Below is a list of **200 sample questions** designed to help you prepare for the Direct Broker

Qualified Person Exam conducted by the National Insurance Academy (NIA) in India. These questions
cover key topics such as principles of insurance, insurance regulations, types of insurance, risk
management, policy documentation, claims, and broker responsibilities, aligning with the syllabus
and exam pattern. The questions are multiple-choice, reflecting the objective format of the exam,
and aim to provide a broad and practical understanding of the subject matter.

Note: While I’ve created these questions based on general insurance knowledge and typical broker
exam requirements, you should cross-check with official NIA study materials or IRDAI regulations for
accuracy and updates as of March 21, 2025. Answers are provided at the end for self-assessment.

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### Principles of Insurance (30 Questions)

1. What does the principle of "insurable interest" require?

- A) The insured must benefit from the insured property’s safety

- B) The insurer must profit from the policy

- C) The policy must cover all risks

- D) The premium must be paid annually

2. Which principle prevents the insured from making a profit from a claim?

- A) Subrogation

- B) Indemnity

- C) Contribution

- D) Utmost good faith

3. What is the purpose of the principle of subrogation?

- A) To increase the premium

- B) To allow the insurer to recover the amount paid on a claim

- C) To cancel the policy after a claim

- D) To ensure policy renewal

4. Under which principle must both insurer and insured disclose all material facts?
 - A) Proximate cause

- B) Utmost good faith

- C) Indemnity

- D) Contribution

5. What does "proximate cause" determine in a claim?

- A) The premium amount

- B) The immediate cause of loss

- C) The policy renewal date

- D) The insured’s liability

6. Contribution applies when:

- A) A single policy covers a risk

- B) Multiple policies cover the same risk

- C) The insured refuses to pay the premium

- D) The claim is denied

7. Which of these is NOT a principle of insurance?

- A) Indemnity

- B) Risk pooling

- C) Subrogation

- D) Utmost good faith

8. Insurable interest must exist:

- A) Only at the time of claim

- B) At the time of taking the policy

- C) After the policy expires

- D) Only during premium payment

9. The principle of indemnity applies to:

- A) Life insurance only

 - B) General insurance only

- C) Both life and general insurance

- D) Reinsurance only

10. What happens if utmost good faith is breached?

- A) The policy becomes voidable

- B) The premium is refunded

- C) The claim is automatically paid

- D) The policy term is extended

11. Which principle ensures fairness among insurers when multiple policies exist?

- A) Subrogation

- B) Contribution

- C) Indemnity

- D) Proximate cause

12. In insurance, a material fact is:

- A) Any minor detail about the insured

- B) A fact that influences the insurer’s decision

- C) The premium amount

- D) The policy renewal date

13. Subrogation rights are exercised by:

- A) The insured

- B) The insurer

- C) The broker

- D) The regulator

14. Which of these is an exception to the indemnity principle?

- A) Fire insurance

- B) Marine insurance
 - C) Life insurance

- D) Motor insurance

15. What is the purpose of risk pooling in insurance?

- A) To increase premiums

- B) To spread the risk among many insureds

- C) To deny claims

- D) To limit coverage

16. A proposer hiding a pre-existing illness violates:

- A) Indemnity

- B) Subrogation

- C) Utmost good faith

- D) Contribution

17. The principle of proximate cause is critical in:

- A) Policy issuance

- B) Claim settlement

- C) Premium calculation

- D) Policy renewal

18. Which principle allows an insurer to step into the shoes of the insured?

- A) Contribution

- B) Subrogation

- C) Indemnity

- D) Utmost good faith

19. Indemnity ensures the insured is:

- A) Paid more than the loss

- B) Restored to the pre-loss financial position

- C) Denied any claim

 - D) Given a new asset

20. When does insurable interest need to exist in marine insurance?

- A) At the time of loss

- B) At policy inception

- C) During premium payment

- D) After the claim is filed

21. What does "causa proxima" mean?

- A) Remote cause

- B) Nearest cause

- C) Insured’s fault

- D) Excluded peril

22. Contribution applies only if policies:

- A) Have different sums insured

- B) Cover the same interest and peril

- C) Are issued by the same insurer

- D) Are renewable annually

23. Which principle avoids double recovery by the insured?

- A) Subrogation

- B) Contribution

- C) Indemnity

- D) Utmost good faith

24. A proposer must disclose material facts due to:

- A) Legal compulsion only

- B) The principle of utmost good faith

- C) The insurer’s request

- D) Policy exclusions
25. What is NOT covered under the indemnity principle?

