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Free Practice Questions for Korea Insurance Broker (보험중개사)

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Key Facts: Korea Insurance Broker (보험중개사) Exam

120 MCQs

Official examination question count (Period 1: 40 items, Period 2: 80 items)

Korea Insurance Development Institute

150 min

Total examination duration (Period 1: 40 minutes, Period 2: 80 minutes)

Korea Insurance Development Institute

KRW 60,000

Official examination registration fee

certi.kidi.or.kr

40% / 60%

Passing standard: 40% subject floor and 60% aggregate average

Insurance Business Act Enforcement Decree

3 Lines

Specialized certifications: Non-Life (손해보험중개사), Life (생명보험중개사), Third-Sector (제3보험중개사)

Insurance Business Act

영업보증금

Mandatory business guarantee deposit / surety bond to protect clients from malpractice

Insurance Business Act Article 90

Korea Insurance Broker (보험중개사) is the official South Korean national credential for independent insurance intermediaries representing policyholders under the Insurance Business Act (보험업법), administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr). The official qualification examination consists of 120 four-option multiple-choice items (Period 1: Common Insurance Law & Risk Management 40 items, 40 minutes; Period 2: Specialized Broking Lines 80 items, 80 minutes; total 120 minutes) with a KRW 60,000 fee and a 40% subject floor / 60% overall average passing standard. This practice bank provides an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation.

