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100+ Free III IC-22 Practice Questions

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2026 Statistics

Key Facts: III IC-22 Exam

100

Online MCQs per paper

III Examination Handbook — MCQ pattern

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

30

Credit points for IC-22

III credit-point system / Examination Handbook

INR 900

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

III Table of Fees / revision-of-fees

INR 800

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

III Table of Fees / revision-of-fees

15 chapters

IC-22 syllabus modules

III Professional Examination Syllabus

III IC-22 is a 100-question, 2-hour online MCQ Associateship paper on life insurance underwriting. Passing requires 60% (Distinction from 75%). India paper enrollment for this 30-credit subject is INR 900 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra). The 15-chapter syllabus covers underwriting principles, financial assessment, occupational risks, reinsurance, and detailed medical systems risk evaluation.

Sample III IC-22 Practice Questions

Try these sample questions to test your III IC-22 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 the principle of "equity" in life insurance underwriting?
A.Charging premiums that are proportional to the risk brought to the pool by the insured.
B.Offering identical premium rates to all applicants regardless of their health status to maintain equality.
C.Restricting policies to only those individuals who have no medical conditions.
D.Giving premium discounts based on the social status or net worth of the proposer.
Explanation: The principle of equity in underwriting ensures that policyholders are charged premiums proportional to the risk they introduce to the insurance pool. This prevents low-risk individuals from unfairly subsidizing high-risk ones, maintaining fairness and financial stability.
2In the context of life insurance underwriting, what is the primary risk associated with "anti-selection" (adverse selection)?
A.The insurer underpricing risks due to errors in the actuarial tables.
B.The reinsurer refusing to accept facultative risk shares.
C.High-risk individuals purchasing insurance in larger proportions than standard-risk individuals.
D.An increase in agent commissions leading to higher expense ratios.
Explanation: Anti-selection occurs when individuals who have a higher likelihood of loss (due to health, occupation, etc.) seek to purchase or keep insurance to a greater extent than those with average risks, which can lead to higher-than-expected mortality claims if not checked by underwriting.
3The Numerical Rating System of underwriting, developed by Rogers and Hunter, operates on which of the following methodologies?
A.Evaluating risks based purely on the subjective opinion of a medical referee.
B.Assigning risk scores based on the financial net worth of the proposer.
C.Grouping applicants into only two categories: Standard and Declined.
D.Setting a base value of 100 representing a standard risk, and adding debits for adverse factors and subtracting credits for favorable factors.
Explanation: The Numerical Rating System starts with a base of 100 for a standard life. Underwriters add numerical points (debits) for adverse health, occupational, or lifestyle factors, and subtract points (credits) for favorable factors to calculate the total risk percentage.
4Which of the following is considered a "standard age proof" by life insurance companies in India?
A.School leaving certificate or Matriculation certificate.
B.Horoscope prepared at the time of birth.
C.Self-declaration of age by the applicant.
D.Certificate issued by a local village panchayat head.
Explanation: School leaving, matriculation, birth certificates, passports, and Aadhaar cards are standard age proofs because they are issued by public authorities and are highly reliable. Horoscopes, self-declarations, and village certificates are generally considered non-standard age proofs.
5An applicant is evaluated under the Numerical Rating System. The base rating is 100. The underwriter adds a debit of 50 points for history of hypertension, a debit of 25 points for obesity, and grants a credit of 15 points for a favorable family history of longevity. What is the final risk rating of the applicant?
A.160
B.175
C.135
D.110
Explanation: The final rating is calculated as: Base (100) + Debits (50 + 25) - Credits (15) = 100 + 75 - 15 = 160. This is 60% extra mortality rate, meaning the risk is rated at 160% of standard mortality.
6Under the principle of "Utmost Good Faith" (Uberrima Fides), which of the following constitutes a material fact that must be disclosed by the proposer?
A.The fact that the proposer's distant uncle died of an accident 20 years ago.
B.A routine common cold suffered by the proposer two years ago that resolved in three days.
C.The proposer's daily consumption of tobacco and alcohol.
D.The proposer's favorite leisure sport is playing chess.
Explanation: Daily consumption of tobacco and alcohol directly impacts mortality and morbidity risks, making it a material fact that must be disclosed. Utmost Good Faith requires disclosing all information that would influence the underwriter's decision to accept or price the policy.
7When must "insurable interest" exist in a life insurance contract according to standard underwriting law?
A.Only at the time of claim settlement.
B.Continuously throughout the policy term and at the time of claim.
C.At the inception (commencement) of the policy contract.
D.Only when the policy is assigned or nominated.
Explanation: In life insurance, insurable interest must exist at the inception of the contract. It does not need to exist at the time of claim (unlike general insurance). For instance, a creditor can maintain a policy even after the debt is paid, provided interest existed at inception.
8How does the "Judgment Method" of underwriting differ from the "Numerical Rating System"?
A.The Judgment Method relies on the expert personal opinion of the underwriter rather than calculating numerical debits/credits.
B.The Judgment Method uses computer algorithms to automatically classify risks.
C.The Judgment Method only permits the issuance of standard policies.
D.The Judgment Method is used exclusively for financial underwriting.
Explanation: The Judgment Method relies on the underwriter's or medical referee's experience and holistic view of the case to make a decision, which is useful for highly complex or rare cases but lacks the consistency of the Numerical Rating System.
9Which risk class consists of individuals whose anticipated mortality rate is significantly lower than the average or standard population?
A.Sub-standard lives
B.Standard lives
C.Declined lives
D.Preferred lives
Explanation: Preferred lives are individuals who meet stringent health and lifestyle criteria (e.g., non-smokers with excellent blood pressure and lipid profiles) indicating a lower-than-average mortality rate, often qualifying for lower premiums.
10What is the primary purpose of underwriting in a life insurance company?
A.To ensure that the actual mortality experience of the insurer closely aligns with the mortality assumptions used in premium pricing.
B.To maximize the number of applications rejected to avoid any claims.
C.To invest the premium income in profitable market instruments.
D.To design the marketing materials and policy features for the sales team.
Explanation: Underwriting protects the insurer from adverse selection and ensures that the risk profile of the accepted lives matches the assumptions made by the actuaries when pricing the product, maintaining solvency and equity.

