Free Practice Questions for IRDAI POSP Life

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Key Facts: IRDAI POSP Life Exam

15 hours

Mandatory in-house POSP-LI training

IRDAI Master Circular IRDAI/LIFE/CIR/MISC/215/12/2019 §17.3

18+ / 10th pass

Minimum POSP-LI eligibility

Master Circular §17.2

5 modules

Official model syllabus (Annexure III)

Master Circular Annexure III

₹10 lakh

Max SA on death for POS endowment (excl. ADB, per insurer)

Master Circular Annexure II(b)

4 working days

Max TAT for POS-Life issuance/acceptance communication

Master Circular §14

POSP-LI: 15-hour training then insurer/intermediary MCQ. Practice 100 free questions weighted 12/15/25/30/18 across intro, market, principles, POS-Life products, and compliance per IRDAI Master Circular Annexure III.

Sample IRDAI POSP Life Practice Questions

Try these sample questions to review concepts for the IRDAI POSP Life exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Risk transfer through pooling of similar exposures is best described as:

A.Insurance

B.Savings

C.Speculation

D.Gambling

Explanation: Insurance pools premiums from many similar risks so the few who suffer covered losses are compensated from the common fund. That risk-transfer-via-pooling mechanism is the core of Module 1.

2Which statement about life insurance is correct?

A.It prevents death from occurring

B.It provides financial protection when a covered life contingency occurs

C.It guarantees the insured will never fall ill

D.It replaces the need for any savings

Explanation: Life insurance does not stop death or illness. It pays a predefined benefit when a covered contingency (such as death during the term) occurs, transferring the financial impact.

3Insurance is commonly explained as sharing the losses of:

A.Many by a few

B.One person with an unrelated stranger only

C.A few by the many

D.Governments only

Explanation: Pooling means many contribute premiums so that the relatively few who suffer losses can be compensated — the 'few by the many' idea taught in Module 1.

4The consideration the proposer pays the life insurer for bearing risk is called the:

A.Bonus

B.Sum assured

C.Claim

D.Premium

Explanation: Premium is the consideration paid for the insurer’s promise of cover. Sum assured is the benefit amount; a claim is a demand for payment after the insured event.

5In insurance terminology, a peril is best described as:

A.The cause of a possible loss

B.The premium rate table only

C.A type of insurance licence

D.An IRDAI circular number

Explanation: A peril is the cause of loss (for life insurance, death is the primary peril covered by term products). Hazard influences the chance or severity of loss.

6A hazard in insurance language is something that:

A.Pays the claim automatically once named

B.Increases the chance or severity of a loss

C.Is identical to the sum assured

D.Is identical in meaning to a peril

Explanation: Hazards (physical, moral, or morale) increase the probability or severity of loss from a peril. They are risk factors, not the benefit itself.

7The primary purpose of buying life insurance for a family’s breadwinner is usually to:

A.Eliminate all taxes forever

B.Guarantee stock-market returns

C.Protect dependants against financial loss if the breadwinner dies early

D.Replace the need for a will

Explanation: Life cover replaces income or meets obligations when the insured dies during the term, protecting dependants. It is not a stock guarantee or a substitute for estate documents.

8Which best describes pure risk versus speculative risk for POSP Module 1?

A.Pure risk always produces a profit

B.Speculative risk is the only risk insurers cover

C.They are identical terms

D.Pure risk has only a chance of loss or no loss; speculative risk also has a chance of gain

Explanation: Insurable life contingencies are pure risks (loss or no loss). Speculative risks (investing, gambling) involve possible gain and are generally not the subject of life insurance cover.

9Sum assured on death in a life policy primarily represents:

A.The benefit amount payable on a covered death claim (subject to policy terms)

B.The annual premium only

C.The total premiums paid to date only

D.The commission payable to the POSP

Explanation: Sum assured (or sum assured on death) is the contractual benefit amount used to settle a valid death claim, subject to waiting periods, exclusions, and product rules.

10Which statement correctly contrasts insurance with gambling?

A.Both create a new risk for entertainment

B.Insurance transfers an existing risk; gambling creates a risk for chance of gain

C.Gambling always pools identical household risks

D.Insurance requires the insured to hope for a loss

Explanation: Insurance starts from an existing exposure (e.g., premature death) and transfers it. Gambling creates a new chance for gain/loss for entertainment.

