IC-02 Compulsory · Licentiate Life Insurance

Practice of Life Insurance — Mock Tests & Exam Prep

How life insurance works in practice — products, the proposal-to-policy journey, premiums, bonuses, claims and policy servicing.

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535
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
20
Credit points

Try IC-02 free — 5 real questions

These are 5 of the 535 IC-02 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
What is the time stipulated to settle a death claim after all the requirements are submitted by the claimant?
  1. A15 days.
  2. B30 days.
  3. C45 days.
  4. D60 days.
Show answer & explanation

Answer: B. 30 days.

According to the IRDAI (Protection of Policyholders’ Interests) Regulations 2017, a life insurance company has to settle a death claim within 30 days from the day all the requirements have been submitted by the claimant. Maturity Claims and Survival Benefits must be settled on the due date of their payment.

Question 2
What is the individual employed by an Insurance Marketing Firm to solicit insurance business called?
  1. APoint of Sales Person
  2. BMicro insurance agent
  3. CInsurance Sales Person
  4. DSpecified person
  5. ERural Authorised Person
Show answer & explanation

Answer: C. Insurance Sales Person

An individual employed by an Insurance Marketing Firm to solicit insurance business is called an Insurance Sales Person (ISP). Specified persons belong to Corporate Agents, not to IMFs.

Question 3
How is the sum assured under a Group Gratuity Scheme generally fixed for the death of an employee before superannuation?
  1. AAs nothing, since only the gratuity accrued so far is payable on death in service
  2. BAs the Group Policy Account balance on the date of death, with no further amount
  3. CAs a flat amount equal to one year's basic salary plus dearness allowance at the time of death
  4. DSo that sum assured plus accrued gratuity equals the gratuity at superannuation
  5. EAs 105% of the total premiums paid by the employer on his behalf up to death
Show answer & explanation

Answer: D. So that sum assured plus accrued gratuity equals the gratuity at superannuation

The insurer collects a risk premium for death during the policy term. The sum assured is generally set so that, with the gratuity accrued to the date of death, the beneficiary receives what would have been paid had the employee continued to normal superannuation.

Question 4
Which of the following is another name for the Net Premium?
  1. ARisk Premium
  2. BExtra Premium
  3. CTabular Premium
  4. DGross Premium
  5. EOffice Premium
Show answer & explanation

Answer: A. Risk Premium

Net Premium is also sometimes called the Pure Premium or Risk Premium; the insurer's expenses are ignored in calculating it, unlike Office or Gross Premium.

Question 5
An underwriter assesses the risk on a proposer's life to be higher than that of a standard life because of his occupation. How is the extra premium charged?
  1. AAs an amount that is deducted from the sum assured at the time of claim
  2. BAs a refund that is paid back to the policyholder at the end of the term
  3. CAs a percentage of the tabular premium or office premium
  4. DAs a rebate that is allowed on the tabular premium for the sum assured
  5. EAs a flat sum per policy that is the same whatever premium is charged
Show answer & explanation

Answer: C. As a percentage of the tabular premium or office premium

Insurers charge extra premium as a percentage of the tabular premium or office premium when the underwriter assesses the risk to be more than standard, for example because of habits, health, family history or occupation.

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Frequently asked questions

What is IC-02?
IC-02 (Practice of Life Insurance) is a compulsory Licentiate-level examination offered by the Insurance Institute of India (III). How life insurance works in practice — products, the proposal-to-policy journey, premiums, bonuses, claims and policy servicing.
How many questions are in the IC-02 exam?
The IC-02 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-02?
You need to score at least 60% to pass IC-02. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-02 carry?
IC-02 carries 20 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-01
Principles of Insurance
IC-22
Life Insurance Underwriting
IC-26
Life Insurance Finance
IC-14
Regulations of Insurance Business
IC-24
Legal Aspects of Life Assurance
IC-27
Health Insurance

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