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100+ Free IIQE Paper 2 Practice Questions

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Key Facts: IIQE Paper 2 Exam

50 questions

IIQE Paper II has 50 compulsory multiple-choice questions

PEAK Exam Centre - Study Notes for General Insurance Examination

75 minutes

The examination duration is one hour and 15 minutes

PEAK Exam Centre - Study Notes for General Insurance Examination

70%

Minimum score required to pass Paper II (35 correct answers)

PEAK Exam Centre - Study Notes for General Insurance Examination

HK$195 / HK$265

Fee for pencil-and-paper (PPME) and computer-screen (CSME) modes

PEAK Exam Centre - Study Notes for General Insurance Examination

2 parts

Insurance Products, and Underwriting and Policy Wording

PEAK Exam Centre - Study Notes for General Insurance Examination

English and Chinese

The paper is presented in both languages

PEAK Exam Centre - Study Notes for General Insurance Examination

100

Free original practice questions here

OpenExamPrep

IIQE Paper II is the General Insurance Examination that prospective general-line insurance intermediaries in Hong Kong must pass. It has 50 compulsory multiple-choice questions to be answered in 75 minutes, split between Insurance Products and Underwriting/Policy Wording. The pass mark is 70%, and the fee is HK$195 (pencil-and-paper) or HK$265 (computer screen). It is administered by the VTC PEAK Exam Centre on behalf of the Insurance Authority. This 100-question bank gives original practice on products, underwriting, policy terms, and the Hong Kong regulatory framework.

