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100+ Free III IC-92 Practice Questions

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2026 Statistics

Key Facts: III IC-92 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-92

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-92 is a 100-question, 2-hour online MCQ paper on Actuarial Aspects of Product Development. 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-92 Practice Questions

Try these sample questions to test your III IC-92 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which pricing model is most appropriate for a participating life insurance product?
A.Asset share model
B.Deterministic model
C.Stochastic model
D.Static model
Explanation: Asset share models trace the accumulation of funds for a cohort of policies and are suitable for participating products.
2In profit testing, what is the primary purpose of the risk discount rate?
A.To discount liabilities
B.To calculate the net present value of future profits
C.To determine the lapse rate
D.To calculate expected mortality
Explanation: The risk discount rate is used to discount future cash flows to determine the net present value of profits.
3Which of the following is a key component of asset share calculations?
A.Valuation reserves
B.Future expected premiums
C.Historical cash flows
D.Projected death benefits
Explanation: Asset shares are calculated retrospectively using historical cash flows of a block of policies.
4What is the primary objective of reserving in life insurance?
A.To lower premium rates
B.To increase shareholder equity
C.To maximize dividends
D.To ensure funds are available to meet future liabilities
Explanation: Reserving ensures that the insurer holds sufficient funds to cover future obligations.
5Which assumption has the greatest impact on the pricing of term life insurance?
A.Mortality rates
B.Lapse rates
C.Expense rates
D.Investment returns
Explanation: Term life insurance is primarily a protection product, making mortality the most significant risk factor in pricing.
6In margin analysis, what does a positive profit margin indicate?
A.The product has low risk
B.The product is expected to be profitable
C.The product requires higher reserves
D.The product is underpriced
Explanation: A positive profit margin means the expected present value of profits is greater than zero.
7What is the formula for the net premium reserve?
A.PV of future net premiums - PV of future benefits
B.PV of past premiums - PV of past benefits
C.PV of future benefits - PV of future net premiums
D.PV of future benefits + PV of future expenses
Explanation: The prospective net premium reserve is the present value of future benefits minus the present value of future net premiums.
8Which of the following describes 'valuation strain'?
A.The impact of mortality improvement
B.The cost of reinsurance
C.The effect of lower interest rates
D.The initial capital requirement caused by setting up reserves
Explanation: Valuation strain (or new business strain) occurs when the initial reserve required is higher than the first year's premium minus expenses.
9What role do 'model points' play in profit testing?
A.They represent a cluster of similar policies
B.They define mortality tables
C.They mark specific dates for valuation
D.They refer to interest rate assumptions
Explanation: Model points are representative policies used to simplify calculations by grouping similar risks together.
10Which expense type is typically allocated based on the number of policies in force?
A.Commission payments
B.Maintenance expenses
C.Investment expenses
D.Acquisition expenses
Explanation: Maintenance expenses are ongoing administrative costs, usually allocated per policy in force.

About the III IC-92 Exam

The III IC-92 Actuarial Aspects of Product Development exam evaluates candidate understanding of key principles and practical concepts in Actuarial Aspects of Product Development. The syllabus encompasses various modules detailed below.

Assessment

100 objective multiple-choice questions in a single online paper. IC-92 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-92 Exam Content Outline

3 questions

Charges

Practice questions focusing on charges concepts.

3 questions

Guarantees

Practice questions focusing on guarantees concepts.

3 questions

Health Insurance

Practice questions focusing on health insurance concepts.

3 questions

Assumptions

Practice questions focusing on assumptions concepts.

3 questions

Participating Policies

Practice questions focusing on participating policies concepts.

3 questions

Unit Linked

Practice questions focusing on unit linked concepts.

2 questions

Risk Discount Rate

Practice questions focusing on risk discount rate concepts.

2 questions

Profit Margin

Practice questions focusing on profit margin concepts.

2 questions

Anti Selection

Practice questions focusing on anti selection concepts.

2 questions

Stochastic Modeling

Practice questions focusing on stochastic modeling concepts.

