The IC 02 mock test on SarkariExam.Center gives you 100 MCQs in 120 minutes, exactly matching the Insurance Institute of India Licentiate exam pattern for Practice of Life Insurance. Passing marks are 60 out of 100 with no negative marking. Every test covers all 10 chapters: product types, assignment and nomination, claims settlement, surrender values, IRDAI regulations, and more. Start free now.
IC 02 Exam Pattern at a Glance
The Insurance Institute of India conducts the IC 02 Practice of Life Insurance exam 4 times every year in March, May, September, and November. The exam runs as an online Computer-Based Test with the following fixed structure.
| Feature | Details |
|---|---|
| Total Questions | 100 MCQs |
| Time Duration | 120 minutes (2 hours) |
| Marks Per Question | 1 mark each |
| Passing Marks | 60 out of 100 (60%) |
| Negative Marking | None |
| Exam Mode | Online Computer-Based Test |
| Exam Frequency | 4 times yearly: March, May, September, November |
| Conducted By | Insurance Institute of India (III) |
No negative marking means you must attempt every question. Leaving any question blank is a guaranteed zero. Attempt all 100 questions, even on topics you find uncertain.
Chapter-Wise Question Count in IC 02 Exam
Assignment and Nomination is the single highest-weightage chapter in IC 02, carrying 12 to 15 questions per paper. Use this breakdown to allocate your preparation time correctly.
| Chapter | Questions Per Paper | Difficulty Level | Priority |
|---|---|---|---|
| Assignment and Nomination | 12 to 15 | Medium | Highest |
| Types of Life Insurance Products | 15 to 20 | Medium | Highest |
| Claims Settlement Procedure | 10 to 15 | Medium | High |
| Group Insurance and Pension Plans | 10 to 12 | Medium | High |
| Premium Calculation and Policy Conditions | 8 to 12 | Medium to Hard | High |
| Surrender and Paid-Up Values | 8 to 10 | Hard | High |
| Life Insurance Regulations (IRDAI) | 8 to 10 | Medium | Medium |
| Marketing and Distribution | 6 to 8 | Easy | Medium |
| Introduction to Life Insurance | 5 to 8 | Easy | Medium |
| LIC and Private Insurers Operations | 5 to 7 | Easy | Low |
What the IC 02 Mock Test Covers: Chapter-Wise Topics
Every chapter in the IC 02 Practice of Life Insurance syllabus appears in the mock test series on SarkariExam.Center. Each chapter below includes the specific topics that Insurance Institute of India papers test most frequently.
Types of Life Insurance Products (15 to 20 Questions)
This is the highest question-count chapter in IC 02 and rewards candidates who create a comparison table across all product types. Topics include term insurance, endowment plans, money-back policies, whole life insurance, Unit Linked Insurance Plans (ULIPs), child insurance plans, joint life policies, and rider benefits. Questions test feature differences, suitability for different customer profiles, premium structures, and surrender value provisions specific to each product.
Assignment and Nomination (12 to 15 Questions)
Assignment and Nomination is the most intensively tested chapter and the one where most IC 02 candidates lose marks. Key topics include the difference between assignment and nomination, types of assignment such as conditional and absolute, legal provisions under Section 38 and Section 39 of the Insurance Act, rights of assignee versus nominee, and documentation requirements. Scenario-based questions present real-life situations where you must identify which provision applies and what rights each party holds.
Claims Settlement Procedure (10 to 15 Questions)
Claims questions test the complete process from intimation to final payment for death claims, maturity claims, and survival benefit claims. Know required documents for each claim type, processing timelines, reasons for claim rejection, and procedures for disputed claims. Questions frequently present edge cases like accidental death, suicide after 2 years, death during free-look period, and claims under the Married Women’s Property (MWP) Act.
Group Insurance and Pension Plans (10 to 12 Questions)
Group insurance questions focus on EDLI (Employees Deposit Linked Insurance), gratuity, leave encashment, superannuation, and group term insurance features. Pension plan questions test immediate annuity, deferred annuity, life annuity, annuity certain, and joint life annuity options. Eligibility criteria, tax treatment, and regulatory requirements appear across most questions in this chapter.
