IRDA Entrance Exam Question Papers

I want to give IRDA Entrance Exam so please provide me previous years question papers for preparation?

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Here I am providing you previous years question papers of IRDA Entrance Exam for your preparation.
IRDA Entrance Exam Paper 1
IRDA Agent Licensing Question paper


1) The route or process through which a product is carried to the customer is known as _________________

2) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________

3) The days of grace for monthly mode of premium is ___________ days.

4) EDLI scheme is linked to the payment of ________________ (Gratuity / Provident fund / pension)


Write yes or no indicate whether the following request will be allowed by the LIC or not.

5) The proposal dated 05.10.2000 for Rs.1,50,000 under table 14-18 requests that the policy be made to commence from 28.03.2000 as the date of birth of the life to be assured is 28.12.1973 .

6) Policy commenced on 01.07.1992 and lapsed because the annual premium due 01.07.1994 was not paid. Request received on 30.06.2000 for revival.

7) Father insuring his son aged 8 under the New CDA plan requests that the son’s life be covered from inception.

8) Policy paid up for Rs.4, 000 matured for payment on 30.09.2000. Policyholder reports that the policy is lost and requests that the claim be settled without advertisement and indemnity bond.

9) Policyholder requests that his Without Profit policy be made a with profits policy

10) Policyholder requests that policy issued with Annual Premium, be brought under the Salary Savings Scheme, as he has now joined a company

11) Policy commenced on 10.07.2000. A request is made on 10.09.2000 that the policy be brought under the M.W.P. Act


True or False

12) A maturity claim will be paid to the nominee.

13) The amount of bonus that vests is the same for all policies issued by the L.I.C.

14) Living too long is a risk.

15) An annuity is the same as a pension.

16) A son has no insurable interest in the father.

17) A sub-standard life is a person below the poverty line

18) An agent is not authorized to collect renewal premium.

19) An agent’s role is over after the policy is issued.

20) The maximum age entry is the same for all plans of insurance.

21) Extra premium is charged for moral hazard.

22) A lady clerk in a bank will be considered for insurance on the same terms as male lives

23) In an Immediate Annuity policy the annuity payment begins within the first year of the policy.

24) The proposal form should be written by the agent himself.


In respect of each of the words in column ‘A’ finds corresponding word in column ‘B’


Column ‘A’ Column ‘B’

25) Actuary Death _____________

26) Annuity Department _____________

27) Assignment Pension _____________

28) Communication Persuasion _____________

29) Insurance Premiums _____________

30) Mortality Pure Risk _____________

31) Motivation Recognition _____________

32) Organisation Sharing _____________

33) Term Assurance Surplus _____________

34) Valuation Transfer ___________




State whether the actions on the part of the agent in the following situations are right or wrong.

35) To a query from the prospect about the tax advantages in the proposed policy, the agent replies, “why do you bother? You just tell me how much money you can and I will work out the best policy for you.

36) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that he should allow three of them to lapse and go in for new policies straight away.

37) A proponent called up agent to know why a particular medical test was being asked by the office and the agent said he was not aware of the same and would revert to the matter the next day.

38) The agent was surprised to receive the copy of the letter written by the office to the wife of the insured, forwarding the forms to make a death claim.

39) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that nominations be made and offers to get them registered by the office.

40) The agent had left his identity card at home, when he was visiting a prospect.

41) An agent insists that all his policyholders should send the premium cheques to him, so that he can ensure that delay’s do not happen through oversight.

42) An agent tells a prospect, who is raising an objection, “why don’t you wrong. Understand this simple basic thing?”

43) When a policyholder complained that nobody in the insurance office was answering the telephone, the agent said that the office was in a mess and that the Managers were quite incompetent.

44) An agent being friendly with the assistant in the new business department, used to keep track of the new proposals and try to get business from the same parties.