Sample IIQE Paper 2 Practice Questions

Try these sample questions to test your IIQE Paper 2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) of Hong Kong, what is the statutory minimum limit of indemnity required for third-party bodily injury or death in respect of any one accident?
A.HK$50,000,000
B.HK$100,000,000
C.HK$2,000,000
D.HK$10,000,000
Explanation: Under Part IV of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272), the statutory minimum coverage for third-party liability concerning bodily injury or death is HK$100 million for any one event. This mandatory requirement applies to all motor vehicles used on Hong Kong roads to protect the public. Policies with lower limits do not comply with the statutory requirements for licensing.
2A standard Private Car Comprehensive Insurance Policy in Hong Kong covers damage to the insured's own vehicle. What valuation basis is typically used by insurers to settle a total loss claim for a vehicle that is two years old?
A.New replacement value without any depreciation
B.The market value of the vehicle at the time of the loss, subject to the Sum Insured
C.The original purchase price of the vehicle as stated in the proposal form
D.The depreciated book value calculated by standard accounting rules
Explanation: For standard comprehensive motor insurance, total loss claims are settled on the basis of the vehicle's market value at the time of the loss, up to the maximum limit of the sum insured. This reflects the principle of indemnity, ensuring the insured does not profit. Brand new replacement is only offered under special 'new for old' clauses, usually restricted to cars under one year old. The original purchase price is rarely used after depreciation occurs.
3Which of the following is TRUE regarding the transfer of a No Claims Discount (NCD) under a motor insurance policy in Hong Kong?
A.An NCD can be freely transferred from one policyholder to another unrelated person
B.An NCD can be transferred from a private car policy to a commercial truck policy
C.An NCD is generally personal to the insured and can only be transferred between vehicles owned by the same insured
D.An NCD is automatically transferred to the buyer when a vehicle is sold
Explanation: In Hong Kong, a No Claims Discount (NCD) is personal to the policyholder and cannot be transferred to a third party or buyer when the vehicle is sold. It can, however, be transferred to another vehicle owned by the same policyholder, subject to the insurer's approval. NCDs also cannot be transferred between different classes of vehicles, such as from a private car to a commercial truck.
4What is the primary function of the First Fund administered by the Motor Insurers' Bureau (MIB) of Hong Kong?
A.To pay claims for property damage caused by uninsured vehicles
B.To compensate victims of traffic accidents involving uninsured or unidentified ('hit-and-run') drivers for bodily injury or death
C.To provide emergency medical funding for any traffic accident victim
D.To cover the losses of policyholders when an insurance company becomes insolvent
Explanation: The Motor Insurers' Bureau (MIB) of Hong Kong administers the First Fund under its Domestic Agreement to compensate victims of traffic accidents involving uninsured or unidentified ('hit-and-run') vehicles, specifically for bodily injury or death. Property damage claims are subject to specific exclusions and limits. Insolvent insurer cases are covered by a separate fund, known as the Insolvency Fund (or Second Fund).
5Under the Insolvency Fund Agreement (Second Fund) of the Motor Insurers' Bureau (MIB) of Hong Kong, what is the status of a claim if an insurer becomes insolvent during the policy term?
A.All claims are immediately cancelled and no payouts are made
B.The MIB will meet the insolvent insurer's liabilities for third-party bodily injury and death claims arising from motor accidents
C.The Hong Kong Government will pay 100% of all comprehensive own-damage claims
D.Claims are deferred until the insurer's liquidation is fully completed, which may take years
Explanation: The MIB's Insolvency Fund (Second Fund) is designed to protect third-party victims by meeting the insolvent insurer's liabilities for statutory third-party bodily injury or death claims. The fund does not cover comprehensive own-damage claims of the policyholder. It ensures that victims are compensated promptly without having to wait for the complete liquidation process of the insolvent insurer.
6A motorcycle insurance policy in Hong Kong typically contains specific exclusions. Which of the following is a standard exclusion unique to motorcycle policies compared to private car policies?
A.Driving without a valid driver's license
B.Liability for death or bodily injury to any pillion passenger, unless extra premium is paid and passenger coverage is endorsed
C.Driving outside the geographical limits of Hong Kong
D.Accidents occurring while the vehicle is being serviced at a garage
Explanation: Motorcycle policies in Hong Kong often exclude liability for death or bodily injury to pillion passengers as a standard term unless passenger liability coverage is explicitly purchased (which requires a pillion seat and an extra premium). In contrast, private car policies automatically include passenger liability as part of the third-party cover. The other options are general exclusions common to both private cars and motorcycles.
7For commercial vehicles in Hong Kong, how does the statutory third-party liability coverage differ from that of private cars under the Motor Vehicles Insurance (Third Party Risks) Ordinance?
A.Commercial vehicles require a lower bodily injury limit than private cars
B.The statutory minimum limit for third-party bodily injury or death remains HK$100 million, but policies may exclude passenger liability for fare-paying passengers unless endorsed
C.Commercial vehicles do not require third-party property damage coverage at all
D.The statutory minimum limit is increased to HK$200 million for commercial vehicles
Explanation: The statutory minimum limit of indemnity for third-party bodily injury or death remains HK$100 million for all motor vehicles (commercial and private) under the Ordinance. However, commercial policies must specify carriage of passengers for hire or reward to cover passenger liability for fare-paying passengers, which is excluded under a standard carriage of own goods/social domestic use limitation. Property damage statutory minimums also apply but are separate from the bodily injury requirements.
8In Hong Kong motor insurance, what is the primary consequence if an insured vehicle is involved in an accident while being driven by a person who is not named in the policy?
A.The claim is automatically accepted without any changes
B.The claim is rejected completely as the driver is unnamed
C.The insurer will pay the claim but may apply an 'Unnamed Driver Excess' as specified in the policy schedule
D.The policy is immediately cancelled by the insurer
Explanation: If an unnamed driver is driving the vehicle with the policyholder's permission, the policy will generally cover the claim, but the insurer will apply an 'Unnamed Driver Excess' in addition to any other applicable excesses (like Young or Inexperienced Driver Excess). This deductible reduces the payout for own-damage and must be paid by the insured for third-party liability recovery. Complete rejection only occurs if unnamed drivers are explicitly excluded or the driver is unlicensed.
9An insured private car (value HK$150,000) is involved in an accident causing own-damage of HK$30,000. The driver is 20 years old and has held a license for 6 months. The policy has a Compulsory Excess of HK$3,000, a Young Driver Excess (under 25) of HK$5,000, and an Inexperienced Driver Excess (licensed under 2 years) of HK$5,000. How much will the insurer pay for the own-damage claim?
A.HK$17,000
B.HK$30,000
C.HK$22,000
D.HK$12,000
Explanation: When a claim triggers multiple excesses, they are cumulative unless the policy states otherwise. Here, the Compulsory Excess (HK$3,000), Young Driver Excess (HK$5,000), and Inexperienced Driver Excess (HK$5,000) apply. The total excess is HK$3,000 + HK$5,000 + HK$5,000 = HK$13,000. Therefore, the insurer pays HK$30,000 - HK$13,000 = HK$17,000.
10Which of the following represents the standard market practice in Hong Kong for determining motor insurance premiums?
A.Premiums are fixed by the government under a statutory tariff system
B.Insurers determine rates independently, assessing risk based on factors such as driver's age, occupation, driving experience, vehicle make/model, and claims history
C.Premiums are based solely on the cubic capacity (c.c.) of the engine
D.All insurers must charge the same rate per cent on the vehicle's sum insured
Explanation: The Hong Kong motor insurance market is deregulated and highly competitive. Insurers assess and price risks independently based on multiple risk factors including the driver's profile (age, occupation, driving experience, claims history) and the vehicle's characteristics (make, model, engine capacity). Government tariffs do not exist for motor premiums in Hong Kong.

