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Free Practice Questions for Korea Insurance Actuary

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Key Facts: Korea Insurance Actuary Exam

160 items

Official 1st stage question count across 4 subjects (40 items each)

https://certi.kidi.or.kr

320 min

Total 1st stage testing duration across two periods (80 minutes + 120 minutes)

https://certi.kidi.or.kr

KRW 50,000

Official 1st stage examination registration fee

https://certi.kidi.or.kr

보험계리사 (Korea Insurance Actuary) is the premier national actuarial qualification in South Korea administered by the Korea Insurance Development Institute (보험개발원) under the Financial Services Commission. The official 1st stage examination consists of 160 four-option multiple-choice items across 4 subjects (40 items each, total 200 minutes) with a KRW 30,000 examination fee and a 40-point subject floor / 60-point aggregate average passing requirement, complemented by accredited English test score submission. This 100-item practice bank provides independent practice by OpenExamPrep, not an official translation or format simulation.

Sample Korea Insurance Actuary Practice Questions

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

1Under the Commercial Act Insurance Part (상법 보험편 Article 638), how is an insurance contract legally classified in terms of its juridical nature?
A.A consensual (낙성계약), bilateral (쌍무계약), onerous (유상계약), and aleatory (사행계약) contract
B.A formal (요식계약), unilateral (편무계약), gratuitous (무상계약), and commutative (급부확정계약) contract
C.A real delivery (요물계약), bilateral (쌍무계약), gratuitous (무상계약), and fiduciary contract
D.A formal (요식계약), unilateral (편무계약), onerous (유상계약), and surety contract
Explanation: Under Article 638 of the Commercial Act (상법 보험편), an insurance contract is formed purely by mutual assent without requiring formal documentation or property delivery (consensual), imposes reciprocal obligations on both insurer and policyholder (bilateral), involves economic consideration (onerous), and depends on an uncertain future contingency (aleatory).
2In non-life insurance under the Commercial Act Insurance Part (상법 보험편 Article 668), what is the statutory requirement regarding insurable interest (피보험이익)?
A.It must be an existing economic interest quantifiable in monetary terms that is not contrary to public policy
B.It may be a purely emotional or sentimental attachment without any measurable pecuniary value
C.It is only required in life insurance contracts and is legally irrelevant to non-life property insurance
D.It must be established after the occurrence of the insured casualty through retroactive agreement
Explanation: Under Article 668 of the Commercial Act, the subject matter of non-life insurance must be an insurable interest (피보험이익) that represents a legitimate economic relationship capable of monetary valuation (금전으로 산정할 수 있는 이익). If there is no insurable interest, the non-life contract is void as an illegal wager.
3Under the Commercial Act Insurance Part (상법 보험편 Article 651), what are the statutory time limits within which an insurer may rescind (해지) a contract for breach of the duty of disclosure (고지의무)?
A.Within 1 month from the date of knowing the non-disclosure, and within 3 years from the date of contract conclusion
B.Within 3 months from the date of knowing the non-disclosure, and within 5 years from the date of contract conclusion
C.Within 6 months from the date of knowing the non-disclosure, and within 2 years from the date of contract conclusion
D.Within 1 month from the date of knowing the non-disclosure, with no upper limit on years from contract conclusion
Explanation: Article 651 of the Commercial Act establishes that if the policyholder or insured intentionally or by gross negligence fails to disclose or misrepresents material facts, the insurer may terminate the contract within 1 month from the date it becomes aware of the fact (안 날로부터 1월), and within 3 years from the date the contract was entered into (계약을 체결한 날로부터 3년).
4Under the Commercial Act Insurance Part (상법 보험편 Article 651), when is an insurer legally precluded from rescinding a policy for breach of the duty of disclosure (고지의무)?
A.When the insurer knew the undisclosed material fact at the time of contract execution, or failed to know it due to gross negligence
B.When the policyholder made the non-disclosure intentionally with the purpose of reducing premiums
C.When the undisclosed material fact directly contributed to the occurrence of the insured casualty
D.When the claim amount claimed by the beneficiary exceeds the annual premium paid by tenfold
Explanation: Article 651 (proviso) of the Commercial Act provides that the insurer may not terminate the contract if the insurer knew of the undisclosed material fact at the time the insurance contract was concluded, or did not know of it due to gross negligence (보험자가 계약 당시에 그 사실을 알았거나 중대한 과실로 인하여 알지 못한 때에는 해지할 수 없다).
5If an insurer violates its statutory duty to deliver and explain standard policy terms (보험약관의 교부·설명의무) under Commercial Act Article 638-3, what right does the policyholder possess?
A.The policyholder may cancel (취소) the contract within 3 months from the date the contract was established
B.The policyholder may unilaterally increase the policy sum assured without paying additional premiums
C.The contract becomes automatically void (무효) by operation of law without requiring any declaration
