the Texas Life & Health licensing exam?

The exam is $43. Keep in mind that if you fail, you must pay the $43 fee again. The fee is a one-time test-taking fee and must be paid each time the exam is taken.

What is the minimum score required to pass?

The minimum score required to pass is 70%. The passing score for the exam is not based on each part separately but on the exam as a whole.

How long will it take for me to find out if I passed my exam?

Once you have completed your exam, the proctor will inform you shortly thereafter by printing out and presenting you with your official score report. You will NOT be informed which questions you answered correctly, or incorrectly. If you do not pass, make sure to keep this report, as it will give you insight into those areas you will need to focus on as you continue your studies.

Your score report is good for 12 months. If you do not obtain your license within 12 months, you will have to take and pass the licensing exam again.

What will the Texas Life and Health insurance exam questions look like?

All Texas insurance exams are multiple-choice and delivered via computer. The questions you will encounter on the life and health exam in Texas are pulled for each individual test-taker by Pearson VUE from their databank of thousands of questions. In other words, each exam is different and created for each individual test taker.

This is why it is so important to understand the concepts found in the exam outline to successfully answer any question you encounter on the exam. Below you will find a few sample life and health exam questions pulled directly from our Texas life and health insurance exam prep course, which are similar to those you will encounter on the exam:

Life Sample Questions:

Ralph Macchio owns a 30-pay life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of:

A. 60
B. 30
C. 70
D. 100

Answer: D
Explanation:  Limited-pay life insurance policies such as life paid up at 65, or 20-pay life are simply variations of whole life policies. The cash value will equal the face amount of the policy (at least) at the maturity of the policy, which is always age 100 on whole life policies. These limited-pay policies are designed so that the insured may pay his or her premiums faster and be paid up at a certain age. However, just because the premiums are paid up doesn’t mean the policy has matured.

Dividend projections may be included in a proposal for life insurance when which of the following is true?

A. The applicant has requested that they are included
B. There is a clear statement that payment of future dividends is not guaranteed
C. The projected amounts are calculated based on the Commissioners Standard Ordinary Mortality Tables
D. The projected amounts do not exceed the dividends previously paid by the same insurance company

Answer:  B
Explanation:  Dividends MAY be paid to policyholders of a mutual insurance company, such as Mutual of New York. Dividends are considered to be a return of an overpayment by the IRS and, therefore, are not taxable. Although a company may state its past dividend history in a proposal, it is illegal to guarantee future dividends, since they might not occur.

Health Sample Questions:

The right of an employee to exchange their group insurance for an individual policy within 31 days from termination of employment is provided by the:

A. Insurability provision
B. Conversion provision
C. Reinstatement provision
D. Renewability provision

Answer:  B
Explanation:  State law requires that an insured be given at least 31 days to convert their group coverage to individual coverage with the same insurance company if they quit their job or are terminated. The new coverage may not be quite as good and may cost more since it is individual coverage. Don’t confuse conversion with COBRA, which is a federal regulation that permits insureds to stay in the group up to 18 months if they pay their own premium. Group coverage is better.

The legal actions provision of an A&H policy requires that:

A. An arbitrator be used to settle disputes between the insurance company and the insured
B. Claims are settled promptly
C. An insured must wait at least 60 days after submission of proof of loss before initiating a lawsuit
D. The insurance company must settle a claim within 60 days after receipt of proof of loss

Answer: C
Explanation:  Insurers are supposed to pay health insurance claims immediately. However, they do have 60 days after proof of loss to conduct an investigation. If they do not pay after 60 days, the claimant may file a lawsuit or legal action.

How do I study to PASS my Texas L&H test?

It’s a pretty straightforward process really. Over the past 20 years, we have helped thousands of people do it. In our life and health exam prep course, you will find a 14-day study plan which will have you ready to pass your exam in only two weeks.

The formula you will follow is to read a pdf section of our study manual, watch an instructor teach you the content in the section, watch a key fact video review and then complete a section review exam. You will complete each section in the course in this manner until you reach the course’s final exam. Pass the final exam with a 90% or better and you are ready to go!