Sample Korea Insurance Broker (보험중개사) Practice Questions

Try these sample questions to review concepts for the Korea Insurance Broker (보험중개사) 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 characteristics?
A.A consensual (낙성계약), informal (불요식계약), bilateral (쌍무계약), onerous (유상계약), and aleatory (사행계약) contract
B.A formal (요식계약), real delivery (요물계약), unilateral (편무계약), and commutative (급부확정계약) contract
C.A real delivery (요물계약), informal (불요식계약), gratuitous (무상계약), and fiduciary contract
D.A formal (요식계약), consensual (낙성계약), unilateral (편무계약), and indemnity-only contract
Explanation: Under Article 638 of the Commercial Act (상법 보험편), an insurance contract is formed purely by mutual assent without requiring formal statutory documentation or delivery of policy documents (consensual and informal). It imposes reciprocal obligations on both parties (bilateral), involves economic consideration via premiums (onerous), and its performance depends upon an uncertain contingent casualty (aleatory).
2Under the Insurance Business Act (보험업법), how does the legal status and representation capacity of an insurance broker (보험중개사) differ fundamentally from that of an insurance agent (보험대리점)?
A.An insurance broker acts as a dependent representative of the insurance company, whereas an agent acts for the policyholder
B.An insurance broker is an independent intermediary representing the policyholder, whereas an insurance agent acts on behalf of the insurance company
C.Both insurance brokers and insurance agents possess statutory authority to conclude contracts directly on behalf of the insurer
D.An insurance broker can only solicit policies for a single designated life insurer, whereas an agent can broker across all insurers
Explanation: Under the Insurance Business Act (보험업법 Article 2 and Article 89), an insurance broker (보험중개사) operates in an independent legal capacity mediating contract conclusion on behalf of the policyholder and insured. In contrast, an insurance agent (보험대리점) acts as an agent representing the insurer (보험회사를 위하여) with agency power to bind the insurer.
3Under the Commercial Act Insurance Part (상법 보험편 Article 651), within what statutory time limit must an insurer exercise its right of contract rescission (해지권) after discovering a breach of the duty of disclosure (고지의무)?
A.Within 3 months from the date of discovery, and within 5 years from the date of contract conclusion
B.Within 6 months from the date of discovery, and within 2 years from the date of contract conclusion
C.Within 1 month from the date of knowing the fact, and within 3 years from the date of contract conclusion
D.Within 14 days from the date of knowing the fact, and within 1 year from the date of contract conclusion
Explanation: Under Article 651 of the Commercial Act (상법 보험편), if the policyholder or insured fails to disclose or misrepresents material facts intentionally or through gross negligence, the insurer may rescind the contract within 1 month from the date of learning the fact, but no later than 3 years from the date the contract was executed.
4In Risk Management Theory (위험관리론), what is the defining distinction between pure risk (순수위험) and speculative risk (투기위험)?
A.Pure risk involves only the possibility of loss or no loss, whereas speculative risk involves the possibility of gain, loss, or no loss
B.Pure risk can always be traded on financial commodity exchanges, whereas speculative risk can only be handled by insurance companies
C.Pure risk involves conscious human intent to generate profit, whereas speculative risk arises purely from uncontrollable natural disasters
D.Pure risk affects an entire national economy simultaneously, whereas speculative risk affects only a single individual enterprise
Explanation: In Risk Management Theory (위험관리론), pure risk involves situations where the only possible outcomes are an economic loss or no loss (e.g., fire, explosion, accidental injury). Speculative risk involves a chance of financial gain as well as loss (e.g., stock investment, new product development, currency speculation), making pure risks generally insurable while speculative risks are uninsurable.
5Under Article 89, Paragraph 3 of the Insurance Business Act (보험업법 제89조 제3항), what is the statutory requirement regarding the business guarantee deposit (영업보증금) for an insurance broker (보험중개사)?
A.The deposit is voluntary and only required if the broker chooses not to register with the Financial Services Commission
B.Brokers must pay a one-time non-refundable regulatory tax to the Korea Insurance Development Institute
C.Brokers are required to deposit funds exclusively in physical gold reserves stored at the Bank of Korea
D.Brokers must deposit a business guarantee deposit or obtain a guarantee insurance policy to indemnify policyholders against malpractice damages
Explanation: Article 89, Paragraph 3 of the Insurance Business Act allows the Financial Services Commission to require a registered insurance broker to lodge a business guarantee deposit (영업보증금) with a designated depository, or to take out insurance or other measures, so that damage caused to policyholders in connection with brokering is covered. Article 37 of the Enforcement Decree fixes the amounts, and Article 38 lets an injured policyholder apply to the depository for payment of damages out of the deposit up to its limit. Note that Article 90 of the Act deals with cancellation of a broker's registration, not the deposit.
6Under the Commercial Act Insurance Part (상법 보험편 Article 668), what is the legal requirement for insurable interest (피보험이익) in non-life property insurance?
A.It must be an existing or foreseeable pecuniary economic interest capable of monetary valuation
B.It can be a purely sentimental or emotional interest without any measurable economic valuation
C.It is unnecessary in commercial property insurance if both the broker and underwriter agree to waive it
D.It must only exist at the time of contract execution and can lapse entirely before the loss occurs
Explanation: Under Article 668 of the Commercial Act (상법 보험편), the subject matter of non-life insurance must be an insurable interest (피보험이익), which is a legitimate economic interest capable of being calculated in money (금전으로 산정할 수 있는 경제적 이익). Without insurable interest at the time of loss, the contract is void as an unenforceable gambling agreement.
7In Risk Management Theory (위험관리론), which sequence correctly outlines the logical stages of the corporate risk management process?
A.Risk transfer -> Risk avoidance -> Premium negotiation -> Financial audit
B.Claims settlement -> Reinsurance placement -> Policy wording -> Hazard inspection
C.Risk identification -> Risk analysis and evaluation -> Risk control and financing selection -> Implementation and monitoring
D.Risk financing -> Captive incorporation -> Statutory filing -> Loss recovery
Explanation: In Risk Management Theory (위험관리론), the standard professional risk management framework follows five sequential phases: 1) Risk Identification (위험 발견 및 식별), 2) Risk Measurement and Analysis (위험 측정 및 평가 - frequency and severity), 3) Technique Selection (위험통제 및 위험재무 기법 선정), 4) Program Implementation (실행), and 5) Periodic Monitoring and Review (평가 및 재검토).
8Under Article 98 of the Insurance Business Act (보험업법), which action by an insurance intermediary is strictly prohibited as providing special benefits (특별이익의 제공 금지)?
A.Rebating insurance premiums or offering money, goods, or debt forgiveness exceeding statutory de minimis thresholds
B.Providing the customer with official policy brochures, disclosure summaries, and standard terms
C.Recommending a policy with a lower deductible from an insurer that offers superior claims service
D.Assisting the client in filling out the insurance proposal form and conducting risk inspection surveys
Explanation: Under Article 98 of the Insurance Business Act (보험업법), insurance intermediaries (including insurance brokers, agents, and solicitors) are strictly prohibited from promising or providing special benefits (특별이익), such as rebating premiums, paying money or valuable gifts exceeding KRW 30,000 (or 10% of annual premium), or offering loans/debt discharge to induce contract conclusion.
9Under the Commercial Act Insurance Part (상법 보험편 Article 682), what occurs when an insurer exercises the right of subrogation against a third party (제3자에 대한 보험자대위)?
A.The insurer acquires criminal prosecution power against the liable third party without civil liability limitations
B.The insurer acquires the rights of the policyholder or insured against the liable third party up to the amount of insurance money paid
C.The policyholder remains fully entitled to sue the third party for the full loss and keep both payments regardless of double recovery
D.The insurer automatically becomes the co-owner of all real estate owned by the liable third party
Explanation: Under Article 682 of the Commercial Act (상법 보험편), when an insurer has paid insurance money for a loss caused by the act of a third party, the insurer is legally subrogated to the rights of the insured against that third party up to the amount paid (보험자대위), preventing unjust enrichment by the insured and ensuring the wrongdoer bears ultimate liability.
10Under Article 101 of the Insurance Business Act (보험업법 제101조 자기계약의 금지), what limitation applies to self-contracts (자기계약) written by an insurance broker (보험중개사)?
A.Brokers may broker contracts for their own affiliates without any quantitative limitation as long as rates are market standard
B.Brokers cannot broker any insurance contract where the policyholder is an affiliated entity under any circumstances
C.A broker must not make it their principal purpose to solicit insurance in which the broker, or the person employing the broker, is the policyholder or the insured; where the cumulative premium on such business exceeds 50% of the premium on all business the broker solicits, that principal purpose is deemed to exist
D.Self-broking is strictly capped at 5% of total gross revenue earned across all non-life lines
Explanation: Article 101, Paragraph 1 of the Insurance Business Act provides that an insurance agency or broker must not make it their principal purpose (주된 목적) to solicit insurance in which they themselves, or the person employing them, are the policyholder or the insured. Paragraph 2 supplies a deeming rule: once the cumulative premium (보험료 누계액) on such self-contracts exceeds 50 per cent of the premium on all the insurance the agency or broker has solicited, the principal purpose is deemed to exist. Breach is a mandatory ground for cancellation of registration under Article 90, Paragraph 1, subparagraph 4.

