Free Practice Questions for Iran Insurance Agent Exam

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Exam Review

Key Facts: Iran Insurance Agent Exam Exam

100 Questions

Four-option questions on the official ADAB paper, each of equal weight

Insurance Research Institute exam notices

60 / 100

Mark required to pass the ADAB examination

Insurance Research Institute exam notices

2 Years

Validity of the ADAB pass certificate from the date of issue

High Council of Insurance Regulation 106, notes to Article 5

150 Hours

Theoretical training required of an individual agency applicant

High Council of Insurance Regulation 106, Article 5

5 Years

Maximum term of an agency contract and licence, renewable

High Council of Insurance Regulation 106, Article 3

85%

Minimum share of investment surplus above the technical rate paid to life policyholders

High Council of Insurance Regulation 68

ADAB is the Persian-language, 100-question, four-option computer-based examination that Iranian insurance agency and broking applicants must pass with 60 out of 100 under Regulation 106; the Insurance Research Institute runs it several times a year and the pass certificate lasts two years.

Sample Iran Insurance Agent Exam Practice Questions

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

1Under Article 1 of the Iranian Insurance Act of 1316 (1937), how is an insurance contract legally defined?

A.A commercial partnership in which the insurer and the policyholder share the profits and the losses of a venture

B.An agreement under which the insurer holds the policyholder's premiums in escrow and returns them if no event occurs

C.A contract under which one party undertakes, in return for a premium, to make good a loss or pay an agreed sum on the occurrence of a specified event

D.A unilateral undertaking by the insurer that binds it alone and imposes no obligations on the policyholder

Explanation: Article 1 of the Insurance Act of 1316 defines insurance as a contract whereby one party undertakes, in return for a sum or sums paid by the other party, to make good the loss suffered on the occurrence or realisation of an event, or to pay a fixed sum. The article names the parties: the undertaking party is the insurer (بیمه‌گر), the other party is the policyholder (بیمه‌گذار), the money paid is the premium (حق بیمه), and the thing insured is the subject matter (موضوع بیمه).

2Which body enacts the binding regulations (آیین‌نامه‌ها) that govern the Iranian insurance market under the Establishment of Central Insurance of Iran and Insurance Operations Act of 1350?

A.Central Insurance of Iran (بیمه مرکزی), which both writes and enforces the regulations

B.The trade association of insurance agents (انجمن صنفی نمایندگان بیمه)

C.The Iranian Insurers' Syndicate (سندیکای بیمه‌گران ایران)

D.The High Council of Insurance (شورای عالی بیمه)

Explanation: Under the Act of 1350, the High Council of Insurance (شورای عالی بیمه) is the rule-making organ of the Iranian insurance system. Regulations such as Regulation 21 (fire), Regulation 85 (loss adjusting) and Regulation 106 (insurance agency) are all approved by the High Council in the exercise of Article 17 of that Act.

3Article 4 of the Iranian Insurance Act of 1316 lists what may be made the subject matter of insurance. What condition does it attach?

A.The policyholder must hold absolute registered freehold title to the property, evidenced at the State Deeds Registry

B.Only tangible physical property may be insured; profits, rights and legal liabilities are outside the Act

C.The policyholder must be related to the owner within the first degree of kinship

D.The policyholder must have an interest in the survival of whatever is insured

Explanation: Article 4 provides that the subject matter of insurance may be property — whether the thing itself, its benefit, or any financial right — or any legal liability, on condition that the policyholder has an interest in the survival of what is insured (ذینفع بودن در بقاء مورد بیمه). That condition is the statutory source of the doctrine of insurable interest in Iranian law.

4Under Article 15 of the Iranian Insurance Act of 1316, within what period must the policyholder notify the insurer that an insured event has occurred?

A.Within 24 hours of the event, whatever the means of communication available

B.At the earliest opportunity and at the latest within five days of becoming aware of the event

C.Within 30 days of the expiry of the policy period

D.At any time within the two-year limitation period fixed by Article 36

Explanation: Article 15 obliges the policyholder to look after the insured property as a prudent uninsured owner would, to take the steps needed to stop the loss spreading, and to inform the insurer at the first possible opportunity and in any event within five days of learning of the event. If notice is late the insurer is not liable, unless the policyholder proves that circumstances beyond his control made notice within the period impossible.