2 questions

Morbidity

Practice questions focusing on morbidity concepts.

2 questions

Surrender Values

Practice questions focusing on surrender values concepts.

2 questions

Interest Rate

Practice questions focusing on interest rate concepts.

2 questions

Reinsurance

Practice questions focusing on reinsurance concepts.

2 questions

Annuities

Practice questions focusing on annuities concepts.

2 questions

Asset Liability Matching

Practice questions focusing on asset liability matching concepts.

2 questions

Inflation

Practice questions focusing on inflation concepts.

2 questions

Reserves

Practice questions focusing on reserves concepts.

2 questions

Mortality Tables

Practice questions focusing on mortality tables concepts.

2 questions

Expenses

Practice questions focusing on expenses concepts.

1 questions

Pricing Models

Practice questions focusing on pricing models concepts.

1 questions

Asset Share Calculation

Practice questions focusing on asset share calculation concepts.

1 questions

Reserving Objectives

Practice questions focusing on reserving objectives concepts.

1 questions

Term Insurance

Practice questions focusing on term insurance concepts.

1 questions

Pricing Assumptions

Practice questions focusing on pricing assumptions concepts.

1 questions

Net Premium Reserve

Practice questions focusing on net premium reserve concepts.

1 questions

Valuation Strain

Practice questions focusing on valuation strain concepts.

1 questions

Model Points

Practice questions focusing on model points concepts.

1 questions

Expense Allocation

Practice questions focusing on expense allocation concepts.

1 questions

Unit Linked Products

Practice questions focusing on unit linked products concepts.

1 questions

Lapse Risk

Practice questions focusing on lapse risk concepts.

1 questions

Profitability

Practice questions focusing on profitability concepts.

1 questions

Profit Signature

Practice questions focusing on profit signature concepts.

1 questions

Underwriting

Practice questions focusing on underwriting concepts.

1 questions

Valuation Methods

Practice questions focusing on valuation methods concepts.

1 questions

Profitability Metrics

Practice questions focusing on profitability metrics concepts.

1 questions

Sensitivity Testing

Practice questions focusing on sensitivity testing concepts.

1 questions

Asset Share

Practice questions focusing on asset share concepts.

1 questions

Premium Calculation

Practice questions focusing on premium calculation concepts.

1 questions

Risk Management

Practice questions focusing on risk management concepts.

1 questions

New Products

Practice questions focusing on new products concepts.

1 questions

Cost Of Capital

Practice questions focusing on cost of capital concepts.

1 questions

Regulatory Risk

Practice questions focusing on regulatory risk concepts.

1 questions

Embedded Value

Practice questions focusing on embedded value concepts.

1 questions

Competitive Pricing

Practice questions focusing on competitive pricing concepts.

1 questions

Level Premium

Practice questions focusing on level premium concepts.

1 questions

Persistency

Practice questions focusing on persistency concepts.

1 questions

Appointed Actuary

Practice questions focusing on appointed actuary concepts.

1 questions

Zillmerization

Practice questions focusing on zillmerization concepts.

1 questions

Expense Classification

Practice questions focusing on expense classification concepts.

1 questions

Longevity Risk

Practice questions focusing on longevity risk concepts.

1 questions

Scenario Testing

Practice questions focusing on scenario testing concepts.

1 questions

Non Participating

Practice questions focusing on non participating concepts.

1 questions

Cash Flows

Practice questions focusing on cash flows concepts.

1 questions

Reinstatement

Practice questions focusing on reinstatement concepts.

1 questions

Solvency Margin

Practice questions focusing on solvency margin concepts.

1 questions

Universal Life

Practice questions focusing on universal life concepts.

1 questions

Decrements

Practice questions focusing on decrements concepts.

1 questions

Joint Life

Practice questions focusing on joint life concepts.

1 questions

Mortality

Practice questions focusing on mortality concepts.

1 questions

Micro Insurance

Practice questions focusing on micro insurance concepts.

1 questions

Dividends

Practice questions focusing on dividends concepts.

