IC-38 Sample Questions with Answers & Explanations (2026)
The best way to know if you are ready for IC-38 is to test yourself. Below are sample IC-38 questions in the exact style of the real exam — multiple choice, one mark each, no negative marking — with the correct answer and a short explanation for each. Try to answer before you read the solution.
These are practice questions written to match the IC-38 syllabus and difficulty; they are not leaked exam questions. For a full timed mock, practise free on Certena.
Principles of insurance
Q1. The principle that requires both parties to disclose all material facts is called: A) Indemnity B) Utmost good faith C) Contribution D) Subrogation Answer: B — Utmost good faith. An insurance contract is uberrimae fidei: the proposer must voluntarily disclose everything material to the risk, even if not asked.
Q2. Insurable interest in a life insurance policy on your own life is: A) Limited to a fixed sum B) Not required C) Unlimited D) Only up to income Answer: C — Unlimited. A person is presumed to have unlimited insurable interest in their own life.
Q3. The principle of indemnity applies to: A) Life insurance B) Personal-accident lump sum C) General (non-life) insurance D) All policies Answer: C — General insurance. Indemnity restores you to your pre-loss position and applies to non-life. Life insurance is not a contract of indemnity.
Products and policy terms
Q4. The "free-look period" allows a policyholder to: A) Skip a premium B) Return a new policy for a refund if not satisfied C) Increase the sum assured D) Change the nominee Answer: B. The free-look period (typically 15–30 days) lets a policyholder cancel a newly issued life policy and get a refund, subject to deductions.
Q5. "Nomination" in a life insurance policy means: A) Transferring ownership B) Naming who receives the benefit on the life assured's death C) Assigning the policy to a bank D) Cancelling the policy Answer: B. Nomination names the person to receive policy money on death; it differs from assignment, which transfers rights in the policy.
Q6. Which of these is a general insurance product? A) Term plan B) Endowment plan C) Motor insurance D) ULIP Answer: C — Motor insurance. The others are life-insurance products.
The agent's role and regulation
Q7. An insurance agent's primary duty is to: A) Sell the highest-commission product B) Recommend suitable cover for the client's needs C) Meet targets at any cost D) Avoid disclosing exclusions Answer: B. Needs-based, suitable advice is the core of ethical selling; the opposite is mis-selling.
Q8. The body that regulates insurance in India is: A) SEBI B) RBI C) IRDAI D) AMFI Answer: C — IRDAI.
Q9. If a policyholder's complaint is not resolved by the insurer, they may approach the: A) Insurance Ombudsman B) Local police C) Stock exchange D) Agent's manager only Answer: A — Insurance Ombudsman.
Q10. In IC-38, which statement is FALSE? A) There is no negative marking B) Attempting all questions maximises your score C) A blank scores the same as a wrong answer D) Leaving questions blank improves your score Answer: D. Blanks never help when there is no negative marking — always attempt every question.
How did you do?
If you comfortably scored 7/10 or more, you are on track. If not, focus your revision on the topics you missed — that targeted approach is exactly how first-attempt passers study.
Want hundreds more questions like these, timed and with instant explanations? Start free IC-38 practice on Certena, and read the full IC-38 exam guide for the syllabus and pass marks.