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Key Facts: III IC-28 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

Credit points for IC-28

III credit-point system

INR 600

India paper fee (40 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-28 is a 100-question, 2-hour online MCQ paper on Foundation of Actuarial Science. Passing requires 60% (Distinction from 75%). India paper enrollment for this 40-credit subject is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-28 Practice Questions

Try these sample questions to review concepts for the III IC-28 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 is the correct formula for the effective annual rate of interest (i) corresponding to a nominal rate of interest (i^(m)) compounded m times a year?

A.i = (1 + i^(m)/m)^m - 1

B.i = (1 + i^(m)/m)^m + 1

C.i = (1 - i^(m)/m)^m - 1

D.i = (1 + i^(m))^m - 1

Explanation: The effective annual interest rate i is calculated from a nominal rate i^(m) compounded m times a year using the formula i = (1 + i^(m)/m)^m - 1. This equates the accumulation over one year under both rates.

2What is the present value of an annuity-certain of 1 per annum payable annually in arrear for n years?

A.a_n = (1 - v^n) / d

B.a_n = (1 - v^n) / i

C.s_n = ((1+i)^n - 1) / i

D.a_n = 1 / (1 + i)^n

Explanation: The present value of an annuity-certain of 1 per annum payable in arrear for n years is denoted by a_n. Its formula is (1 - v^n) / i, where v is the discount factor 1/(1+i).

3A life table function l_x represents which of the following?

A.The number of persons dying between age x and x+1

B.The probability that a person aged x will die within one year

C.The expected number of persons out of an initial cohort (l_0) who survive to exact age x

D.The central rate of mortality at age x

Explanation: In a mortality table, l_x denotes the expected number of survivors to exact age x out of an initial cohort, usually l_0 (the radix).

4Which basic life contingency function denotes the present value of 1 payable at the end of the year of death of a person currently aged x?

A.a_x

B.E_x

C.P_x

D.A_x

Explanation: A_x is the standard notation for the present value (net single premium) of a whole life assurance of 1 payable at the end of the year of death of a life aged x.

5What is the relationship between the force of interest (delta) and the effective rate of interest (i)?

A.delta = ln(1 + i)

B.delta = e^i - 1

C.delta = 1 / (1 + i)

D.delta = i / (1 + i)

Explanation: The force of interest (delta) represents the nominal rate of interest compounded continuously. It is related to the effective annual interest rate (i) by the equation e^delta = 1 + i, which means delta = ln(1 + i).

6In the context of probability, if two events A and B are mutually exclusive, what is the probability of either A or B occurring?

A.P(A) * P(B)

B.P(A) + P(B)

C.P(A) + P(B) - P(A and B)

D.P(A) / P(B)

Explanation: For mutually exclusive events, they cannot happen at the same time, so P(A and B) = 0. Therefore, the probability of either A or B occurring is simply the sum of their individual probabilities: P(A) + P(B).

7In Foundation of Actuarial Science commutation columns, which statement correctly defines N_x?

A.N_x = v^x * l_x

B.N_x = v^(x+1) * d_x

C.N_x = D_x + D_{x+1} + D_{x+2} + ... (sum of D_y from age x to the limiting age)

D.N_x = M_x / D_x

Explanation: N_x is the sum of the D column from age x onward: N_x = Σ D_y for y ≥ x. Whole-life annuity-due values follow as a-double-dot_x = N_x / D_x.

8How is the net premium reserve for a whole life policy at duration t (denoted as _tV_x) calculated using the prospective method?

A.P_x * s_t - A_{x:t}

B.A_{x+t} + P_x * a_{x+t}

C.1 - (a_{x+t} / a_x)

D.A_{x+t} - P_x * a_{x+t}

Explanation: The prospective reserve is the present value of future benefits minus the present value of future net premiums. For a whole life policy, it is A_{x+t} (value of future benefits) - P_x * a_{x+t} (value of future net premiums).

9The symbol n_p_x represents:

A.The probability that a life aged x will survive for at least n years

B.The probability that a life aged x will die within n years

C.The number of lives surviving from age x to age x+n

D.The mortality rate of a person aged x over n years

Explanation: In actuarial notation, n_p_x represents the probability that a life currently aged x will survive to age x+n. It can be calculated as l_{x+n} / l_x.

10Which type of annuity pays a fixed amount at the beginning of each period?

A.Annuity immediate

B.Annuity due

C.Deferred annuity

D.Perpetuity

Explanation: An annuity due is an annuity where payments are made at the beginning of each period (e.g., rent).

About the III IC-28 Exam

The III IC-28 Foundation of Actuarial Science exam evaluates candidate understanding of key principles and practical concepts in Foundation of Actuarial Science. The syllabus encompasses various modules detailed below.

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-28 is a 40-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 (40 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.

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

Official sources

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.

8 questions

Calculation

Practice questions focusing on calculation concepts.