About the Korea Insurance Broker (보험중개사) Exam

The Korea Insurance Broker (보험중개사) is a premier national professional credential in South Korea established under the Insurance Business Act (보험업법) and administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr) under the supervisory authority of the Financial Services Commission (금융위원회) and Financial Supervisory Service (금융감독원). Unlike insurance agents (보험대리점) or tied solicitors (보험설계사) who legally represent insurers, an insurance broker is an independent intermediary who represents policyholders and insured corporate clients in placing and negotiating insurance coverage. The official licensing framework provides specialized lines: Non-Life Insurance Broker (손해보험중개사), Life Insurance Broker (생명보험중개사), and Third-Sector Insurance Broker (제3보험중개사). The examination evaluates rigorous knowledge of the Commercial Act Insurance Part (상법 보험편), Insurance Business Act (보험업법), Risk Management Theory (위험관리론), business guarantee deposit (영업보증금) regulations, fiduciary duty of care, and specialized policy underwriting. This practice bank is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. Independent practice by OpenExamPrep.

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

120 questions

Time Limit

120 minutes (Period 1: 40 minutes, Period 2: 80 minutes)

Passing Score

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

Exam / Certification Fees

KRW 60,000

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.

35%

Common Insurance Law & Risk Management (보험관계법령 등 - 상법 보험편, 보험업법, 위험관리론, 보험세제 및 재무설계)

Covers statutory foundations under the Commercial Act Insurance Part (상법 보험편 Articles 638-739: insurance contract formation, insurable interest, duty of disclosure, subrogation, policy cancellation), the Insurance Business Act (보험업법: broker registration, conduct of business rules, prohibition of special benefits, self-broking restrictions), Risk Management Theory (위험관리론: risk identification, frequency/severity assessment, loss control, captive formation, alternative risk transfer), and corporate insurance taxation.

25%

Non-Life & Property-Casualty Broking (손해보험 중개 실무 - 화재보험, 자동차보험, 배상책임, 해상·항공보험, 재보험)

Covers commercial property and fire insurance policies, business interruption coverage, compulsory and optional automobile insurance clauses, commercial general liability (CGL), directors & officers (D&O) liability, marine cargo and hull insurance (Institute Cargo Clauses ICC A/B/C, York-Antwerp Rules), aviation hull and liability policies, and proportional/non-proportional treaty and facultative reinsurance broking.

20%

Life & Pension Broking (생명보험 중개 실무 - 생명보험 상품약관, 연금·퇴직보험, 생명보험 재보험)

Covers individual life insurance policies (term, whole life, universal, variable life insurance), standard life policy clauses and incontestability provisions, corporate retirement pension systems under the Employee Retirement Benefit Security Act (DB and DC plans, IRP), annuity designs, mortality tables, life reinsurance structures, and group life benefit broking.

