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:

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.

Study Strategies That Work

Prioritize by question count. Types of Health Policies (16 questions) and the two 15-question life and health sections are your highest-value study targets. Combined with the Texas statutes sections, these areas represent over 75% of the exam.

Learn the rules, not just the concepts. The exam tests specific regulatory requirements — the three-step HIV testing protocol, the prohibition on sexual orientation inquiries, the suitability standards for long-term care. Memorize the details.

Practice under timed conditions. With 150 minutes for 130 questions, pacing matters. Take full-length practice exams to build your timing instincts.

Don't neglect Social Insurance. Although it's only about 6 questions, topics like Medicare, Medicaid, and Social Security disability are straightforward points if you've reviewed them.

Frequently Asked Questions

How many questions are on the Texas Life and Health Insurance exam?

The exam contains 130 scored questions. You have 150 minutes to complete them, and you need a score of 70% to pass.

How much does the Texas Life and Health Insurance exam cost?

The exam fee is $49, paid to Pearson VUE when you schedule your appointment. This is separate from the license application fee charged by the Texas Department of Insurance. Texas does not require a pre-licensing course, so any prep-course cost is optional.

What percentage of the exam covers Texas-specific laws?

Approximately 30 of the 130 questions — about 23% — come from three Texas-specific sections covering statutes and rules common to life and health insurance, rules pertinent to life insurance only, and rules pertinent to health insurance and HMOs.

Start Practicing Now

Reading about the exam is a good first step. Answering questions that mirror the real thing is what actually builds confidence and retention.

Try our free Texas Life and Health practice test to see where you stand, or dive into our complete Texas Life and Health exam guide for a structured study plan that covers every content area.