About the IRDAI POSP Life Exam

Free practice bank for the IRDAI Point of Sales Person — Life Insurance (POSP-LI) qualifying exam, covering the official five-module model syllabus: insurance basics, Indian market, principles/KFD/64VB, POS-Life product annexures, and miscellaneous compliance.

Exam sponsor: Engaging life insurer or insurance intermediary (IRDAI POSP-LI Master Circular framework). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Objective MCQ after mandatory 15-hour in-house training on IRDAI Annexure III model syllabus for POSP-LI. Exact Q-count, duration, language options, and pass mark are set by the examining insurer or intermediary.

Time Limit

Set by examining insurer/intermediary (commonly ~60 minutes for ~50Q — confirm)

Passing Score

Set by examining insurer/intermediary (confirm with provider)

Exam / Certification Fees

Often sponsored / confirm with appointing insurer or intermediary

Exam sponsor website

Reported exam pass rate: N/A. Not centrally published; pass marks and fees are set by the examining insurer or intermediary under the IRDAI POSP-LI Master Circular. Exam sponsor website

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.

12%

Introduction to Insurance

Pooling, purpose of life cover, risk/peril/hazard, premium and sum assured.

15%

Indian Insurance Market

IRDAI, distributors, POSP-LI eligibility, 15-hour training, appointment and POS Code.

25%

Principles and Practice of Insurance

Contract elements, KFD-cum-Proposal, utmost good faith, Section 64VB, TAT and refunds.

30%

POS Life Insurance Products

Term, endowment, immediate annuity, and fixed-benefit health parameters from Annexure II.

18%

Miscellaneous Compliance

AML/KYC, dos and don’ts, grievance/Ombudsman, micro-insurance, premium acknowledgements.

Preparing for the IRDAI POSP Life Exam

What You Need to Know

Passing score: Set by examining insurer/intermediary (confirm with provider)
Assessment: Objective MCQ after mandatory 15-hour in-house training on IRDAI Annexure III model syllabus for POSP-LI. Exact Q-count, duration, language options, and pass mark are set by the examining insurer or intermediary.
Time limit: Set by examining insurer/intermediary (commonly ~60 minutes for ~50Q — confirm)
Exam / certification fees: Often sponsored / confirm with appointing insurer or intermediary 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

IRDAI POSP Life: Suggested Study Strategy

1Complete your insurer/intermediary’s official 15-hour POSP-LI materials before relying only on mocks.

2Memorise Annexure II caps: term SA multiples of ₹50,000; endowment max SA ₹10 lakh and max term 20 years; annuity entry ages 40–70, single premium, ROPP only.

3Drill KFD-cum-Proposal rules, 4-working-day issuance TAT, and 7-day refund on non-acceptance.

4Know Section 64VB (premium before cover) and premium acknowledgement duties if you collect premiums.

5Practice AML/KYC and dos/don’ts scenarios — conduct questions are high-yield.

Frequently Asked Questions

How many training hours are required for POSP-LI?

The IRDAI Master Circular on Point of Sales Products and Persons — Life Insurance requires the engaging insurer or intermediary to conduct 15 hours of in-house training, then an examination, before issuing a certificate and appointment letter.

What products can a Life POSP sell?

POS-Life categories include pure term with or without return of premium; non-linked non-participating endowment (survival benefit allowed); immediate annuity (life annuity with return of purchase price); non-linked non-par fixed-benefit health; plus any other category IRDAI permits. Micro-insurance products of life insurers may also be distributed as allowed.

What is the exam format?

After training, the engaging insurer or intermediary conducts a qualifying MCQ on the IRDAI model syllabus. Exact question count, duration, and pass mark are set by that examining body; industry practice often uses about 50 objective questions. This free bank provides 100 practice MCQs.

What are the eligibility criteria?

Minimum age 18 years completed, 10th standard pass, and acceptable identity proof (PAN/Aadhaar). You must be engaged by a life insurer or authorised insurance intermediary that provides the 15-hour training and exam.

How is POSP-LI different from IC-38 life agent?

POSP-LI is a lighter channel for simple pre-underwritten POS-Life products after short training. IC-38 is the fuller individual agent licensing exam with longer training and broader product authority.