100+ Free CIC Life & Health Practice Questions

Pass your CIC Life and Health Institute exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

100+ Questions

100% Free

1 / 100

Question 1

Score: 0/0

Which life insurance product provides level death benefit and level premiums for a stated number of years, with no cash value, and is generally the lowest-cost form of pure protection?

Whole life insurance

Level term life insurance

Universal life insurance

Variable universal life insurance

to track

Same family resources

More National Alliance (CIC/CISR/CRM/CRIS) Prep

Continue through related practice pages, study guides, comparisons, and articles from the same exam family.

Practice Pages

CISR Practice200 questions CRIS Practice200 questions CRM-Risk Practice200 questions CIC Practice199 questions CIC Agency Management Practice100 questions CIC Commercial Casualty Practice100 questions

2026 Statistics

Key Facts: CIC Life & Health Exam

70%

Passing Score

140 of 200 points

$425

Course Tuition

Exam included

2 hours

Exam Length

Proctored essay format

16 hours

Course Length

Two-day institute

5 institutes

Path to Full CIC

Within 5 calendar years

Annual

Update Required

To maintain CIC designation

CIC Life & Health is a 2-day institute followed by a 2-hour essay exam (70% to pass) covering individual life products, annuities under IRC 72/7702/7702A, individual & group health, Medicare Parts A-D and Medigap plans A-N, disability income, HIPAA-qualified long-term care, Section 125 cafeteria plans, COBRA continuation, and NAIC producer suitability rules. Course tuition is $425 (exam included). It can stand alone for CE or stack toward the full Certified Insurance Counselor designation.

Sample CIC Life & Health Practice Questions

Try these sample questions to test your CIC Life & Health exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which life insurance product provides level death benefit and level premiums for a stated number of years, with no cash value, and is generally the lowest-cost form of pure protection?

A.Whole life insurance

B.Level term life insurance

C.Universal life insurance

D.Variable universal life insurance

Explanation: Level term provides pure death benefit protection at a level premium for a stated term (10, 20, 30 years) with no cash value, making it the lowest-cost permanent-like coverage. It is well suited to temporary needs such as mortgage or income replacement during working years.

2A whole life policy's guaranteed elements include all of the following EXCEPT:

A.Guaranteed death benefit

B.Guaranteed cash value at each policy year

C.Guaranteed level premium

D.Guaranteed dividends

Explanation: Dividends on a participating whole life policy are NOT guaranteed. They are declared annually by the insurer's board based on actual mortality, expense, and investment experience. The death benefit, cash value table, and premium schedule are contractually guaranteed.

3In a universal life policy, what does Option B (sometimes called Option 2) typically provide at the insured's death?

A.The face amount only

B.The face amount plus the cash value

C.The face amount minus any outstanding loan

D.The greater of the face amount or the cash value times a corridor factor

Explanation: Option B (increasing) UL pays the face amount plus the accumulated cash value. Option A (level) pays only the face amount. Option B costs more because the net amount at risk does not decline as cash value builds.

4Which life insurance product allows the policyowner to direct cash value into separate-account subaccounts (mutual-fund-like investments) and therefore must be sold with a securities license and prospectus?

A.Indexed universal life (IUL)

B.Variable universal life (VUL)

C.Guaranteed universal life (GUL)

D.Participating whole life

Explanation: Variable universal life invests cash value in separate-account subaccounts whose values are not guaranteed. Because it is a security, the producer must hold a FINRA registration (typically Series 6 or 7) plus a state life license, and the prospectus must be delivered.

5A policy fails the 7-pay test under IRC Section 7702A. As a result, the policy is treated as a Modified Endowment Contract (MEC). Which statement about a MEC is TRUE?

