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Free Practice Questions for FRC Insurance Agent Licensing Examination

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Key Facts: FRC Insurance Agent Licensing Examination Exam

No Expiry

Term of an insurance agent authorisation under Article 11.4 of the Law on Insurance Professional Participants

Law on Insurance Professional Participants, Article 11.4

Every 2 Years

Frequency of the professional refresher training that authorised insurance agents must attend

FRC Package Rules Annex 1, §5.8

MNT 20 Million

Annual agency income that triggers an agent's income report to the insurer it represents

FRC Package Rules Annex 1, §5.5

At least 16 Hours

Minimum agent training, in 45-minute hours, before sitting the FRC insurance agent examination

FRC Resolution 82 of 2008 (amended 2016), §2.7

Company-Only

Business form required for insurance brokers and loss adjusters under Article 12.1

Law on Insurance Professional Participants, Article 12.1

Mongolia's Insurance Agent Licensing Examination is the FRC test that agents must pass under Art. 10.4.2 of the Law on Insurance Professional Participants. Official training and examination materials are in Mongolian. This bank is an independent English-language MCQ study adaptation covering the Law on Insurance, agent rules, the Civil Code insurance contract, driver's insurance and AML/CFT duties.

Sample FRC Insurance Agent Licensing Examination Practice Questions

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

1How does Article 6.1 of Mongolia's Law on Insurance classify insurance?
A.Into long-term insurance and general insurance
B.Into compulsory insurance and voluntary insurance
C.Into property insurance and liability insurance
D.Into direct insurance and reinsurance
Explanation: Article 6.1 classifies (ангилна) insurance into long-term insurance (урт хугацааны даатгал) and general insurance (ердийн даатгал). The law then separates the type (төрөл) of insurance, voluntary or compulsory (Art. 6.2), from the form (хэлбэр) of insurance within each type (Art. 6.3).
2Under Articles 6.3 and 6.5 of the Law on Insurance, who establishes the forms of compulsory insurance and the forms of voluntary insurance?
A.The FRC establishes both the compulsory and the voluntary forms
B.Compulsory forms are established by law; voluntary forms are established by the FRC
C.The Government establishes compulsory forms; each insurer's board establishes voluntary forms
D.Compulsory forms are established by law; each insurer sets its own voluntary forms with no regulator role
Explanation: Article 6.3 says compulsory insurance forms are set by law (хуулиар тогтооно), and Article 6.4 leaves the detailed risks and conditions to the statute that makes that insurance compulsory, such as the Law on Driver's Insurance. Article 6.5 gives the Financial Regulatory Commission (FRC) the power to establish voluntary insurance forms.
3Which activity matches the definition of 'insurance activity' (даатгалын үйл ажиллагаа) in Article 4.1.1 of the Law on Insurance?
A.Bringing an insured together with an insurer so that they conclude a contract, in return for a fee
B.Investigating a claim and establishing the actual loss on behalf of a party, in return for a fee
C.An insurer undertaking under an insurance contract to pay the loss or agreed indemnity when an insured event occurs
D.Collecting money from the public and investing it so as to pay each contributor a guaranteed annual return
Explanation: Article 4.1.1 defines insurance activity as the insurer's undertaking, owed to a specific person under an insurance contract, to pay the loss incurred or the agreed indemnity when an insured event occurs. Article 4.3 extends this to arrangements that calculate the insurer's performance by formula or coefficients rather than actual loss.
4Who can be an 'insurer' (даатгагч) under Articles 4.1.2 and 18.1 of the Law on Insurance?
A.Any registered legal entity, including a cooperative, that has notified the FRC
B.An individual who has passed the FRC's insurance examination
C.A non-bank financial institution licensed for lending, without a separate insurance licence
D.A company that holds a special licence (тусгай зөвшөөрөл) to conduct insurance activity
Explanation: Article 4.1.2 defines an insurer as a company that has obtained a special licence to conduct insurance activity under the Law on Insurance. Article 18.1 limits applicants for that licence to companies formed under Mongolia's Company Law or under a foreign country's law.