45) Agency license is valid for a period of

a) 1 yrs

b) 2 yrs

c) 5 yrs

d) 3 yrs

46) The body constituted to receive and resolve grievances against an insurer is?____________

47) An insurance broker is

a) Representative of the state

b) Representative of the client

c) Representative of the insurer


48) Who shall conduct tests for licensing agents?

a) IRDA

b) NSE

c) III

d) LIC

49) When does an insurance policy lapse?

a) Stopping of bonuses

b) Assured is declared dead

c) Insurable interest of proposer ceases to exist

d) Stopping of periodical payments

e) Any of the above

50) When does a policy acquire paid up value?---------------.after 3 full year premiums payment

51) An assignment usually affected for valuable consideration is called:__________________ _________________


52) A policy can be surrendered, provided the policy is kept in force at least for a period of: ______________.


53) Which of the following policy is not eligible for loan?

a) Whole life - participating

b) Endowment

c) Money back

d) Whole life – non participating

54) What is the basis of contract between the policyholder and the insurer?

a) The Insurance act

b) The IRDA act

c) The Contract act

d) The Proposal Form

55) The cash value payable by LIC on termination of the policy contract at the desire of the policyholder but before the expiry term is known as :

__________________ __________________________.

56) Back Dating is an option to the life assurer to get the advantage of lower age wherein the policy is commenced from a date earlier than the date of signing of proposal form. However back dating is limited to one year.

True/False

57) What is the discount offered in case of

Annual premium ------------------ 3%

Semi annual ------------------ 1.5%

58) If FPR is submitted along with application the risk would be covered -True / False

59) Under the insurance act 1938, insurance against sickness and medical treatment is NOT part of life insurance business, it gets covered under miscellaneous business, which is part of general insurance business.

(T/F)

60) In many other countries health insurance is considered as part of the life insurance business.

(T/F)

State True or False

61) An agent must be of 21 years of age at least.

62) An agent can sell policies even without a license.

63) IRDA issues license to an agent.

64) 100 hours of training is a prerequisite for appearing in the recruitment examination.

65) An agents’ license is valid for 5years.


IRDA Entrance Exam Paper 2
IRDA Agent Licensing Question paper


1. Life insurance plans are combinations of two basic plans, viz.

a) Term Assurance, Pure Endowment

b) Term Assurance, Whole Life

c) Pure Endowment, Whole Life

d) Whole Life, Money Back

2. Insurance is normally bought for :

a) Tax Benefit

b) Death

c) Maturity Benefits

d) Death & Old Age

3. RBP stands for

a) Reserve Bank Policy

b) Retirement Benefit Plan

c) Regular Business Policy

d) Retirement Based Policy

4. A) The sum assured under group insurance is not fixed by the individual member.

B) A person whose proposal is declined under individual scheme can get insurance under group policy.

a) Statement A is correct

b) Statement B is correct

c) Both statements are correct

d) None of the above

5. Terminal Bonus is not paid in case of:

a) Surrendered Policies

b) Discounted policies

c) Paid-up policies

d) All of the above

6. A) Annuities are called the reverse of life insurance

B) In annuity contract insurer stops paying on the death of the annuitant

a) Statement A is correct

b) Statement B is correct

c) Both are correct

d) Both are incorrect

7. A) In Joint Life policies each life has to be underwritten separately.

B) A joint life declaration is not necessary to create a joint interest in the policy.

a) Statement A is incorrect

b) Statement B is correct

c) Statement A is correct but B is incorrect

d) None of the above

8. A) Medical examination of annuitants is necessary

B) Annuities cover the risk of living too long

a) Statement A is correct

b) Statement B is correct

c) Both the statements are correct

d) Both the statements are incorrect.




9. The lapse of selected period in case of Deferred annuities is called:

a) Vesting period

b) Free look period

c) Deferment period

d) Term

10. The annuity can be paid for:

a) 15, 20, 25 years

b) 5,10,15 years

c) 20,25, 30, 35, 40 years

d) 5,10,15,20,25 years

11. In case of immediate annuity annuitant can get annuity

a) Monthly

b) Quarterly

c) Half-Yearly

d) Yearly

e) All of the above

12. A) Women with unearned income can be insured

B) Women in purdah can be insured

a) Only statement A is correct

b) Only statement B is correct

c) Both statements are correct

d) Both statements are wrong

13. A) Physically handicapped persons are not insured

B) Partially handicapped persons are mostly accepted without extra Premium.