A.Death benefits paid to beneficiaries become taxable as ordinary income

B.Lifetime distributions, including loans, are taxed LIFO and may incur a 10% penalty before age 59 1/2

C.The policy automatically converts back to non-MEC status after 7 years

D.MECs lose all life insurance protection upon classification

Explanation: A MEC retains its life insurance status, but lifetime distributions (withdrawals, loans, and assignments) are taxed on a LIFO basis (gain comes out first) and the taxable portion is subject to a 10% penalty if the owner is under 59 1/2. Death benefits remain income-tax-free.

6Under IRC Section 1035, which exchange is NOT permitted on a tax-free basis?

A.Life insurance to life insurance

B.Life insurance to annuity

C.Annuity to long-term care insurance

D.Annuity to life insurance

Explanation: An annuity-to-life exchange is not allowed under Section 1035 because doing so would convert a future-taxable-gain contract into a contract whose death proceeds are tax-free. Permitted exchanges include life-to-life, life-to-annuity, annuity-to-annuity, life-to-LTC, and annuity-to-LTC (PPA 2010).

7A life insurance policy contains a 2-year incontestability clause. Two years and one month after issue, the insurer discovers a material misrepresentation about the insured's smoking status. What is the insurer's remedy?

A.Rescind the policy and return premiums

B.Deny the claim and keep the premiums

C.Generally must pay the claim; the contestable period has expired

D.Reduce the death benefit by 50% as a penalty

Explanation: Once the contestability period (typically 2 years) has expired, the insurer generally cannot contest the policy for a material misrepresentation and must pay the claim. The narrow exception is fraud in some states, and the suicide clause runs separately.

8Which life insurance rider waives the policy's premium if the insured becomes totally disabled, typically after a 6-month elimination period?

A.Accelerated death benefit rider

B.Waiver of premium rider

C.Accidental death rider

D.Guaranteed insurability rider

Explanation: The waiver of premium rider keeps the policy in force without further premium payments while the insured is totally disabled, usually after a 6-month elimination period and subject to age limits (often to age 65).

9Under most life insurance contracts, the suicide clause typically excludes coverage for death by suicide for what period after issue?

A.1 year

B.2 years

C.5 years

D.Forever

Explanation: The standard suicide clause excludes coverage for death by suicide for 2 years from issue (1 year in a few states). If the insured commits suicide within that window, the insurer typically returns premiums paid rather than paying the death benefit.

10An applicant pays the initial premium with the application and receives a conditional receipt. Coverage under the conditional receipt is effective when:

A.The application is signed

B.The applicant is determined to be insurable as applied for, retroactive to the application or medical exam date

C.The policy is delivered to the insured

D.The first anniversary of the policy

Explanation: A conditional receipt provides interim coverage retroactive to the application date or medical exam date provided the applicant is found insurable as originally applied. If the underwriter rates the policy, the conditional coverage usually does not attach.

About the CIC Life & Health Exam

The CIC Life & Health Institute is one of seven 16-hour courses offered through the Certified Insurance Counselor program from the Risk & Insurance Education Alliance (formerly The National Alliance). The course covers individual life insurance products (term, whole life, universal life, variable universal life, GUL, IUL), annuities and qualified retirement plans, individual & group health, Medicare and Medigap, disability income, long-term care, and producer suitability. The institute concludes with a 2-hour proctored essay exam; candidates need 70% to pass and may use the institute toward the five-course CIC designation.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$425 per course (Risk & Insurance Education Alliance)

CIC Life & Health Exam Content Outline

20%

Individual Life Insurance

Term, whole life, universal life (UL/GUL/IUL), variable universal life (VUL), policy provisions (free look, grace period, incontestability, suicide), riders, settlement options, MEC and 1035 exchanges.

15%

Annuities & Retirement Plans

Fixed, indexed, and variable annuities; immediate vs deferred; IRC Section 72 LIFO/FIFO; 10% premature distribution penalty; qualified plans (401(k), 403(b), IRA, SEP, SIMPLE); SECURE 2.0 RMD age 73.

20%

Individual Health Insurance & Medicare

Major medical, HSAs and HDHPs, ACA marketplace concepts, Medicare Parts A/B/C/D, the 10 standardized Medigap plans (A-N), Medicare Advantage (HMO/PPO/PFFS/SNP), and the Part D $2,000 OOP cap.