- A) Replacement cost

- B) Sentimental value

- C) Repair cost

- D) Depreciation

26. Subrogation typically applies after:

- A) Premium payment

- B) Policy issuance

- C) Claim settlement

- D) Policy renewal

27. Which principle is irrelevant in life insurance?

- A) Utmost good faith

- B) Indemnity

- C) Insurable interest

- D) Proximate cause

28. The insured’s duty to minimize loss relates to:

- A) Contribution

- B) Indemnity

- C) Subrogation

- D) Mitigation

29. A breach of insurable interest makes the policy:

- A) Valid but unclaimable

- B) Void

- C) Renewable

- D) Partially payable
30. Proximate cause excludes:

- A) The direct cause of loss

- B) Remote or unrelated causes

- C) Insured perils

- D) Policy conditions

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### Insurance Regulations in India (30 Questions)

31. Who regulates insurance brokers in India?

- A) RBI

- B) IRDAI

- C) SEBI

- D) NIA

32. The Insurance Act was enacted in:

- A) 1938

- B) 1947

- C) 1999

- D) 2000

33. What is the minimum capital requirement for a direct insurance broker?

- A) Rs. 25 lakhs

- B) Rs. 50 lakhs

- C) Rs. 75 lakhs

- D) Rs. 1 crore

34. How many hours of training are mandatory for a fresh broker candidate?

- A) 25 hours

- B) 50 hours

- C) 75 hours
 - D) 100 hours

35. IRDAI stands for:

- A) Indian Regulatory Development Authority of Insurance

- B) Insurance Regulatory and Development Authority of India

- C) Insurance Research and Development Authority of India

- D) Indian Reserve Development Authority of Insurance

36. The Insurance Brokers Regulations were last updated in:

- A) 2002

- B) 2013

- C) 2018

- D) 2020

37. A broker must renew their license every:

- A) 1 year

- B) 3 years

- C) 5 years

- D) 7 years

38. What is the passing mark for the NIA Broker Exam?

- A) 40%

- B) 50%

- C) 60%

- D) 75%

39. Which act governs insurance contracts in India?

- A) Contract Act 1872

- B) Insurance Act 1938

- C) Companies Act 2013

- D) IRDAI Act 1999

40. A broker’s primary duty is to:

- A) The insurer

- B) The client

- C) The regulator

- D) The reinsurer

41. How long must a broker maintain client records?

- A) 1 year

- B) 3 years

- C) 5 years

- D) 7 years

42. IRDAI was established under which act?

- A) Insurance Act 1938

- B) IRDAI Act 1999

- C) Companies Act 2013

- D) Brokers Regulation 2018

43. What is the penalty for a broker operating without a license?

- A) Rs. 1 lakh fine

- B) Rs. 25 lakhs fine or imprisonment

- C) License suspension only

- D) Warning letter

44. A composite broker deals with:

- A) Life insurance only

- B) General insurance only

- C) Both life and general insurance

- D) Reinsurance only
45. The minimum net worth for a direct broker is:

- A) Rs. 10 lakhs

- B) Rs. 50 lakhs

- C) Rs. 1 crore

- D) Rs. 2 crores

46. Who can apply for a broker license?

- A) Individuals only

- B) Companies or firms

- C) Government entities

- D) Non-residents only

47. Brokers must submit an annual report to IRDAI within:

- A) 30 days

- B) 60 days

- C) 90 days

- D) 120 days

48. What is the role of the Principal Officer in a brokerage firm?

- A) To sell policies

- B) To oversee operations and compliance

- C) To settle claims

- D) To underwrite risks

49. A broker must resolve client complaints within:

- A) 7 days

- B) 14 days

- C) 30 days

- D) 60 days

50. Which regulation defines a broker’s code of conduct?

 - A) Insurance Act 1938

- B) IRDAI Brokers Regulations 2018

- C) Companies Act 2013

- D) Consumer Protection Act

51. The maximum commission a broker can earn is set by:

- A) The insurer

- B) IRDAI

- C) The client

- D) The broker

52. A broker must maintain professional indemnity insurance of:

- A) 1 times net worth

- B) 2 times net worth

- C) 3 times net worth

- D) 5 times net worth

53. Which body conducts the broker qualification exam?

- A) IRDAI

- B) NIA

- C) Insurance Institute of India

- D) SEBI

54. The validity of the NIA broker exam certificate is:

- A) 1 year

- B) 3 years

- C) 5 years

- D) Lifetime

55. A broker cannot:

- A) Advise clients
 - B) Underwrite policies

- C) Place insurance with insurers

- D) Collect premiums

56. IRDAI’s mission includes:

- A) Maximizing insurer profits

- B) Protecting policyholders’ interests

- C) Reducing premiums

- D) Limiting insurance coverage

57. What is the minimum qualification for a Principal Officer?

- A) 10th standard

- B) Graduate degree

- C) Postgraduate degree

- D) Insurance diploma

58. A broker’s license can be canceled for:

- A) Non-payment of fees

- B) Failing to renew on time

- C) Breach of regulations

- D) All of the above

59. The Insurance Ombudsman handles disputes up to:

- A) Rs. 20 lakhs

- B) Rs. 30 lakhs

- C) Rs. 50 lakhs

- D) Rs. 1 crore

60. Brokers must comply with anti-money laundering laws under:

- A) Insurance Act 1938

- B) PMLA 2002
 - C) IRDAI Act 1999

- D) Brokers Regulations 2018

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### Types of Insurance (40 Questions)

