Texas Life and Health Insurance Exam Guide
Passing the Texas Life and Health Insurance exam is the gateway to selling life insurance, health insurance, annuities, and HMO plans in the state. Whether you're starting a new career or adding a line of authority, this guide breaks down what the exam covers, how it's structured, and what Texas-specific laws you need to know.
Exam Format and Logistics
The Texas Life and Health Insurance exam is administered by Pearson VUE. Here are the key numbers:
- Scored questions: 130
- Time limit: 150 minutes (2 hours, 30 minutes)
- Exam fee: $49
- Passing score: 70%
That gives you roughly 69 seconds per question — enough time if you've studied, but not enough to second-guess every answer. The exam is multiple-choice, and you'll receive your pass/fail result immediately after finishing.
What the Exam Covers
The 130 questions are divided across 12 content areas. Understanding how many questions come from each section helps you allocate study time effectively:
| Content Area | Approx. Questions |
|---|---|
| Types of Life Policies | ~15 |
| Life Policy Riders, Provisions, Options, and Exclusions | ~15 |
| Completing the Application, Underwriting, and Delivering the Policy | ~12 |
| Retirement and Other Insurance Concepts | ~8 |
| Types of Health Policies | ~16 |
| Health Policy Provisions, Clauses, and Riders | ~15 |
| Social Insurance | ~6 |
| Other Health Insurance Concepts | ~5 |
| Field Underwriting Procedures | ~8 |
| Texas Statutes and Rules Common to Life and Health Insurance | ~14 |
| Texas Statutes and Rules Pertinent to Life Insurance Only | ~6 |
| Texas Statutes and Rules Pertinent to Health Insurance and HMOs | ~10 |
The three Texas-specific sections account for roughly 30 questions — nearly a quarter of the exam. Many candidates underestimate these sections, so don't skip them.
Key Texas Statutes and Rules You'll Be Tested On
The state-specific portion draws heavily from the Texas Insurance Code and the Texas Administrative Code (28 TAC). Here are several topics that consistently appear:
Unfair Discrimination and HIV Testing
Texas allows insurers to require HIV testing for proposed insureds, but only under strict conditions. Testing must be required on a nondiscriminatory basis for all individuals in the same class, and no one can be denied coverage based on HIV testing unless an initial ELISA test, a second ELISA test, and a confirmatory Western Blot test all indicate the presence of HIV antibodies (28 TAC §21.705). Expect at least one question on this protocol.
Sexual Orientation in Underwriting
No inquiry in an application for health or life insurance coverage may be directed toward determining the proposed insured's sexual orientation, and sexual orientation may not be used in the underwriting process or in the determination of insurability (28 TAC §21.704). This is a clear-cut rule that the exam tests directly.
Policy Form Approval
All life and accident and sickness policy forms and annuity contract forms intended for use in Texas must be filed for review and approved in accordance with the Insurance Code (28 TAC §3.4002). For mutual life insurance companies specifically, every policy must be on a form approved by the department and must contain a statement on both the front and reverse sides reading: "The form of this policy is approved by the Texas Department of Insurance" (Tex. Ins. Code §882.453).
Texas Life and Health Insurance Guaranty Association
The Texas Life and Health Insurance Guaranty Association is a nonprofit legal entity that exists to pay benefits and continue coverage when an insurer becomes insolvent (Tex. Ins. Code §463.051). Know that it is subject to the supervision of the commissioner and can be examined and regulated in the same manner as an insurer. The enabling statute is formally cited as the Texas Life and Health Insurance Guaranty Association Act (Tex. Ins. Code §463.001).
Long-Term Care Insurance
No long-term care insurance policy may be cancelled, nonrenewed, or otherwise terminated on the grounds of age or the deterioration of the mental or physical health of the insured (28 TAC §3.3823). Additionally, agents and insurers must use suitability standards to determine whether the purchase or replacement of long-term care insurance is appropriate for the applicant's needs (28 TAC §3.3842). These consumer-protection rules are exam favorites.
Life Settlement Contacts
Only a licensed life settlement broker, licensed life settlement provider, or their authorized representative may contact an insured to determine health status or verify an address (28 TAC §3.1730). The authorized representative must have written authorization and must agree in writing to adhere to privacy provisions.