5Article 30 of the Iranian Insurance Act of 1316 puts the insurer in the shoes of the policyholder against those responsible for the loss. What is the extent of that right?

A.The insurer may refuse to settle until the policyholder has first sued the responsible third party to judgment

B.The insurer may recover from the policyholder if the responsible third party later turns out to be insolvent

C.The insurer acquires the policyholder's entire claim against the third party, including any amount exceeding the indemnity paid

D.The insurer steps into the policyholder's rights against the responsible party only within the limits of the compensation it accepts or pays

Explanation: Article 30 provides that the insurer, within the limits of the loss it accepts or pays, stands in the place of the policyholder against the persons responsible for the event or the damage (اصل جانشینی). The right is capped at what the insurer has actually paid; any surplus recovery belongs to the insured. The same article adds that if the policyholder does anything inconsistent with that right, he is answerable to the insurer.

6To which class of business does the principle of subrogation (اصل جانشینی) NOT apply?

A.Commercial fire, lightning and explosion insurance

B.Marine cargo insurance written on Institute Cargo Clauses

C.Contractors all risks engineering insurance

D.Personal insurances such as life insurance and personal accident insurance

Explanation: Subrogation belongs to contracts of indemnity, where the payment measures a financial loss that someone else may be made to bear. Life and personal accident policies pay an agreed capital sum fixed at inception (Article 23 of the Insurance Act requires that sum to be settled when the contract is made), so they are not indemnity contracts. The beneficiary may therefore keep the policy proceeds and still sue the wrongdoer.

7A policyholder deliberately conceals a material fact when applying for cover, and the concealment is such that it changes the nature of the risk or reduces its apparent importance. What does Article 12 of the Insurance Act of 1316 provide?

A.The contract is voidable at the insurer's option and the premium must be returned pro rata from the date of avoidance

B.The contract is void, the premium already paid is not returnable, and the insurer may also demand the instalments that had fallen due

C.The contract stands, but any indemnity is cut in proportion to the premium paid against the premium that should have been charged

D.The insurer's only remedies are to propose an additional premium or to cancel the contract on ten days' notice

Explanation: Article 12 states that where the policyholder deliberately withholds information or makes false statements, and the withheld or false matter changes the subject of the risk or diminishes its importance in the insurer's view, the contract is void — even if the concealed fact had no bearing on the event that occurred. In that case not only are the sums the policyholder has paid not returnable, but the insurer is also entitled to claim the premium instalments outstanding to that date.

8How does the principle of utmost good faith (اصل حسن نیت) operate when an insurance contract is being formed?

A.Both parties must deal honestly: the proposer must disclose the material facts affecting the risk, and the insurer must set out the cover, conditions and exclusions clearly

B.Only the insurer owes a duty of candour, because it drafts the wording and holds the technical expertise

C.Only the proposer owes a duty of candour; the insurer owes no reciprocal obligation once the policy is issued

D.Neither party owes any duty beyond answering the specific questions printed on the proposal form

Explanation: Utmost good faith (uberrima fides) is reciprocal. The proposer knows the facts about the risk and must disclose them, which is why Articles 12 and 13 of the Insurance Act attach consequences to concealment. The insurer knows the contract and must present rates, conditions, exclusions and claims procedure fairly — a duty reinforced for agents by Regulation 106, which requires the agent to explain the rate, conditions, exclusions, the insurer's undertakings and the policyholder's duties to the applicant.

9An applicant innocently gives an incorrect answer on the proposal form. The error comes to light BEFORE any loss occurs. What does Article 13 of the Insurance Act of 1316 allow the insurer to do?

A.Nothing: the contract must run unchanged to its expiry date

B.Treat the contract as void and keep the premium already received

C.Either charge an additional premium, if the policyholder agrees, or cancel the contract, cancellation taking effect ten days after notice and the unearned premium being refunded

D.Pay any later claim, but reduce it in proportion to the premium paid against the premium that should have been charged

Explanation: Article 13 says that where the omission or misstatement was not deliberate the contract is not void. If the true position emerges before a loss, the insurer may either keep the contract on foot against an additional premium accepted by the policyholder, or cancel it. Cancellation must be notified by registered letter or formal notice, takes effect ten days after that notice reaches the policyholder, and the insurer must refund the excess premium received up to the date of cancellation.