Premium Calculation and Policy Conditions (8 to 12 Questions)
Premium questions require you to understand loading factors, bonus types, frequency of payment, and the factors that affect premium rates. Policy condition questions cover grace period rules, policy loan provisions, foreclosure, revival of lapsed policies, and the free-look period. Numerical questions in this chapter carry the highest per-question difficulty in IC 02.
Surrender and Paid-Up Values (8 to 10 Questions)
Surrender value questions require you to calculate guaranteed surrender value, special surrender value, and paid-up sum assured using the correct formula for each scenario. Questions give policy details including premium amount, term completed, sum assured, and accumulated bonus, then ask you to calculate the correct surrender or paid-up amount. Practice these calculations until you solve each type in under 60 seconds.
Life Insurance Regulations and IRDAI (8 to 10 Questions)
Regulatory questions test IRDAI investment norms, solvency margin requirements, policy document guidelines, and consumer protection measures. Questions also cover the Married Women’s Property Act application to life insurance, grievance redressal mechanisms, ombudsman jurisdiction, and specific regulatory section numbers. Memorise exact section references for frequently tested provisions.
Who Must Clear the IC 02 Licentiate Exam
The IC 02 Practice of Life Insurance exam is mandatory for insurance professionals across both public sector and private sector life insurance companies.
- LIC employees: Life Insurance Corporation of India staff must clear the Licentiate exam for service confirmation and eligibility for promotion from clerical to officer grade
- Public sector insurer staff: Employees of National Insurance Company, New India Assurance, Oriental Insurance, and United India Insurance who work in life insurance-linked roles
- Private life insurer employees: Staff at HDFC Life, ICICI Prudential Life, SBI Life, Max Life, Bajaj Allianz Life, Kotak Life, and all other IRDAI-approved private life insurers
- Licensed insurance agents: Individuals with a valid agent licence who want deeper product knowledge and improved certification credentials
- Career changers: Professionals from banking, mutual funds, and other financial services moving into life insurance roles
- Promotion seekers: Employees in insurance companies where the Licentiate qualification is a mandatory condition for moving from assistant-level to managerial positions
High-Priority Topics That Decide Your IC 02 Score
Three topic areas together account for 40 to 50 questions in every IC 02 paper. Mastering these 3 areas first gives you a strong base before studying the remaining chapters.
Age Calculation in Life Insurance
Age next birthday and age previous birthday concepts appear in 6 to 7 questions per IC 02 exam. Age next birthday rounds up to the next whole year. Age previous birthday uses the last completed year. Errors in age calculation cascade into wrong premium and surrender value answers. Practice these problems until each takes under 30 seconds to solve.
Surrender Value Formula Applications
Surrender value questions give you 4 inputs: premium paid, term completed, sum assured, and bonus accumulated. You calculate guaranteed surrender value first, then special surrender value, and report whichever is higher as the payable amount. Write these formulas at the start of your exam paper on the rough sheet provided by the exam centre before answering the first question.
ULIP and Annuity Product Features
ULIPs and annuity products each carry 4 to 6 questions in IC 02 and are the most skipped topics during preparation. For ULIPs, know fund allocation percentages, mortality charges, fund management charges, switching options, and partial withdrawal rules. For annuity products, know the 6 main types: life annuity, annuity certain, life with return of purchase price, joint life annuity, deferred annuity, and immediate annuity.
7-Step Strategy to Score 70+ in IC 02 Practice of Life Insurance
Candidates who score above 70 in IC 02 consistently follow a topic-priority strategy rather than reading the study material chapter by chapter from start to finish.
Step 1: Build a Product Comparison Table in Week 1
Create a single table comparing all 8 life insurance product types across features, benefits, exclusions, and customer suitability. Types of products carry 15 to 20 questions, so this table directly covers up to 20% of the exam. Review it daily for the first 2 weeks.
Step 2: Spend 30 Minutes Daily on Assignment and Nomination
Assignment and Nomination carries the highest question density per chapter. Study differences between the two, types of assignment, legal sections, and rights of each party. Create flashcards for Section 38 and Section 39 provisions and review them every morning.
Step 3: Memorise Claims Documentation Lists by Claim Type
Claims settlement carries 10 to 15 questions. Write out the required documents for death claims, maturity claims, and survival benefit claims separately. Know additional documents needed for accidental death, suicide, and MWP Act claims. Test yourself by covering the list and recalling it from memory.