5Under Article 4.1.3 of the Law on Insurance, who is the 'insured' (даатгуулагч)?
A.A citizen or legal entity that insures its own interest and has concluded an insurance contract with an insurer
B.Only the person named in the contract to receive the payout after an insured event occurs
C.The agent who signed the contract on the insurer's behalf and collected the premium
D.Only a legal entity; individuals are covered only as named beneficiaries under a company's group policy
Explanation: Article 4.1.3 defines the insured as a citizen or legal entity that has insured its subject matter for its own interest and concluded a contract with an insurer. The insured is the insurer's contracting counterparty, whose duties include paying the premium (Art. 10.1.4).
6What is an 'insured event' (даатгалын тохиолдол) under Article 4.1.4 of the Law on Insurance?
A.The date on which the insured submits a written claim to the insurer
B.Damage to the insured subject matter, or the occurrence of the condition agreed in the contract
C.The loss adjuster's written conclusion on the amount of the loss
D.Any accident or mishap involving the insured person or property, whether or not the contract covers that risk
Explanation: Article 4.1.4 defines the insured event as damage caused to the insured subject matter or the fulfilment of the agreed condition. It is the event that triggers the insurer's obligation to pay indemnity (Art. 4.1.6).
7Under Article 4.1.5 of the Law on Insurance, what is the 'insurance premium' (даатгалын хураамж)?
A.The money the insurer pays the insured when an insured event occurs
B.The commission that the insurer pays its agent for each insurance contract concluded
C.The payment the insured makes to the insurer for insuring its subject matter
D.The maximum amount the insurer will pay under the contract
Explanation: Article 4.1.5 defines the premium as the payment the insured makes to the insurer for insuring its subject matter. Compulsory insurance premiums are set by law (Art. 7.1), while insurers set voluntary premiums using the methodology in the Package Rules (Art. 7.2).
8Article 8.4 of the Law on Insurance lists the documents on which an insurer pays indemnity. Which item is NOT on that list?
A.The insured's application
B.The original of the insurance policy (даатгалын баталгаа)
C.The loss adjuster's written or electronic conclusion on the loss
D.A court judgment confirming the insurer's liability
Explanation: Article 8.4 bases payment on the insured's application, the original policy, the loss adjuster's written or electronic conclusion, and, where necessary, conclusions from other relevant specialist bodies. A court judgment is not a routine precondition for paying a claim. If the insurer refuses, it must state its reasons in writing or electronically (Art. 8.6).
9How does Article 8.7 of the Law on Insurance deal with the insured's right to claim from the person at fault for a loss?
A.If the contract so provides, the right passes to the insurer to the extent of the indemnity paid and the related costs incurred
B.The right passes to the insurer for the full amount of the loss, even before any indemnity has been paid to the insured
C.The insured keeps the right and may recover from the wrongdoer in addition to receiving the indemnity
D.The right passes to the FRC, which recovers from wrongdoers on behalf of all insurers
Explanation: Under Article 8.7, where the insurance contract so provides, the insured's right to claim payment from the at-fault person passes to the insurer to the extent of the indemnity paid and the related costs. This is subrogation: the insurer steps into the insured's position only as far as it has paid.
10Which of these is a ground in Article 8.5 of the Law on Insurance for refusing indemnity in whole or in part?
A.The loss is far larger than the total premium the insured has paid
B.The insured intentionally caused the loss or created the conditions for the insured event
C.The insured notified the loss late, but the delay did not harm the insurer
D.The insured also holds a separate policy with another insurer covering a different property of theirs
Explanation: Article 8.5 lists the refusal grounds. They are: intentional loss or deliberately creating the conditions for the insured event (8.5.1); false information or forged documents (8.5.2); loss from a cause not in the contract (8.5.3); recovery already obtained from the wrongdoer (8.5.4); and other grounds in law (8.5.5). The insurer must give its reasons in writing or electronically (Art. 8.6).

