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Nepal Insurance Authority Life Insurance Agent Examination

Practice Questions
Exam Review

Key Facts: NIA Micro Life Agent Exam

50

Objective questions, 2 marks each

NIA agent examination directive 2079, clause 9

1 hr 30 min

Time allowed

NIA agent examination directive 2079, clause 9

50%

Pass mark

NIA agent examination directive 2079, clause 12

NPR 500

Exam fee per sitting

NIA agent examination directive 2079, clause 7

21 days

Deadline to settle a micro insurance claim

Insurance Act 2079, section 78

NIA's micro life insurance agent exam is a 50-question online objective test (2 marks each, 1 hour 30 minutes) with a 50% pass mark and a NPR 500 fee. Applicants need 10+2 and insurer training; micro agents may be individuals or institutions such as cooperatives and may represent more than one micro insurer.

Sample NIA Micro Life Agent Practice Questions

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

1A daily-wage labourer is the only earner for his family. Which risk does a micro life policy mainly protect his family against?
A.Loss of income if he dies during the policy term
B.A drop in the market price of the crops he grows
C.The chance that his savings earn a lower interest rate
D.Losses from a business deal that does not succeed
Explanation: Micro life insurance pays a sum assured if the insured dies, replacing part of the income the family loses. Crop prices, interest rates and business deals are speculative or market risks that a life policy does not cover. Protecting low-income families from the financial shock of a death is the core purpose of micro life cover.
2Two villagers bet money on which bull will win a bullfight at a festival. What kind of risk have they created?
A.Pure risk
B.Fundamental risk
C.Speculative risk
D.Insurable personal risk
Explanation: A bet can end in gain or loss, so it creates a speculative risk. Insurers cover pure risks, where the only outcomes are loss or no loss. NIA's micro life sample paper classifies a bet on a horse race the same way.
3A construction labourer starts wearing a safety harness when working at height. Which risk management method is this?
A.Risk transfer
B.Risk reduction
C.Risk retention
D.Risk avoidance
Explanation: Wearing a harness lowers the chance and severity of an injury while the labourer keeps doing the same work, so it is risk reduction. Avoidance would mean giving up work at height altogether. Transfer would mean shifting the financial loss to an insurer.
4A family lives on a steep hillside. During the monsoon a landslide destroys their house. Which item is the peril?
A.Living on a steep, unstable hillside
B.The monsoon premium they did not pay
C.The cost of rebuilding the house
D.The landslide
Explanation: A peril is the event that directly causes the loss, which here is the landslide. Living on an unstable slope is a hazard that makes the loss more likely, and the rebuilding cost is the loss. Distinguishing peril, hazard and loss is part of the risk unit of the micro life syllabus.
5Why is the premature death of a poor household's earner an insurable risk for a micro life insurer?
A.Because the insurer can choose to pay only some families
B.Because many people face it, so deaths can be predicted
C.Because death can be prevented if the family pays premiums
D.Because the government guarantees every claim the insurer pays
Explanation: A risk is insurable when it causes a measurable financial loss and many similar people are exposed to it. With a large group, the insurer can predict roughly how many deaths will occur and set an affordable premium. Insurance does not prevent death, and claims are paid from the insurer's funds.
6An earthquake damages homes and kills people across several districts at once. How is this kind of risk classified?
A.A particular risk that affects only one household
B.A speculative risk that also offers a chance of gain
C.A fundamental risk affecting many people at once
D.A moral hazard created by the people affected
Explanation: A fundamental risk arises from widespread causes and affects large groups at the same time, as earthquakes and floods do. A particular risk affects individuals, such as a single house fire. Insurers manage fundamental risks through reinsurance and pools because many claims arrive together.
7How does the Insurance Act 2079 define micro insurance (लघुबीमा)?
A.Any insurance policy with a yearly premium below NPR 1,000
B.Insurance sold only by cooperatives to their own members
C.Insurance for government employees posted in rural areas
D.Insurance aimed at low-income and disadvantaged groups
Explanation: Section 2 of the Insurance Act 2079 defines micro insurance as insurance carried out under Chapter 8 that targets low-income groups and groups that are economically, socially or geographically disadvantaged. The definition is based on the target group, not on a fixed premium amount. Cooperatives can be distribution channels, but they do not define micro insurance.
8Under section 75 of the Insurance Act 2079, which insurers must carry on micro insurance business?
A.Every insurer, targeting low-income and backward areas
B.Only companies set up solely for micro insurance business
C.Only insurers in which the government holds shares
D.Only non-life insurers that sell crop and livestock cover
Explanation: Section 75 requires every insurer to carry on micro insurance business aimed at low-income groups and disadvantaged areas. Section 76 also allows separate companies to be set up only for micro life or micro non-life business. Micro insurance is therefore a duty of the whole industry.
9What does section 76 of the Insurance Act 2079 allow?
A.Cooperatives to issue insurance policies without a licence
B.Banks to run micro insurance funds for their own borrowers
C.Companies set up to do only micro life or only micro non-life
D.Agents to underwrite micro policies without the insurer
Explanation: Section 76 allows insurance companies to be established solely to carry on micro life or micro non-life business. Their capital is set by the Regulations, and their establishment and licensing follow the Act. Nepal's dedicated micro life insurers were licensed on this basis.
10What is the basic difference between micro life and micro non-life insurance?
A.Micro life is sold only in towns; micro non-life only in villages
B.Micro life covers lives; micro non-life covers property, liability
C.Micro life needs no premium; micro non-life does need one
D.Micro life is regulated by NIA; micro non-life by Nepal Rastra Bank
Explanation: Micro life insurance covers risks to people's lives, such as death, while micro non-life covers property, motor, engineering, liability and similar risks. NIA's micro life sample paper describes micro non-life as insurance of property. Both are regulated by NIA under the Microinsurance Directive 2079.