Are you ready to pass? Find out really quickly by taking one of our free exams here and checkout feedback from a real life person just like you who found success with our Texas Life and Health Insurance exam prep video course:

“Back in November when I became an Associate with my company, I went on my own and signed up online for a commitment to an exam date. I had no idea that Life Health and Accident was the test I was supposed to sign up for! The first two times I took the exam I mistakenly signed up for the Life and Health Counselor Exam! I made a 46 on the first one and a 69 on the 2nd one! I of course can laugh about it now but it really made me doubt myself! One Saturday, we were listening to a conference call and one of the Speakers spoke about your program. Everyone in the class told me to stick to my original study materials which were through Ex** FX. I gotta tell ya, they were boring as HELL! I looked you up that same day and signed up that same day! Here I am today telling you that you helped me pass my exam! I’ve been in the dental field for the past 28 years of my life and now am doing this as a part-time job. Being an office manager in a busy dental office gives you a lot of distractions. Up until midnight last night, I watched your last video and took the last 2 practice exams in Health but ran out of time to do the online final exam. I bet I would have had a higher test score had I had more time to study! Sorry, my feedback is not short but I must tell you all I kept visualizing are your illustrations! I am for sure pursuing this career and looking forward to more test sessions with you in the future! Thanks a lot!”

Gina

TX Life & Health student

How do I schedule my Life & Health insurance exam in Texas?

You can schedule your exam with Pearson VUE online at https://home.pearsonvue.com/tx/insurance or by calling them at 1-888-754-7667. You must be at least 18 years of age before sitting for the exam and have a valid Social Security number.

Pro tip: Make sure to schedule your exam well in advance of completing our course so you can make sure to get the date and time you want at the test center of your choice. Pearson VUE encourages candidates to make their exam reservation at least twenty-four (24) hours in advance. We recommend even further in advance. Keep in mind exam testing fees are not accepted at the test center.

Where is the Texas life and health insurance licensing exam given?

Pearson VUE has many testing locations throughout Texas. Regardless of which one you choose to take your exam at, Pearson VUE recommends you arrive at the testing center at least 30 minutes before your scheduled exam so you can check-in. You should also be aware the testing center is a very serious place. They may make you empty your pockets and put all your personal belonging in a locker in the waiting room before you enter the testing room.

What happens if I fail my insurance exam?

Nothing. Keep in mind, that neither your score on your life and health exam nor how many times it takes you to pass is an indication of how great you are going to be at this job.

If you do fail, you can schedule a new exam within one day. There is no limit to the number of times a candidate can take an exam. However, a new testing fee must be paid for each exam retake ($43).

It is also important for you to know the next time you take the exam you may not see any of the same questions you encountered before. Pearson VUE has thousands of questions in their databank, so it is unlikely you will see many of the same questions upon a second attempt at the exam. This is why it is so important to understand the concepts vs. memorizing questions and answers. Do you need help passing this exam? We have an excellent course where your success is guaranteed. You can view our Texas Insurance Exam Prep courses here.

Once I pass, how do I go about getting my Texas Life and Health insurance license?

The TDI will issue an insurance license to individuals who:

• Are at least eighteen (18) years old
• Have passed the proper licensing examination (if required) and submit a completed application within twelve (12) months after the exam is passed
• Submit a completed application with fee, and fingerprint receipt
• Met all applicable license requirements
• Have not committed an act for which a license may be denied, as defined under §4005.101 of the Texas Insurance Code and §1.502 of 28 Texas Administrative Code

You can apply electronically for your license as directed at www.sircon.com/texas after you have passed the exam. As mentioned above, your exam score report is only valid for 12 months from the date of issuance. If you don’t apply for your license within 12 months, the licensing exam must be taken again.

Sample Life and Health exam prep course videos:

Our course was created for someone who has NO insurance background at all! Using our 14-day study plan, you will start building an insurance definition-based foundation that will have you ready to answer all your exam questions correctly by the end of the course. Our course is highly video-based. Come on insurance is boring enough, but our instructor Scott makes it easy to understand. Sample course videos below:

Additional FREE Insurance Exam Prep Videos:

We also post insurance exam prep videos on our YouTube page to help those people that may need some additional help while studying for their Texas Life & Health license. You can find our page here and see some sample below: