100+ Free IIQE (HK) Practice Questions

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2026 Statistics

Key Facts: IIQE (HK) Exam

75 questions

IIQE Paper 1 has 75 multiple-choice questions in 120 minutes

Insurance Authority / VTC PEAK

50 questions

IIQE Paper 2 has 50 multiple-choice questions in 75 minutes

Insurance Authority / VTC PEAK

70%

Pass mark for each IIQE paper (53 of 75 on Paper 1, 35 of 50 on Paper 2)

VTC PEAK IIQE Handbook

Paper 1 compulsory

Principles and Practice of Insurance is required for all insurance intermediaries

Insurance Authority

Paper 2 for non-life

General Insurance paper is required to arrange non-life insurance

Insurance Authority

HK$185-265

Typical written-exam fees for Paper 2 and Paper 1 set by VTC PEAK

VTC PEAK

IIQE is administered by VTC PEAK on behalf of the Insurance Authority

VTC PEAK Examination Centre

100

Free original IIQE Paper 1 and Paper 2 practice questions here

OpenExamPrep

The IIQE is Hong Kong's statutory licensing exam for insurance intermediaries, administered by VTC PEAK under the Insurance Authority. Paper 1 (Principles and Practice of Insurance) has 75 multiple-choice questions in 120 minutes; Paper 2 (General Insurance) has 50 multiple-choice questions in 75 minutes. Both papers require 70% to pass (53 of 75 on Paper 1, 35 of 50 on Paper 2). Paper 1 is compulsory for all intermediaries, while Paper 2 is required to sell general (non-life) insurance. This 100-question bank provides original multiple-choice practice modelled on the official Paper 1 and Paper 2 syllabuses.

Sample IIQE (HK) Practice Questions

Try these sample questions to test your IIQE (HK) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes a 'pure risk' as used in insurance?

A.A risk where there is a chance of loss or no loss, but no chance of gain

B.A risk where there is a chance of either gain or loss

C.A risk that can never be insured

D.A risk that always results in a financial gain

Explanation: A pure risk involves only the possibility of loss or no loss, with no opportunity for gain - for example, the risk of a fire or accident. Insurance is generally concerned with pure risks because they are measurable and only the downside exists.

2Insurance works mainly on the basis of which financial mechanism?

A.Speculation by individual policyholders

B.Pooling of similar risks contributed by many policyholders

C.Government subsidy of all losses

D.Lending money to those who suffer losses

Explanation: Insurance pools the contributions (premiums) of many policyholders exposed to similar risks, so the relatively few who suffer losses are compensated from the common fund. This spreads the financial impact of loss across the group.

3Which term describes the cause or condition that may give rise to a loss, such as fire, theft or flood?

A.Peril

B.Hazard

C.Premium

D.Indemnity

Explanation: A peril is the actual cause of a loss, such as fire, theft or flood. It is distinct from a hazard, which is a condition that increases the likelihood or severity of a peril.

4A building with old, faulty electrical wiring is an example of which type of hazard?

A.Moral hazard

B.Physical hazard

C.Morale hazard

D.Speculative hazard

Explanation: Faulty wiring is a physical hazard - a tangible condition of the property that increases the chance or severity of a fire loss. Physical hazards relate to the material features of the risk.

5Which of the following is generally NOT one of the characteristics that make a risk insurable?

A.The loss must be fortuitous (accidental)

B.There must be a large number of similar exposures

C.The loss must be certain to happen at a known time

D.The financial value of the loss must be measurable

Explanation: Insurable risks must be fortuitous and uncertain; a loss that is certain to occur at a known time, such as ordinary wear and tear, is not insurable because there is no element of chance to pool. The other features - large numbers of similar exposures and measurable loss - support insurability.

6An insurance contract is described as a contract of 'utmost good faith'. What does this primarily require?

A.The insurer must pay all claims without investigation

B.Both parties must disclose all material facts honestly

C.The insured must pay premiums in advance only

D.The contract must be witnessed by a solicitor

Explanation: Utmost good faith (uberrimae fidei) requires both parties, but especially the proposer, to disclose all material facts that would influence the insurer's decision to accept the risk and on what terms. This duty is higher than in ordinary commercial contracts.