a) Statement A is correct

b) Statement B is correct

c) Both statements are correct

d) Both statements are wrong

14. Most of the children insurance plans are of the kind of:

a) Limited term

b) Participatory

c) Convertible

d) Deferred Insurance

15. A) Annuities can be immediate or deferred

B) Annuities can be offered as joint life annuity

a) Statement A is correct

b) Statement B is correct

c) Both statements are correct

d) None of the above

16. Which of the following statements are TRUE

a) A father can take a policy on the life of his son who is 12 years old.

b) One can take a policy on the life of a friend to whom he has lent money.

17. Which information, if not disclosed, can nullify the policy?

a) Valid

b) Material

c) Critical

d) Important




18. Which kind policies are not entitled bonuses?

a) Non participatory

b) Money back

c) Children’s

d) Whole life

19. Which of the following statements are True:

A. The premium paid by each policyholder is separately accumulated in his account

B. Underwriting ensures that the exposure to risk is properly assessed.

a) Statement A

b) Statement B

c) Both Statements

d) Neither of Statement

20. The bonus which attaches to the policy immediately on declaration is called ___________ bonus

a) Immediate

b) Reversionary

c) Technical

d) Final

21. Which of the following statements are True:

A. Policy decision in an organization means decision relating to issue of insurance policy in a specific case.

B. Policy decision in an organization means decision relating to the kind of plans of insurance to be offered to the public

a) Statement A

b) Statement B

c) Both Statements

d) Neither of Statement

22. A policy which has run for 8 years can be called into question if there is a__________________

a) Fraud

b) Misrepresentation

c) Mistake

d) (None of above)

23. The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of

a) Original loan

b) Outstanding loan plus interest

c) Outstanding loan

d) Installment due to be repaid within the next one year

24. If the proponent has no insurable interest in the insured the underwriter will

a) Accept with reduce sum assured

b) Reject the proposal

c) Accept with lien

d) Accept with extra premium

25. Which are true

A. Insurance is necessary to cover risk of living too long

B. Insurance helps one to be less dependent on others

a) Statement A

b) Statement B

c) Both Statements

d) Neither of the Statement


26. __________ is the process of deciding on the proposal for insurance

a) Decision

b) Underwriting

c) Consideration

d) Acceptance

27. Reverse of L.I

a) Loan

b) S.V.

c) Annuity

d) None of above

28. Insured is 54 kg. wt is presented as 34 kg.

a) Misrepresentation

b) Fraud

c) Both

d) Neither of above

29. What is PLI?

State True or false

30. Brothers have insurable interest in each other.

31. Policy document is contract of insurance.

32. Insurance protects assets.

33. We insure only tangible assets.

34. Insurer invests money in speculative market.

35. Insurable interest need not be insisted upon after contract is completed.

36. Facts, which reduce the risk, must also be disclosed in insurable proposed.

37. Insurable interest is defined in the insurance Act.

38. Creditors have insurable interest in the Debtors.

39. Proposal forms in insurance are the basis of contract.

Give full form of

40. LALGI

41. PLI

42. IRDA

43. MWPA

44. D.O.B

45. HLV

46. FPR

47. SSS

48. LICI

49. The actuarial aspects, which are taken into account while fixing the premium.

I. Mortality

II. Interest Assumption

III. Office Expenses

• Only I

• Only II and I

• Only I , II and III

• Only II and III



50. Commercial Contracts are normally subject to principle of utmost good faith. (T/F)

51. The premium paid by each person is determined on the assumption that while it may not be possible beforehand to tell how many persons will suffer but it is possible to tell who will suffer. (T/F)

IRDA Entrance Exam Paper 3
2007 IRDA Agent Licensing Question paper

1) The principle to be followed by both the parties in an insurance contract, with reference to disclosure of all the relevant facts, is known as -------------------------------------------------------.

2) The life insurance scheme, which allows an employer to insure the lives of important employees in the organization, in order to cover the risk arising out of their premature death is known as

---------------------------------------------------------.