About the IIQE Paper 2 Exam

IIQE Paper II, the General Insurance Examination, is the Hong Kong licensing examination that prospective general insurance intermediaries must pass before carrying on general-line insurance business. Administered by the Professional Education and Knowledge Examination Centre of the VTC (PEAK Exam Centre) on behalf of the Insurance Authority. The examination consists of 50 compulsory multiple-choice questions over 75 minutes and is divided into two parts: Insurance Products, which covers motor, health, combined/package, property/pecuniary, engineering, liability, and marine insurance; and Underwriting and Policy Wording, which covers proposal forms, material facts, risk assessment, underwriting procedures, cover notes, policies, premiums, and levies. The paper is offered in both English and Chinese and can be taken as a pencil-and-paper or computer-screen examination. Candidates must score at least 70% to pass.

Assessment

50 compulsory multiple-choice questions in two parts: Insurance Products, and Underwriting and Policy Wording. The paper is presented in both English and Chinese.

Time Limit

One hour and 15 minutes (75 minutes) for all 50 multiple-choice questions.

Passing Score

70% minimum. Results are graded only as PASS or FAIL; the exact score and correct answers are not disclosed.

Exam Fee

HK$195 for the Pencil-and-Paper Mode (PPME) and HK$265 for the Computer Screen Mode (CSME). (Vocational Training Council (VTC) PEAK Exam Centre, on behalf of the Insurance Authority (IA))

IIQE Paper 2 Exam Content Outline

30%

Motor and Health Insurance

Covers third-party and comprehensive motor insurance for private and commercial vehicles, No Claims Discount (NCD), excesses, and health insurance products such as Personal Accident, Medical Expenses, and VHIS.

25%

Property, Pecuniary and Engineering Insurance

Covers fire and allied perils, property 'All Risks', theft, business interruption, money insurance, fidelity guarantee, boiler explosion, contractors' 'All Risks' (CAR), and machinery breakdown.

25%

Liability and Marine Insurance

Covers Employees' Compensation (EC) statutory requirements under Cap. 282, public liability, products liability, professional indemnity (PI), D&O liability, marine cargo clauses, marine hull, and pleasure craft.

20%

Underwriting and Policy Wording

Covers the role of proposal forms, physical vs moral hazard, risk survey, definition of material facts, cover notes, premium levies, premium warranties, policy sections, warranties vs representations, subrogation, and contribution.

How to Pass the IIQE Paper 2 Exam

What You Need to Know

  • Passing score: 70% minimum. Results are graded only as PASS or FAIL; the exact score and correct answers are not disclosed.
  • Assessment: 50 compulsory multiple-choice questions in two parts: Insurance Products, and Underwriting and Policy Wording. The paper is presented in both English and Chinese.
  • Time limit: One hour and 15 minutes (75 minutes) for all 50 multiple-choice questions.
  • Exam fee: HK$195 for the Pencil-and-Paper Mode (PPME) and HK$265 for the Computer Screen Mode (CSME).

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 Paper 2 Study Tips from Top Performers

1Familiarise yourself with the statutory minimum limits of liability, such as HK$100 million for motor third-party bodily injury and Employees' Compensation for small businesses.
2Understand the cumulative nature of motor excesses (such as compulsory, young driver, and inexperienced driver excesses) and how they apply to claims.
3Study the core features of the Voluntary Health Insurance Scheme (VHIS), particularly the guaranteed renewal up to age 100 and the 0%/25%/50%/100% waiting period for unknown pre-existing conditions.
4Learn the differences between the Institute Cargo Clauses (A), (B), and (C), noting that (A) is wide 'all risks' while (B) and (C) are named perils.
5Differentiate clearly between physical hazard (construction, location) and moral hazard (dishonesty, claims history) in underwriting.
6Master policy conditions like warranties, conditions precedent to liability, and the principles of contribution and subrogation.

Frequently Asked Questions

How many questions are on IIQE Paper II and how long is it?

Paper II has 50 compulsory multiple-choice questions and lasts one hour and 15 minutes (75 minutes). The paper is presented in both English and Chinese and can be sat in pencil-and-paper or computer-screen mode.

What is the pass mark for the General Insurance Examination?

Candidates must attain a minimum score of 70% (35 out of 50 questions) to pass. Results are reported only as PASS or FAIL; the exact score and the correct answers are not disclosed.

What does IIQE Paper II cover?

The examination covers two main areas: Insurance Products (motor, health, combined/package, property, engineering, liability, and marine insurance) and Underwriting and Policy Wording (proposal forms, material facts, risk assessment, cover notes, premium levy, and policy conditions).

Who administers IIQE Paper II and how much does it cost?

It is administered by the VTC PEAK Exam Centre on behalf of the Insurance Authority. The fee is HK$195 for the pencil-and-paper mode (PPME) and HK$265 for the computer-screen mode (CSME).

Do I need to pass Paper II to sell general insurance in Hong Kong?

Yes. Intermediaries selling general-line (non-life) insurance must pass the General Insurance Examination (Paper II) to qualify for registration under the Insurance Authority.

Are these official IIQE or PEAK Exam Centre questions?

No. These are original practice questions modelled on the official Paper II syllabus. The Insurance Authority and PEAK Exam Centre publish their own study notes separately.