20%

Third-Sector Broking & Broker Governance (제3보험 중개 실무, 보험중개사 직무윤리, 영업보증금 예탁 및 법적 배상책임)

Covers third-sector hybrid insurance products combining life and non-life characteristics (accidental death and injury, sickness, critical illness, cancer, long-term care insurance), independent broker fiduciary responsibilities, statutory business guarantee deposit (영업보증금) deposition requirements, professional errors & omissions (E&O) liability, unfair solicitation sanctions, and client asset protection.

Preparing for the Korea Insurance Broker (보험중개사) Exam

What You Need to Know

  • Passing score: At least 40% in each subject and an overall average of at least 60% out of 100
  • Exam length: 120 questions
  • Time limit: 120 minutes (Period 1: 40 minutes, Period 2: 80 minutes)
  • Exam / certification fees: KRW 60,000 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 Broker (보험중개사): Suggested Study Strategy

1Distinguish clearly between the legal roles of an insurance broker (보험중개사 - acts independently for the policyholder) and an insurance agent or agency (보험대리점 - acts on behalf of the insurer) under the Insurance Business Act (보험업법).
2Thoroughly master the Commercial Act Insurance Part (상법 보험편 Articles 638-739): focus on duty of disclosure (고지의무), insurer cancellation time limits, insurable interest (피보험이익), and the principle of subrogation (보험자대위).
3Understand the mechanics of Risk Management Theory (위험관리론): distinguish risk avoidance, risk control (loss prevention and reduction), risk retention (active vs. passive, captive insurers), and risk transfer (commercial insurance and non-insurance hedging).
4Review the statutory framework governing the business guarantee deposit (영업보증금) under Insurance Business Act Article 90 and related regulations concerning broker professional liability coverage.
5Analyze non-life policy terms including property average clauses (비례보상조항), Institute Cargo Clauses (ICC A/B/C), general average under York-Antwerp Rules, and commercial general liability occurrence vs. claims-made triggers.
6Study corporate retirement pension mechanics under the Employee Retirement Benefit Security Act, contrasting Defined Benefit (DB) funding standards with Defined Contribution (DC) fiduciary investment obligations.

Frequently Asked Questions

What is the Korea Insurance Broker (보험중개사) qualification and who administers it?

The Korea Insurance Broker (보험중개사) is a national professional qualification regulated under the Insurance Business Act (보험업법) of South Korea and administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr) under the oversight of the Financial Services Commission (금융위원회) and the Financial Supervisory Service (금융감독원). Unlike insurance agents who act on behalf of insurance companies, an insurance broker operates as an independent professional representing the policyholder to assess risk, design coverage, and negotiate terms with insurers and reinsurers.

What are the specialized broking licenses under the Korea Insurance Broker system?

The Insurance Business Act establishes three distinct specialized broker licenses: Non-Life Insurance Broker (손해보험중개사), Life Insurance Broker (생명보험중개사), and Third-Sector Insurance Broker (제3보험중개사). Candidates may sit for the specialized line relevant to their professional practice, while all candidates share the common curriculum in insurance law and risk management.

What is the official examination format, time limit, and passing criteria?

The official examination consists of 120 four-option multiple-choice items administered in two periods: Period 1 covers Common Insurance Law & Risk Management (40 items, 40 minutes); Period 2 covers the Specialized Broking Lines for the chosen class (80 items, 80 minutes), for a total testing duration of 120 minutes. Passing requires achieving at least 40% (40 points out of 100) in each individual subject to avoid subject disqualification (과락), and an aggregate arithmetic average score of at least 60% across all subjects. The official examination fee is KRW 60,000.

What is the business guarantee deposit (영업보증금) requirement for insurance brokers?

Under Article 90 of the Insurance Business Act (보험업법) and its Enforcement Decree, registered insurance brokers must deposit a statutory business guarantee deposit (영업보증금) with the Financial Supervisory Service or procure an equivalent professional indemnity insurance policy / surety bond. This requirement safeguards policyholders against pecuniary losses resulting from broker negligence, breach of fiduciary duty, or professional malpractice.

Is this OpenExamPrep question bank an official test 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 examination is administered in Korean (ko) by the Korea Insurance Development Institute (보험개발원). OpenExamPrep provides this independent practice bank to assist bilingual professionals, corporate risk managers, and international practitioners in mastering South Korean insurance broking principles.

How is this 100-item practice bank structured?

This practice bank comprises 100 four-option MCQs structured across four foundational domains: Common Insurance Law & Risk Management (35 items), Non-Life & Property-Casualty Broking (25 items), Life & Pension Broking (20 items), and Third-Sector Broking & Broker Governance (20 items), distributed across 30 easy, 50 medium, and 20 hard difficulty items. Independent practice by OpenExamPrep.