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100+ Free PCEIA Practice Questions

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2026 Statistics

Key Facts: PCEIA Exam

100 questions

Standard A+C or A+B route is 100 multiple-choice questions

Asian Institute of Insurance (Aii) - PCEIA programme

50% pass mark

Candidates need 50 correct out of 100 with no sectional requirement

Asian Institute of Insurance (Aii) - PCEIA programme

2 hours

Time allowed for the 100-question two-part route

Asian Institute of Insurance (Aii) - PCEIA programme

RM 100

Fee for a two-part route, including e-learning module, e-book and certificate

Asian Institute of Insurance (Aii) - PCEIA programme

3 languages

PCEIA is offered in English, Bahasa Malaysia and Mandarin

Asian Institute of Insurance (Aii) - PCEIA programme

Parts A, B and C

Part A basics, Part B general insurance, Part C life insurance and ethics

Asian Institute of Insurance (Aii) - PCEIA syllabus

Aii (formerly MII)

Administered by the Asian Institute of Insurance for agent registration

Asian Institute of Insurance (Aii)

100

Free original practice questions here

OpenExamPrep

PCEIA is Malaysia's qualifying entry examination for prospective insurance agents, administered by the Asian Institute of Insurance (Aii), formerly MII. It is a virtual computer-based multiple-choice exam: the standard life-agent route is Part A (Basics of Insurance, 50 questions) plus Part C (Life Insurance, 50 questions) for 100 questions in 2 hours, while general agents sit Part A plus Part B. The passing mark is 50% overall (50 out of 100) with no sectional pass requirement. The fee is RM 100 for a two-part route and includes the e-learning module, e-book and certificate, and the exam is offered in English, Bahasa Malaysia and Mandarin. This 100-question bank gives original practice across Part A insurance basics and Part C life insurance and ethics.

Sample PCEIA Practice Questions

Try these sample questions to test your PCEIA exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In insurance, 'risk' is best described as:
A.The certainty that a loss will happen
B.The uncertainty of a financial loss occurring
C.The premium charged by the insurer
D.The profit earned by the insurer
Explanation: Risk is the uncertainty about whether and when a loss will occur. Insurance works by pooling and transferring this uncertainty from the individual to the insurer in exchange for a premium.
2Which of the following is a 'pure risk' rather than a 'speculative risk'?
A.Investing in shares
B.Starting a new business
C.A house being damaged by fire
D.Buying a lottery ticket
Explanation: A pure risk involves only the chance of loss or no loss, with no possibility of gain, such as fire damaging a house. Insurance generally covers pure risks, not speculative risks where a person hopes to make a profit.
3The main function of insurance is to:
A.Eliminate all risk completely
B.Transfer the financial consequences of risk from the insured to the insurer
C.Guarantee a profit to the policyholder
D.Replace the need for personal savings
Explanation: Insurance transfers the financial consequences of a risk from the insured to the insurer through a premium. It does not remove the risk event itself but provides compensation if the insured loss occurs.
4The principle that requires an insured to have a legally recognised financial relationship with the subject matter of insurance is called:
A.Indemnity
B.Insurable interest
C.Subrogation
D.Contribution
Explanation: Insurable interest means the insured must stand to suffer a financial loss if the insured event occurs. Without insurable interest a contract of insurance is not valid and would amount to gambling.
5Under the principle of utmost good faith (uberrimae fidei), a proposer for insurance must:
A.Disclose all material facts known to them
B.Disclose only facts the insurer specifically asks about
C.Reveal nothing unless asked in writing
D.Disclose facts only after a claim is made
Explanation: Utmost good faith requires the proposer to voluntarily disclose all material facts that could influence the insurer's decision to accept the risk or set the premium. Failure to do so can make the contract voidable by the insurer.
6A 'material fact' in insurance is a fact that:
A.Only the insurer is required to know
B.Would influence a prudent underwriter in deciding whether to accept the risk or what premium to charge
C.Is always written on the policy schedule
D.Relates only to the insured's age
Explanation: A material fact is any fact that would affect the judgement of a prudent underwriter in assessing the risk or fixing the premium and terms. Examples include previous claims, health conditions or hazardous occupations.
7The principle of indemnity aims to:
A.Allow the insured to profit from a loss
B.Place the insured in the same financial position as before the loss, no better and no worse
C.Pay the full sum insured regardless of the actual loss
D.Pay claims only on life policies
Explanation: Indemnity restores the insured to the financial position occupied immediately before the loss, preventing both profit and incomplete recovery. It applies to general insurance such as fire and motor, not to life insurance.
8Why is a life insurance policy NOT considered a contract of indemnity?
A.Because life policies never pay any benefit
B.Because the value of a human life cannot be precisely measured in money, so a fixed benefit is paid
C.Because life insurers do not collect premiums
D.Because life insurance is illegal in Malaysia
Explanation: A human life has no measurable monetary value, so life insurance pays an agreed benefit (the sum assured) rather than reimbursing a measured loss. It is therefore a benefit policy, not a contract of indemnity.
9Subrogation gives the insurer the right to:
A.Refuse to pay any valid claim
B.Recover from a responsible third party after it has indemnified the insured
C.Increase the premium during the policy period
D.Cancel the policy without notice
Explanation: Subrogation allows the insurer, after paying the insured's claim, to step into the insured's rights and recover the loss from a negligent third party. This prevents the insured from being paid twice for the same loss.
10The principle of contribution applies when:
A.The same risk is insured under more than one policy and a loss occurs
B.An insured has only one policy
C.A life insurance claim is paid
D.A premium is paid in instalments
Explanation: Contribution applies where two or more policies cover the same subject matter and interest against the same peril. Each insurer pays a rateable share of the loss so the insured is not over-indemnified.