Step 4: Solve 20 Numerical Problems Daily
Surrender value, paid-up value, and premium calculations require formula practice under timed conditions. Set a 60-second limit per problem. After 7 days of daily practice, most candidates achieve full accuracy on all numerical question types.
Step 5: Create a Regulation Reference Sheet
IRDAI regulation questions test specific section numbers and exact requirements. Keep a single A4 sheet with investment norms, solvency margins, policy document mandatory fields, grievance timelines, and ombudsman jurisdiction limits. Review this sheet every evening during the final 2 weeks before the exam.
Step 6: Attempt 1 Full IC 02 Mock Test Every Week
Full 100-question mock tests build the stamina needed for 120 minutes of continuous concentration. After each test, spend equal time reviewing wrong answers and understanding why each correct option was right. Your score should improve by 5 to 8 marks between the first and fourth attempt.
Step 7: Use Chapter Tests for Weak Areas Between Full Tests
Between weekly full mock tests, attempt chapter-specific tests on your 2 lowest-scoring topics. Chapter tests of 20 to 30 questions target weak areas faster than re-reading textbook content. Return to full tests after fixing chapter-level gaps.
Mistakes That Drop IC 02 Scores Below 60
These specific errors cause most IC 02 failures, according to patterns seen across multiple exam cycles.
- Confusing assignment with nomination: Assignment transfers policy ownership rights; nomination only designates who receives the death benefit. Assignment requires insurer consent; nomination does not. Mixing these two concepts alone can cost 6 to 8 marks
- Wrong age calculation method: Using age next birthday when age previous birthday is required, or vice versa, produces wrong premium and value answers. Always read the question to identify which age basis applies before calculating
- Incomplete claims document lists: Selecting partial document lists in claims questions is a pattern error. Memorise the full list for each claim type rather than relying on partial recall
- Skipping ULIP and annuity questions: These product categories appear in 8 to 10 questions. Candidates who skip them during preparation consistently score below 60
- Not reading the last line of each question: IC 02 questions frequently include the actual answer condition in the final sentence. Words like “except,” “not applicable,” or “incorrect statement” reverse the answer. Reading only the first 2 lines causes avoidable errors
- Spending more than 90 seconds on a single question: With 100 questions in 120 minutes, each question averages 72 seconds. A 3-minute question leaves no time buffer. Mark difficult questions and return after completing all easier ones
- Not attempting all 100 questions: No negative marking means a blank answer is always a guaranteed zero. Even a random guess on an unknown question carries a 25% chance of earning 1 mark
IC 02 Mock Test: Frequently Asked Questions
The IC 02 Practice of Life Insurance exam has exactly 100 MCQs to be completed in 120 minutes. Each question carries 1 mark. There is no negative marking for wrong answers. Passing requires 60 correct answers out of 100. Attempt all 100 questions since unattempted questions score zero and there is no penalty for a wrong attempt.
Types of Life Insurance Products carries 15 to 20 questions, making it the highest question-count chapter in IC 02. Assignment and Nomination follows with 12 to 15 questions, and Claims Settlement adds 10 to 15 questions. Together these 3 chapters account for 37 to 50 questions, nearly half the full exam. Prioritise these chapters first in your preparation plan.
Yes, most candidates pass IC 02 through self-study using the Insurance Institute of India official study material combined with regular mock test practice. The key is to attempt at least 15 full-length mock tests, review every wrong answer with the solution explanation, and focus preparation time on the 3 highest-weightage chapters: product types, assignment and nomination, and claims settlement.
The Insurance Institute of India conducts the IC 02 Licentiate exam 4 times every year in March, May, September, and November. Candidates who fail can register for the next available exam window. There is no limit on the number of attempts, so candidates can appear multiple times until they achieve the 60% passing mark.
Each question in IC 02 averages 72 seconds based on 120 minutes for 100 questions. Allocate 45 to 60 seconds for factual and theoretical questions. Allow up to 90 seconds for numerical questions like surrender value and premium calculations. Skip any question exceeding 90 seconds on the first pass and return to it after completing all remaining questions.