3) The Insurance Act was passed in the year

a) 1928

b) 1938

c) 1939

d) 1942

4) In life insurance, the ___________ is authorized to collect the claim amount after the death of the policyholder.

5) How is, the person appointed by the Government to settle disputes between the insurers and the insured, better known as? __________________

6) Assignment usually effected for consideration of natural love and affection is: __________ .

7) A process whereby the beneficial interest, right and title under a policy gets transferred is called __________ .

8) Fill in the blanks.

a. To sell insurance an agent must understand the prospect’s insurance ______.

b. An agent has to ensure that without a lapse, the new policy issued should continue till it becomes a __________.

c. The ______________ is also accompanied by the agent’s _____________ report.

d. In nomination the policyholder ____________ all rights under the policy.

e. The two types of assignments are _________________ and ________________.

f. A lapsed policy can be revived in _______ ways.

g. The __________ should help the prospect in revival process.

h. Maturity claim can be done after filling up the _______________ voucher.

i. Indemnity bond is executed by the policy holder in case the policy is

___________ or _____________.

9) The capability to function as an agent would be measured partly by the business that is done and the commission that is earned.(T/F)

10) An agent’s reputation must be such in the market that will help him to collect more references from his policyholders.(T/F)

11) Product knowledge ends with knowing the broad terms and conditions of the policy and the extent of cover.(T/F)

12) Good product knowledge will help one to be aware of the possible drawbacks in the policy, the tax implications, the fit with the client's need, the extent to which the client has to take precautions so that the benefits may not be lost.(T/F)

13) An agent is a professional and a businessman.(T/F)

14) An agent is both a professional and a businessman and there is no conflict between the two.(T/F)

15) An agent's revenue is in the nature of commission on premium. (T/F)

16) Professional agents must set aside both funds as well as time for their personal growth.(T/F)

17) Salesmanship is different from management.(T/F)

18) For an insurance agent the whole world is a potential market. (T/F)

19) The segment in which an agent operates is called his target market / segment. An agent must have only one target market. (T/F)

20) An agent sells himself before he sells his product.(T/F)

21) An agent is a self-motivated individual. All his actions are goal oriented. (T/F)

22) Morale implies that the behavior of the agent has to be one that exudes confidence and positive thoughts about the company and its offerings. This is possible only if the agent feels good about his profession and business.

(T/F)

23) Communication is normally understood to refer to the information that one has to send to another, through words or symbols or pictures, in writing or verbally.(T/F)

24) The seven C's of communication are completeness, courtesy, consideration, clarity, conciseness, concreteness, and correctness. (T/F)

25) In insurance selling is more through use of persuasive skills than counseling skills. (T/F)

26) An agent must be able to analyze the various needs of the prospect and find the best plan to meet those needs. An agent can also make assumptions.(T/F)

27) An agent is bound under the terms and conditions of the appointment letter given to him by the insurer under the Licensing of Insurance agent's regulations 2000.(T/F)

28) Non-compliance of the provisions of this regulation may lead to termination of the agency license.(T/F)

Fill in the blanks using only one of the alternatives provided in bracket.

29) The definition of Rural area is where the total population is (over 5000/ over 10,000 / less than 5000)

30) Term Insurance product is useful for ________________________________ (providing for old age / for Children/cover in case of mortgage loans/ getting payments at regular intervals).

31) Age nearer to birthday as on 20.5.2000 of a person with date of birth 13.7.1974 is years (25/26/27).

32) The terminal bonus is paid to those policies which become claim after completing years as in force policies (10/15/20).

