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100+ Free III IC-99 Practice Questions

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2026 Statistics

Key Facts: III IC-99 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-99

III credit-point system

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-99 is a 100-question, 2-hour online MCQ paper on Asset Management (30 credit points). Passing requires 60% (Distinction from 75%). India paper enrollment for this 30-credit subject is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-99 Practice Questions

Try these sample questions to test your III IC-99 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 asset classes generally offers the lowest risk and correspondingly the lowest expected return?
A.Treasury Bills
B.Equities
C.Real Estate
D.Corporate Bonds
Explanation: Treasury Bills are short-term government securities and are considered essentially risk-free, offering the lowest risk and lowest expected return among the choices.
2In the context of portfolio management, the Sharpe ratio is used to measure:
A.Total return of the portfolio
B.Risk-adjusted performance
C.Tracking error against a benchmark
D.Duration of a fixed-income portfolio
Explanation: The Sharpe ratio measures the excess return per unit of total risk (standard deviation), serving as a key metric for risk-adjusted performance.
3According to IRDAI Investment Regulations, what is the primary objective of investment for a life insurance company?
A.Maximizing short-term trading profits
B.Investing primarily in high-yield international equities
C.Ensuring safety, liquidity, and reasonable returns
D.Minimizing operational costs through passive indexing
Explanation: IRDAI mandates that insurance funds must be invested emphasizing safety, liquidity, and reasonable returns to protect policyholders' interests.
4Which of the following risks is specifically addressed by Asset-Liability Management (ALM) in insurance?
A.Underwriting risk
B.Mortality risk
C.Operational risk
D.Interest rate risk
Explanation: ALM primarily addresses interest rate risk by ensuring that the durations and cash flows of assets and liabilities are matched.
5Systematic risk in an investment portfolio can be primarily reduced by:
A.Hedging with derivatives
B.Diversification across uncorrelated assets
C.Investing solely in government bonds
D.Increasing the number of stocks in the same sector
Explanation: Systematic risk (market risk) cannot be eliminated through traditional diversification but can be managed or reduced by hedging with derivatives.
6Which valuation method is typically required for debt securities classified as 'Held to Maturity' (HTM) in an insurance portfolio?
A.Mark-to-market value
B.Amortized cost
C.Historical cost less depreciation
D.Net realizable value
Explanation: Debt securities classified as HTM are generally carried at amortized cost, meaning premiums or discounts to par value are amortized over the life of the bond.
7Under the IRDAI pattern of investment for a life insurer's Life Fund, investment classified as 'Other Investments' must not exceed:
A.50% of the fund
B.35% of the fund
C.15% of the fund
D.No quantitative cap applies
Explanation: Under the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 pattern of investment for the Life Fund, 'Other Investments' are capped at not exceeding 15% of the fund, protecting policyholders from higher-risk exposures.
8The concept of 'Immunization' in bond portfolio management involves matching:
A.Yield to maturity of assets and liabilities
B.Credit ratings of assets and liabilities
C.Coupon rates of assets and liabilities
D.Macaulay duration of assets and liabilities
Explanation: Immunization is an ALM strategy that involves matching the Macaulay duration of assets and liabilities to protect the portfolio's net worth from interest rate fluctuations.
9In the Capital Asset Pricing Model (CAPM), the Beta of a security measures its:
A.Sensitivity to market movements
B.Unsystematic risk
C.Total risk
D.Dividend yield
Explanation: Beta measures the sensitivity of a security's returns to the overall market returns, representing its systematic risk.
10What is the primary characteristic of a 'Zero Coupon Bond'?
A.It pays variable interest based on inflation.
B.It is issued at a discount and redeemed at par without periodic interest payments.
C.It pays regular interest but no principal at maturity.
D.It allows the issuer to defer interest payments indefinitely.
Explanation: Zero Coupon Bonds do not make periodic interest (coupon) payments. They are issued at a deep discount to face value and redeemed at par at maturity.

About the III IC-99 Exam

The III IC-99 Asset Management exam (Revised Edition 2026) covers asset management and ALM, investment alternatives, security analysis, IRDAI investment and solvency regulations, SEBI-related laws, bond valuation, portfolio theory, mutual funds, derivatives, forex, and international investment themes across 19 syllabus chapters.

Assessment

100 objective multiple-choice questions in a single online paper. IC-99 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 Fee

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. (Insurance Institute of India (III))

III IC-99 Exam Content Outline

21 questions

Asset Classes and Instruments

Investment alternatives, bond/money-market instruments, mutual funds, and derivatives (syllabus Ch. 3, 10, 15–16).

21 questions

IRDAI Investment and Solvency Regulations

Pattern of investment, exposure limits, Approved vs Other Investments, and 150% solvency control level (syllabus Ch. 8–9).

20 questions

Risk and Return

Risk measures, CAPM/portfolio theory, and return metrics aligned to syllabus Ch. 11–13.

19 questions

Portfolio Management Concepts

Security-market analysis, fundamental/technical analysis, and portfolio/equity management (syllabus Ch. 4–7, 14).

19 questions

Asset-Liability Management (ALM)

AM/ALM meaning, scope, and objectives plus duration, immunization, and cash-flow matching (syllabus Ch. 1–2).

How to Pass the III IC-99 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-99 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: 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.

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-99 Study Tips from Top Performers

1Study the official III IC-99 coursebook (Revised Edition 2026) chapter by chapter—especially Ch. 8 on IRDAI investment and solvency regulations—before mixed mocks.
2Memorize Life Fund pattern-of-investment floors/caps (e.g., Central G-Secs ≥25%, Housing & Infrastructure ≥15%, Other Investments ≤15%) and the 150% solvency control level.
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-99 exam?

The III objective papers, including IC-99, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-99 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-99 carry?

This paper (IC-99) carries 30 credit points under the Insurance Institute of India credit system.