Life and commercial interview questions for insurance roles
89 questions from core to advanced: concepts, calculations, whiteboard diagrams, SQL, scenarios and behavioural. Answer out loud first, then reveal the model answer and example. Mark each one practised when you can answer it without looking.
Practised 0 of 89
Term vs endowment vs ULIP?
- Term: pure protection, cheapest.
- Endowment: savings plus protection, guaranteed or bonus-based.
- ULIP: market-linked, 5-year lock-in, charges disclosed.
- Individual life premiums are GST-free since 22 Sep 2025.
What is persistency and why do insurers track it?
- Share of policies still paying at the 13th, 25th, 37th, 49th, 61st month.
- Low persistency signals mis-selling, which IRDAI flagged as a significant concern.
- BA angle: renewal reminders, auto-debit mandates, early-lapse analytics.
Name the main commercial lines.
- Fire and property (Bharat Sookshma and Laghu Udyam), marine, engineering.
- Liability (public, product, D&O, professional indemnity), cyber.
- Group health and group term (still 18% GST).
A term policyholder dies in year 2. The insurer finds undisclosed smoking. Can it reject the claim?
- Under section 45 of the Insurance Act, within 3 years of the policy the insurer can repudiate for material misstatement or fraud, with reasons in writing.
- If the misstatement was not fraudulent, premiums collected are refunded to the nominee.
- After 3 years the policy cannot be questioned on any ground.
- BA angle: underwriting evidence, claim investigation workflow and communication templates.
Explain the free-look period and its system impact.
- 30 days from receipt of a new life or health policy to return it.
- Refund = premium − proportionate risk premium − medical costs − stamp duty (for ULIPs, based on fund value).
- Systems need the policy receipt date, a refund calculator, commission clawback and GST reversal.