About the FRC Insurance Agent Licensing Examination Exam

The Insurance Agent Licensing Examination (Даатгалын төлөөлөгчийн эрх олгох шалгалт) is the FRC test that individual agents, and the client-facing staff of corporate agents, must pass before acting as insurance agents in Mongolia. The FRC organises agent training with the relevant professional associations, and its Secretariat prepares the test. This page offers independent English-language MCQ practice on insurance law, agent rules, contracts and market conduct; it is a study adaptation, not an official translation or exam simulation.

Exam sponsor: Financial Regulatory Commission (Санхүүгийн зохицуулах хороо, FRC). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Under the Law on Insurance Professional Participants (Art. 10.4.2, as amended on 3 July 2026), an individual agent must complete insurance agent training, pass the examination and be qualified, and a corporate agent's client-facing staff must do the same (Art. 10.5.2). FRC Resolution 82 requires at least 16 training hours of 45 minutes, with a topic plan covering the Law on Insurance, the Law on Insurance Professional Participants and the rules made under them. An examination commission approved by the head of the FRC Secretariat then examines trainees on test questions prepared by the Secretariat. All official sources found are in Mongolian, and no sitting in another language was found. This practice bank is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation, an FRC question bank or a simulation of the examination. It also covers the Civil Code insurance chapter, the Law on Driver's Insurance and AML/CFT duties that agents apply in practice.

Time Limit

Not published in an accessible current source

Passing Score

Not published in an accessible current source; passing the examination is a statutory condition under Law on Insurance Professional Participants Art. 10.4.2

Exam / Certification Fees

Not published by the FRC; Ard Insurance's recruitment page says it pays the fee for its candidates' FRC training session and exam

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.

Not published

Insurance Law Fundamentals & Regulatory Framework

Law on Insurance: definitions (Art. 4), classes, types and forms of insurance (Art. 6), premiums (Art. 7), indemnity and refusal grounds (Art. 8), FRC supervision (Arts. 12–13), reserve funds and business scope (Arts. 25, 49), and the ban on paying unlicensed intermediaries (Art. 56).

Not published

Insurance Contracts under the Civil Code

Civil Code Arts. 431–444: form and content of the insurance contract, disclosure of material circumstances, premium default, sum insured and under- or over-insurance, notice and mitigation duties, the agent's authority (Art. 440), subrogation, multiple insurance, and life and liability insurance.

Not published

Law on Insurance Professional Participants

Participant definitions (Art. 3), agent training-and-exam conditions (Arts. 10.4–10.5), authorisation without a time limit (Art. 11.4), restrictions (Art. 12), premium handling (Art. 26), misleading advertising (Art. 28), suspension, revocation and directives (Arts. 38–41), and disputes (Arts. 44–44¹).

Not published

Agent Duties & Package Rules Regulations

FRC Package Rules Annex 1 §5 agent duties (written agreement, single insurer, public-official bar, MNT 20 million annual income report, fee disclosure, refresher training every 2 years), §6 pre-contract information and suitability duties, and FRC Resolution 82 training and examination rules.

Not published

Core Insurance Products & Driver's Compulsory Liability

Law on Driver's Insurance: purpose, base premiums and coefficients, sums insured, exclusions, the Driver's Insurance Fund, claim duties and deadlines, recourse and electronic settlement; plus deductibles, lost-profit cover and third-party life insurance consent.

Not published

Market Ethics, Consumer Protection & AML/CFT

Insurance Market Code of Ethics (re-approved by FRC Resolution 635 of 2024), confidentiality exceptions, complaint and dispute routes, contract-language and group-contract rules, and AML/CFT customer due diligence, threshold and suspicious-transaction reporting, and record keeping.