D.The policyholder may seek punitive damages equal to five times the total annualized premium
Explanation: Under Article 638-3, Paragraph 2 of the Commercial Act, if the insurer fails to deliver the insurance policy terms or fails to explain important contents thereof, the policyholder may cancel the contract within 3 months from the date of contract conclusion (보험계약이 성립한 날부터 3개월 이내에 그 계약을 취소할 수 있다).
6Under the Commercial Act Insurance Part (상법 보험편 Article 656), in the absence of a contrary agreement, at what precise moment does the insurer's liability officially commence?
A.When the insurer receives the first insurance premium (최초의 보험료를 지급받은 때)
B.When the insurance agent submits the signed application form to the branch underwriting desk
C.At midnight on the date the physical insurance policy certificate (보험증권) is delivered
D.Immediately upon completion of the insured's preliminary medical examination
Explanation: Article 656 of the Commercial Act specifies that unless agreed otherwise, an insurer's liability commences from the time the insurer receives the first premium (보험자의 책임은 당사자 간에 다른 약정이 없으면 최초의 보험료의 지급을 받은 때로부터 개시한다).
7Under Commercial Act Article 672, when double insurance (중복보험) is entered into without fraud, how is liability apportioned among insurers when an insured casualty occurs?
A.Each insurer is jointly and severally liable within the limits of its insured amount, apportioned in proportion to each insured amount
B.The first insurer in chronological order must pay all damages up to its policy limit before the second insurer pays
C.All policies become null and void immediately due to violation of the principle of indemnity
D.The insurer with the highest paid-in capital must pay 80% of the loss regardless of policy limits
Explanation: Under Article 672 of the Commercial Act, where multiple contracts are concluded concurrently or consecutively covering the same subject matter and peril such that total insurance amounts exceed the insurable value, each insurer is liable jointly and severally up to its own insured amount, and loss burdens are allocated in proportion to their respective insurance amounts (각자의 보험금액의 비율에 따라).
8What is the primary legal mechanism of Insurer Subrogation against Third Parties (청구권대위) under Commercial Act Article 682?
A.Upon payment of the insurance claim, the insurer automatically acquires the insured's tort claim against the liable third party up to the amount paid
B.The insurer can only seek reimbursement if the third party tortfeasor signs an express confession of judgment
C.The insurer acquires total ownership of all real estate owned by the insured prior to paying the claim
D.The insured retains all recovery rights against third parties and can keep double compensation
Explanation: Article 682 of the Commercial Act provides that when a loss is caused by an act of a third party and the insurer has paid the claim amount, the insurer acquires the rights of the insured against the third party by operation of law up to the limit of the amount paid (보험자가 보험금액을 지급한 때에는 그 지급한 금액의 한도에서 제3자에 대한 보험계약자 또는 피보험자의 권리를 취득한다).
9In marine insurance under the Commercial Act Insurance Part (상법 보험편 Article 710), under what circumstance is the insured entitled to abandon (위부) the insured subject matter to the insurer and claim total loss?
A.When a constructive total loss (추정전손) occurs, such as when vessel repair costs would exceed the value of the vessel when repaired
B.Whenever cargo experiences minor cosmetic damage amounting to less than 5% of its invoice value
C.When the insured decides to terminate the shipping voyage due to unfavorable destination market commodity prices
D.Only when the vessel is attacked by domestic pirates within Korean territorial waters
Explanation: Article 710 of the Commercial Act lists the grounds for abandonment (위부): loss of possession of the ship or cargo with no prospect of recovery or where recovery would cost more than the recovered value; where the cost of repairing the ship would exceed the insured value; where the cost of repairing the cargo plus forwarding it to destination would exceed its value on arrival; and where the combined repair and forwarding cost would exceed the insured value. A separate provision, Article 711, deals with a missing ship: if the ship's existence has been unclear for 2 months it is treated as missing and a total loss is presumed, so the insured claims on that presumption rather than by abandonment.
10Under the Commercial Act Insurance Part (상법 보험편 Article 731), what is the statutory requirement for a contract of life insurance on the life of a third party (타인의 생명보험) to be valid?
A.The written consent (서면에 의한 동의) of the third party whose life is insured must be obtained prior to contract conclusion
B.The third party must be an immediate direct blood relative within two degrees of kinship
C.The third party must pay at least 50% of the monthly insurance premiums from their own bank account
D.An oral affirmation recorded during a telephone telemarketing call is sufficient under all circumstances
Explanation: Article 731, Paragraph 1 of the Commercial Act mandates that an insurance contract that covers the death of a third party as an insured event requires the written consent (서면에 의한 동의) of that third party at the time of contract execution. Failure to obtain written consent renders the contract null and void (무효) to prevent moral hazard and homicide.

