100+ Free Insurance Commission Licensure Exam — Non-Life Practice Questions

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2026 Statistics

Key Facts: Insurance Commission Licensure Exam — Non-Life Exam

70%

Passing Score

Insurance Commission

PHP 1,010.00

Exam Fee

Circular Letter 2014-15

3 Years

License Validity

RA 10607

40 Hours

Pre-license Training

Recommended

30,000 PHP

No-Fault Motor Limit

IMC 2024-01 / Sec 391

200,000 PHP

CTPL Bodily Injury Limit

IMC 2024-01

The Insurance Commission Licensure Exam for Non-Life / General Insurance Agents is the mandatory gateway to selling property, fire, motor car, marine, and casualty insurance in the Philippines. Administered by the Insurance Commission under the Department of Finance, the exam requires a passing score of 70%. Candidates must be sponsored by an accredited insurance company or agency and complete a 40-hour pre-licensing training course. The exam fee is PHP 1,010.00, which is typically covered by the sponsoring firm.

Sample Insurance Commission Licensure Exam — Non-Life Practice Questions

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

1Which of the following is a fundamental requirement for a property insurance contract to be legally valid under the Philippine Insurance Code?

A.The contract must be verbal to allow flexibility in premium payments

B.The insured must possess an insurable interest in the subject matter

C.The policy must cover speculative risk for both parties

D.The insurer must guarantee that no losses will occur during the policy period

Explanation: Under the Philippine Insurance Code, an insurable interest is a basic prerequisite for any insurance policy. Without an insurable interest, the contract is considered a wager and is void under Section 25. The insurable interest in property must exist both when the insurance takes effect and when the loss occurs.

2The Principle of Indemnity states that after a loss has occurred, the insured should be:

A.Compensated to make a reasonable profit from the disaster

B.Restored to approximately the same financial position as before the loss

C.Given the full replacement value of all items regardless of depreciation

D.Paid a flat rate determined solely by the local LTO office

Explanation: The Principle of Indemnity aims to restore the insured to the same financial position they enjoyed immediately before the loss occurred. Under Section 82 of the Philippine Insurance Code, the insured cannot recover more than the actual loss sustained. This prevents the insured from profiting from insurance, which would create a moral hazard.

3Under the principle of subrogation, what right does the insurer acquire after paying a claim to the insured?

A.The right to increase the insured's premiums immediately

B.The right to cancel all other insurance policies held by the insured

C.The right to step into the insured's shoes and pursue recovery from the negligent third party

D.The right to seize the insured's remaining property without compensation

Explanation: Subrogation is a corollary of the principle of indemnity. Once the insurer pays the claim, it acquires the legal right of the insured to recover damages from the third party responsible for the loss. This prevents the insured from collecting twice for the same loss and ensures the responsible party pays for the damage.

4If a policyholder has multiple insurance policies covering the same property and a loss occurs, how is the claim payout typically handled under the principle of contribution?

A.The policyholder can collect the full loss amount from each insurer

B.Only the policy that was purchased first is obligated to pay the claim

C.Each insurer pays a proportional share of the loss based on their limit of liability

D.The government's Security Fund pays the entire claim directly

Explanation: The principle of contribution applies when multiple policies cover the same interest, risk, and property (double insurance). Under Section 96 of the Insurance Code, each insurer is liable to contribute proportionally to the loss based on their respective policy limits. This prevents double recovery by the insured, adhering to the principle of indemnity.

5What does the principle of Utmost Good Faith (Uberrimae Fidei) require from both parties of an insurance contract?

A.To negotiate the premiums in a public bidding process

B.To disclose all material facts honestly and completely to each other

C.To hire independent legal counsel to review every clause of the policy

D.To settle all disputes within 15 days without involving the court

Explanation: Insurance contracts are contracts of utmost good faith, requiring both the applicant and the insurer to reveal all material facts. A material fact is one that would influence the insurer's decision to accept the risk or determine the premium rate. Failure to observe this principle allows the injured party to rescind the contract.

6How is concealment defined under the Philippine Insurance Code?

A.The intentional destruction of damaged property to claim salvage value

B.A neglect to communicate that which a party knows, and ought to communicate

C.An oral statement that exaggerates the value of property during negotiation

D.The act of transferring property ownership without the insurer's consent

Explanation: Section 26 of the Philippine Insurance Code defines concealment as 'a neglect to communicate that which a party knows, and ought to communicate.' Whether intentional or unintentional, a concealment of a material fact entitles the injured party to rescind the contract of insurance under Section 27.

7If an applicant makes an oral representation about a fact that is false, under what condition can the insurer rescind the policy?

A.Only if the representation was written into the policy document as a warranty

B.Only if the representation relates to a fact that is material to the risk

C.For any false statement, regardless of whether it is material or trivial

D.Only if the misrepresentation was made under oath in front of a notary

Explanation: Section 45 of the Insurance Code states that if a representation is false in a material point, the injured party is entitled to rescind the contract from the time when the representation becomes false. Materiality is determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is made.

8What is the primary difference between a warranty and a representation in a property insurance contract?