About the III IC-22 Exam

IC-22 Life Insurance Underwriting is a compulsory Associateship exam by the Insurance Institute of India. The course introduces the core principles, process, and organization of underwriting, and covers risk classification, financial underwriting, occupational/residential risks, and reinsurance. Additionally, a major portion of the syllabus is dedicated to medical underwriting, including blood disorders, diabetes, thyroid diseases, and the respiratory, cardiovascular, digestive, nervous, urinary, and sensory systems.

Assessment

100 objective multiple-choice questions in a single online paper. IC-22 is a compulsory 30-credit Associateship level subject focused on life insurance underwriting principles, financial assessment, and medical system evaluation.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam Fee

INR 900 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. Study course material is purchased separately. (Insurance Institute of India (III))

III IC-22 Exam Content Outline

20 questions

Underwriting Principles & Process

Life underwriting principles, risk selection, anti-selection, underwriting process, structure, and classification.

10 questions

Financial Underwriting

Financial underwriting principles, valuation of life, assessment of income, net worth, and moral hazard prevention.

10 questions

Occupational, Avocational, and Residential Risks

Hazards related to occupation, hobbies/avocations, residence/geographic risks, and premium loadings.

10 questions

Reinsurance in Underwriting

Reinsurance concepts, facultative and treaty underwriting, retention limits, ceding, and retrocession in life underwriting.

15 questions

Medical Underwriting — Disorders of Blood and Endocrine Systems

Evaluation of anemia, blood disorders, diabetes mellitus classification, screening, thyroid diseases, and underwriting actions.

15 questions

Medical Underwriting — Nervous, Respiratory, and Urinary Systems

Evaluation of epilepsy, neurological conditions, asthma, COPD, tuberculosis, renal disorders, urinary tract infections, and underwriting actions.

20 questions

Medical Underwriting — Cardiovascular, Digestive, and Special Senses

Hypertension, coronary artery disease, ECG readings, peptic ulcers, liver disorders, disorders of eyes/ears/nose, and underwriting actions.

How to Pass the III IC-22 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-22 is a compulsory 30-credit Associateship level subject focused on life insurance underwriting principles, financial assessment, and medical system evaluation.
  • Time limit: 2 hours
  • Exam fee: INR 900 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. Study course material is purchased separately.

Keys to Passing

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

III IC-22 Study Tips from Top Performers

1Review the underwriting risk factors (medical, occupational, financial, lifestyle) and study the role of the Primary Medical Examiner (PME).
2Focus on medical terms and system-specific questions (especially diabetes parameters, blood pressure thresholds, and ECG patterns).
3Understand the key difference between standard, sub-standard, and preferred lives.
4Understand calculations for financial underwriting, such as determining over-insurance using multiple-of-income methods.
5Sit full 100-question, 2-hour mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-22 exam?

III objective papers, including IC-22, are 100 multiple-choice questions completed in 2 hours online.

What is the IC-22 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-22 carry?

Life Insurance Underwriting (IC-22) carries 30 credit points. Candidates require 250 credit points in total to achieve the Associateship Diploma.

What is the IC-22 exam fee in India from April 2026?

III's Table of Fees effective 1.4.2026 lists INR 900 paper enrollment for a 30-credit-point subject and INR 800 registration for fresh candidates (India), plus applicable taxes. Study-course cost is separate.

What chapters are in the IC-22 syllabus?

III's IC-22 syllabus contains 15 chapters: Life Underwriting Principles & Concepts (Part-1 & Part-2), Underwriting Process and Structure, Financial Underwriting, Occupational/Avocational/Residential Risks, Reinsurance, Blood Disorders, Nervous System, Diabetes Mellitus, Thyroid Diseases, Urinary System, Respiratory System, Gastrointestinal System, Cardiovascular System, and Special Senses.