100+ Free Insurance Commission Insurance Broker Licensure Exam (Philippines) Practice Questions

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2026 Statistics

Key Facts: Insurance Commission Insurance Broker Licensure Exam (Philippines) Exam

70%

Passing Score

Insurance Commission Guidelines

PHP 1,010

Qualifying Exam Fee

IC Circular Letter 2014-15

100

Exam Questions

IC Qualifying Exam Specifications

2 hours

Exam Duration

IC Qualifying Exam Specifications

PHP 500,000

Minimum Broker Bond

Insurance Code Section 311

3 years

License Validity

IC Licensing Regulations

Prepare for the Insurance Commission Insurance Broker Licensure Exam with this comprehensive bank of 100 practice questions. The exam covers Philippine Insurance Laws 25%, General Principles 25%, Life and Variable Insurance 20%, Non-Life & Reinsurance 20%, and Ethics & Conduct 10%. To pass, you must achieve a score of 70% in this 2-hour multiple-choice qualifying test.

Sample Insurance Commission Insurance Broker Licensure Exam (Philippines) Practice Questions

Try these sample questions to test your Insurance Commission Insurance Broker Licensure Exam (Philippines) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Section 311 of the Insurance Code of the Philippines (as amended by Republic Act No. 10607), what is the minimum amount of the bond that an insurance broker must file and maintain in favor of the Republic of the Philippines?

A.PHP 100,000.00

B.PHP 250,000.00

C.PHP 500,000.00

D.PHP 1,000,000.00

Explanation: Section 311 of the amended Insurance Code (RA 10607) explicitly mandates that an applicant for an insurance broker's license must file and maintain a bond in favor of the Republic of the Philippines in an amount fixed by the Commissioner, which shall not be less than Five Hundred Thousand Pesos (PHP 500,000.00). This bond serves as security for the faithful performance of the broker's duties.

2Under Section 320 of the Insurance Code of the Philippines (as amended by Republic Act No. 10607), a reinsurance broker is required to file and maintain how many errors and omissions (professional liability) policies?

A.One errors and omissions policy

B.Two errors and omissions policies

C.Three errors and omissions policies

D.No errors and omissions policies are required

Explanation: Section 320 of the amended Insurance Code specifies that a reinsurance broker must file and maintain two (2) errors and omissions (professional liability or professional indemnity) policies. These policies must be issued by different authorized insurance companies to indemnify against breach of professional duty.

3Which of the following statements best describes the legal distinction between an insurance agent and an insurance broker under the Philippine Insurance Code?

A.An agent acts on behalf of the insured, whereas a broker acts on behalf of the insurer.

B.An agent acts on behalf of the insurer, whereas a broker acts on behalf of the insured.

C.An agent is a corporate entity, whereas a broker must always be an individual person.

D.An agent can issue policies directly, whereas a broker can only collect premium payments.

Explanation: Under the Insurance Code, an insurance agent is an independent contractor or employee authorized by an insurance company to solicit or obtain insurance on its behalf (representing the insurer). Conversely, an insurance broker acts as an independent intermediary on behalf of the client (the insured) to negotiate, solicit, or procure insurance contracts.

4By what date was the minimum net worth of domestic insurance companies (both life and non-life) in the Philippines required to reach PHP 1.3 billion under RA 10607?

A.December 31, 2016

B.December 31, 2019

C.December 31, 2022

D.December 31, 2025

Explanation: Republic Act No. 10607 introduced a progressive capitalization schedule for new and existing domestic insurance companies in the Philippines, culminating in a minimum net worth requirement of PHP 1.3 billion by December 31, 2022. This capitalization increase was intended to strengthen the local insurance industry's financial stability.

5Which government office in the Philippines possesses the sole authority to issue, suspend, or revoke licenses of insurance brokers and agents?