About the NIA Micro Life Agent Exam

From Poush 18, 2082 (early January 2026), Nepal Insurance Authority (NIA) made its online examination compulsory for micro life insurance agents, replacing tests that insurers ran themselves. The exam follows NIA's 12-unit micro life agent syllabus. This bank is independent practice by OpenExamPrep: an English-language MCQ study adaptation of that syllabus, the Insurance Act 2079, the Insurance Regulations 2081 and the Microinsurance Directive 2079. It is not an official translation; NIA's syllabus and sample paper are in Nepali.

Exam sponsor: Nepal Insurance Authority (नेपाल बीमा प्राधिकरण). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

One online objective paper covering NIA's 12-unit micro life insurance agent syllabus. After the insurer's recommendation is accepted in IRMIS, the candidate pays the NPR 500 fee, books a session in the Agent Examination System, joins through Zoom with camera and microphone on, and answers on screen.

Time Limit

1 hour 30 minutes

Passing Score

50% (50 of 100 marks)

Exam / Certification Fees

NPR 500 per sitting

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

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

Unit 1: Risk and risk management

Meaning and classification of risk, insurable risk, peril, hazard and loss, and methods of risk management.

Not published

Unit 2: Introduction to insurance and microinsurance

Insurance and microinsurance, micro life and micro non-life insurance, purpose, types, benefits and working system of microinsurance, and its target groups.

Not published

Unit 3: Principles of insurance

Utmost good faith, insurable interest, indemnity, proximate cause, subrogation and contribution, and which apply to life insurance.

Not published

Unit 4: Microinsurance agent

Types of micro agent, duties to insurer and insured, the insurer's duties to the agent, becoming an agent, licence cancellation and the agent code of conduct.

Not published

Unit 5: Micro policies and documents

Policy terms and benefits, types of micro policy including NIA's standardized policies, nomination and assignment, group policies, riders, proposal and KYC forms, receipts and revival forms.

Not published

Unit 6: Micro premium and bonus

Premium and bonus calculation, paid-up and surrender values, discount rules, policy loans, forfeiture and mortality tables.

Not published

Unit 7: Underwriting

Risk classification, preliminary, financial and medical underwriting, the agent's confidential report, occupational risk and underwriting manuals.

Not published

Unit 8: Claims

Types of claim, claim process and documents, the micro agent's role in claim settlement, and claim guidelines.

Not published

Unit 9: Marketing of micro life insurance

The agent's profession, customer and after-sale service, consumer behaviour, and ethical marketing and its challenges.

Not published

Unit 10: Micro agent commission and tax

Commission and incentives of micro agents, the tax on them, and the agent's tax registration.

Not published

Unit 11: Legal provisions on insurance

Insurance Act 2079, insurance regulations, Microinsurance Directive 2079, Life Insurance Policy Directive 2079, the agent code of conduct and anti-money-laundering law.

Not published

Unit 12: Insurance market

NIA, the Nepal Insurance Institute, life, micro life, non-life, micro non-life and reinsurance companies, intermediaries, and the insurance funds and pools.

Preparing for the NIA Micro Life Agent Exam

What You Need to Know

  • Passing score: 50% (50 of 100 marks)
  • Assessment: One online objective paper covering NIA's 12-unit micro life insurance agent syllabus. After the insurer's recommendation is accepted in IRMIS, the candidate pays the NPR 500 fee, books a session in the Agent Examination System, joins through Zoom with camera and microphone on, and answers on screen.
  • Time limit: 1 hour 30 minutes
  • Exam / certification fees: NPR 500 per sitting 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

NIA Micro Life Agent: Suggested Study Strategy

1Study the Microinsurance Directive 2079 closely: the four micro life business types, the sum assured limit below NPR 5 lakh, group policies, institutional agents and the 21-day claim rule.
2Learn how the micro agent's position differs from an ordinary agent: a micro agent may represent more than one micro insurer under section 93(7) of the Insurance Act 2079.
3Practise bonus, paid-up value and single-premium surrender value calculations using NIA's surrender value method.
4Review the Insurance Agent Directive 2083 code of conduct, especially the bans on inducements and on taking any part of a claim from a policyholder's family.

Frequently Asked Questions

What is the format of the NIA micro life insurance agent exam?

It is an online objective test of 50 questions worth 2 marks each (100 marks) with 1 hour 30 minutes allowed, and you need 50% to pass. It runs on NIA's Agent Examination System through Zoom, with camera and microphone on throughout.

Since when has NIA conducted the micro life agent exam?

NIA made its online exam compulsory for micro life agents from Poush 18, 2082 (early January 2026). Before that, micro life insurers tested their own agents, and NIA accepted those company certificates only until Poush 8, 2082.

What qualifications does a micro life agent need?

Section 13 of the Microinsurance Directive 2079 applies the qualifications in the insurance law, and Rule 42 of the Insurance Regulations 2081 requires Nepali citizenship, 10+2 or the Proficiency Certificate Level, insurance training and a pass in NIA's exam. Institutions such as cooperatives, NGOs, self-help groups and microfinance institutions may become institutional micro agents.

Is this practice bank in the same language as the real exam?

No. NIA's micro life syllabus and sample paper are in Nepali. These questions are an English-language MCQ study adaptation of the same syllabus and laws, written independently by OpenExamPrep, and are not an official translation or NIA question bank.

How quickly must a micro insurance claim be settled?

Section 78 of the Insurance Act 2079 requires a properly submitted micro insurance claim to be settled within 21 days. The Microinsurance Directive 2079 also allows payment on the basis of a group guarantee of at least five people.