About the PCEIA Exam

The Pre-Contract Examination for Insurance Agents (PCEIA) is the qualifying examination prospective insurance agents in Malaysia must pass before they can be registered to sell insurance or takaful products. It is administered by the Asian Institute of Insurance (Aii), formerly the Malaysian Insurance Institute (MII), as a virtual computer-based examination of multiple-choice questions in English, Bahasa Malaysia or Mandarin. The syllabus is modular: Part A covers the basics of insurance, Part B covers general insurance and Part C covers life insurance and the agent code of ethics. A life insurance agent sits Part A plus Part C, while a general insurance agent sits Part A plus Part B, giving a 100-question paper in either case. The passing mark is 50% overall with no sectional requirement, so weaker areas can be offset by stronger ones.

Assessment

Modular multiple-choice examination. The standard life-agent route is Part A (The Basics of Insurance, 50 questions) plus Part C (Life Insurance, 50 questions) for 100 questions; general agents sit Part A plus Part B (General Insurance) instead. Single-part routes (CO or BO) have 50 questions.

Time Limit

2 hours for the 100-question A+C or A+B route; 1 hour 30 minutes for a single 50-question route.

Passing Score

50% overall (50 out of 100 on a two-part route, or 25 out of 50 on a single-part route). There is no separate sectional pass requirement.

Exam Fee

RM 100 for a 100-question two-part route and RM 95 for a single 50-question route; fees include the e-learning module, e-book, e-result and certificate. (Asian Institute of Insurance (Aii), formerly the Malaysian Insurance Institute (MII))

PCEIA Exam Content Outline

Part A - 50 questions

The Basics of Insurance

Risk and insurance; the basic principles of insurable interest, utmost good faith, indemnity, subrogation, contribution and proximate cause; legislation and consumer protection including the Financial Services Act 2013 and Bank Negara Malaysia oversight; the insurance contract and how it is formed; the law of agency and the agent's duties; and an introduction to medical and health insurance.

Part C - 50 questions

Life Insurance

Life insurance principles and the nature of life risk; types of life policies including whole life, endowment, term and investment-linked plans; annuities and retirement products; underwriting, proposal and claims procedures; standard policy provisions such as grace period, nomination, surrender value, paid-up value and reinstatement; family takaful; and the agent code of ethics and conduct.

Part B - alternative route

General Insurance

General insurance agents sit Part A plus Part B instead of Part C. Part B covers the main general insurance classes of motor, fire and property, marine and aviation, and miscellaneous accident, together with general takaful. This bank focuses on the more common A+C life-agent route.

How to Pass the PCEIA Exam

What You Need to Know

  • Passing score: 50% overall (50 out of 100 on a two-part route, or 25 out of 50 on a single-part route). There is no separate sectional pass requirement.
  • Assessment: Modular multiple-choice examination. The standard life-agent route is Part A (The Basics of Insurance, 50 questions) plus Part C (Life Insurance, 50 questions) for 100 questions; general agents sit Part A plus Part B (General Insurance) instead. Single-part routes (CO or BO) have 50 questions.
  • Time limit: 2 hours for the 100-question A+C or A+B route; 1 hour 30 minutes for a single 50-question route.
  • Exam fee: RM 100 for a 100-question two-part route and RM 95 for a single 50-question route; fees include the e-learning module, e-book, e-result and certificate.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

PCEIA Study Tips from Top Performers

1Master the six basic principles of insurance in Part A - insurable interest, utmost good faith, indemnity, subrogation, contribution and proximate cause - because they reappear throughout both parts.
2Learn the key Malaysian rules: the Financial Services Act 2013, Bank Negara Malaysia as regulator, and the roles of LIAM, PIAM and the takaful associations.
3For Part C, be able to compare whole life, endowment, term and investment-linked policies and know when each is suitable for a client.
4Memorise standard policy provisions such as the grace period, free-look period, nomination, surrender value, paid-up value and reinstatement, as these are common question topics.
5Use the official Aii e-learning module and e-book first, then test yourself with practice questions to find weak chapters before exam day.
6Aim well above 50% in practice so you have a safety margin; since there is no sectional pass, revise your weakest chapters to lift your overall score.

Frequently Asked Questions

Who administers the PCEIA exam?

PCEIA is administered by the Asian Institute of Insurance (Aii), formerly the Malaysian Insurance Institute (MII). It is the qualifying examination prospective insurance agents in Malaysia must pass before they can be registered to sell insurance or takaful products.

How many questions are on PCEIA and what is the passing mark?

The standard two-part route has 100 multiple-choice questions and the passing mark is 50%, meaning 50 correct answers out of 100. There is no separate sectional pass requirement, so a stronger part can offset a weaker one.

What is the difference between Part A, Part B and Part C?

Part A covers the basics of insurance, Part B covers general insurance, and Part C covers life insurance and the agent code of ethics. A life insurance agent sits Part A plus Part C, while a general insurance agent sits Part A plus Part B.

How long is the PCEIA exam and how is it delivered?

The 100-question A+C or A+B route is allowed 2 hours, and a single 50-question route is allowed 1 hour 30 minutes. It is a virtual computer-based examination taken online and is available in English, Bahasa Malaysia and Mandarin.

Do I need Part B if I only want to sell life insurance?

No. To sell life insurance you sit Part A plus Part C. You only register for Part B if you intend to sell general insurance such as motor or fire policies, in which case you sit Part A plus Part B instead.

Are these official Aii PCEIA questions?

No. These are original OpenExamPrep practice questions modelled on the published PCEIA syllabus. The Asian Institute of Insurance provides the official e-learning module, e-book and examination separately.