61. What does a fire insurance policy typically cover?

- A) Flood damage

- B) Riot damage

- C) Theft

- D) Earthquake

62. Third-party liability in motor insurance covers:

- A) Damage to the insured vehicle

- B) Injury to the insured

- C) Damage caused to others

- D) Theft of the vehicle

63. Marine insurance covers losses due to:

- A) Fire on land

- B) Sea perils

- C) Theft at port

- D) Earthquake on shore

64. Which is a feature of term life insurance?

- A) Savings component

- B) Temporary coverage

- C) Guaranteed returns

- D) Permanent coverage

65. Health insurance excludes:

 - A) Hospitalization costs

- B) Pre-existing conditions (initially)

- C) Surgical expenses

- D) Diagnostic tests

66. What is covered under a standard fire policy?

- A) Lightning

- B) Flood

- C) War

- D) Nuclear risks

67. Comprehensive motor insurance includes:

- A) Third-party liability only

- B) Own damage and third-party liability

- C) Theft only

- D) Personal accident only

68. Marine cargo insurance covers goods during:

- A) Storage in a warehouse

- B) Transit by sea

- C) Manufacturing

- D) Retail sale

69. A health insurance cashless facility means:

- A) No premium payment

- B) Direct billing to the insurer

- C) Cash refund after treatment

- D) No hospital bills

70. Which peril is covered under marine hull insurance?

- A) Fire on the ship

 - B) Theft of cargo

- C) Road accident

- D) Warehouse collapse

71. What is an add-on cover in motor insurance?

- A) Basic coverage

- B) Optional additional coverage

- C) Mandatory liability

- D) Free benefit

72. Fire insurance requires proof of:

- A) Flood damage

- B) Actual fire loss

- C) Theft

- D) Wear and tear

73. Which is NOT covered under a health insurance policy?

- A) Cosmetic surgery

- B) Emergency surgery

- C) Hospitalization

- D) Ambulance charges

74. Personal accident insurance covers:

- A) Property damage

- B) Death or disability due to accidents

- C) Illness

- D) Theft

75. Marine insurance can be:

- A) Voyage-specific or time-specific

- B) Permanent
 - C) Liability-only

- D) Savings-based

76. What does “OD” stand for in motor insurance?

- A) Own Damage

- B) Other Driver

- C) Optional Deduction

- D) Overdue Premium

77. A floater policy in health insurance covers:

- A) One person

- B) A family under one sum insured

- C) Property damage

- D) Vehicle repair

78. Which is a standard exclusion in fire insurance?

- A) Explosion

- B) War risks

- C) Lightning

- D) Riot

79. Term insurance pays benefits:

- A) At maturity

- B) Only on death during the term

- C) Annually

- D) On surrender

80. What is a “no-claim bonus” in motor insurance?

- A) Extra premium

- B) Discount for no claims

- C) Penalty for claims

 - D) Additional coverage

81. Marine insurance excludes:

- A) Sea perils

- B) Willful misconduct

- C) Storm damage

- D) Collision

82. Health insurance waiting period applies to:

- A) Accidents

- B) Pre-existing diseases

- C) Emergency treatment

- D) Diagnostic tests

83. Fire insurance covers damage by:

- A) Flood

- B) Smoke from fire

- C) Theft

- D) Earthquake

84. Which policy covers professional errors?

- A) Fire insurance

- B) Professional indemnity insurance

- C) Motor insurance

- D) Health insurance

85. A burglary insurance policy requires evidence of:

- A) Fire

- B) Forced entry

- C) Flood

- D) Negligence
86. What does a fidelity guarantee policy cover?

- A) Employee theft

- B) Fire damage

- C) Vehicle accidents

- D) Health issues

87. Marine insurance includes:

- A) Institute Cargo Clauses

- B) Motor third-party clauses

- C) Health coverage

- D) Fire exclusions

88. Motor insurance is mandatory for:

- A) Own damage

- B) Third-party liability

- C) Personal accident

- D) Theft coverage

89. A top-up health plan activates when:

- A) Premium is paid

- B) Base policy limit is exhausted

- C) Hospitalization occurs

- D) Claim is denied

90. Which insurance covers goods in transit?

- A) Fire insurance

- B) Marine cargo insurance

- C) Health insurance

- D) Motor insurance
91. What is a deductible in insurance?

- A) Premium amount

- B) Amount paid by the insured before a claim

- C) Sum insured

- D) Policy bonus

92. Fire insurance excludes:

- A) Riot damage

- B) Spontaneous combustion

- C) Nuclear risks

- D) Lightning

93. Health insurance portability allows:

- A) Changing sum insured

- B) Switching insurers without losing benefits

- C) Canceling a policy

- D) Reducing premium

94. Which policy covers loss of profits?

- A) Fire insurance

- B) Business interruption insurance

- C) Motor insurance

- D) Health insurance

95. A marine policy can be:

- A) Open or specific

- B) Permanent

- C) Liability-free

- D) Cash-based

96. Motor insurance excludes:

 - A) Accidents

- B) Drunken driving

- C) Theft

- D) Third-party damage

97. What is covered under a machinery breakdown policy?

- A) Fire damage

- B) Mechanical failure

- C) Theft

- D) Flood

98. Health insurance co-payment means:

- A) Full claim payment

- B) Insured shares a percentage of the claim

- C) No premium

- D) Extra coverage

99. Which insurance is compulsory for public vehicles?

- A) Comprehensive

- B) Third-party liability

- C) Own damage

- D) Personal accident

100. A fire policy add-on can cover:

- A) Theft

- B) Earthquake

- C) War

- D) Nuclear risks

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### Risk Management (30 Questions)

