If you KNOW the Material…

…You WILL Pass the Exam.

But even the most prepared insurance license candidates make mistakes.


Don't leave any question unanswered and don't miss questions you know the answer to because you misread the question. If you don't know the answer, there are ways to eliminate incorrect answers or "guess" your way to a correct answer.

Here are some tips that your TESTivity Virtual Instructor has collected over the years to help you pass the insurance license test and...



Don't select the first response that looks correct -- read all of them! There may be another answer that is MORE correct. NEVER pick an answer you have not heard of. The people who write the Life & Health/Property & Casualty insurance exam questions will make up words that do not even exist and use them as available answers. If it was not covered in the TESTivity Insurance on line class, it is not a correct answer on the state insurance licensing exam.

Example #1

Where are client assets in a variable annuity held?

A. The insurer’s general account

B. A separate account established for each individual annuitant

C. An independent custodian, typically a commercial bank

D. The insurer’s separate account

If you studied right, you would know that answer D is correct, but if you only know enough to be dangerous, answer B sounds correct…IT DOES NOT EXIST! The person who wrote the question made it up.


The human brain can rationalize anything, including reasons or situations where an incorrect answer might be correct. Pick out the one best answer and move on.


Keep a sharp eye open for the words "not" "except" “unless" or "until". They may be printed in ALL CAPS, and they mean that you have to look for a response that is not correct. (None of the following are true EXCEPT--or-- Which of the following is NOT unethical?)

Example #2

None of the following are Non-forfeiture options EXCEPT:

A. Reduced Paid Up

B. Extended Term

C. Paid Up Additions

D. Cash Surrender

These EXCEPT questions are a very challenging format. What the above question is actually asking (and how we would pose the question in English) is “Which of the following is a Dividend option?”

In the TESTivity online insurance course you will learn the correct answer is C. Paid up additions is a dividend option, the others are Non-forfeiture options. Even if you study right, and you know the answer it is easy to miss a question like this just because of the format.


Some of the double negative format questions can be useful because they give you three true statements that may help you answer another question you may encounter later in the state licensing exam.

Example #3

All of the following are unethical EXCEPT:

A. Twisting

B. Rebating

C. Selling Away

D. IRC 1035 Exchange

If you know that there is nothing unethical about an IRC 1035 Exchange, you now know that Twisting, Rebating, and Selling Away are unethical you may be able to use this information in another question later in the state insurance exam.


Treat each multiple choice insurance exam question as if it were four "true/false" questions. Take each response in turn and ask, "Is this response true or false?" This technique is useful to eliminate incorrect answers.


If 2 answers mean the same thing, eliminate them both! You now have a 50/50 chance on the question.

Example #4

Which of the follow provides prescription drug coverage for Medicare beneficiaries?

A. Medi-Gap Policy
B. Medicare Part D
C. Medicare Advantage Plan
D. Medicare Supplement Policy
The correct answer is B. In the TESTivity internet insurance license class you will learn that Medi-Gap and Medicare Supplement MEANS THE SAME THING! These synonymous answers MUST be eliminated. If I pick Answer A and you pick answer D, how are you right and I am wrong—or vice versa? If answer A is correct, so is answer D and there can only be 1 correct answer.


If two answers are the exact opposite of one another, pick one of them! You now have a 50/50 chance on the question. Whatever the question is asking, if two answers contradict each other, one of them is correct…That is just how a multiple choice question works.

Example #5

All things being equal, which of the following is true of life insurance?

A. Males pay more than females

B. The older you are, the lower your premiums

C. Females pay more than males

D. Applicants under age 40 are exempt from medical underwriting

You know A or C has to be a true statement……(if you are curious, the answer is A.)


Unless you KNOW it is correct, eliminate answers with definitive words like:






A definitive word is problematic as a correct answer on a multiple choice test, there is almost always an exception to any rule! Go with answers that are less definitive like:




•With the permission of


Example #6

Who can contribute to an MSA?

A. Employee only

B. Employer only

C. Either employee or employer, but not both

D. Employee and employer

Suppose you see the above question on the test and you have no idea what an MSA is, you should immediately eliminate answers A and B. They are definitive, and they are wrong. You would now have a 50/50 chance on this question. As you will learn in the TESTivity web based insurance class, both the employer and the employee can contribute to an MSA (Medical Savings Account).


If you are not sure of the answer either mark the question for review and come back to it after you have finished the State insurance license examination (You may find another question that provides the answer later in the same licensing test); or eliminate the responses you know are wrong, and then make your best guess. Don’t be scared to guess, you can miss a few questions and still pass the state Insurance exam! DO NOT review the full exam once you have completed it. If you review the full exam you may get nervous or confused, start second guessing yourself and start changing answers.


Remember that you're trying to pass an examination, not win a speed reading contest. You will have plenty of time to complete the exam, and there is no extra credit for finishing early. Most people report having close to an hour remaining when they finish. It is rare that anyone runs out of time.


Go with your “gut instinct”. If one answer feels right or sounds right, pick it. If you have studied properly that answer feels right for a reason…..you just saw it in the online insurance license text book, or mind map, or puzzle; or heard it in the audio...or saw it in the video.  Have faith in our Virtual Learning Experience…

We are going to burn all of the necessary information into your subconscious!

This is just a sample!

There are more exam specific test tips, game day strategies, and custom study plans included in the Virtual Learning Experience. 

Insurance License Exam Test Tips

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Please take a minute to experience the Test Tips above...You will agree, TESTivity is the ABSOLUTE best way to prepare for your FINRA/NASAA test or state insurance licensing exam.

You may know others who will be taking the Life & Health Insurance Exam, Property & Casualty Insurance Exam or FINRA/NASAA Exam(s). 

Please share our online insurance license course with them.

Thank you for visiting the TESTivity insurance school and good luck with your insurance license exam! 

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The Virtual Learning Experience is AMAZING!

Please take a minute to experience the tour through the menu bar above...You will agree, the LATITUDE Insurance & Securities Test Prep Virtual Learning Experience is the best way to prepare for your FINRA/NASAA and/or state insurance licensing exam.

You may know others who will be taking the Life & Health Insurance Exam, Property & Casualty Insurance Exam or FINRA/NASAA Exam(s). 

Please share our site with them.

Thank you for visiting the LATITUDE Insurance & Securities Test Prep online insurance school and good luck with your licensing exam!