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Exam Review

Key Facts: III IC-104 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

30

Credit points for IC-104

III credit-point system

2025

Year of Edition (syllabus)

III professional examination syllabus

INR 600

India paper fee (30 credits) w.e.f. 1.4.2026

III Table of Fees

INR 800

Fresh registration (India) w.e.f. 1.4.2026

III Table of Fees

III IC-104 is a 100-question, 2-hour Online MCQ paper (30 credits) on Products of Life Insurance (Year of Edition 2025). Passing requires 60% (Distinction from 75%). India paper enrollment is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-104 Practice Questions

Try these sample questions to review concepts for the III IC-104 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following describes the key characteristic of a Term Life Insurance policy?
A.It provides a maturity benefit if the life assured survives the term.
B.It provides death benefit only if the insured dies during the policy term, with no savings component.
C.It combines both insurance protection and investment in mutual funds.
D.It offers lifelong coverage and pays a lump sum upon retirement.
Explanation: Term Life Insurance is a pure protection plan that pays a death benefit if the insured dies during the term. It does not have a savings or maturity benefit component.
2What is the primary feature of a Whole Life Policy?
A.It provides coverage only for a specific number of years.
B.It guarantees returns based on equity market performance.
C.It offers coverage for the entire lifetime of the life assured, typically up to age 100.
D.It is solely designed to pay a monthly income after retirement.
Explanation: Whole Life Insurance provides lifelong coverage and pays the sum assured upon the death of the life assured or upon reaching the maturity age, which is usually 100 years.
3In a traditional Endowment Policy, the maturity benefit usually consists of:
A.The sum assured plus the cash value of underlying equity units.
B.Only the accumulated bonuses declared during the term.
C.The sum assured plus vested bonuses.
D.A regular monthly pension for life.
Explanation: In a traditional with-profit Endowment Policy, the policyholder receives the basic sum assured along with any vested bonuses accumulated over the term if they survive to maturity.
4What distinguishes a Money Back policy from a standard Endowment plan?
A.It does not provide any death benefit if the policyholder survives.
B.It provides periodic survival benefits during the policy term.
C.It links the investment entirely to the stock market.
D.It only pays out when the policyholder retires.
Explanation: A Money Back policy provides survival benefits at regular intervals during the policy term, whereas a standard endowment pays a lump sum only at maturity.
5In the context of ULIPs, what does 'NAV' stand for?
A.National Average Value
B.Net Annual Valuation
C.Net Asset Value
D.Nominal Assured Value
Explanation: NAV stands for Net Asset Value, which represents the price of a single unit of a fund in a Unit Linked Insurance Plan.
6Which charge in a ULIP is deducted to cover the cost of life insurance protection?
A.Fund Management Charge
B.Premium Allocation Charge
C.Mortality Charge
D.Policy Administration Charge
Explanation: The Mortality Charge is deducted periodically (usually monthly) from the fund value to provide the life cover or death benefit in a ULIP.
7What is the primary purpose of the 'Premium Allocation Charge' in a ULIP?
A.To cover the life insurer's initial expenses like distributor commissions and underwriting costs.
B.To manage the mutual fund investments of the policyholder.
C.To pay for the mortality risk assumed by the insurer.
D.To cover the cost of surrendering the policy prematurely.
Explanation: The Premium Allocation Charge (PAC) is a percentage deducted from the premium upfront to cover initial expenses like distributor commissions, underwriting, and medical expenses.
8Which of the following ULIP funds generally carries the lowest risk?
A.Equity Fund
B.Balanced Fund
C.Liquid/Money Market Fund
D.Growth Fund
Explanation: Liquid or Money Market funds invest in short-term debt instruments and cash equivalents, making them the lowest-risk fund choice compared to equity or balanced funds.
9In a pension plan, the period during which the policyholder pays premiums to build a retirement corpus is known as the:
A.Vesting Period
B.Annuity Period
C.Accumulation Phase
D.Distribution Phase
Explanation: The Accumulation Phase is the period when the policyholder pays regular premiums to build up a corpus for retirement.
10What happens on the 'vesting date' of a pension policy?
A.The policyholder must start paying higher premiums.
B.The policyholder receives the entire corpus tax-free.
C.The accumulation phase ends, and the policyholder must use the corpus to purchase an annuity.
D.The life cover of the policy is doubled.
Explanation: On the vesting date, the accumulation phase ends. The policyholder generally has to use the accumulated corpus to buy an annuity to receive a regular pension.

About the III IC-104 Exam

The III IC-104 Products of Life Insurance exam (Year of Edition 2025) evaluates candidate understanding of traditional life policies, ULIPs, pension plans, health riders, tax treatment of life products, and product development. It is a 30-credit Online MCQ paper under the Insurance Institute of India professional credit system.

Exam sponsor: Insurance Institute of India (III). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 objective multiple-choice questions in a single online paper. IC-104 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam / Certification Fees

INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

29 questions

Traditional Life Policies

Practice questions focusing on traditional life policies concepts.

18 questions

ULIPs

Practice questions focusing on ULIP concepts.

16 questions

Tax Laws

Practice questions focusing on tax laws concepts.

14 questions

Product Development

Practice questions focusing on product development concepts.

12 questions

Health Insurance Riders

Practice questions focusing on health insurance riders concepts.

11 questions

Pension Plans

Practice questions focusing on pension plans concepts.

Preparing for the III IC-104 Exam

What You Need to Know

  • Passing score: 60% (Distinction at 75% or above)
  • Assessment: 100 objective multiple-choice questions in a single online paper. IC-104 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam / certification fees: INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees. Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

III IC-104: Suggested Study Strategy

1Study the official III IC-104 (2025 edition) coursebook chapter by chapter before mixed mocks.
2Review IRDAI product rules and current Indian tax treatment of life insurance (80C, 10(10D), 194DA) for this paper.
3Sit full 100-question, 2-hour Online MCQ mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-104 exam?

The III objective papers, including IC-104, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-104 passing score?

Passing marks for III online MCQ papers are 60% or above. Candidates scoring at least 75% earn Distinction in that subject.

How many credit points does IC-104 carry?

This paper (IC-104) carries 30 credit points under the Insurance Institute of India credit system.

What is the current syllabus edition for IC-104?

III lists IC-104 Products of Life Insurance with Year of Edition 2025 in the professional examination syllabus; confirm the current handbook and study material on the III website before sitting.