What is the Insurance Commission life agent exam?
Anyone who wants to sell life insurance in the Philippines for a commission needs a licence from the Insurance Commission (IC). Before the licence is issued, the applicant must pass a written qualifying exam (Insurance Code, Section 312). The life exam has 50 multiple-choice questions, and candidates are registered for it by the insurer they will represent.
The exam format
| Items | 50 multiple-choice questions |
|---|---|
| Exams offered | Separate exams for life, variable life and non-life agents |
| Fee | P1,010, under the IC exam guidelines |
| Registration | Through the insurer that will appoint you as its agent |
| Delivery | On-site Agents' Certification Examination under IC Circular Letter 2025-13 |
| Pass mark | Not published on the IC site we checked; ask your sponsoring insurer |
What the exam covers
- Insurance principles: risk, peril and hazard, the law of large numbers, utmost good faith, insurable interest and the features of the insurance contract.
- Life insurance products: term, whole life, limited-pay, endowment, annuities, group and credit life, and the basics of variable life.
- Policy provisions and riders: grace period, incontestability, reinstatement, non-forfeiture options, policy loans, settlement options and common riders.
- Underwriting and premiums: risk selection and classification, premium factors, reserves and modal premiums.
- The Insurance Code: PD 612 as amended by RA 10607, including concealment, the suicide clause, claim payment periods and the Commissioner's powers.
- Agent ethics, licensing and AML: licensing rules, rebating and twisting, and anti-money laundering duties.
- Claims and policyholder service: death claims, beneficiary changes, reinstatement and complaints.
Free official resources, and what we add
The Insurance Commission publishes exam advisories, circular letters and lists of licensed agents, and the Insurance Code is freely available online. Insurers also train their own recruits. The IC does not publish a practice bank. This pack gives you 100 original questions across seven topic areas, with an explanation and source for every answer, so you can walk into the exam knowing the rules, not just the sales script.
How to prepare
- Try the free 5-question sample to see the style.
- Learn the key Insurance Code numbers: a 30-day or one-month grace period, a two-year incontestability and suicide period, reinstatement within three years, and payment of death claims within 60 days.
- Make sure you can tell term, whole life and endowment apart, and know the three non-forfeiture options.
- Study the licensing and ethics rules: no commission without a licence, no rebating, no twisting.
- Practise one topic at a time, then take timed mock exams of 50 questions.
Practice questions with answers
Tap a question to see the correct answer and explanation.
What is the difference between a peril and a hazard?
- A peril is the cause of loss; a hazard increases the chance of loss
- A peril is a condition that increases risk; a hazard is the actual cause of loss
- A peril applies to life insurance only; a hazard applies to property insurance only
- They mean the same thing in insurance practice
Answer: A, A peril is the cause of loss; a hazard increases the chance of loss. A peril is the event that causes the loss, such as death, fire or accident. A hazard is a condition that makes a loss more likely or more severe, such as smoking or a dangerous job. Source: basic principles of risk and insurance (peril and hazard).
A homeowner wants cover that falls each year in line with the balance of his housing loan. Which plan suits this best?
- Level term insurance
- Endowment insurance
- Decreasing term insurance
- Single-premium whole life
Answer: C, Decreasing term insurance. Decreasing term insurance has a face amount that reduces over the term, matching a debt such as a mortgage that is paid down over time. Source: standard life insurance product principles (decreasing term).
Under the Insurance Code, after how long does an individual life policy become incontestable?
- After two years in force during the insured's lifetime, from issue or last reinstatement
- After it has been in force for one year from the date of issue
- After it has been in force for five years, whether or not the insured is still alive
- Immediately upon payment of the first premium
Answer: A, After two years in force during the insured's lifetime, from issue or last reinstatement. After a life policy has been in force during the insured's lifetime for two years from the date of issue or last reinstatement, the insurer cannot prove the policy void ab initio or rescindable because of concealment or misrepresentation. Source: Insurance Code (PD 612 as amended by RA 10607), Sections 48 and 233(b).