10A commercial property worth 10,000,000,000 IRR is insured for 6,000,000,000 IRR. A covered fire causes an assessed loss of 2,000,000,000 IRR. Applying Article 10 of the Insurance Act of 1316 (قاعده نسبی سرمایه), what is the indemnity?

A.1,200,000,000 IRR

B.1,600,000,000 IRR

C.800,000,000 IRR

D.2,000,000,000 IRR

Explanation: Article 10 provides that where property is insured for less than its real value, the insurer is liable only in the proportion that the sum insured bears to the real value. Indemnity = loss x (sum insured / real value) = 2,000,000,000 x (6,000,000,000 / 10,000,000,000) = 2,000,000,000 x 0.60 = 1,200,000,000 IRR. The policyholder carries the remaining 800,000,000 IRR as his own insurer.

About the Iran Insurance Agent Exam Exam

The ADAB examination (آزمون دانش و اطلاعات بیمه‌ای) is the knowledge and professional competence test that candidates for an insurance agency or official broking licence in Iran must pass. Article 5 of High Council of Insurance Regulation 106 — the regulation on organising insurance agency affairs, approved in Khordad 1403 and replacing Regulation 75 — makes success in Central Insurance of Iran's knowledge and professional competence examination one of the conditions of an individual agency licence, alongside the educational and experience routes set out in the same article and 150 hours of theoretical training. Central Insurance may delegate the examination to qualified bodies, and in practice the Insurance Research Institute (پژوهشکده بیمه) runs it, several times a year, at computer-based test centres across the country. A pass certificate is valid for two years from issue. The Institute publishes the syllabus in three parts. The general part covers the Insurance Act of 1316, the Establishment of Central Insurance Act of 1350, insurance principles and risk management, the issuance process, marketing and insurance terminology. The life part covers the classes of life business, the life regulation and its supplements, the technical interest rate and profit participation, and the supplementary covers sold with life policies. The non-life part covers fire under Regulation 21, motor hull, compulsory motor third-party liability under the 1395 Law, medical expenses under Regulation 99, marine cargo under Regulation 79, liability and engineering classes, and the agency and broking regulations themselves. This question bank is independent practice for the ADAB examination by OpenExamPrep. The official examination is sat in Persian; these 100 questions are an English-language multiple-choice study adaptation of the published syllabus topics, written for people who study in English, and they are not an official translation, not official exam questions, and not produced or approved by Central Insurance of Iran or the Insurance Research Institute.

Exam sponsor: Insurance Research Institute (پژوهشکده بیمه — IRC), which runs the examination under the authority of Central Insurance of Iran (بیمه مرکزی). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

The Insurance Research Institute publishes the ADAB syllabus in three parts: general questions and principles; life insurance and its regulations; and non-life insurance and its regulations. The paper contains 100 four-option multiple-choice questions, each carrying equal weight, and the pass mark is 60 out of 100. The Institute's published exam rules for this sitting do not apply a penalty for incorrect answers. The examination is delivered electronically at designated test centres and the Institute holds sittings several times a year.

Time Limit

100 minutes, per the Insurance Research Institute's exam notices

Passing Score

60 out of 100

Exam / Certification Fees

Set by the Insurance Research Institute for each sitting and paid online in Iranian rials at registration through azmoon.irc.ac.ir

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.

25%

General insurance principles and law (سوالات عمومی و کلیات)

The Insurance Act of 1316, the Establishment of Central Insurance of Iran and Insurance Operations Act of 1350, insurance principles and risk management, the underwriting and issuance process, insurance marketing, and Persian-to-English insurance terminology.

20%

Insurance agency law, operations and ethics (مقررات نمایندگی و اخلاق حرفه‌ای)

High Council of Insurance Regulation 106 on organising insurance agency affairs (which replaced Regulation 75), licensing routes and training, exclusivity, guarantees, premium handling, joint liability, the breaches committee and its sanctions, the commission regulation (Regulation 102), and anti-money-laundering duties.

20%

Life and personal insurance (بیمه‌های زندگی و مقررات مربوطه)

The four statutory classes of life business and the life regulation (Regulation 68 and its supplements, revised as Regulation 107), the technical interest rate and the 85 per cent profit-sharing rule, surrender, paid-up and loan provisions, beneficiary rules under Articles 23 to 27 of the Insurance Act, personal accident insurance, and supplementary medical expenses insurance under Regulation 99.