7A 'material fact' in insurance is best defined as a fact that:

A.Only the insured considers important

B.Would influence a prudent insurer in setting terms or accepting the risk

C.Relates only to the premium amount

D.Is always disclosed automatically by the insurer

Explanation: A material fact is one that would influence the judgement of a prudent insurer in deciding whether to accept a risk and on what terms. The proposer has a duty to disclose such facts under utmost good faith.

8For a valid insurance contract, the proposer must normally have insurable interest. Insurable interest means the insured:

A.Owns the insurance company

B.Stands to suffer a financial loss if the insured event occurs

C.Has paid at least two years of premiums

D.Is related to the insurer's directors

Explanation: Insurable interest exists when the insured would suffer a genuine financial loss from the loss or damage of the subject matter, giving them a legally recognised relationship to it. Without insurable interest the contract is generally void.

9In a property insurance contract, at what point must insurable interest generally exist?

A.Only when the policy is first taken out

B.Only at the time of loss

C.Both when the policy is taken out and at the time of loss

D.Insurable interest is not required for property insurance

Explanation: For most property and general insurance, insurable interest must exist both when the policy is effected and at the time of the loss, because the policy indemnifies an actual financial loss. (Life insurance differs, requiring interest only at inception.)

10The principle of indemnity in insurance means that the insured should be:

A.Placed in a better financial position after a loss

B.Restored to the same financial position they were in before the loss

C.Paid the full sum insured regardless of the actual loss

D.Paid only half of any loss suffered

Explanation: Indemnity aims to restore the insured to the same financial position as immediately before the loss, no better and no worse. This prevents the insured from profiting from a claim.

About the IIQE (HK) Exam

The Insurance Intermediaries Qualifying Examination (IIQE) is the statutory licensing examination for insurance intermediaries in Hong Kong, set under the Insurance Authority and administered by VTC PEAK. Paper 1, Principles and Practice of Insurance, is compulsory for all intermediaries and covers risk and insurance, insurance and the law, the principles of insurance, core insurer functions, the Hong Kong insurance market, the regulatory framework under the Insurance Ordinance, and ethical conduct. Paper 2, General Insurance, is required for intermediaries who arrange non-life insurance and covers an introduction to general insurance, property insurance, liability and other insurance, and marine, aviation and transport insurance. Both papers are multiple choice with a 70% pass mark. This 100-question bank gives original practice across the most-searched Paper 1 and Paper 2 topics.

Assessment

Paper 1 (Principles and Practice of Insurance) has 75 multiple-choice questions; Paper 2 (General Insurance) has 50 multiple-choice questions. Each question has four options and one correct answer with no negative marking.

Time Limit

Paper 1 allows 2 hours (120 minutes); Paper 2 allows 75 minutes.

Passing Score

70% on each paper: 53 of 75 on Paper 1 and 35 of 50 on Paper 2.

Exam Fee

Paper 1 is HK$265 (CSME) or HK$195 (PPME); Paper 2 is HK$185 written or HK$250 computer-based, with higher remote-invigilation fees. Fees are set by VTC PEAK. (VTC PEAK (Institute of Professional Education And Knowledge) on behalf of the Insurance Authority of Hong Kong)

IIQE (HK) Exam Content Outline

30%

Paper 1 - Principles of Insurance & Risk

Paper 1 core: the nature of risk and insurance, and the fundamental legal principles of insurance - insurable interest, utmost good faith (duty of disclosure), indemnity, subrogation, contribution and proximate cause. Practice here also covers how risk is transferred, pooled and managed and how these principles apply to claims.

20%

Paper 1 - Regulatory Framework & Ethics

Paper 1: the Insurance Ordinance, the role and powers of the Insurance Authority, licensing of intermediaries, conduct requirements, the cooling-off period, complaints and the Insurance Complaints Bureau, anti-money-laundering obligations, and ethical conduct expected of intermediaries.

10%

Paper 1 - Insurer Functions & HK Market

Paper 1: core functions of an insurance company including underwriting, rating, reinsurance, claims and investment, together with the structure of the Hong Kong insurance market, distribution channels and the roles of agents and brokers.

