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2026 Statistics

Key Facts: IC-38 Corporate Agent / SP Exam

50 MCQs / 60 min

Official IC-38 CBT pattern for corporate-agent candidates

III / IRDAI IC-38 pattern (standard agent CBT)

35% (17/50)

Published pass mark for Specified Person & Authorised Verifier

III Qualification and Fee Structure PDF

50% (25/50)

Published pass mark for Principal Officer

III Qualification and Fee Structure PDF

₹590

Examination fee including GST in III published table

III Corporate Agent fee circular

50 / 75 hrs

SP training hours for single category vs composite

IRDAI CA Regulations 2015 / III fee–qualification circular

III IC-38 for corporate-agent Specified Persons: 50 MCQs, 60 minutes, 35% pass (17/50); Principal Officers need 50% (25/50). Exam fee ₹500+GST (₹590); training ₹750+GST fresh. Syllabus is Common C-01–C-10 plus life/general/health product chapters under IRDAI CA Regulations 2015.

Sample IC-38 Corporate Agent / SP Practice Questions

Try these sample questions to test your IC-38 Corporate Agent / SP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary economic function of insurance?

A.To eliminate all risk from society

B.To transfer and pool financial risk among many participants

C.To guarantee investment returns to all policyholders

D.To replace the banking system

Explanation: Insurance transfers the financial impact of uncertain losses from individuals to an insurer, which pools premiums from many similar risks. It does not eliminate risk, guarantee investment returns, or replace banking.

2Under the law of large numbers, what happens as the number of similar, independent exposure units in an insurance pool increases?

A.Actual loss experience becomes harder to predict

B.Actual loss ratios become more predictable and closer to expected values

C.Premiums must always fall to zero

D.Moral hazard disappears completely

Explanation: The law of large numbers states that as the number of similar independent risks increases, observed average losses tend to approach the expected value, improving premium adequacy. It does not remove moral hazard or force premiums to zero.

3Which statement best describes risk pooling in insurance?

A.A few people pay large premiums so one person can avoid all loss

B.Many people contribute small premiums so a common fund can pay the losses of the few who suffer them

C.The government pays all insurance claims from tax revenue

D.Insurers never share risk with reinsurance

Explanation: Risk pooling gathers many similar risks into a common fund financed by premiums so that statistically expected claims of a minority can be paid. Reinsurance and other risk-sharing tools also exist; governments do not fund ordinary private insurance claims from tax.

4Who is the statutory regulator of the insurance business in India?

A.Securities and Exchange Board of India (SEBI)

B.Insurance Regulatory and Development Authority of India (IRDAI)

C.Reserve Bank of India (RBI)

D.Insurance Institute of India (III)

Explanation: IRDAI, established under the IRDA Act, 1999, regulates and develops the insurance industry in India. III conducts examinations and education; SEBI and RBI regulate securities and banking respectively.

5Which of the following is generally treated as a pure risk that insurance is designed to address?

A.Possibility of stock-market gains or losses

B.Possibility of loss from fire damage to a building with no chance of gain from the fire

C.Possibility of higher sales after a marketing campaign

D.Possibility of currency appreciation

Explanation: Pure risk involves only loss or no loss (for example fire). Speculative risks involve chance of gain or loss and are generally not the subject of traditional insurance covers.

6In the IC-38 Corporate Agents Common section syllabus, which chapter area covers how insurance markets and risk transfer serve society?

A.Only health insurance claims

B.Introduction to Insurance

C.Only motor tariff schedules

D.Only reinsurance treaties

Explanation: Chapter C-01 Introduction to Insurance in the III Corporate Agents IC-38 Common material covers the meaning, evolution, and social/economic role of insurance, including risk management context.

7Which risk management technique is illustrated when a homeowner buys a fire insurance policy?

A.Risk avoidance by never owning property

B.Risk retention by paying all losses from savings only

C.Risk transfer to an insurer in exchange for premium

D.Risk increase by raising the sum insured after a loss

Explanation: Buying insurance transfers the financial consequences of a covered loss to the insurer for a premium. Avoidance would mean not exposing oneself; retention means bearing losses oneself.

8Why must houses in a fire-insurance pool be similarly exposed to risk for equitable premium pooling?

A.Because dissimilar risks make law of large numbers irrelevant and can create unfair cross-subsidies

B.Because IRDAI bans all fire insurance

C.Because only identical floor plans can be insured

D.Because premiums must always be the same as life premiums

Explanation: Fair risk pooling requires homogeneous exposure so expected losses and premiums are equitable. Mixing vastly different risks (for example mud vs RCC houses) without rating adjustments creates adverse selection and unfair subsidies.

9In insurance terminology, what is a peril?

A.A condition that increases the chance of loss

B.The cause of a possible loss, such as fire, flood, or theft

C.The asset that is insured

D.The premium loading for expenses

Explanation: A peril is the cause of loss (fire, storm, accident). A hazard is a condition that increases the chance or severity of loss. The asset is the subject matter; loading is a pricing component.

10Defective electrical wiring in a building is best classified as which type of hazard?