1 questions

Valuation Interest Rate

Practice questions focusing on valuation interest rate concepts.

1 questions

Risk Measures

Practice questions focusing on risk measures concepts.

1 questions

Capital

Practice questions focusing on capital concepts.

1 questions

Experience Studies

Practice questions focusing on experience studies concepts.

1 questions

Pricing Techniques

Practice questions focusing on pricing techniques concepts.

1 questions

Duration

Practice questions focusing on duration concepts.

1 questions

Bonuses

Practice questions focusing on bonuses concepts.

1 questions

Mortality Assumptions

Practice questions focusing on mortality assumptions concepts.

1 questions

Long Term Care

Practice questions focusing on long term care concepts.

1 questions

Overhead

Practice questions focusing on overhead concepts.

1 questions

Lapse Supported

Practice questions focusing on lapse supported concepts.

1 questions

Whole Life

Practice questions focusing on whole life concepts.

1 questions

Market Research

Practice questions focusing on market research concepts.

1 questions

Breakeven

Practice questions focusing on breakeven concepts.

1 questions

Renewability

Practice questions focusing on renewability concepts.

1 questions

Credit Risk

Practice questions focusing on credit risk concepts.

1 questions

Value Of New Business

Practice questions focusing on value of new business concepts.

1 questions

Taxation

Practice questions focusing on taxation concepts.

1 questions

Endowment

Practice questions focusing on endowment concepts.

1 questions

Catastrophe Risk

Practice questions focusing on catastrophe risk concepts.

1 questions

Analysis Of Surplus

Practice questions focusing on analysis of surplus concepts.

1 questions

Historical Products

Practice questions focusing on historical products concepts.

1 questions

Tontine

Practice questions focusing on tontine concepts.

1 questions

Statutory Reserves

Practice questions focusing on statutory reserves concepts.

1 questions

Reversionary Bonus

Practice questions focusing on reversionary bonus concepts.

1 questions

Lapse

Practice questions focusing on lapse concepts.

1 questions

Investment Margin

Practice questions focusing on investment margin concepts.

1 questions

Markov Chains

Practice questions focusing on markov chains concepts.

1 questions

Multi State Models

Practice questions focusing on multi state models concepts.

1 questions

Variable Annuities

Practice questions focusing on variable annuities concepts.

1 questions

Gmdb

Practice questions focusing on gmdb concepts.

1 questions

Expense Overrun

Practice questions focusing on expense overrun concepts.

1 questions

Commissions

Practice questions focusing on commissions concepts.

1 questions

Profitability Models

Practice questions focusing on profitability models concepts.

1 questions

Disability Insurance

Practice questions focusing on disability insurance concepts.

1 questions

New Business Strain

Practice questions focusing on new business strain concepts.

1 questions

Profit Criterion

Practice questions focusing on profit criterion concepts.

1 questions

Cohorts

Practice questions focusing on cohorts concepts.

1 questions

Liquidity Risk

Practice questions focusing on liquidity risk concepts.

1 questions

Modular Design

Practice questions focusing on modular design concepts.

1 questions

Riders

Practice questions focusing on riders concepts.

1 questions

Payback Period

Practice questions focusing on payback period concepts.

1 questions

Competitiveness

Practice questions focusing on competitiveness concepts.

1 questions

Product Development Cycle

Practice questions focusing on product development cycle concepts.

1 questions

Bonus Loading

Practice questions focusing on bonus loading concepts.

1 questions

Re Pricing

Practice questions focusing on re pricing concepts.

1 questions

Vnb Margin

Practice questions focusing on vnb margin concepts.

1 questions

Product Strategy

Practice questions focusing on product strategy concepts.

1 questions

Cannibalization

Practice questions focusing on cannibalization concepts.

How to Pass the III IC-92 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-92 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-92 Study Tips from Top Performers

1Study the official III IC-92 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-92 exam?

The III objective papers, including IC-92, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-92 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-92 carry?

This paper (IC-92) carries 40 credit points under the Insurance Institute of India credit system.