About the Korea Insurance Actuary Exam

The Korea Insurance Actuary (보험계리사) is the premier national actuarial credential in South Korea administered by the Korea Insurance Development Institute (보험개발원) under statutory authority from the Financial Services Commission (금융위원회). The 1st stage examination evaluates essential foundational competencies across four subjects: Insurance Law & Retirement Benefit Guarantee Act (보험계약법 [상법 보험편], 보험업법, 근로자퇴직급여보장법), Economics Principles (경제학원론), Actuarial Mathematics & Interest Theory (보험수학), and Financial Accounting Principles (회계원리). This practice bank provides an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation.

Exam sponsor: Financial Services Commission / Financial Supervisory Service / Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

160 questions

Time Limit

200 minutes (Period 1: 80 minutes, Period 2: 120 minutes)

Passing Score

At least 40 points in each subject and an overall average of at least 60 points out of 100

Exam / Certification Fees

KRW 30,000 for 1st stage

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%

Insurance Law & Retirement Benefit Guarantee Act (보험계약법, 보험업법, 근로자퇴직급여보장법)

Covers the Commercial Act Insurance Part (상법 보험편 - Articles 638-739: general insurance principles, duty of disclosure, insurable interest, subrogation, cancellation), the Insurance Business Act (보험업법 - licensing, basic documents, appointed actuary responsibilities, solvency and K-ICS standards), and the Act on the Guarantee of Employees' Retirement Benefits (근로자퇴직급여보장법 - defined benefit and defined contribution plans, minimum funding, actuarial verification).

25%

Economics Principles (경제학원론)

Covers microeconomic principles (consumer utility maximization, risk preferences and expected utility theory, production and cost analysis, competitive and imperfect market structures, externalities and public goods), macroeconomic frameworks (national income accounting, IS-LM model, AD-AS equilibrium, Phillips curve, open-economy Mundell-Fleming model), and monetary economics (interest rate determination, central bank policy tools).

25%

Actuarial Mathematics & Interest Theory (보험수학)

Covers the Theory of Interest (확정이자론 - nominal vs. effective rates, force of interest, annuities-certain, loan amortization, duration and convexity), Life Insurance Mathematics (생명보험수학 - mortality tables, survival functions, life insurance net single/annual premiums, continuous annuities, benefit reserves, Thiele's differential equation, expense loadings), and Non-Life Actuarial Models (손해보험수리 - frequency and severity distributions, aggregate loss models, compound Poisson distributions, credibility theory, premium calculation principles).