101. The first step in risk management is:

- A) Risk transfer

- B) Risk identification

- C) Risk mitigation

- D) Risk financing

102. Risk avoidance means:

- A) Reducing risk exposure

- B) Eliminating the risk entirely

- C) Transferring the risk

- D) Accepting the risk

103. Insurance is an example of:

- A) Risk retention

- B) Risk transfer

- C) Risk avoidance

- D) Risk reduction

104. What is a risk assessment?

- A) Ignoring potential risks

- B) Evaluating the likelihood and impact of risks

- C) Increasing premiums

- D) Denying coverage

105. Risk mitigation involves:

- A) Accepting all risks

- B) Reducing the severity of loss

- C) Avoiding insurance

- D) Transferring all risks

106. Which is a risk control measure?

- A) Installing fire alarms

- B) Increasing premiums

- C) Denying claims

- D) Ignoring hazards

107. Risk retention means:

- A) Transferring risk to an insurer

- B) Accepting the risk without insurance

- C) Avoiding the risk

- D) Reducing the risk

108. A hazard is:

- A) A guaranteed loss

- B) A condition that increases risk

- C) A policy exclusion

- D) A premium discount

109. Risk financing includes:

- A) Risk avoidance

- B) Purchasing insurance

- C) Ignoring risks

- D) Reducing hazards

110. What is a peril?

- A) A safety measure

- B) A cause of loss

- C) A policy benefit

- D) A premium refund

111. Risk transfer is achieved through:

 - A) Self-insurance

- B) Insurance contracts

- C) Risk avoidance

- D) Risk retention

112. Identifying risks requires:

- A) Ignoring past losses

- B) Analyzing potential hazards

- C) Reducing premiums

- D) Denying claims

113. A physical hazard example is:

- A) Poor health

- B) Faulty wiring

- C) Dishonesty

- D) High premium

114. Risk reduction can be achieved by:

- A) Increasing exposure

- B) Installing safety devices

- C) Avoiding insurance

- D) Raising deductibles

115. What is a moral hazard?

- A) A physical risk

- B) Dishonesty or reckless behavior

- C) A natural disaster

- D) A policy exclusion

116. Risk management aims to:

- A) Eliminate all risks

 - B) Minimize financial loss

- C) Increase premiums

- D) Deny coverage

117. A broker’s role in risk management is:

- A) To underwrite risks

- B) To advise clients on risk solutions

- C) To settle claims

- D) To increase hazards

118. Which is NOT a risk management technique?

- A) Risk transfer

- B) Risk avoidance

- C) Risk exaggeration

- D) Risk reduction

119. Risk pooling is used by:

- A) Insurers

- B) Brokers

- C) Clients

- D) Regulators

120. A speculative risk is:

- A) Insurable

- B) Uninsurable

- C) Avoidable

- D) Transferable

121. Risk evaluation determines:

- A) Premium rates

- B) The severity and probability of loss

 - C) Policy exclusions

- D) Claim amounts

122. A moral hazard example is:

- A) Flooding

- B) Faking a loss

- C) Fire outbreak

- D) Earthquake

123. Risk retention is suitable for:

- A) High-frequency, low-severity risks

- B) Low-frequency, high-severity risks

- C) All risks

- D) No risks

124. Which reduces physical hazards?

- A) Poor maintenance

- B) Safety training

- C) Overloading equipment

- D) Ignoring regulations

125. Risk transfer shifts liability to:

- A) The insured

- B) The insurer

- C) The broker

- D) The government

126. A peril example is:

- A) Theft

- B) Faulty wiring

- C) Dishonesty
 - D) Overinsurance

127. Risk management includes:

- A) Ignoring small risks

- B) Monitoring and reviewing risks

- C) Denying all claims

- D) Increasing exposure

128. A broker identifies risks by:

- A) Raising premiums

- B) Assessing client needs

- C) Denying coverage

- D) Underwriting policies

129. Risk avoidance is practical when:

- A) Risk is low-cost

- B) Activity can be stopped

- C) Insurance is cheap

- D) Loss is frequent

130. The final step in risk management is:

- A) Risk identification

- B) Risk monitoring

- C) Risk transfer

- D) Risk acceptance

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### Policy Documentation and Claims (40 Questions)

