Texas Life & Health Insurance License Exam Overview
The Texas Life & Health Insurance License Exam is administered by Pearson VUE on behalf of the Texas Department of Insurance (TDI). Texas is the second-largest state by population, offering tremendous opportunities for licensed insurance professionals.
With no state income tax and a booming economy, Texas is one of the best states to build an insurance career.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 130 scorable questions (combined Life & Health) |
| Time Limit | 2.5 hours |
| Passing Score | 70% |
| Testing Vendor | Pearson VUE |
| Exam Fee | $43 (combined); $33 (life only) |
| Pre-licensing Education | Not required (40 hours for temp license only) |
Why Get Licensed in Texas?
- Second-largest state — Nearly 30 million potential clients
- Business-friendly — No state income tax on your commissions
- Growing population — People moving to Texas daily
- Diverse economy — Oil, tech, healthcare, manufacturing
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Our comprehensive, completely free Texas Life & Health exam prep covers everything on the exam.
Key Topics Covered on the Exam
1. Life Insurance Products (30%)
Types of Life Insurance:
- Term Life Insurance (level, decreasing, return of premium)
- Whole Life Insurance (traditional, limited pay, modified)
- Universal Life (fixed, indexed, variable)
- Group Life Insurance
Key Policy Features:
| Feature | Texas Standard |
|---|---|
| Grace Period | 31 days |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look | 10 days (30 for replacements) |
| Misstatement of Age | Adjusted benefits |
2. Health Insurance Products (30%)
Individual and Group Health:
- Major medical coverage
- Hospital indemnity
- Disability income insurance
- Long-term care insurance
Texas-Specific Health Topics:
- Texas Health Insurance Pool (THIP) history
- CHIP (Children's Health Insurance Program)
- Texas Medicaid regulations
- Short-term health insurance rules
3. Annuities and Retirement (15%)
- Fixed annuities
- Variable annuities (requires securities license)
- Indexed annuities
- Immediate vs. deferred
- Texas suitability requirements
4. Texas Insurance Code (15%)
Key Texas Regulations:
- Unfair claims practices
- Unfair trade practices
- Advertising rules
- Replacement regulations
- Privacy requirements
Texas-Specific Laws:
- Texas Insurance Code Chapter 541 (unfair practices)
- Chapter 542 (prompt payment)
- Chapter 1115 (life insurance provisions)
5. Ethics and General Insurance (10%)
- Agent licensing requirements
- Fiduciary responsibilities
- Continuing education
- Policy delivery requirements
- Premium handling
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Life insurance fundamentals | 10-12 |
| Week 2 | Health insurance products | 10-12 |
| Week 3 | Annuities and retirement | 8-10 |
| Week 4 | Texas Insurance Code | 8-10 |
| Week 5 | Practice exams and review | 10-15 |
Total recommended study time: 50-60 hours
🎯 Free Practice Questions Available
Practice with hundreds of free questions designed for the Texas Life & Health exam.
Texas-Specific Exam Tips
1. Focus on Texas Insurance Code
Texas heavily tests state-specific regulations:
- Chapter 541 — Unfair methods of competition
- Chapter 542 — Prompt payment of claims
- Chapter 1115 — Life insurance policy provisions
2. Know These Texas Numbers
| Topic | Texas Requirement |
|---|---|
| Grace period | 31 days |
| Free look (standard) | 10 days |
| Free look (replacement) | 30 days |
| Pre-licensing education | Not required (40 hours for temp license) |
| CE requirement | 24 hours/2 years (3 hours ethics) |
| Passing score | 70% |
3. Understand Texas Medicaid and CHIP
Texas has unique healthcare programs:
- Medicaid eligibility rules
- CHIP income limits
- Premium assistance programs
Common Mistakes to Avoid
- Ignoring Texas-specific laws — They're 15-20% of the exam
- Confusing grace periods — Texas uses 31 days, not 30
- Skipping annuity suitability — Texas is strict
- Not timing practice exams — 2.5 hours goes fast
- Underestimating health insurance — Equal weight to life
After Passing Your Exam
- Apply online through TDI's SIRCON system
- Complete background check and fingerprinting
- Pay license fee — $50 for initial license
- Receive license — Usually within 2-4 weeks
- Affiliate with a company and start selling
2026 Texas Updates
For 2026, be aware of:
- Updated TDI continuing education rules
- New telehealth coverage mandates
- Modified surplus lines regulations
- Enhanced consumer protection requirements
Start Your Texas Insurance Career Today
Texas offers one of the best markets for insurance professionals. Pass your exam on the first try with our free prep materials.
Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ Texas Insurance Code summaries
- ✅ Study guides and key facts
- ✅ AI-powered study assistance
Everything you need to pass is 100% FREE.
How to Use This Guide Without Missing State-Specific Details
Treat this article as your working roadmap, then verify the administrative details against official sources before you schedule. Insurance licensing changes are usually small, but small changes matter on exam day: a vendor switch, new fingerprinting workflow, revised candidate handbook, or updated application checklist can delay a license even when you know the content. Start with your state insurance department, then confirm the testing vendor account, then check the National Insurance Producer Registry licensing flow if your state uses it. The NAIC state insurance department directory is a practical starting point when you need the current regulator website, and NIPR state requirements can help you verify application steps after the exam.
For the content itself, separate national insurance knowledge from Texas-specific law. National life and health questions test concepts that transfer across states: contract parties, insurable interest, beneficiary designations, policy riders, annuity phases, health policy renewability, disability income definitions, Medicare supplement basics, group health coordination, and unfair trade practices. The state section asks how those ideas are administered in Texas. When a question includes a number, deadline, appointment step, replacement notice, continuing education rule, or regulator power, slow down and decide whether it is a national default or a Texas rule.
A Practical Study Workflow for the Final Two Weeks
Use the last two weeks to convert recognition into decision speed. On day one, take a mixed diagnostic in /study-guides/tx-life-health and tag every missed question by reason: did you miss a definition, confuse two similar products, overlook a state rule, or run out of time? Definitions need flashcards. Similar products need comparison tables. State rules need a short checklist. Timing mistakes need practice blocks with a visible clock.
During the first week, work in focused sets. Do life insurance one day, health insurance the next, annuities after that, and Texas law at least every other session. Do not wait until the end to study regulations. Many candidates know term versus whole life but lose points on replacement, advertising, producer authority, unfair claims practices, or what must happen before a license is issued. After each set, rewrite the explanation in your own words. If you cannot explain why the wrong answer is wrong, you have not finished the question.
During the second week, switch to exam simulation. Use full mixed quizzes, then spend more time reviewing than answering. For life insurance, drill policy provisions, riders, beneficiary changes, settlement options, nonforfeiture options, and taxation at a high level. For health insurance, drill renewability, exclusions, disability definitions, long-term care, Medicare supplement rules, group versus individual contracts, and coordination of benefits. For annuities, make sure you can distinguish accumulation from annuitization, fixed from variable, immediate from deferred, and suitability from general sales preference.
Common Life and Health Traps
A common trap is answering from everyday sales language instead of policy language. "Cash value," "premium," "benefit," "owner," "insured," and "beneficiary" have precise exam meanings. Another trap is treating Medicare, Medicare Advantage, Medicare Supplement, and Medicaid as interchangeable. They are different programs or products, and exam questions often reward the candidate who notices which one is actually named.
Replacement questions deserve special attention. The exam may ask what must be disclosed, when notices are required, how existing coverage should be treated, or why twisting is prohibited. Do not memorize replacement as simply "bad." Replacement can be legitimate, but it becomes a compliance issue when comparison, disclosure, or suitability duties are ignored.
Health questions also use similar-sounding renewability terms. Noncancelable, guaranteed renewable, conditionally renewable, optionally renewable, and cancelable policies allocate power differently between insurer and insured. Build a one-page table and practice from both directions: given the term, state the rule; given the rule, name the term.
Exam-Day Checklist
Before test day, confirm your appointment time, approved identification, remote-proctoring rules if applicable, calculator policy, and reschedule deadline from the testing vendor. Use the exact legal name from your licensing and exam records. If your ID and registration do not match, content knowledge will not help at check-in.
On the exam, answer the direct question first before reading extra meaning into the facts. Insurance exams often include plausible distractors that are true statements but do not answer the question asked. Mark long calculation or scenario questions and come back after securing the easier definition and rule points. If you are stuck between two options, identify which answer is broader, which is more specific, and whether the question asks for an exception. Exceptions are where many state-law points hide.
If You Do Not Pass on the First Attempt
A failed attempt is useful data if you treat the score report correctly. Do not simply reread the same chapter. Sort weak areas into national product knowledge, Texas law, and test-taking process. For product knowledge, rebuild comparison charts. For state law, verify the current rule from official regulator materials and then practice short recall prompts. For process issues, take timed sets and force yourself to explain why each wrong answer was attractive.
Schedule the next attempt only after your weakest two categories have improved in practice. A good target is not just a passing average; it is consistency. When you can pass several mixed sets in a row without relying on memorized question wording, you are closer to exam readiness.
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