25%

Financial Accounting Principles (회계원리)

Covers financial accounting under K-IFRS (conceptual framework, revenue recognition under K-IFRS 1115, asset and liability valuation, statement of cash flows), cost and managerial accounting (CVP analysis, job costing, process costing, variance analysis), and insurance contract accounting under IFRS 17 (insurance contract valuation, Best Estimate Liabilities, Risk Adjustment, Contractual Service Margin / CSM amortisation, loss recovery components).

Preparing for the Korea Insurance Actuary Exam

What You Need to Know

  • Passing score: At least 40 points in each subject and an overall average of at least 60 points out of 100
  • Exam length: 160 questions
  • Time limit: 200 minutes (Period 1: 80 minutes, Period 2: 120 minutes)
  • Exam / certification fees: KRW 30,000 for 1st stage 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

Korea Insurance Actuary: Suggested Study Strategy

1Master the precise legal differences between Insurance Contract Law in the Commercial Act (상법 보험편 Articles 638-739) and the regulatory provisions of the Insurance Business Act (보험업법), paying special attention to the duties of disclosure (고지의무), policyholder rights, and appointed actuary liabilities.
2Work through quantitative interest theory and actuarial mathematics formulas systematically: practice discounting and compounding with varying cash flows, annuity-due vs. annuity-immediate, continuous life annuities, net level premium reserves, and aggregate compound Poisson loss calculations.
3Thoroughly review microeconomic consumer choice under risk (expected utility, Arrow-Pratt risk aversion measures, adverse selection, moral hazard) and macroeconomic policy transmission mechanisms (IS-LM, monetary transmission, inflation-unemployment trade-offs).
4Develop deep fluency with IFRS 17 accounting terminology and mechanics: understand the General Measurement Model (GMM), Building Block Approach (BBA), Contractual Service Margin (CSM) initial recognition and subsequent release, Risk Adjustment (RA), and onerous contract provisions.
5Practice multi-step calculations under time constraints, as the official exam allocates an average of just 2 minutes per question across quantitative subjects like Actuarial Mathematics and Accounting.

Frequently Asked Questions

What is the Korea Insurance Actuary (보험계리사) qualification?

The Korea Insurance Actuary (보험계리사) is the state-certified actuarial credential in South Korea regulated under the Insurance Business Act (보험업법) and administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr) under the Financial Services Commission. Certified actuaries are legally empowered to calculate premium rates, compute and verify mathematical policy reserves, validate IFRS 17 liabilities, and evaluate insurer solvency.

How is the official 1st stage examination organized?

The official 1st stage examination comprises 160 four-option multiple-choice items divided into two periods (40 items per subject, 160 items in total; Period 1 80 minutes, Period 2 120 minutes): Subject 1: Insurance Law (보험계약법 [상법 보험편], 보험업법, 근로자퇴직급여보장법); Subject 2: Economics Principles (경제학원론); Subject 3: Actuarial Mathematics (보험수학); and Subject 4: Accounting Principles (회계원리). Candidates must also satisfy the English requirement by submitting an approved standardized test score (such as TOEIC 700+ or TOEFL iBT 71+) prior to registration.

What are the passing criteria and fee for the 1st stage examination?

To pass the 1st stage, a candidate must obtain at least 40 points out of 100 in each subject (the 40% floor to avoid disqualification / 과락) and achieve an overall arithmetic average of at least 60 points across all four subjects. The official 1st stage registration fee is KRW 30,000 (the 2nd stage fee is KRW 50,000).

Is this practice resource an official KIDI examination or translation?

No. This question bank is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. The official Korea Insurance Actuary examination is conducted in Korean (ko) by the Korea Insurance Development Institute (보험개발원).

What subjects and topics are featured in this 100-item practice set?

This practice bank features 100 four-option MCQs distributed equally across the four 1st stage subjects: Insurance Law & Retirement Benefit Guarantee Act (25 items), Economics Principles (25 items), Actuarial Mathematics & Interest Theory (25 items with worked calculations), and Financial Accounting Principles (25 items including IFRS 17 insurance liabilities).