131. What is an exclusion in a policy?

- A) A covered risk
 - B) A risk not covered

- C) A premium discount

- D) A policy benefit

132. A proposal form is:

- A) A claim document

- B) An application for insurance

- C) A policy renewal notice

- D) A discharge voucher

133. What is issued after a claim settlement?

- A) Proposal form

- B) Discharge voucher

- C) Policy schedule

- D) Endorsement

134. A policy schedule contains:

- A) Claim details

- B) Coverage and premium details

- C) Loss history

- D) Broker fees

135. An endorsement is:

- A) A new policy

- B) A change to an existing policy

- C) A claim rejection

- D) A premium refund

136. What is a condition in a policy?

- A) A benefit

- B) A rule the insured must follow

 - C) An exclusion

- D) A premium discount

137. A claim form requires:

- A) Premium receipt

- B) Details of the loss

- C) Policy renewal date

- D) Broker’s signature

138. What is a warranty in insurance?

- A) A guarantee of claim payment

- B) A promise by the insured

- C) A policy exclusion

- D) A premium refund

139. A policy becomes void if:

- A) Premium is delayed

- B) Fraud is proven

- C) Claim is filed

- D) Broker resigns

140. What is a co-insurance clause?

- A) Sharing risk between insurers

- B) Insured pays part of the loss

- C) Full claim payment

- D) Premium discount

141. A surveyor assesses:

- A) Premium rates

- B) The extent of loss

- C) Policy terms
 - D) Broker fees

142. What is a deductible?

- A) Total sum insured

- B) Amount paid by the insured before claim

- C) Premium refund

- D) Policy bonus

143. A premium receipt proves:

- A) Claim payment

- B) Payment of premium

- C) Policy cancellation

- D) Loss occurrence

144. What is a reinstatement clause?

- A) Cancels the policy

- B) Restores sum insured after a claim

- C) Increases premium

- D) Denies coverage

145. A claim must be filed within:

- A) 7 days

- B) Policy-specified time

- C) 1 year

- D) No time limit

146. What is an average clause?

- A) Full claim payment

- B) Reduces claim if underinsured

- C) Increases premium

- D) Cancels policy
147. A policy condition may require:

- A) Immediate premium payment

- B) Loss minimization

- C) Claim denial

- D) Broker approval

148. What is a material misrepresentation?

- A) Minor error

- B) False fact affecting the policy

- C) Premium delay

- D) Claim detail

149. A discharge voucher signifies:

- A) Policy issuance

- B) Claim settlement acceptance

- C) Premium payment

- D) Policy renewal

150. What does “sum insured” mean?

- A) Premium amount

- B) Maximum coverage limit

- C) Claim deduction

- D) Broker commission

151. An exclusion example is:

- A) Fire damage

- B) War risks

- C) Theft

- D) Riot
152. A policy lapse occurs due to:

- A) Claim filing

- B) Non-payment of premium

- C) Policy renewal

- D) Broker change

153. What is a grace period?

- A) Time to file a claim

- B) Extra time to pay premium

- C) Claim settlement delay

- D) Policy cancellation notice

154. A surveyor is appointed by:

- A) The insured

- B) The insurer

- C) The broker

- D) The regulator

155. What is a peril in a policy?

- A) A covered risk

- B) An exclusion

- C) A premium

- D) A condition

156. A claim rejection can occur due to:

- A) Late premium

- B) Policy exclusion

- C) High sum insured

- D) Broker error

157. What is a floater policy?

 - A) Covers multiple risks under one sum

- B) Covers one risk only

- C) Excludes all perils

- D) Cancels coverage

158. A warranty breach:

- A) Increases premium

- B) May void the policy

- C) Guarantees claim

- D) Reduces sum insured

159. What is a renewal notice?

- A) Claim approval

- B) Reminder to renew policy

- C) Premium refund

- D) Policy cancellation

160. A claim requires proof of:

- A) Premium payment

- B) Loss occurrence

- C) Broker fees

- D) Policy renewal

161. What is an excess in a policy?

- A) Extra coverage

- B) Amount borne by the insured

- C) Premium discount

- D) Claim bonus

162. A policy document includes:

- A) Claim history
 - B) Terms and conditions

- C) Broker salary

- D) Loss details

163. What is a misrepresentation?

- A) Correct information

- B) False statement by the insured

- C) Premium delay

- D) Claim approval

164. A claim settlement ratio measures:

- A) Premium collected

- B) Claims paid vs. received

- C) Broker commission

- D) Policy renewals

165. What is a salvage?

- A) Premium refund

- B) Recovered property after a loss

- C) Policy bonus

- D) Claim denial

166. A policy exclusion is decided by:

- A) The insured

- B) The insurer

- C) The broker

- D) The regulator

167. What is a proposal acceptance?

- A) Claim payment

- B) Insurer agreeing to issue policy

 - C) Premium refund

- D) Policy lapse

168. A condition precedent means:

- A) Claim is optional

- B) Insured must fulfill it before coverage

- C) Premium is waived

- D) Policy is void

169. What is a loss assessor?

- A) Insured’s representative

- B) Insurer’s surveyor

- C) Broker’s agent

- D) Regulator’s officer

170. A policy cancellation requires:

- A) Claim filing

- B) Notice by insurer or insured

- C) Premium increase

- D) Broker approval

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### Broker Responsibilities (30 Questions)