A.A warranty must be literally complied with, while a representation only needs to be substantially true

B.A representation must be written on the policy itself, while a warranty can be verbal

C.A warranty is made by the agent, while a representation is made by the underwriter

D.Warranties are optional endorsements, while representations are required by LTO

Explanation: A warranty is a statement or promise that is part of the insurance contract itself and must be strictly and literally true or complied with. In contrast, a representation is an active statement made prior to or at the time of issuing the policy, which is collateral to the contract and only needs to be substantially true.

9In insurance claims, what does the principle of proximate cause refer to?

A.The closest event in time to the occurrence of the physical damage

B.The geographical distance between the hazard and the insured property

C.The active, efficient cause that sets in motion a train of events without the intervention of any new force

D.The liability limits outlined on the first page of the policy document

Explanation: Proximate cause is the active, efficient cause that sets in motion a chain of events bringing about a loss, without the intervention of any new and independent force. Under Section 86 of the Insurance Code, an insurer is liable for a loss of which the peril insured against was the proximate cause, even if an excluded peril was the immediate cause.

10Which mathematical principle states that the larger the number of similar exposure units, the more predictable the future loss experience will be?

A.The Law of Diminishing Returns

B.The Law of Large Numbers

C.The Principle of Indemnity Multiplication

D.The Co-insurance Contribution Ratio

Explanation: The Law of Large Numbers is a fundamental mathematical concept used in insurance rate-making. It asserts that as the sample size (number of exposure units) increases, the actual loss experience will deviate less from the expected probability of loss. This enables insurers to predict claims and price premiums accurately.

About the Insurance Commission Licensure Exam — Non-Life Exam

Qualifying licensure exam for non-life (general) insurance agents in the Philippines. Spanning topics from standard fire policies to casualty lines and the Insurance Code, passing this exam is mandatory to obtain a Certificate of Authority from the Insurance Commission.

Assessment

Question count not published by the exam provider

Time Limit

1.5 - 2 hours

Passing Score

70%

Exam Fee

PHP 1,010.00 (Typically sponsored) (Insurance Commission (Philippines))

Insurance Commission Licensure Exam — Non-Life Exam Content Outline

20%

Principles of Insurance

General insurance concepts, risk transfer, indemnity, subrogation, utmost good faith, and insurable interest

20%

Insurance Code & Regulations

Republic Act No. 10607, role of the Insurance Commission, licensing rules, and prohibited ethical practices like twisting and rebating

20%

Fire Insurance

Standard fire policies, friendly vs hostile fire, co-insurance clause, vacancy clauses, and extraneous perils

20%

Motor Car Insurance

Own Damage & Theft, Compulsory Third Party Liability (CTPL) limits, no-fault indemnity clauses, and authorized driver conditions

20%

Marine & Casualty Insurance

Marine cargo/hull policies, deviation, general vs particular average, surety bonds, and public/comprehensive liability lines

How to Pass the Insurance Commission Licensure Exam — Non-Life Exam

What You Need to Know

Passing score: 70%
Assessment: Question count not published by the exam provider
Time limit: 1.5 - 2 hours
Exam fee: PHP 1,010.00 (Typically sponsored)

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 Licensure Exam — Non-Life Study Tips from Top Performers

1Focus on the No-Fault indemnity (PHP 30,000) and CTPL limits (PHP 200,000) for the Motor Car section, as these are frequently tested under current circulars.

2Understand how to calculate partial loss payouts using the 80% co-insurance clause in Fire Insurance.

3Differentiate between moral hazard (dishonesty) and morale hazard (carelessness) in the Principles section.

4Study prohibited practices like twisting (misrepresentation to drop a policy) and rebating (sharing commissions) under the Code of Ethics.

5Familiarize yourself with deviation rules and general average vs particular average in Marine Cargo/Hull.

Frequently Asked Questions

Who is eligible to take the Philippine Insurance Commission Non-Life exam?

To be eligible, you must be sponsored by a licensed insurance company or general agency in the Philippines. Sponsoring firms typically require candidates to be at least 18 years old, possess good moral character (verified via NBI clearance), and complete a mandatory pre-licensing training program.

What is the passing score for the Insurance Commission Non-Life exam?

The standard passing score for the Insurance Commission licensure exam is 70%. Your results are typically compiled and released through your sponsoring insurance company's licensing department.

What topics are covered on the Philippine Non-Life agent exam?

The exam tests five main categories: 1) General Principles of Insurance (indemnity, insurable interest, utmost good faith), 2) The Philippine Insurance Code (RA 10607, agent ethics, rebating/twisting prohibitions), 3) Specific Property Policies (Standard Fire and Motor Car policies, including CTPL/no-fault rules), and 4) Marine and Casualty Insurance (cargo, hull, average, surety bonds).

How much does it cost to take the IC Non-Life licensing exam?

The official examination fee is PHP 1,010.00 per examinee for each type of examination. In practice, these fees are usually paid directly to the Insurance Commission by your sponsoring insurance company as part of your licensing application package.

Can I register and take the Insurance Commission exam independently?

No. Individuals cannot register for the licensing exam independently. You must be recruited and sponsored by a licensed insurance provider or general agency, whose licensing officers will register you via the Insurance Commission's Enhanced Licensing System (ELS).