CFP® Exam Risk Management and Insurance Planning Practice Questions
Risk Management and Insurance Planning is 11% of the CFP® exam. Practice original questions on life, health, disability and long-term care insurance, annuities, business coverage and property and casualty policies, then take the free drill.
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 19 of the 170 questions are insurance planning.
Or try the free insurance planning drill- 42 original insurance planning questions with explained answers
- 11% of the exam: domain C, CFP Board topics C.17–C.26
- 19 of the 170 questions in our full mock
Which of the following exchanges qualify for tax-free treatment under IRC Section 1035, assuming the same insured or annuitant? I. Whole life policy for a variable annuity. II. Deferred annuity for a universal life policy. III. Universal life policy for a qualified long-term care policy. IV. Variable annuity for a fixed indexed annuity.
What our insurance planning questions cover
- Risk management methods and insurance contract principles
- Health insurance, HSA-eligible plans and COBRA continuation
- Disability income insurance definitions, elimination periods and the taxation of benefits
- Long-term care insurance benefit triggers and policy design
- Annuities: phases, types and taxation
- Life insurance types, policy provisions, modified endowment contracts, Section 1035 exchanges and transfer for value
- Business owner insurance: buy-sell funding, key person and overhead expense coverage
- Life insurance needs analysis; homeowners, auto and umbrella liability coverage
This list is our own summary of the domain, written for practice. CFP Board publishes the official list of principal knowledge topics.
Drill insurance planning, then sit the full mock
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 19 of the 170 questions are insurance planning.
Or try the free insurance planning drillRules the questions test most
- Risk management chooses among avoidance, reduction, retention and transfer. High-frequency, low-severity risks are retained or reduced; low-frequency, high-severity risks are transferred with insurance.
- Disability benefits from a policy the employee paid for with after-tax dollars are tax-free; benefits from an employer-paid policy are taxable income.
- A Section 1035 exchange moves value from one life insurance policy or annuity to another without current tax, within the permitted directions (life to life, life to annuity, annuity to annuity).
- A life insurance policy that fails the seven-pay test is a modified endowment contract: loans and withdrawals are taxed gain first and can owe a 10% additional tax before age 59½. The death benefit stays income-tax-free.
- Under a homeowners policy’s replacement cost provision, a loss is paid in full only if the dwelling is insured for at least 80% of its replacement cost.
Start the free insurance planning drill · Full CFP mock exam · Case study drill · Mixed drill
Common questions
How much of the CFP exam is insurance planning?
Risk Management and Insurance Planning is 11% of the CFP® exam, about 19 of the 170 questions. It covers CFP Board topics C.17 to C.26, from principles of risk and insurance to policy and company selection.
Is property and casualty insurance tested?
Yes, within analysis of risk exposures and insurance needs: homeowners coverage, personal auto, umbrella liability and coinsurance come up alongside life, health, disability and long-term care.
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 19 of the 170 questions are insurance planning.
Or try the free insurance planning drillMore CFP exam domains
Domain weights and exam format: CFP Board: What you’ll be tested on (domains and weights) · CFP Board: Exam format, checked November 2026.
Game Assessment Prep is an independent practice site. It is not affiliated with, endorsed by or a registered education program of CFP Board, and CFP Board does not review or endorse these questions. Every question is original; none is taken from CFP Board practice exams or other CFP Board materials.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.