IC-01 Compulsory · Licentiate Life & General Insurance

Principles of Insurance — Mock Tests & Exam Prep

The foundations of insurance — risk, insurable interest, indemnity, utmost good faith, subrogation and the structure of the Indian insurance market.

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398
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
20
Credit points

Try IC-01 free — 5 real questions

These are 5 of the 398 IC-01 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.

Question 1
Which of the following have established the circumstances in which insurance interest is deemed to exist?
  1. ACorporate Laws
  2. BCourt Judgments
  3. CThe Insurance Rules
  4. DThe Insurance Act, 1938
  5. EThe Insurance Regulatory and Development Authority
Show answer & explanation

Answer: B. Court Judgments

The Insurance Act, 1938 does not define insurable interest. Court judgements have established the circumstances in which insurable interest is deemed to exist.

Question 2
Why cannot a Marine Hull be assigned without the insurers consent ?
  1. ABecause Marine Hull is a marine insurance contract
  2. BBecause Marine Hull is a personal contract
  3. CBecause Marine Hull is a non personal contract
  4. DBecause Marine Hull is a insurance contract
  5. EBecause Marine Hull is a general insurance contract
Show answer & explanation

Answer: C. Because Marine Hull is a non personal contract

Personal contracts can be transferred to another person with the consent of the insurance company. Fire, motor and house are personal contracts unlike marine hull.

Question 3
Which word closely matches the foll _ It is valuable to the owner; it has a life time. It provides benefits to the owner The benefit may be in the form of income or service:
  1. AAgricultural Land
  2. BMoney
  3. COffice
  4. DCar
  5. EAll of the above
Show answer & explanation

Answer: E. All of the above

All the above provlde benefits In tom of Incone or servIce 027 In an Unit Linked Insurance Plan; the policy holder chooses the fund of his choice, the policy holder is totally responsible for its growth the insurance company is totally responsible for its growth both the policy holder and Insurance company are responsible for its growth both the policy holder and insurance company are not responsible for its growth None of the above

Question 4
From the following data, calculate the Frequency of road accidents: BRANCH NUMBER OF THEFTS NUMBER OF ACCIDENTS NUMBER OF VEHICLES COVERED A 2 11 150 B 3 19 160 C 82 766 3600 D 13 704 6090
  1. A16%
  2. B15%
  3. C1.5%
  4. D0.16%
Show answer & explanation

Answer: B. 15%

Total Number of Road Accidents=1500 Total Number of Exposure Units =10000 Frequency =15%

Question 5
Which statement accurately reflects the functions of the Insurance Regulatory and Development Authority of India (I.R.D.A.)'s Grievance Redressal Mechanism?
  1. ATo efficiently and impartially resolve complaints arising from disputes between policyholders and insurers.
  2. BTo create an environment where insured individuals can access proper procedures and redressal mechanisms established by insurers.
  3. CTo provide premium statistics and claims statistics to the bureau, ensuring swift resolution of grievances faced by insured customers and to Mitigate their Problems, Involved in Redressal of Grievances
  4. DTo offer key inputs to the government for policy-making and provide a range of insurance-related services to various stakeholders, including public police transport departments.
  5. ETo support the insurance industry with sector-level data, facilitating data-based and scientific decision-making, including pricing and business strategy formulation.
Show answer & explanation

Answer: A. To efficiently and impartially resolve complaints arising from disputes between policyholders and insurers.

IRDA grievance redressal mechanism Insurance Regulatory and Development Authority (IRDA) has established Consumer Affairs Department to oversee compliance of insurers and protection of interests of policyholders and also to empower consumers by educating them on grievance redressal mechanisms. The department facilitates an environment where the insured avails himself / herself of proper procedures and redressal mechanisms put in place by insurers and the regulations to address complaints and grievances of policyholders efficiently and with speed. Under the grievance redressal mechanism, the insured can approach the IRDA through phone or email against the insurance company for any grievance redressal.

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What you'll practise

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Real exam-style MCQs
Question bank aligned to the III syllabus for IC-01.
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Timed mock exams
Full 100-question, 2-hour papers that mirror the real III format.
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Instant explanations
Every question includes a clear explanation of why the answer is correct.
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Spaced repetition
Missed questions resurface at the right time so you retain them.

Chapters covered

  1. 1.Introduction to Insurance
  2. 2.Risk, Peril and Hazard
  3. 3.Rating and Pricing Insurance Products
  4. 4.Principles of Insurance – One: Utmost Good Faith & Insurable Interest
  5. 5.Principles of Insurance – Two: Indemnity
  6. 6.Principles of Insurance – Three: Subrogation, Contribution & Proximate Cause
  7. 7.Legal Aspects of Insurance
  8. 8.Underwriting
  9. 9.Claims
  10. 10.Reinsurance
  11. 11.Insurance Accounts

Frequently asked questions

What is IC-01?
IC-01 (Principles of Insurance) is a compulsory Licentiate-level examination offered by the Insurance Institute of India (III). The foundations of insurance — risk, insurable interest, indemnity, utmost good faith, subrogation and the structure of the Indian insurance market.
How many questions are in the IC-01 exam?
The IC-01 exam has 100 MCQs to be answered in 120 minutes (2 hours). All questions must be attempted — there is no negative marking.
What is the pass mark for IC-01?
You need to score at least 60% to pass IC-01. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-01 carry?
IC-01 carries 20 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-02
Practice of Life Insurance
IC-11
Practice of General Insurance
IC-22
Life Insurance Underwriting
IC-45
General Insurance Underwriting
IC-26
Life Insurance Finance
IC-46
General Insurance Accounts Preparation & Regulation of Investment

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