Preparing for the FRC Insurance Agent Licensing Examination Exam

What You Need to Know

  • Passing score: Not published in an accessible current source; passing the examination is a statutory condition under Law on Insurance Professional Participants Art. 10.4.2
  • Assessment: Under the Law on Insurance Professional Participants (Art. 10.4.2, as amended on 3 July 2026), an individual agent must complete insurance agent training, pass the examination and be qualified, and a corporate agent's client-facing staff must do the same (Art. 10.5.2). FRC Resolution 82 requires at least 16 training hours of 45 minutes, with a topic plan covering the Law on Insurance, the Law on Insurance Professional Participants and the rules made under them. An examination commission approved by the head of the FRC Secretariat then examines trainees on test questions prepared by the Secretariat. All official sources found are in Mongolian, and no sitting in another language was found. This practice bank is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation, an FRC question bank or a simulation of the examination. It also covers the Civil Code insurance chapter, the Law on Driver's Insurance and AML/CFT duties that agents apply in practice.
  • Time limit: Not published in an accessible current source
  • Exam / certification fees: Not published by the FRC; Ard Insurance's recruitment page says it pays the fee for its candidates' FRC training session and exam Official sources

Using Our Practice Resources

  • Work through all 100 available questions
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FRC Insurance Agent Licensing Examination: Suggested Study Strategy

1Learn the three professional participants in the Law on Insurance Professional Participants: agents act for an insurer (Art. 3.2.2), brokers act under authority from an insurer or insured to connect the parties (Art. 3.2.3), and loss adjusters establish losses independently (Art. 3.2.4). Brokers and loss adjusters must be companies (Art. 12.1).
2Know the agent rules in FRC Package Rules Annex 1 §5: a written agreement with one insurer (§§5.2–5.3), no public officials (§5.4), an income report once annual agency income reaches MNT 20 million (§5.5), written fee disclosure to company clients (§5.7), and refresher training every 2 years (§5.8).
3Map the Civil Code insurance chapter correctly: written form (Art. 431.3), material-circumstance disclosure (Art. 436), the 15-day premium grace notice (Art. 437.1), sum insured and under-insurance (Art. 438), notice and mitigation (Art. 439), the agent's authority (Art. 440) and subrogation (Art. 443.7).
4For compulsory driver's insurance, know the base premiums (Art. 10, for example MNT 33,000 for category B), the coefficients (Art. 11), the per-event sums insured of MNT 5 million or 10 million (Art. 9), the exclusions (Art. 12) and when the Driver's Insurance Fund pays (Art. 18).
5Memorise the AML/CFT duties that apply to insurers and professional participants: customer due diligence (Art. 5), reporting cash transactions of MNT 20 million or more within 5 working days and suspicious transactions within 24 hours (Art. 7), and keeping records for at least 5 years (Art. 8).

Frequently Asked Questions

What is an insurance agent under Mongolian law?

Under Article 3.2.2 of the Law on Insurance Professional Participants, an insurance agent (даатгалын төлөөлөгч) is a person appointed or authorised by an insurer to protect the insurer's lawful interests and to carry out transactions and other legal acts in its name. Under Article 3.3, an insurer's salaried employees are not agents.

What is the statutory requirement to become an insurance agent in Mongolia?

Under Article 10.4.2 of the Law on Insurance Professional Participants, as amended on 3 July 2026, an individual agent must complete insurance agent training, pass the examination and be qualified, and must also meet the fit-and-proper criteria (Art. 10.4.1). For a corporate agent, Article 10.5.2 requires every employee who serves insureds to complete the training and pass the examination.

How many questions are on the exam, and what is the pass mark?

The FRC does not publish an item count, time limit, pass mark or candidate fee. FRC Resolution 82 says the FRC Secretariat prepares the test questions and an examination commission conducts each sitting. Our question bank is a practice resource, not a replica of the official test.

How long is an insurance agent authorisation valid in Mongolia?

Under Article 11.4 of the Law on Insurance Professional Participants, the authorisation is issued without a time limit and remains valid until suspended or revoked. Separately, FRC Package Rules Annex 1 §5.8 requires agents to attend refresher training once every 2 years.

Can an insurance agent represent several insurers or also act as a broker?

No. Under FRC Package Rules Annex 1 §5.3, an agent works only for the insurer with which it has its written agreement. Article 12.5 of the Law on Insurance Professional Participants bars granting agent and broker authorisations to the same person.

Is this practice question bank an official FRC examination or translation?

No. The official training, examination and statutory texts are in Mongolian. This question bank is an independent English-language MCQ study adaptation developed by OpenExamPrep for review and practice; it is not an official translation, an FRC question bank or a simulation of the examination.