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100+ Free III IC-84 Practice Questions

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2026 Statistics

Key Facts: III IC-84 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

40

Credit points for IC-84

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-84 is a 100-question, 2-hour online MCQ paper on Foundation of Casualty Actuarial Science Part II. 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-84 Practice Questions

Try these sample questions to test your III IC-84 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Solvency II, which pillar explicitly deals with qualitative requirements, including the Own Risk and Solvency Assessment (ORSA)?
A.Pillar 2
B.Pillar 1
C.Pillar 3
D.Pillar 4
Explanation: Pillar 2 of Solvency II focuses on qualitative requirements, including risk management systems, governance, and ORSA.
2Which of the following distributions is typically used in Extreme Value Theory (EVT) to model block maxima?
A.Log-normal distribution
B.Generalized Pareto Distribution (GPD)
C.Weibull distribution
D.Generalized Extreme Value (GEV) distribution
Explanation: The GEV distribution is the limit distribution of normalized maxima of a sequence of independent and identically distributed random variables, making it standard for block maxima.
3In credibility theory, what does the 'Z' factor represent in the formula: Credibility Premium = Z * (Observation) + (1 - Z) * (Prior Mean)?
A.The weight assigned to the actual observed experience.
B.The standard deviation of the prior mean.
C.The total variance of the observed data.
D.The risk margin applied to the premium.
Explanation: The credibility factor 'Z' is a weight between 0 and 1 assigned to the observed data, reflecting the confidence in the specific experience.
4Bühlmann credibility differs from classic (limited fluctuation) credibility primarily because Bühlmann credibility relies on:
A.Minimizing the expected squared error of the estimate.
B.An arbitrary full credibility standard.
C.Assuming a normal distribution for all claim frequencies.
D.Ignoring the variance of the hypothetical means.
Explanation: Bühlmann (or greatest accuracy) credibility derives the factor Z by minimizing the expected squared error between the estimate and the true parameter.
5Which loss development method explicitly incorporates the expected a priori loss ratio into the reserve calculation?
A.Bornhuetter-Ferguson Method
B.Chain Ladder Method
C.Cape Cod Method
D.Berquist-Sherman Method
Explanation: The Bornhuetter-Ferguson method blends actual reported losses with expected losses derived from an a priori initial expected loss ratio.
6What is the primary purpose of Redington Immunization in Asset-Liability Management (ALM)?
A.To protect the surplus against small parallel shifts in the yield curve.
B.To maximize the yield on the asset portfolio.
C.To perfectly match the cash flows of assets and liabilities.
D.To eliminate all equity and credit risk from the portfolio.
Explanation: Redington Immunization is designed to protect a portfolio's surplus against small, parallel interest rate shifts by matching durations and ensuring asset convexity exceeds liability convexity.
7Which of the following is a key assumption of the basic Chain Ladder loss development method?
A.Future development patterns will mirror past development patterns.
B.Claim settlement rates are accelerating over time.
C.Inflation rates will significantly decrease in the future.
D.Initial expected loss ratios are highly accurate.
Explanation: The Chain Ladder method assumes that the proportional development of losses from one period to the next remains consistent over time.
8In the context of risk modeling, what does the term 'Copula' primarily refer to?
A.A function that isolates the marginal distributions from their dependence structure.
B.A technique for discounting long-tail liabilities.
C.A method to calculate the Solvency Capital Requirement using standard formula.
D.An indicator of operational risk in underwriting.
Explanation: A copula is a mathematical function that links marginal probability distributions to form a joint distribution, allowing the modeling of dependence between random variables.
9Under Solvency II, the Solvency Capital Requirement (SCR) is calibrated to cover unexpected losses over a 1-year time horizon at what confidence level?
A.95.0%
B.99.0%
C.99.9%
D.99.5%
Explanation: The SCR under Solvency II is calibrated using Value at Risk (VaR) to a 99.5% confidence level over a one-year horizon.
10When applying the Peaks-Over-Threshold (POT) method in Extreme Value Theory, the exceedances over a high threshold typically follow which distribution?
A.Normal Distribution
B.Poisson Distribution
C.Exponential Distribution
D.Generalized Pareto Distribution (GPD)
Explanation: According to the Pickands-Balkema-de Haan theorem, the distribution of excesses over a sufficiently high threshold is well approximated by the Generalized Pareto Distribution (GPD).

About the III IC-84 Exam

The III IC-84 Foundation of Casualty Actuarial Science Part II exam evaluates candidate understanding of key principles and practical concepts in Foundation of Casualty Actuarial Science Part II. The syllabus encompasses various modules detailed below.

Assessment

100 objective multiple-choice questions in a single online paper. IC-84 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 Fee

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. (Insurance Institute of India (III))

III IC-84 Exam Content Outline

9 questions

Reserving Methods

Practice questions focusing on reserving methods concepts.

7 questions

Buhlmann Credibility

Practice questions focusing on buhlmann credibility concepts.

7 questions

Immunization

Practice questions focusing on immunization concepts.

6 questions

Evt Distributions

Practice questions focusing on evt distributions concepts.

6 questions

Capital Requirements

Practice questions focusing on capital requirements concepts.

6 questions

Pot Method

Practice questions focusing on pot method concepts.

6 questions

Classical Credibility

Practice questions focusing on classical credibility concepts.

5 questions

Copulas

Practice questions focusing on copulas concepts.

5 questions

Berquist Sherman

Practice questions focusing on berquist sherman concepts.

5 questions

Cape Cod

Practice questions focusing on cape cod concepts.

5 questions

Valuation

Practice questions focusing on valuation concepts.

5 questions

Technical Provisions

Practice questions focusing on technical provisions concepts.

5 questions

Risk Measures

Practice questions focusing on risk measures concepts.

4 questions

Solvency Ii Pillars

Practice questions focusing on solvency ii pillars concepts.

4 questions

Chain Ladder

Practice questions focusing on chain ladder concepts.

4 questions

Dependency Modeling

Practice questions focusing on dependency modeling concepts.

4 questions

Operational Risk

Practice questions focusing on operational risk concepts.

3 questions

Interest Rate Risk

Practice questions focusing on interest rate risk concepts.

2 questions

Credibility Factor

Practice questions focusing on credibility factor concepts.

2 questions

Convexity

Practice questions focusing on convexity concepts.

How to Pass the III IC-84 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-84 is a 40-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: 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.

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-84 Study Tips from Top Performers

1Study the official III IC-84 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-84 exam?

The III objective papers, including IC-84, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-84 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-84 carry?

This paper (IC-84) carries 40 credit points under the Insurance Institute of India credit system.