33) If a person is born on 15.03.1975 his age last birthday as on 12.03.2001 will be

i) 23 yrs

ii) 24 yrs

iii) 25 yrs

iv) 26 yrs

34) In mortgage redemption policies the sum assured will be paid

a) At the end of the term

b) ON death within the term

c) Both of the above

d) On default of the payments

35) Non forfeiture clause refers to

a) Option to keep the policy running when it is about to lapse due to non payment of premiums

b) Whatever the condition the premiums paid by the policy holder cannot be forfeited

c) When the policy holder does not return the loan taken on a policy the policy is forfeited by the insurer

d) In case of a moral hazard the sum assured is forfeited by the insurer

36) Statement A: An individual can take a Key man insurance on his own life

Statement B: A husband is a Key man to his wife

a) Only statement A is true

b) Only statement B is true

c) Both A & B are false

d) Both A & B are true

37) Statement A: Agents are usually attached to branches of insurance offices

Statement B: A department in an office is where some specialized type of work is carried out

a) Only statement A is true

b) Only statement B is true

c) Both A & B are true

d) Both A & B are false

38) The maximum limit for payment of commission prescribed for 2nd and 3rd year renewal premiums is fixed as per insurance act 1938 as

a) 35%

b) 40%

c) 5%

d) 7.5%

39) Three fundamentals of sound investment are : ____________, ____________, ________ ,

40) The insurer makes guaranteed additions @ 7% of the S.A. for each completed policy year, for which premiums are paid, and these will payable at the end of the term of the policy or earlier death of the policyholder A. The insurer also puts an x amount as loyalty addition, if premium has been paid for 5 years. A has taken the policy for 15 years for Rs. 1,00,000 S.A. He has been paying his premiums regularly. How much would he get if he died after 4 years of taking the policy? How much would he get on maturity of the policy?

41) Mr. X buys a policy for Rs3, 00,000 S.A. at age 35 and pays a single premium. He dies at the age of 45 in a road accident. His wife gets RS. 3,00,000/- as death benefit. How much tax will she have to pay on this amount?

42) Life assured aged 35, for a policy of Rs.30000/- sum assured under Money Back policy for a term of 20 years. DAB & EPDB are not required. Tabular premium per thousand is given as Rs.68.70. If the policy is under Salary Saving Scheme what would be the monthly premium?


43) A. Calculate the half-yearly premium for a with-profit endowment assurance of Rs.30000/- for a term of 30 years issued to a scheduled commercial airline pilot aged 25 without D.A.B. & E.P.D.B. The occupation extra in this case is 12PER THOUSAND for 10 years. ANSWER 654

B. What will be the half-yearly instalment payable after 10 years, given that the tabular premium for 1000 S.A. is Rs.33.10?

44) Calculate the quarterly instalment premium under a whole life policy for Rs.50000/- sum assured, issued to a life whose age nearer birthday at entry is 45, with premium paying term limited to 25 years. D.A.B. (Double Accident Benefit) & E.P.D.B. (Extended Permanent Disability Benefit) benefit is allowed. Tabular premium is given as Rs.48.10 and D.A.B., E.P.D.B. as Rs.50.

45) Age 25 years, Term 26 years, Sum Assured Rs.200000/-, Mode half yearly. Calculate the instalment premium. Table premium is 40.25.

46) Calculate claim payable:

Date of Death : 27 Nov 2000

Date of commencement: 13 Dec 1989

Sum Assured: 30,000

L. P. P. : 13/12/1999

Bonus: 3/85-3/99 600 per thousand, 3/2000 is 60

Half yearly premium of 400

47) The drive or urged to do something to achieve at end is called ________

a. willingness

b. motivation

c. need

d. power

48) ____________ are statements made by the prospect raising doubts about the usefulness of the Insurance.

(a) Refusals

(b) Objections

(c) Queries

(d) Disagreement

49) _________ is helping the policy holder to make sure that the policy will not fail at the critical moment.

(a) Sales

(b) Service

(c) Advice

(d) Promise.


50) Describe the behavior of an Agent who exchanges experiences with other agents.

(a) curious

(b) Probing

(c) Non Professional

(d) Professional

51) An officer of insurance company authorized by IRDA to issue agency license is called

a. Designated person

b. Authorized person

52) A. The insured mentioned to the agent adviser while filling up the proposal form that some six years back white fluid had discharged from his right ear, but it stopped after that. The agent does not mention it in his report because it is not relevant now.

B.The agent confirms from the insurer about the present situation and since it is ok, he does not mention in his report.

a) Only A is true

b) Only B is true

c) Both are true

d) Both are false