National vs State Sections of the Insurance Exam (And How to Pass Both)
Quick answer: most state insurance licensing exams have two parts. A national (general knowledge) section tests product knowledge, policy provisions, insurance terms, and federal law, and it is the same subject matter in every state. A state section tests your state's insurance code: licensing rules, the commissioner's authority, and state statutes for your line. You must pass both. How they are scored, and what you retake after a fail, depends on the state, and that is where most candidates get surprised.
National section vs state section at a glance
| National / general section | State law section | |
|---|---|---|
| What it tests | Product knowledge that is the same everywhere: policy types, riders, provisions, underwriting, insurance terms and concepts | Your state's insurance code: licensing rules, the commissioner's authority, unfair trade practices, state-specific policy requirements |
| Typical share of the exam | Usually the larger portion (Iowa Property: 50 of 81 scored questions; Illinois Property: 50 of 80) | Usually a quarter to two-fifths of scored questions (Iowa Property: 31 of 81; Illinois A&H: 39 of 89) |
| Federal law content | Yes. Outlines name laws like the Fair Credit Reporting Act, Gramm-Leach-Bliley privacy rules, the National Flood Insurance Program, TRIA, HIPAA, and the USA PATRIOT Act depending on the line | No. This section is state statutes and regulations, plus state programs like FAIR Plans and guaranty associations |
| Where the content comes from | Industry-standard curriculum shared across textbooks and prep courses | Your state's insurance code and administrative rules, cited line by line in the vendor's content outline |
| Transfers between states? | The knowledge transfers, but each state writes its own exam from its own outline | No. Every state's law section is unique to that state |
| Why candidates fail it | Underestimating breadth: dozens of policy forms, riders, and terms across the whole line of authority | Skipping it. Candidates drill products and treat state law as an afterthought, then meet 25+ statute questions on exam day |
What the national section covers
The national section (vendors label it the "general knowledge" or "general" portion) is the product-knowledge core of the exam. Using the official Pearson VUE Iowa content outlines as a concrete example, the general portion of the Property exam is 50 scored questions split across three areas: types of policies (22 questions), insurance terms and related concepts (15), and policy provisions and contract law (13). The Life exam's general portion covers types of policies, riders and provisions, the application and underwriting process, and retirement concepts.
Federal law lives here too. The outlines name specific statutes: the Fair Credit Reporting Act and Gramm-Leach-Bliley privacy rules appear across lines, property outlines add the National Flood Insurance Program and the Terrorism Risk Insurance Act, and life and health outlines add HIPAA and USA PATRIOT Act anti-money- laundering rules. If a law is federal, expect it in the general section, not the state section.
What the state section covers
The state section is your state's insurance code turned into multiple-choice questions. The recurring topics, drawn from the published outlines: how producer licenses are issued, renewed, and revoked; the insurance commissioner's or director's authority, examination powers, and penalties; unfair trade practices such as misrepresentation, rebating, and unfair discrimination; and line-specific state rules like cancellation and nonrenewal notice requirements, FAIR Plan associations, standard fire policy provisions, and guaranty association protections. These questions demand exact recall. A cancellation notice period is a specific number of days in your state's code, and no amount of general insurance intuition will produce it.
How the two sections are scored (three models)
This is the part that genuinely varies by state, and the retake consequences follow from it. Three verified models:
- Separately scored portions (Illinois). Illinois administers two individual exams per line, a General exam and a State exam, each with its own pass/fail result reported as a score of 70. Pass one and fail the other, and you retake only the failed exam after a 24-hour wait. The catch: the Illinois handbook requires you to pass both within a 90-day period, or your passing result expires and you start over.
- Combined single-score exam (Connecticut, Iowa). Connecticut's candidate handbook states that all exams are one-part exams scored as a whole. Iowa likewise reports one pass/fail result per exam even though the outline is split into general and Iowa-specific sections. In these states there is nothing to "pass separately," and a fail means retaking the entire combined exam and paying the full exam fee again.
- Unified weighted exam (Texas). Texas does not label a national section at all. Each exam is one test built from a single outline where Texas statute sections carry heavy weight: roughly 50 of the 150 scored questions on General Lines P&C. One score, 70% to pass, whole exam on a retake. See our Texas exam question breakdown for the full weighting.
The practical takeaway: never assume your state lets you bank a passed section. Check the scoring and retake rules in your state's Pearson VUE, PSI, or Prometric candidate handbook before exam day. In combined-score states, a strong national performance can be dragged under by a weak state section, and the retake costs you the entire exam.
Why "I studied the national material" is the most common way to fail
National-section content is everywhere: textbooks, videos, flash cards, generic question banks. State law content is not, because it has to be written separately for every state. So self-directed candidates naturally over-study the material that is easy to find and under-study the material that is not, then meet a state section that is a quarter to two-fifths of their scored questions. The sections are weighted exactly as the state's published outline says they are, which is why our state-specific courses weight practice questions to match each state's outline, so the ratio of national to state questions in your practice mirrors the real exam instead of the generic internet's ratio.
How to pass the national section
- Learn concepts, not question wordings. The national section is broad: dozens of policy forms, riders, and terms. Questions test whether you can apply a definition to a scenario, so memorizing practice questions verbatim fails the moment the wording shifts.
- Master the vocabulary first. Terms like peril, hazard, indemnity, insurable interest, and proximate cause appear inside other questions. If the vocabulary is shaky, you miss questions you actually know.