A.Securities and Exchange Commission (SEC)

B.Bangko Sentral ng Pilipinas (BSP)

C.Insurance Commission (IC)

D.Department of Finance (DOF)

Explanation: The Insurance Commission (IC) is the regulatory agency under the Department of Finance tasked with supervising the insurance, pre-need, and HMO industries in the Philippines. The Insurance Commissioner has the exclusive administrative authority to issue, suspend, or revoke certificates of authority (licenses) for insurance companies and intermediaries.

6What is the minimum paid-up capital required by the Insurance Commission for a newly formed corporate insurance broker in the Philippines?

A.PHP 5,000,000.00

B.PHP 10,000,000.00

C.PHP 20,000,000.00

D.PHP 50,000,000.00

Explanation: Under the Insurance Commission's regulatory circulars, a newly established corporate insurance broker in the Philippines must comply with a minimum paid-up capital of Twenty Million Pesos (PHP 20,000,000.00). This financial threshold ensures brokers have sufficient capital to maintain professional standards and absorb operating liabilities.

7What is the minimum paid-up capital required by the Insurance Commission for a corporate broker licensed to act as both an insurance broker and a reinsurance broker (combined) in the Philippines?

A.PHP 10,000,000.00

B.PHP 20,000,000.00

C.PHP 30,000,000.00

D.PHP 50,000,000.00

Explanation: Under Insurance Commission guidelines (specifically Circular Letter No. 2018-52), a corporate broker licensed as a combined insurance and reinsurance broker must meet a minimum paid-up capital of Fifty Million Pesos (PHP 50,000,000.00). Direct insurance brokers or reinsurance brokers operating individually require PHP 20,000,000.00.

8Under Section 48 of the Insurance Code (RA 10607), after a life insurance policy has been in force for a period of how many years during the lifetime of the insured can the insurer no longer prove the policy is void due to concealment or misrepresentation?

A.One (1) year

B.Two (2) years

C.Three (3) years

D.Five (5) years

Explanation: Section 48 of the Insurance Code establishes the 'Incontestability Clause'. If a life insurance policy has been in force during the lifetime of the insured for a period of two (2) years from its date of issue or last reinstatement, the insurer can no longer contest or void the policy on the grounds of concealment or misrepresentation of material facts.

9What is the 'Cash and Carry Rule' under Section 77 of the Philippine Insurance Code?

A.Insurers must deliver policies to clients in person before premium collection.

B.No policy or contract of insurance is valid and binding unless and until the premium has been paid.

C.Clients must pay all premiums in physical cash at the insurer's cash office.

D.Brokers must carry physical insurance policies to clients within 3 days of payment.

Explanation: Section 77 of the Insurance Code enforces the 'Cash and Carry Rule', which states that no policy or contract of insurance issued by an insurance company shall be valid and binding unless and until the premium has been paid. This prevents insurers from assuming risks without receiving compensation, subject to specific statutory exceptions.

10Which of the following is a recognized exception to the 'Cash and Carry Rule' (premium payment requirement) under the Insurance Code?

A.A commercial fire insurance policy with a premium over PHP 1 million.

B.A temporary cover or cover note, valid for a limited period.

C.A motor car comprehensive policy where the client promised to pay next month.

D.A marine cargo voyage policy where the ship has already departed.

Explanation: Exceptions to the premium payment requirement (Section 77) include life or industrial life policies, temporary cover (cover notes/binding receipts), agreements for installment payments where a partial payment is made before loss, and cases where a credit term has been granted (e.g., up to 90 days under certain conditions). A temporary cover note is legally binding even if the premium has not yet been fully paid, typically for a period of 60 days.

About the Insurance Commission Insurance Broker Licensure Exam (Philippines) Exam

The Insurance Commission Insurance Broker Licensure Exam is the qualifying test for individuals seeking to practice as licensed insurance brokers or acting as soliciting officials for brokerage firms in the Philippines. The exam validates the candidate's understanding of the legal and regulatory framework of the Philippine insurance market, core principles of insurance, life and variable product options, non-life classes (including marine and motor CTPL), suretyship, reinsurance mechanisms, and the high ethical standards and anti-money laundering regulations governing intermediaries.

