IC-103 Optional · Optional Life & General Insurance

Distribution Channels Management in Insurance — Mock Tests & Exam Prep

Distribution channel management — agency, bancassurance, brokers, digital channels, sales strategy and ethics.

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242
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
30
Credit points

Try IC-103 free — 5 real questions

These are 5 of the 242 IC-103 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 describes micro insurance protection?
  1. ACover for high net-worth individuals through large single-premium policies
  2. BCover for low or irregular income households through low-premium products
  3. CCover only for salaried corporate employees through group insurance schemes
  4. DCover only for farmers' crops against floods, drought and similar calamities
  5. ECover for urban middle-class families through high-value policies
Show answer & explanation

Answer: B. Cover for low or irregular income households through low-premium products

Micro insurance offers protection against specific perils to low or irregular income households, in exchange for premium, through products with low premiums and lower sum assured or sum insured.

Question 2
Why do sales managers of rival insurers consider dummy agencies in a family member's name a useful approach?
  1. AIt lets the insurer avoid the agent's regulatory training altogether
  2. BIt lets them avoid paying any commission to the agent
  3. CIt lowers the premium that the policyholder must pay each year
  4. DA quick way to poach another insurer's agents into a parallel agency
  5. EIt removes the need for any proposal form from the client
Show answer & explanation

Answer: D. A quick way to poach another insurer's agents into a parallel agency

Sales managers of rival insurers consider it a quick approach to poach the agents of a particular insurer and entice them into taking a parallel agency in the name of a family member.

Question 3
Once banks start operating as insurance brokers, who becomes accountable for handling customer grievances and giving good customer service?
  1. AThe banks themselves, as brokers
  2. BThe insurance companies alone
  3. CThe customer's own nominee
  4. DThe agents of the insurance companies
  5. EThe regulator, on behalf of the customers
Show answer & explanation

Answer: A. The banks themselves, as brokers

Under bancassurance corporate agency the insurer remains responsible for customer service, but as brokers the banks would be accountable for handling grievances and offering good customer service.

Question 4
Before the persistency guidelines effective July 1st, 2014, who had to bear the brunt of low persistency?
  1. AOnly the agent, as the insurer was not held accountable
  2. BThe policyholder, who was penalised for lapsing
  3. CBoth the insurer and the agent, in equal measure
  4. DThe regulator, which refunded the lapsed premium
  5. EOnly the insurer, as the agent was not held accountable
Show answer & explanation

Answer: E. Only the insurer, as the agent was not held accountable

Until the guidelines effective July 1st, 2014, the agent was not held accountable for low persistency and only the insurer bore the brunt of it.

Question 5
Which of the following is a reason for the superior persistency of policies sold through Bancassurance?
  1. AHigh ticket size and payment options such as ECS or direct debit
  2. BCompulsory annual medical check-ups for every policyholder insured
  3. CA lock-in rule that bars surrender of every bank-sold policy
  4. DBank staff visiting each customer personally to collect premiums
  5. ELower premium rates charged to bank customers by insurers
Show answer & explanation

Answer: A. High ticket size and payment options such as ECS or direct debit

Superior persistency comes from the high ticket size and the inherent premium payment options such as ECS, NEFT and direct debit from the bank account.

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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-103.
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Full 100-question, 2-hour papers that mirror the real III format.
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Every question includes a clear explanation of why the answer is correct.
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Spaced repetition
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Frequently asked questions

What is IC-103?
IC-103 (Distribution Channels Management in Insurance) is an optional Optional-level examination offered by the Insurance Institute of India (III). Distribution channel management — agency, bancassurance, brokers, digital channels, sales strategy and ethics.
How many questions are in the IC-103 exam?
The IC-103 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-103?
You need to score at least 60% to pass IC-103. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-103 carry?
IC-103 carries 30 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-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

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