IC 14 Mock Test – Regulation of Insurance Business

The IC 14 Mock Test at SarkariExam Center gives you 100 MCQs in 2 hours, matching the exact Insurance Institute of India (III) Licentiate exam pattern for Regulation of Insurance Business. Practice free, score instantly, and clear IC 14 in your first attempt.

IC 14 Exam Pattern – Full Overview

IC 14 is a compulsory paper for both the Life Insurance and General Insurance Licentiate examinations conducted by the Insurance Institute of India (III).

Licentiate Qualification Structure

IC 14 is a common compulsory paper for both Life and General Insurance Licentiate streams.

Note: IC 01 and IC 14 are common papers for both streams. A pass in IC 14 with 60 marks gives 30 credit points towards the Licentiate qualification.

IC 14 Syllabus – Chapter-Wise Topics Covered in Mock Test

Every IC 14 mock test question on SarkariExam Center maps directly to the official III Licentiate syllabus chapters below.

Chapter 1: Indian Insurance Legislation – History and Background

• Growth of insurance in India before independence
• Mercantile Insurance Company Ltd established in Bombay in 1907
• Insurance Act 1938 – first consolidated insurance legislation
• Life Insurance Corporation Act 1956 – nationalisation of life insurance
• General Insurance Business Nationalisation Act 1972 (GIBNA)
• Malhotra Committee on Insurance Reforms – formation and recommendations

Chapter 2: IRDA Act 1999 and IRDAI

• Establishment of the Insurance Regulatory and Development Authority of India (IRDAI)
• Composition of IRDAI – Chairman and members
• Functions of IRDAI – promote, regulate, and develop insurance sector
• Powers of IRDAI over insurers, intermediaries, and agents
• IRDAI does not eliminate competition – it regulates and fosters it
• IRDAI’s role in policyholder protection

Chapter 3: Insurance Act 1938 – Key Provisions

• Definition of insurer and insurance business
• Licensing requirements for insurers
• Investment and solvency norms under the Insurance Act
• Statement of Investment of Controlled Fund (life) – submitted within 21 days of quarter end
• Prudential Investment Norms Compliance Report – Form 3
• Insurance Councils – Life Insurance Council and General Insurance Council
• Functions of the Executive Committee of General Insurance Council

Chapter 4: Insurance Agents and Intermediaries Regulation

• Licensing of insurance agents under IRDAI regulations
• Insurance brokers – work on behalf of clients for remuneration
• Insurance Brokers Association of India (IBAI) – full form and role
• Reinsurance agents and reinsurance brokers – difference and scope
• Bancassurance – tie-up between banks and insurance companies
• Composite agents and their regulatory requirements

Chapter 5: Motor Vehicles Act – Compulsory Insurance

• Compulsory third party insurance for all motor vehicles used in a public place
• Motor Accident Claims Tribunal (MACT) – role and procedure
• Minimum deposit rate when premium cannot be ascertained – 1.5 per mil
• Liability coverage for third parties, fare-paying passengers, and paid drivers

Chapter 6: Policyholder Protection and Grievance Redressal

• Free look period – 15 days from policy receipt
• Insurance Ombudsman – scope, jurisdiction, and complaint process
• Grievance Redressal Authority (GRA) – refers disputes when there is no mutual bond
• Insurance Ombudsman forum – President (Supreme Court Judge) and 4 members including 1 woman member
• Appeal against Insurance Appellate Tribunal (IAT) order – must be filed within 30 days
• Complaints against insurers – mostly related to policy servicing, claims, and policy lapse claims
• Consumer Protection Act – definition of consumer, service deficiency, and unfair trade practices
• IRDAI’s Consumer Affairs Division – objective is policyholder protection

Chapter 7: ULIP Regulations and Disclosure Norms

• Unit Linked Insurance Plans (ULIP) – regulatory norms under IRDAI
• Mandatory ULIP disclosure norms – investment strategy, investment limits, and charges definition
• Forex remittance is not a ULIP disclosure norm
• Death benefit under ULIP must not be less than 105% of total premiums paid
• Risk premium for entry below 45 years – 10 times annualised premiums or 0.5 x T x annualised premium (whichever is higher)
• Risk premium for entry above 45 years – 7 times annualised premiums or 0.25 x T x annualised premium (whichever is higher)

Chapter 8: Anti-Money Laundering and Counter Terrorism Financing

• Prevention of Money Laundering Act (PMLA) – application to insurance companies
• PMLA empowers institutions to issue sector-specific guidance
• Cash Transaction Report (CTR) – full form in AML/CTF context
• KYC (Know Your Customer) norms in insurance – customer and product profile assessment
• Risk assessment involves customer and product profile
• Money laundering criminals try to conceal the true origin and ownership of profits from crime
• 3 stages of money laundering – placement, layering, and integration

Chapter 9: Nomination, Assignment, and Claims

• Nomination under Section 39 of Insurance Act
• Written acknowledgement of nomination given by the insurer
• Assignment – policyholder who can assign or transfer a policy is called an assignor
• Maturity claims and death claims – documentation and settlement
• Limitation Act 1963 – application in life insurance claims

Chapter 10: Solvency Norms and Investment Regulations

• Solvency margin requirements under Insurance Act 1938
• Controlled fund investment rules for life insurers
• Prudential investment norms – categories of approved investments
• Financial Stability and Development Council (FSDC) – role in systemic risk
• Credit Analysis and Research Ltd – full form of CARE

Chapter 11: International Trends in Insurance Regulation

• Life insurance legislation in UK, USA, and European Community
• International Association of Insurance Supervisors (IAIS) – role and standards
• Reinsurance regulation – global trends and domestic framework

Who Should Attempt IC 14 Mock Test

This mock test series suits every professional preparing for the III Licentiate qualification.

• Insurance agents preparing for the Life or General Insurance Licentiate exam
• Bank officers appearing for bancassurance-related III exams
• Insurance company employees seeking Licentiate qualification
• Candidates who failed IC 14 and are preparing for the next exam window
• Professionals targeting 30 credit points and aiming to pass with Distinction at 75+

How to Attempt IC 14 Mock Test on SarkariExam Center

1. Click the Start button on this page – no registration needed.
2. Read each IC 14 question carefully before selecting your answer.
3. Attempt all 100 questions within the 2-hour timer.
4. Submit before the timer ends.
5. View your score instantly with chapter-wise analysis and correct answer explanations.

Why IC 14 Mock Test Practice Improves Your Pass Rate

• No negative marking: Attempt all 100 questions without fear – wrong answers carry zero penalty.
• Concept over memory: IC 14 questions test application of regulations, not exact wording recall.
• Repeated question patterns: AML, ULIP norms, Ombudsman, and Motor Vehicles Act questions repeat frequently across exam sessions.
• 72 seconds per question: 100 questions in 120 minutes – mock tests train you to maintain this pace.
• Distinction target: Score 75+ in mock tests before the exam to aim for Distinction in the actual IC 14 paper.

IC 14 Mock Test – Frequently Asked Questions