Assessment

100 multiple-choice questions covering regulatory framework, insurance concepts, and broker-specific practices.

Time Limit

2 hours

Passing Score

70%

Exam Fee

PHP 1,010.00 (Insurance Commission (Philippines))

Insurance Commission Insurance Broker Licensure Exam (Philippines) Exam Content Outline

25%

Philippine Insurance Laws & Regulations

Covers the Insurance Code of the Philippines (RA 10607), licensing rules, broker bonds (Section 311), premium payment rules (Section 77), and the Insurance Commissioner's administrative powers.

25%

General Principles of Insurance

Core legal concepts including insurable interest (inception vs. loss), utmost good faith (uberrimae fidei), indemnity, subrogation, proximate cause, and contribution in double insurance.

20%

Life and Variable (VUL) Insurance

Traditional life policies, variable unit-linked (VUL) mechanics, risk-return profiles of VUL funds, policy provisions (incontestability, grace period), and riders.

20%

Non-Life (General) Insurance & Reinsurance

Property, fire, motor car (CTPL and Acts of Nature), marine insurance (general/particular average, constructive loss), suretyship bonds, and reinsurance treaty/facultative methods.

10%

Broker Ethics & Professional Conduct

Errors and omissions (E&O) professional indemnity insurance, fiduciary duty on premium collections, market conduct (prohibition of rebating/twisting), and AMLA compliance.

How to Pass the Insurance Commission Insurance Broker Licensure Exam (Philippines) Exam

What You Need to Know

Passing score: 70%
Assessment: 100 multiple-choice questions covering regulatory framework, insurance concepts, and broker-specific practices.
Time limit: 2 hours
Exam fee: PHP 1,010.00

Keys to Passing

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

Insurance Commission Insurance Broker Licensure Exam (Philippines) Study Tips from Top Performers

1Prioritize understanding the distinction between agents and brokers, as the exam heavily tests the broker's fiduciary duty to the client.

2Understand the difference in insurable interest rules: it is required only at inception for life policies, but must exist both at inception and at the time of loss for property policies.

3Memorize the key thresholds: PHP 500,000.00 minimum bond for brokers; 2-year incontestability period; 60-day maximum duration for cover notes.

4Study motor vehicle insurance details, specifically Compulsory Third Party Liability (CTPL) limits, the No-Fault Indemnity Clause (up to PHP 15,000 for bodily injury), and Acts of Nature endorsements.

5Familiarize yourself with marine insurance terms, including General Average (shared loss for common safety) and Particular Average (borne solely by owner).

6Review the Anti-Money Laundering Act (AMLA) reporting triggers: covered transactions are those exceeding PHP 500,000.00 in cash or equivalent, and client records must be kept for a minimum of 5 years.

Frequently Asked Questions

What is the difference between an insurance agent and an insurance broker in the Philippines?

Under the Insurance Code, an insurance agent is authorized by an insurance company to act on its behalf (representing the insurer). An insurance broker is an independent intermediary who acts on behalf of the client (the insured) to obtain and negotiate coverage.

How much is the exam fee for the Insurance Commission Broker exam?

The qualifying examination fee is PHP 1,010.00 as per current Insurance Commission schedules.

What is the passing score for the Insurance Commission Licensure Exam?

To pass the insurance broker licensure or qualifying examination, a candidate must achieve a score of 70%.

What are the key capitalization requirements for brokerage firms in the Philippines?

Newly established insurance brokers require a minimum paid-up capital of PHP 20 million, while reinsurance brokers require PHP 50 million under Insurance Commission rules.

What is the incontestability clause under Section 48 of the Insurance Code?

The incontestability clause states that after a life insurance policy has been in force during the lifetime of the insured for two (2) years from its issue or last reinstatement, the insurer can no longer contest the policy on the grounds of concealment or misrepresentation of material facts.