20%

Group Life & Group Health

Group underwriting, ERISA basics, COBRA continuation (18/29/36 months), Section 125 cafeteria plans, FSA $3,300 and HSA $4,300/$8,550 limits, group term life imputed income, dental and vision plans.

10%

Disability Income

Individual and group DI, own-occupation vs any-occupation, elimination and benefit periods, residual benefits, integration with Social Security, and taxation of premiums vs benefits.

10%

Long-Term Care

HIPAA tax-qualified LTC contracts, 2-of-6 ADL or cognitive impairment trigger, 90-day certification, LTC partnership programs and 8-hour producer training, and PPA 2010 hybrid life/annuity-LTC products.

Producer Conduct & Suitability

NAIC suitability in annuity transactions model, replacement regulations, free-look (10/30 days), fiduciary duty, and ethical sales practices.

How to Pass the CIC Life & Health Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: $425 per course

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CIC Life & Health Study Tips from Top Performers

1Memorize the tax framework: IRC 7702 defines life insurance, 7702A defines a MEC via the 7-pay test, and IRC 72 governs annuity LIFO/FIFO and the 10% pre-59½ penalty.

2Build a 1035 exchange map: life-to-life, life-to-annuity, annuity-to-annuity, and annuity-to-LTC are permitted; annuity-to-life is NOT.

3Memorize Medicare in one chart: Part A hospital, Part B medical, Part C Advantage, Part D drugs (with the new $2,000 IRA out-of-pocket cap) and the 10 standardized Medigap plans A through N.

4Drill COBRA durations: 18 months (termination/reduction in hours), 29 months (disability extension), and 36 months (divorce, death, dependent aging out, Medicare entitlement).

5Learn the LTC HIPAA-qualified test: insured cannot perform 2 of 6 ADLs for 90+ days OR has severe cognitive impairment, certified by a licensed health care practitioner.

Frequently Asked Questions

What is the CIC Life & Health Institute?

The CIC Life & Health Institute is a two-day (16-hour) course offered by the Risk & Insurance Education Alliance (the rebranded National Alliance). It covers individual life and annuities, individual and group health, Medicare, disability income, long-term care, and employee benefits. The course ends with a 2-hour proctored essay exam, and the institute counts toward the five-course Certified Insurance Counselor (CIC) designation.

What is the format and passing score?

The CIC Life & Health exam is a 2-hour proctored essay-style exam scored on a 200-point scale. Candidates must earn 70% (140 of 200 points) to pass. Questions are scenario-based and require written application of life, health, annuity, Medicare, and benefits concepts rather than simple multiple-choice recall.

How much does the CIC Life & Health course cost?

Tuition for the CIC Life & Health course is approximately $425, with the exam included in the registration. Producers seeking only continuing education can take the course without the exam. Completing all five required institutes for the CIC designation typically costs around $2,125 in tuition plus annual update fees.

What topics are tested most heavily?

Individual Life Insurance, Individual Health & Medicare, and Group Life & Group Health each carry roughly 20% weight. Annuities and qualified retirement plans add another ~15%, while disability income and long-term care contribute ~10% each. Producer conduct and suitability is the smallest section (~5%) but appears in scenario fact patterns throughout the exam.

Do I need a license to take this course?

No state license is required to attend or pass the CIC Life & Health Institute. The Alliance recommends at least two years of insurance or risk-management experience, and many attendees already hold a state Life and Health producer license. The institute can also satisfy CE requirements for licensed producers in many states.

How does this course differ from a state Life & Health licensing exam?

A state Life & Health licensing exam focuses on entry-level statutory and product knowledge required to sell insurance in a specific state. The CIC Life & Health Institute is an advanced designation course that goes deeper into product design, tax treatment under IRC sections 72, 7702, and 7702A, Medicare and Medigap detail, and group benefit plan structures, with an essay-format exam testing application rather than recall.