- Drill policy provisions until they are boring. Provisions and contract law are heavily weighted (13 of 50 general questions on the Iowa Property outline) and are the most scenario-driven part of the test.
- Know your federal laws by purpose. For each named law (FCRA, GLBA, NFIP, TRIA, HIPAA, PATRIOT Act), be able to say in one sentence what it regulates and who it protects. That one sentence answers most federal-law questions.
How to pass the state section
- Get your state's actual content outline. It is free in the vendor's candidate handbook and lists every statute area with its question count. That document is your syllabus.
- Memorize the numbers. Notice periods for cancellation and nonrenewal, license renewal cycles, CE hour requirements, grace periods, and record-retention periods are the classic state-law questions, and they are pure recall.
- Study it last, keep it fresh. State law rewards recency. Build your national foundation first, then go heavy on state law in the final week before your exam date.
- Practice in exam ratio. If state law is 38% of your scored questions, it should be about 38% of your practice volume. Take a practice exam that separates your national and state scores so you know which section needs the remaining study time.
Practice both sections in your state's real ratio
Every Elite Training Academy exam prep course is built from the official content outline for your state, with practice questions weighted to match the national and state sections exactly as the exam weights them. $49.99 with lifetime access and 500+ practice questions per course.
Find your state's course →Frequently asked questions
What is on the national section of the insurance exam?
The national (general knowledge) section tests product knowledge that applies in every state: types of policies, policy riders and provisions, insurance terms and concepts, underwriting and the application process, and contract law basics. It also covers federal laws named in the exam outlines, such as the Fair Credit Reporting Act, Gramm-Leach-Bliley privacy rules, the National Flood Insurance Program and TRIA for property lines, and HIPAA and the USA PATRIOT Act for life and health lines. On the Iowa Property exam, for example, this portion is 50 of the 81 scored questions.
What is on the state section of the insurance exam?
The state section tests your state's insurance code: how licenses are issued, renewed, and revoked; the insurance commissioner's or director's authority and examination powers; unfair trade practices like misrepresentation, rebating, and unfair discrimination; and state-specific rules for your line, such as cancellation and nonrenewal notice periods, FAIR Plans, and guaranty association provisions. Every question comes from statutes and regulations cited in your state's published content outline.
Do I retake both sections if I fail one?
It depends on how your state structures the exam. In Illinois, the General and State exams are separately scored, so if you pass one and fail the other you retake only the failed exam, but you must pass both within 90 days. In Connecticut, the handbook states that all exams are one-part exams scored as a whole, so any fail means retaking the entire combined exam. Iowa also reports a single pass/fail result per exam. Check your state's candidate handbook before test day so you know which rule applies.
Is the national section the same in every state?
No. The topic areas are very similar from state to state because they follow industry-standard curriculum, but there is no single shared national exam. Each state contracts with its own vendor, publishes its own content outline, and writes its own general knowledge questions with its own counts and weights. Passing the general portion in one state does not carry over to another state's exam.
Is the state section easier than the national section?
It is shorter but not easier. State law questions are precise: exact notice periods for cancellation, exact license renewal rules, exact definitions of unfair trade practices. There is little you can reason your way through from general insurance knowledge, so candidates who have not studied the statutes miss these outright. Because the state portion is typically a quarter to two-fifths of the scored questions, a weak state section can sink an otherwise strong exam.
How many questions are in each section?
It varies by state and line, and the counts are published in each state's candidate handbook or content outline. Verified examples: Iowa Property is 50 general plus 31 Iowa-specific scored questions; Illinois Life is 50 general plus 31 state; Illinois Accident & Health is 50 general plus 39 state. Texas takes a different approach with one unified exam where Texas statute sections make up roughly 50 of 150 scored questions on General Lines P&C.
Do I need to pass both sections to get licensed?
Yes, in every structure. Where sections are separately scored, as in Illinois, you must pass both exams (and within Illinois's 90-day window). Where the exam is combined into a single score, as in Connecticut and Iowa, you must clear the overall passing standard, which in practice means you cannot badly fail either portion and still pass. No state licenses a candidate on the national material alone.
How should I split study time between the two sections?
Match your state's published outline. If the state law portion is 31 of 81 scored questions, roughly 38 percent of your practice should be state law, not the 5 or 10 percent most self-directed candidates give it. Study the national material first since it is the foundation, then spend your final week heavy on state law, which is memorization-friendly and freshest when recent. Our courses weight practice questions to each state's outline so your practice ratios match the real exam automatically.
Related guides
- How hard is the insurance licensing exam?
- How to study for the insurance exam
- How many questions are on the Texas insurance exam?
- How to get your Iowa insurance license
- All licensing guides
Sources cited
- Pearson VUE - Illinois Insurance Candidate Handbook #121400 (separate General and State exams, 90-day rule, per-portion question counts)
- Pearson VUE - Connecticut Insurance Candidate Handbook #120700 (one-part exams scored as a whole)
- Pearson VUE - Iowa Insurance Content Outlines #121601 (general vs Iowa-specific question counts, federal laws named in general sections)
- Pearson VUE - Iowa Insurance Candidate Handbook #121600 (exam formats and scoring)
- Pearson VUE - Texas Insurance Content Outlines #124401 (unified exam, Texas statute weighting)
Section counts, scoring rules, and retake policies cited above are from the named Pearson VUE candidate handbooks and content outlines current at time of publication. Each state sets its own rules and revises its handbooks periodically - always verify your state's current candidate handbook (Pearson VUE, PSI, or Prometric, depending on the state) before scheduling your exam.