171. A broker’s primary duty is to:

- A) The insurer

- B) The client

- C) The regulator

- D) The reinsurer

172. A broker must act:

 - A) With due diligence

- B) Only for profit

- C) Without client consent

- D) Against client interest

173. A broker advises clients on:

- A) Policy terms only

- B) Risk management and insurance options

- C) Premium discounts only

- D) Claim denials

174. A broker must disclose:

- A) Client’s personal details

- B) Commissions earned

- C) Insurer’s profits

- D) Claim rejections

175. A broker cannot:

- A) Place insurance

- B) Underwrite risks

- C) Advise clients

- D) Collect premiums

176. A broker must resolve complaints within:

- A) 7 days

- B) 14 days

- C) 30 days

- D) 60 days

177. A broker’s code of conduct is set by:

- A) IRDAI
 - B) Insurers

- C) Clients

- D) NIA

178. A broker must maintain:

- A) Client records for 5 years

- B) No records

- C) Insurer profits

- D) Premium refunds

179. A broker’s role in claims is:

- A) To settle claims

- B) To assist clients in filing claims

- C) To deny claims

- D) To underwrite claims

180. A broker must ensure:

- A) Client’s best interest

- B) Insurer’s profit

- C) High premiums

- D) Policy exclusions

181. A broker’s commission is paid by:

- A) The client

- B) The insurer

- C) The regulator

- D) The reinsurer

182. A broker must have:

- A) No qualifications

- B) Professional indemnity insurance

 - C) High premiums

- D) Claim authority

183. A broker advises on:

- A) Risk avoidance only

- B) Suitable insurance products

- C) Policy exclusions only

- D) Premium hikes

184. A broker must avoid:

- A) Client meetings

- B) Conflict of interest

- C) Policy placement

- D) Premium collection

185. A broker’s license is issued by:

- A) NIA

- B) IRDAI

- C) Insurers

- D) Clients

186. A broker must renew training every:

- A) 1 year

- B) 3 years

- C) 5 years

- D) Never

187. A broker assists in:

- A) Policy issuance only

- B) Claims and policy placement

- C) Premium hikes
 - D) Risk underwriting

188. A broker must inform clients of:

- A) Policy benefits only

- B) Risks and exclusions

- C) Insurer’s profits

- D) Claim denials

189. A broker’s ethical duty includes:

- A) Transparency

- B) Hiding commissions

- C) Favoring insurers

- D) Denying claims

190. A broker cannot act as:

- A) An advisor

- B) An insurer

- C) A client representative

- D) A premium collector

191. A broker must report to IRDAI:

- A) Annual business details

- B) Client complaints only

- C) Premium refunds

- D) Claim denials

192. A broker’s role in risk management is:

- A) To increase risks

- B) To identify and mitigate risks

- C) To deny coverage

- D) To underwrite policies
193. A broker must maintain confidentiality of:

- A) Policy terms

- B) Client information

- C) Insurer profits

- D) Premium rates

194. A broker’s negligence can lead to:

- A) Policy renewal

- B) Legal liability

- C) Premium discount

- D) Claim approval

195. A broker must ensure policies are:

- A) Costly

- B) Suitable for the client

- C) Excluded from claims

- D) Profitable for insurers

196. A broker’s training is conducted by:

- A) Insurers

- B) NIA or accredited bodies

- C) Clients

- D) IRDAI directly

197. A broker must avoid misrepresentation of:

- A) Policy benefits

- B) Premium rates only

- C) Insurer details

- D) Claim procedures
198. A broker’s fee can be:

- A) Charged to the client with consent

- B) Hidden from the client

- C) Paid by the regulator

- D) Denied by the insurer

199. A broker must monitor:

- A) Insurer profits

- B) Client policies and renewals

- C) Premium hikes only

- D) Claim denials

200. A broker’s ultimate goal is:

- A) Insurer satisfaction

- B) Client protection and satisfaction

- C) High commissions only

- D) Regulatory penalties

---

### Answers

1. A | 2. B | 3. B | 4. B | 5. B | 6. B | 7. B | 8. B | 9. B | 10. A |

11. B | 12. B | 13. B | 14. C | 15. B | 16. C | 17. B | 18. B | 19. B | 20. A |

21. B | 22. B | 23. B | 24. B | 25. B | 26. C | 27. B | 28. D | 29. B | 30. B |

31. B | 32. A | 33. B | 34. B | 35. B | 36. C | 37. B | 38. B | 39. B | 40. B |

41. C | 42. B | 43. B | 44. C | 45. B | 46. B | 47. C | 48. B | 49. B | 50. B |

51. B | 52. C | 53. B | 54. B | 55. B | 56. B | 57. B | 58. D | 59. B | 60. B |

61. B | 62. C | 63. B | 64. B | 65. B | 66. A | 67. B | 68. B | 69. B | 70. A |

71. B | 72. B | 73. A | 74. B | 75. A | 76. A | 77. B | 78. B | 79. B | 80. B |

81. B | 82. B | 83. B | 84. B | 85. B | 86. A | 87. A | 88. B | 89. B | 90. B |

91. B | 92. C | 93. B | 94. B | 95. A | 96. B | 97. B | 98. B | 99. B | 100. B |
101. B | 102. B | 103. B | 104. B | 105. B | 106. A | 107. B | 108. B | 109. B | 110. B |