18%

Property, engineering and liability insurance (بیمه‌های اموال و مسئولیت)

The fire, lightning and explosion policy and its general conditions under Regulation 21, additional perils and exclusions, marine cargo insurance under Regulation 79 and the Institute Cargo Clauses, general average, contractors all risks and erection all risks, machinery breakdown, business interruption, and employers', public and product liability.

17%

Motor insurance (بیمه‌های وسایل نقلیه موتوری)

The Compulsory Motor Third-Party Liability Law of 1395: the definition of a third party, diyah and arsh, the sacred months, the conventional vehicle rule and the minimum property damage limit, compulsory driver accident cover, the insurer's rights of recovery, the Bodily Injury Compensation Fund and its resources, together with voluntary motor hull insurance.

Preparing for the Iran Insurance Agent Exam Exam

What You Need to Know

Passing score: 60 out of 100
Assessment: The Insurance Research Institute publishes the ADAB syllabus in three parts: general questions and principles; life insurance and its regulations; and non-life insurance and its regulations. The paper contains 100 four-option multiple-choice questions, each carrying equal weight, and the pass mark is 60 out of 100. The Institute's published exam rules for this sitting do not apply a penalty for incorrect answers. The examination is delivered electronically at designated test centres and the Institute holds sittings several times a year.
Time limit: 100 minutes, per the Insurance Research Institute's exam notices
Exam / certification fees: Set by the Insurance Research Institute for each sitting and paid online in Iranian rials at registration through azmoon.irc.ac.ir Official sources

Using Our Practice Resources

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Iran Insurance Agent Exam: Suggested Study Strategy

1Learn the Insurance Act of 1316 by article number. Articles 4, 10, 12, 13, 15, 16, 17, 19, 30 and 36 between them account for most of the legal questions.

2Keep the regulation numbers straight: 21 is fire, 79 is marine cargo, 82 is medical professional liability, 84 is personal accident, 85 is loss adjusting, 92 is official broking, 99 is medical expenses, 102 is commission and 106 is insurance agency.

3Work through Regulation 106 article by article: the education and experience routes in Article 5, the corporate agency conditions in Article 6, the prohibited concurrent roles in Article 10, the contract contents in Article 13, the agent's duties in Article 15, joint liability in Article 18 and the sanctions ladder in Article 21.

4For the 1395 motor law, memorise the definition of a third party in Article 1, the property damage rules in Article 8, the occupant capacity rule in Article 12, the recovery grounds in Article 15, the Fund's role in Article 21 and its resources in Article 24.

5Practise the two proportional calculations until they are automatic: Article 10 average for under-insurance, and the Article 13 premium ratio for an innocent misstatement found after a loss.

6Remember that Regulation 68 shares at least 85 per cent of the investment surplus above the technical interest rate with life policyholders, and that the regulation sets the technical rate as a ceiling rather than a floor.

Frequently Asked Questions

What mark do I need to pass the ADAB examination?

Sixty out of one hundred. The paper carries 100 four-option questions of equal weight, and the Insurance Research Institute's published rules for this sitting do not apply a penalty for wrong answers.

Who runs the ADAB examination and how often is it held?

Article 5 of Regulation 106 places the knowledge and professional competence examination with Central Insurance of Iran and allows it to be delegated. In practice the Insurance Research Institute (پژوهشکده بیمه) runs it at computer-based test centres around the country, several times a year, with registration and results handled through azmoon.irc.ac.ir.

How long does an ADAB pass remain valid?

Two years from the date the certificate is issued, under the notes to Article 5 of Regulation 106. Candidates who let it lapse before completing the licensing process must sit the examination again.

Does passing ADAB by itself entitle me to an agency licence?

No. Article 5 of Regulation 106 also requires the applicant to meet the general conditions, to satisfy one of the education and experience routes it sets out, and to complete 150 hours of theoretical training, and the agency itself is granted by an insurance institution under a contract of up to five years.

Is this question bank in the same language as the examination?

No. The official examination is sat in Persian. This is an independent English-language multiple-choice study adaptation of the published syllabus topics by OpenExamPrep, written for people who prepare in English. It is not an official translation, it does not reproduce official exam questions, and it is not produced or approved by Central Insurance of Iran or the Insurance Research Institute.