What is the insurance licensing exam?
To sell insurance or adjust claims, you must pass a state licensing exam for the specific line of authority you want — such as Life, Health (or Accident & Health), Property, Casualty, or Adjuster. Each line has its own exam, and many people take combined exams (for example, Life & Health or Property & Casualty). Pre-licensing education is required in many states.
Lines of authority and what they cover
Life covers life insurance and annuities. Health covers medical, disability, and long-term care coverage and government programs. Property covers homeowners and commercial property. Casualty covers liability lines such as auto, general liability, and workers compensation. The Adjuster license covers investigating, evaluating, and settling claims. Each exam typically has a general (national) section on insurance concepts and a state-law section.
Key concepts tested
Across lines, exams test foundational concepts such as insurable interest, indemnity, the law of large numbers, risk and underwriting, policy provisions, and ethics, plus line-specific material (for example, life insurance types and taxation, or property valuation and perils). The state section covers your state's insurance laws, the department of insurance, and licensing rules.
Passing requirements
The number of questions, time limits, and passing score are set by each state and its testing vendor; a passing score around 70% is common. Many states require pre-licensing course completion and a background check. Confirm the current requirements for your state and line of authority.
How to study
Complete any required pre-licensing course, then concentrate on the foundational concepts and the policy provisions for your line, plus your state's specific laws. Insurance exams use precise terminology, so practice questions with explanations are valuable for learning definitions and distinctions (for example, the difference between an HMO and a PPO, or actual cash value versus replacement cost).