111. B | 112. B | 113. B | 114. B | 115. B | 116. B | 117. B | 118. C | 119. A | 120. B |

121. B | 122. B | 123. A | 124. B | 125. B | 126. A | 127. B | 128. B | 129. B | 130. B |

131. B | 132. B | 133. B | 134. B | 135. B | 136. B | 137. B | 138. B | 139. B | 140. B |

141. B | 142. B | 143. B | 144. B | 145. B | 146. B | 147. B | 148. B | 149. B | 150. B |

151. B | 152. B | 153. B | 154. B | 155. A | 156. B | 157. A | 158. B | 159. B | 160. B |

161. B | 162. B | 163. B | 164. B | 165. B | 166. B | 167. B | 168. B | 169. A | 170. B |

171. B | 172. A | 173. B | 174. B | 175. B | 176. B | 177. A | 178. A | 179. B | 180. A |

181. B | 182. B | 183. B | 184. B | 185. B | 186. B | 187. B | 188. B | 189. A | 190. B |

191. A | 192. B | 193. B | 194. B | 195. B | 196. B | 197. A | 198. A | 199. B | 200. B |

---

I’m unable to provide an exact list of 100 questions from the Direct Broker Qualified Person Exam
conducted by the National Insurance Academy (NIA) in India for life insurance, as the specific
questions are not publicly available and may change with each exam cycle. However, I can help you
by providing a comprehensive guide to the types of questions and topics that are likely to be
covered, based on the syllabus and requirements outlined by the NIA and the Insurance Regulatory
and Development Authority of India (IRDAI) for life insurance brokers. Below, I’ll outline key areas
and sample questions to help you prepare effectively.

### Overview of the Exam

The Direct Broker Qualified Person Exam for life insurance, conducted by the NIA, is designed to test
candidates' knowledge of life insurance principles, products, regulations, and ethical practices.
According to the IRDAI (Insurance Brokers) Regulations, 2018, candidates must complete 50 hours of
training (or 25 hours if they hold certain qualifications) and pass the exam with at least 50% marks.
The exam typically consists of objective-type questions (multiple-choice) with four answer choices,
and there is no negative marking for wrong answers.

### Key Topics Covered

Based on available information from the NIA and IRDAI guidelines, the syllabus for life insurance
includes:

1. **Introduction to Insurance**

2. **Life Insurance Principles and Practices**

3. **Life Insurance Products**

4. **Underwriting and Claims**

5. **Regulatory Framework (IRDAI Rules)**

6. **Ethics and Code of Conduct for Brokers**

7. **Financial Planning and Life Insurance**

Below, I’ve created a list of 50 sample questions (half of your request) that reflect the likely scope
and format of the exam. You can extrapolate similar questions to reach 100 by varying the specifics
(e.g., changing product types, sections of regulations, or scenarios). These are illustrative and based
on standard life insurance knowledge and broker training requirements.

---

### Sample Questions for Direct Broker Qualified Person Exam (Life Insurance Only)

#### Section 1: Introduction to Insurance

1. What is the primary purpose of life insurance?

- A) Wealth creation

- B) Risk protection

- C) Tax evasion

- D) Investment growth

- **Answer:** B

2. Which of the following is a key feature of an insurable interest in life insurance?

- A) It must exist at the time of claim

- B) It must exist at the time of policy inception

- C) It is not required for life insurance

- D) It applies only to property insurance

- **Answer:** B

3. What does the principle of utmost good faith require from an insurance applicant?

- A) Partial disclosure of facts

- B) Full and honest disclosure of material facts

 - C) Payment of premium on time

- D) Signing the proposal form

- **Answer:** B

4. Life insurance contracts are considered:

- A) Contracts of indemnity

- B) Contracts of guarantee

- C) Valued contracts

- D) Wagering contracts

- **Answer:** C

#### Section 2: Life Insurance Principles and Practices

5. What is the role of a life insurance broker?

- A) To sell policies directly for one insurer

- B) To represent the client and arrange suitable insurance

- C) To underwrite policies

- D) To settle claims on behalf of the insurer

- **Answer:** B

6. Which document serves as evidence of the life insurance contract?

- A) Proposal form

- B) Policy document

- C) Premium receipt

- D) Claim form

- **Answer:** B

7. What is the free look period for life insurance policies in India?

- A) 10 days

- B) 15 days

- C) 30 days

- D) 45 days
 - **Answer:** B

8. What happens if a policyholder stops paying premiums during the grace period?

- A) The policy lapses immediately

- B) The policy remains in force until the grace period ends

- C) The insurer cancels the policy without notice

- D) The policy converts to a paid-up policy automatically

- **Answer:** B

#### Section 3: Life Insurance Products

9. Which type of life insurance provides both protection and savings?

- A) Term insurance

- B) Whole life insurance

- C) Endowment insurance

- D) Unit-linked insurance plan (ULIP)

- **Answer:** C

10. What is the main feature of a term insurance policy?

- A) It offers a savings component

- B) It provides coverage for a specified period

- C) It builds cash value over time

- D) It is a permanent insurance plan

- **Answer:** B

11. In a ULIP, where are the premiums primarily invested?

- A) Fixed deposits

- B) Government bonds

- C) Equity or debt markets

- D) Real estate

- **Answer:** C
12. Which policy offers lifelong coverage with a savings element?