A.Moral hazard

B.Physical hazard

C.Legal hazard

D.Speculative hazard

Explanation: Physical hazards are physical conditions that increase chance of loss, such as defective wiring. Moral hazard relates to character/dishonesty; legal hazard arises from the legal environment.

About the IC-38 Corporate Agent / SP Exam

The IC-38 Corporate Agent examination qualifies Specified Persons and Authorised Verifiers (and, at a higher pass mark, Principal Officers) of IRDAI-registered corporate agents. III publishes revised Corporate Agent study material with a Common section (C-01 to C-10: introduction, core elements, principles, contracts, underwriting/rating, claims, documentation, customer service, grievance redressal, and corporate-agent regulations) plus Life, General, and Health sections. The CBT has 50 MCQs in 60 minutes. Specified Persons need 12th-pass education, 50 hours training (75 for composite), and 35% (17/50) to pass.

Assessment

50 one-mark MCQs in 60 minutes; no negative marking. Stream variants use Common + Life / General / Health / Composite study material from III.

Time Limit

60 minutes

Passing Score

Specified Person / Authorised Verifier: 35% (17/50). Principal Officer: 50% (25/50). Grace passing-mark circulars may apply as published by III.

Exam Fee

₹500 + GST (₹590 total) examination fee per III published table; fresh online training ₹750 + GST (₹886 total) (Insurance Institute of India (III), examination body under IRDAI (Registration of Corporate Agents) Regulations, 2015)

IC-38 Corporate Agent / SP Exam Content Outline

14%

Introduction & Core Elements

Insurance role, risk pooling, law of large numbers, asset–peril–hazard, and hazard types (Ch. C-01–C-02).

20%

Principles & Contracts

Utmost good faith, interest, indemnity, subrogation, contribution, proximate cause, and contract features (C-03–C-04).

20%

Underwriting, Docs & Claims

Rating/loadings, proposals, KYC/AML, cover notes, surveyors, and settlement (C-05–C-07).

14%

Service & Grievances

Ethics, needs-based selling, IGMS, Ombudsman, consumer commissions, RTI (C-08–C-09).

12%

Corporate Agent Regulations

SP/AV/PO definitions, training hours, fees, pass marks, insurer caps, certificate validity (C-10).

20%

Life, General & Health Products

Term/endowment/ULIP, motor/fire/marine/packages, health TPA/cashless/PA and waiting periods.

How to Pass the IC-38 Corporate Agent / SP Exam

What You Need to Know

Passing score: Specified Person / Authorised Verifier: 35% (17/50). Principal Officer: 50% (25/50). Grace passing-mark circulars may apply as published by III.
Assessment: 50 one-mark MCQs in 60 minutes; no negative marking. Stream variants use Common + Life / General / Health / Composite study material from III.
Time limit: 60 minutes
Exam fee: ₹500 + GST (₹590 total) examination fee per III published table; fresh online training ₹750 + GST (₹886 total)

Keys to Passing

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

IC-38 Corporate Agent / SP Study Tips from Top Performers

1Download the official III Corporate Agent IC-38 Common PDF and your stream (Life/General/Health/Composite) from the III new-ic-38-ca page — exam questions are not limited to the book, but it is the syllabus base.

2Memorise C-10 regulatory numbers: 50 vs 75 training hours, 3-insurer arrangement caps, ₹5 crore commercial SI limit for CA (General), 35% SP pass, and 3-year certificate validity.

3Drill indemnity corollaries (underinsurance average, subrogation, contribution) with numeric examples from the Common principles chapter.

4Practice Ombudsman eligibility (prior insurer complaint, ₹50 lakh compensation cap as amended Nov 2023, timelines) and consumer-commission jurisdiction bands under the 2021 Rules (District ≤₹50 lakh; State >₹50 lakh–₹2 crore; National >₹2 crore).

5Take timed 50-question sets in 60 minutes; attempt every item because there is no negative marking.

Frequently Asked Questions

What is the IC-38 Corporate Agent / Specified Person exam?

It is the Insurance Institute of India computer-based qualifying exam for Specified Persons and Authorised Verifiers of IRDAI-registered corporate agents (and for Principal Officers at a higher pass mark), based on the III IC-38 Corporate Agent syllabus.

How many questions and how long is the exam?

The official paper has 50 multiple-choice questions for 50 marks, to be completed in 60 minutes, with no negative marking.

What is the passing score for a Specified Person?

III’s published table sets Specified Person and Authorised Verifier pass marks at 35% (minimum 17 out of 50). Principal Officers require 50% (25 out of 50). Check current III grace circulars if applicable.

What training is required before the exam?

Specified Persons need at least 50 hours of approved training for a single category (life, general, or health) or 75 hours for composite, after meeting the 12th-pass education minimum.

How much are the III training and exam fees?

III’s published corporate-agent fee table lists fresh training ₹750 + GST (₹886 total), examination ₹500 + GST (₹590 total), and renewal training ₹500 + GST (₹590 total). Confirm current fees when enrolling.

What does the syllabus cover?

Common chapters C-01 to C-10 (insurance basics through corporate-agent regulations) plus Life, General, and/or Health product sections depending on the registration category, as published on the III Corporate Agent study-material page.