Exams / Guides / Texas Insurance License Exam – What You Need to Know

Texas Insurance License Exam – What You Need to Know

If you're planning to sell life or health insurance in Texas, you'll need to pass a state licensing examination. Texas law is clear on this point: an applicant for a license to act as an agent must "take a personal written examination prescribed by the commissioner" and pass it to the department's satisfaction (Tex. Ins. Code §4002.001). There are no shortcuts around the exam requirement for a full agent's license.

This guide breaks down the exam structure, content areas, legal requirements, and practical tips so you can walk into the testing center prepared.

Who Needs to Take the Exam

Anyone seeking a general life and health agent license in Texas must pass the corresponding state examination. The exam is designed to test your competence regarding the types of insurance contracts you'll be selling, the laws of Texas regulating insurance, and the ethical obligations and duties of an agent (Tex. Ins. Code §4002.001).

There is also a limited written examination for applicants seeking a limited agent's license, which tests basic principles of insurance contracts, basic state insurance laws, and ethical obligations (Tex. Ins. Code §4002.002). The full Life and Health exam covered here is the more comprehensive version required for a general license.

Exam Format and Logistics

The Texas Life and Health Insurance License Exam is administered by Pearson VUE. Here are the key numbers:

  • Scored questions: 130
  • Time limit: 150 minutes (2 hours and 30 minutes)
  • Exam fee: $49
  • Passing score: 70%

That means you need to answer at least 91 of the 130 scored questions correctly. You'll have just over one minute per question on average, which is manageable if you've studied the material — but tight if you're second-guessing yourself on every item.

The department collects examination fees, license application fees, and appointment fees, all of which are deposited to the credit of the Texas Department of Insurance operating account (Tex. Ins. Code §4001.006).

Content Breakdown by Section

The exam covers 12 distinct content areas. Understanding the weight of each section helps you allocate study time effectively:

Life Insurance Topics (~50 questions)

  • Types of Life Policies – ~15 questions
  • Life Policy Riders, Provisions, Options, and Exclusions – ~15 questions
  • Completing the Application, Underwriting, and Delivering the Policy – ~12 questions
  • Retirement and Other Insurance Concepts – ~8 questions

Health Insurance Topics (~50 questions)

  • Types of Health Policies – ~16 questions
  • Health Policy Provisions, Clauses, and Riders – ~15 questions
  • Social Insurance – ~6 questions
  • Other Health Insurance Concepts – ~5 questions
  • Field Underwriting Procedures – ~8 questions

Texas-Specific Law (~30 questions)

  • Texas Statutes and Rules Common to Life and Health Insurance – ~14 questions
  • Texas Statutes and Rules Pertinent to Life Insurance Only – ~6 questions
  • Texas Statutes and Rules Pertinent to Health Insurance and HMOs – ~10 questions

The Texas law sections account for roughly 23% of the exam. Many candidates underestimate these questions because they focus heavily on policy types and provisions. Don't make that mistake — nearly one in four questions will test state-specific regulations.

What the Texas Law Questions Cover

The state-specific sections pull from the Texas Insurance Code and the Texas Administrative Code. You should be familiar with topics like:

  • Form filing requirements: Texas requires that insurance forms contain no ambiguous, deceptive, misleading, unfair, inequitable, or unjust wording (28 TAC §3.4005). You may see questions about what makes a policy form compliant or non-compliant.
  • HIV testing rules: Texas permits insurers to require HIV testing for proposed insureds, but only on a nondiscriminatory basis and only with a specific confirmation protocol — two ELISA tests followed by a Western Blot test (28 TAC §21.705). This is a frequently tested topic.
  • Temporary license rules: Agents and insurers must ensure that at least 70% of their temporary license applicants take the licensing exam within two consecutive calendar quarters, and at least 50% of those who take it must pass (Tex. Ins. Code §4001.161).

These are the kinds of specific regulatory details that separate candidates who pass from those who don't.

Study Strategies That Work

Prioritize high-weight sections. Types of Life Policies, Types of Health Policies, and the two "Riders and Provisions" sections together account for more than 60 scored questions. Master these first.

Don't ignore Texas law. Thirty questions is a significant chunk. Read through the relevant Insurance Code chapters and administrative rules rather than relying solely on general insurance knowledge.

Practice under timed conditions. At 150 minutes for 130 questions, you have about 69 seconds per question. Build the habit of reading carefully but deciding quickly.

Focus on distinctions. The exam loves to test the difference between similar concepts — whole life vs. universal life, HMO vs. PPO, optional vs. mandatory provisions. Make comparison charts.

Review ethical obligations. The statute explicitly requires that the exam test your understanding of "the ethical obligations and duties of an agent" (Tex. Ins. Code §4002.001). Expect scenario-based questions about agent conduct.

Frequently Asked Questions

How many questions do I need to get right to pass the Texas insurance exam?

You need a score of 70%, which means correctly answering at least 91 out of 130 scored questions. The exam may also include unscored pilot questions that don't count toward your final score.

How much does the Texas insurance license exam cost?

The exam fee is $49, paid to Pearson VUE when you schedule your appointment. This is separate from the license application fee and any appointment fees your insurer pays on your behalf (Tex. Ins. Code §4001.006).

What happens if I fail the Texas insurance exam?

You can retake the exam. There is no statutory limit on the number of attempts, though you'll pay the $49 fee each time. Use your score report to identify weak content areas and focus your study there before rescheduling.

Start Preparing Today

The Texas Life and Health exam is passable with focused preparation, but it rewards candidates who study the right material in the right proportions. Knowing that 30 questions come from Texas-specific statutes — and understanding exactly which statutes are tested — gives you a real edge.

Ready to test your knowledge? Take 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 section-by-section study strategies and detailed content review.