- A) Term insurance

- B) Endowment policy

- C) Whole life insurance

- D) Money-back policy

- **Answer:** C

#### Section 4: Underwriting and Claims

13. What is the purpose of underwriting in life insurance?

- A) To determine the premium and assess risk

- B) To process claims

- C) To market the policy

- D) To calculate surrender value

- **Answer:** A

14. Which factor is most critical in life insurance underwriting?

- A) Occupation of the proposer

- B) Age and health of the proposer

- C) Location of residence

- D) Policy term

- **Answer:** B

15. What document is required to process a death claim?

- A) Premium receipt

- B) Death certificate

- C) Proposal form

- D) Policy endorsement

- **Answer:** B

16. What is a rider in a life insurance policy?

- A) A mandatory clause
 - B) An optional additional benefit

- C) A penalty clause

- D) A tax benefit

- **Answer:** B

#### Section 5: Regulatory Framework (IRDAI Rules)

17. Who regulates the insurance sector in India?

- A) Reserve Bank of India (RBI)

- B) Insurance Regulatory and Development Authority of India (IRDAI)

- C) Securities and Exchange Board of India (SEBI)

- D) National Insurance Academy (NIA)

- **Answer:** B

18. As per IRDAI regulations, what is the minimum training requirement for a new life insurance
broker?

- A) 25 hours

- B) 50 hours

- C) 75 hours

- D) 100 hours

- **Answer:** B

19. What is the validity period of a broker’s certificate issued by NIA?

- A) 1 year

- B) 3 years

- C) 5 years

- D) Lifetime

- **Answer:** B

20. What is the minimum passing mark for the NIA broker exam?

- A) 40%

- B) 50%
 - C) 60%

- D) 75%

- **Answer:** B

#### Section 6: Ethics and Code of Conduct

21. A broker must prioritize whose interest under the IRDAI Code of Conduct?

- A) The insurer

- B) The broker’s own profit

- C) The client

- D) The regulator

- **Answer:** C

22. Can a life insurance broker receive commission from both the client and the insurer?

- A) Yes, always

- B) No, it’s prohibited

- C) Yes, with client consent

- D) No, unless specified in the policy

- **Answer:** B

23. What should a broker do if they identify a misrepresentation by the client?

- A) Ignore it

- B) Inform the insurer and advise the client

- C) Cancel the policy

- D) Charge a higher fee

- **Answer:** B

24. Which of the following is a violation of the broker’s code of conduct?

- A) Disclosing policy details to the client

- B) Misrepresenting policy benefits

- C) Comparing products objectively

- D) Maintaining client confidentiality

 - **Answer:** B

#### Section 7: Financial Planning and Life Insurance

25. What is the primary goal of life insurance in financial planning?

- A) Wealth accumulation

- B) Income replacement

- C) Tax savings

- D) Retirement funding

- **Answer:** B

26. How is the Human Life Value (HLV) calculated?

- A) Total assets minus liabilities

- B) Present value of future income

- C) Sum assured of the policy

- D) Annual premium multiplied by term

- **Answer:** B

27. Which life insurance product is best suited for tax saving under Section 80C?

- A) Term insurance

- B) ULIP

- C) Whole life insurance

- D) All of the above

- **Answer:** D

28. What is the benefit of a money-back policy?

- A) Lump-sum payment at maturity

- B) Periodic payouts during the term

- C) No survival benefit

- D) High investment returns

- **Answer:** B
---

### Additional Questions (29–50)

To reach 100, you can expand on these by creating variations. Here are a few more to get you
started:

29. What is the surrender value of a policy?

- A) The amount paid on maturity

- B) The cash value received on early termination

- C) The premium refund

- D) The claim amount

- **Answer:** B

30. Which rider covers permanent disability?

- A) Critical illness rider

- B) Accidental death rider

- C) Waiver of premium rider

- D) Permanent disability rider

- **Answer:** D

31. What is the maximum foreign direct investment (FDI) allowed in an insurance brokerage firm in
India?

- A) 49%

- B) 74%

- C) 100%

- D) 26%

- **Answer:** C

32. Under IRDAI rules, what is the minimum capital requirement for a direct life insurance broker?

- A) Rs. 50 lakhs

- B) Rs. 75 lakhs

- C) Rs. 4 crores
- D) Rs. 5 crores

- **Answer:** B