5 questions

Present Value

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4 questions

Commutation Functions

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4 questions

Actuarial Notation

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3 questions

Nominal Interest Rate

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3 questions

Force Of Interest

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3 questions

Survival Probability

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3 questions

Policy Types

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3 questions

Temporary Annuity

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3 questions

Joint Life

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3 questions

Definition

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2 questions

Effective Interest Rate

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2 questions

Prospective Reserve

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2 questions

M Thly Payments

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2 questions

Pure Endowment

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2 questions

Valuation

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2 questions

Independent Events

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2 questions

Central Rate Of Mortality

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2 questions

Perpetuity

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2 questions

Expectation Of Life

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2 questions

Force Of Mortality

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2 questions

Annuity

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2 questions

Increasing Annuity

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2 questions

Variance

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2 questions

With Profits

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2 questions

Deferred Annuity

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2 questions

Initial Reserve

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2 questions

Radix

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2 questions

Multiple Decrement

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1 questions

Annuity Arrear

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1 questions

Life Table Functions

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1 questions

Survival

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1 questions

Assurance

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1 questions

Mutually Exclusive Events

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1 questions

Addition Rule

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1 questions

Whole Life

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1 questions

Annuity Types

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1 questions

Annuity Due

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1 questions

Select Mortality

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1 questions

Endowment Assurance

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1 questions

Equation Of Value

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1 questions

Continuous Functions

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1 questions

Net Premium Valuation

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1 questions

Doubling Time

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1 questions

Ultimate Mortality

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1 questions

Retrospective Reserve

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1 questions

Zillmerisation

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1 questions

Rate Of Discount

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1 questions

Purpose

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1 questions

Probabilities

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1 questions

Quarterly

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1 questions

Assurance Annuity Relationship

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1 questions

Gross Premium

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1 questions

Expenses

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1 questions

Curtate

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1 questions

Deferred Assurance

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1 questions

Negative Reserves

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1 questions

Hazard Rate

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1 questions

Loan Repayment

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1 questions

Anti Selection

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1 questions

Continuous

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1 questions

Gross Premium Reserve

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1 questions

Net Premium Reserve

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1 questions

Cost Of Insurance

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1 questions

Aging

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1 questions

Accumulation Factor

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1 questions

Stationary Population

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1 questions

Reserve Accumulation

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1 questions

Risk

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1 questions

Approximation

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1 questions

Net Annual Premium

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1 questions

Term Assurance

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1 questions

Gompertz Law

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1 questions

Bonuses

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1 questions

Complete

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1 questions

Surrender Value

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1 questions

Minimum Reserve

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1 questions

Death Benefit

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1 questions

Time Value Of Money

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1 questions

Mortality Probability

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1 questions

Timing

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1 questions

Uniform Distribution Of Deaths

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1 questions

Fractional Ages

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1 questions

Makeham Law

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1 questions

Parameters

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1 questions

Mortality Experience

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1 questions

Profitability

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1 questions

Simple Interest

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1 questions

Whole Life Assurance

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1 questions

Expected Present Value

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1 questions

Recursive Relationship

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1 questions

Accumulation

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1 questions

Bayes Theorem

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1 questions

Continuous Assurance

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1 questions

Interest Rate Sensitivity

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1 questions

Fackler Formula

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1 questions

Equivalence

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1 questions

Decrements

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1 questions

Zero Interest

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1 questions

Annuity Certain

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1 questions

Equivalence Principle

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1 questions

Binomial Distribution

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1 questions

Modified Reserves

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1 questions

Zillmer Method

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1 questions

Discount Factor

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1 questions

Reserve Trajectory

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1 questions

Multiplication Rule

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1 questions

Select Notation

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1 questions

Duration

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1 questions

Risk Discount Rate

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1 questions

Expected Value

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1 questions

Indicator Variable

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1 questions

Accumulated Value

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1 questions

S N

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1 questions

Family Income Benefit

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1 questions

Net Premium

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1 questions

Pdf

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1 questions

Properties

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1 questions

Participating

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1 questions

Loan Amortization

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1 questions

Interest Component

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1 questions

Status Failure

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1 questions

Terminal Reserve

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1 questions

Withdrawal

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1 questions

Internal Rate Of Return

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1 questions

Npv

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Preparing for the III IC-28 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-28 is a 40-credit paper under the Insurance Institute of India (III) professional credit system.
Time limit: 2 hours
Exam / certification fees: INR 600 per subject (40 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-28: Suggested Study Strategy

1Study the official III IC-28 coursebook chapter by chapter before mixed mocks.

2Review the core regulations and guidelines relating to this paper.

3Sit 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-28 exam?

The III objective papers, including IC-28, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-28 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-28 carry?

This paper (IC-28) carries 40 credit points under the Insurance Institute of India credit system.

Free Practice Questions for III IC-28

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Key Facts: III IC-28 Exam

Sample III IC-28 Practice Questions

About the III IC-28 Exam

Our practice resources: topics covered

Preparing for the III IC-28 Exam

What You Need to Know

Using Our Practice Resources

III IC-28: Suggested Study Strategy

Frequently Asked Questions