16%

Paper 2 - Property Insurance

Paper 2 (Chapter 2): fire and household insurance, all-risks and engineering covers, the operation of average (under-insurance), deductibles and excess, sums insured and reinstatement, and common exclusions in property policies.

18%

Paper 2 - Liability & Other Insurance

Paper 2 (Chapter 3, highest weight): employees' compensation insurance (compulsory under the Employees' Compensation Ordinance), compulsory motor third-party insurance, public and product liability, professional indemnity, and accident and health/medical covers.

Paper 2 - Intro & Marine/Aviation/Transport

Paper 2 (Chapters 1 and 4): general-insurance fundamentals, underwriting and claims processes and reinsurance, plus marine cargo (Institute Cargo Clauses), hull, aviation and transport insurance and the principle of general average.

How to Pass the IIQE (HK) Exam

What You Need to Know

Passing score: 70% on each paper: 53 of 75 on Paper 1 and 35 of 50 on Paper 2.
Assessment: Paper 1 (Principles and Practice of Insurance) has 75 multiple-choice questions; Paper 2 (General Insurance) has 50 multiple-choice questions. Each question has four options and one correct answer with no negative marking.
Time limit: Paper 1 allows 2 hours (120 minutes); Paper 2 allows 75 minutes.
Exam fee: Paper 1 is HK$265 (CSME) or HK$195 (PPME); Paper 2 is HK$185 written or HK$250 computer-based, with higher remote-invigilation fees. Fees are set by VTC PEAK.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

IIQE (HK) Study Tips from Top Performers

1Focus Paper 1 study on the six principles of insurance - insurable interest, utmost good faith, indemnity, subrogation, contribution and proximate cause - because Principles of Insurance is the single highest-weight chapter.

2Learn the Hong Kong regulatory framework precisely: the Insurance Authority's powers, intermediary licensing, the cooling-off period and the Insurance Complaints Bureau all appear regularly on Paper 1.

3For Paper 2, master the highest-weight Chapter 3 (liability and other insurance), especially compulsory employees' compensation and motor third-party insurance, which are required by Hong Kong law.

4Practise property-insurance calculations: the operation of average for under-insurance and the effect of deductibles and excess are common Paper 2 question types.

5Memorise the Institute Cargo Clauses (A, B and C) and the idea of general average for the marine, aviation and transport section of Paper 2.

6Because each paper needs only 70% and there is no negative marking, answer every question and flag uncertain items to revisit before time runs out.

Frequently Asked Questions

What is the difference between IIQE Paper 1 and Paper 2?

Paper 1 (Principles and Practice of Insurance) is the compulsory paper for all insurance intermediaries and covers general insurance principles, law, regulation and ethics. Paper 2 (General Insurance) is required for intermediaries who arrange non-life insurance such as motor, property, liability and marine cover.

How many questions are on IIQE Paper 1 and Paper 2?

Paper 1 has 75 multiple-choice questions to be answered in 120 minutes. Paper 2 has 50 multiple-choice questions to be answered in 75 minutes. All questions have four options and one correct answer.

What is the passing score for the IIQE?

Both papers require 70% to pass. That means at least 53 correct out of 75 on Paper 1 and at least 35 correct out of 50 on Paper 2. There is no penalty for wrong answers, so you should attempt every question.

Who administers the IIQE?

The IIQE is set under the Insurance Authority of Hong Kong and administered by VTC PEAK (the Institute of Professional Education And Knowledge). Registration and scheduling are handled through PEAK, which is the only official channel.

How much does the IIQE cost?

Fees are set by VTC PEAK. Paper 1 is about HK$265 for the CSME mode (or HK$195 for the PPME mode), and Paper 2 is about HK$185 for the written exam or HK$250 for computer-based testing. Remote-invigilation mode costs more. Check PEAK for current fees.

Are these official IIQE questions?

No. These are original OpenExamPrep practice questions modelled on the published IIQE Paper 1 and Paper 2 syllabuses. The official IIQE Study Notes and registration are provided separately by the Insurance Authority and VTC PEAK.