IIQE Paper 1 Exam: Format, Pass Mark & Topics
Updated
As at 31 Oct 2026, IIQE Paper 1 (Principles and Practice of Insurance) is 75 multiple-choice questions in 2 hours, with a pass mark of 70%, according to the Insurance Authority's IIQE fact sheet. It is the common paper every insurance intermediary sits, alongside the paper for the business they will carry on.
IIQE Paper 1 format at a glance
| IIQE Paper 1 | |
|---|---|
| Questions | 75 multiple-choice |
| Time | 2 hours |
| Pass mark | 70%, about 53 of 75 correct |
| Options per question | 4 |
| Run by | the Vocational Training Council (VTC), through the PEAK Exam Centre |
| Study notes | IA Paper 1 Study Notes, 2024 Edition (8th edition, Nov 2024), for exams from 17 Feb 2025 |
What Paper 1 covers
Paper 1 tests the foundations every intermediary relies on: what risk is and how insurance handles it, the contract and agency law behind a policy, the principles of insurance, how an insurer works, how the Hong Kong market is structured, and how it is regulated, including the conduct expected of a licensed intermediary.
- Risk and Insurance. The concept of risk (meaning, classification, risk management) and the functions and benefits of insurance. Chapter 1 of the IA Paper 1 Study Notes, 2024 Edition; official weight 12%.
- Legal Principles. The law of contract (essentials, privity, Cap. 623) and the law of agency (creation, authority, duties, termination); agents versus brokers. Chapter 2 of the IA Paper 1 Study Notes, 2024 Edition; official weight 16%.
- Principles of Insurance. Insurable interest, utmost good faith, proximate cause, indemnity (with average, excess and franchise), contribution and subrogation. The heaviest chapter. Chapter 3 of the IA Paper 1 Study Notes, 2024 Edition; official weight 30%.
- Core Functions of an Insurance Company. Product development, customer service, marketing, sales, underwriting, policy administration, claims, reinsurance, actuarial work, accounting and investment, training, and key persons in control functions. Chapter 4 of the IA Paper 1 Study Notes, 2024 Edition; official weight 9%.
- Structure of Hong Kong Insurance Industry. Types of business (statutory, practical, academic classifications; reinsurance), insurers, intermediaries and the industry associations. Concepts only, never the dated statistics. Chapter 5 of the IA Paper 1 Study Notes, 2024 Edition; official weight 5%.
- Regulatory Framework of Insurance Industry. The Insurance Ordinance (Cap. 41) and the Insurance Authority; the Code of Conduct for Insurers; complaints bodies; and the licensing regime for insurance intermediaries since 23 Sep 2019. Chapter 6 of the IA Paper 1 Study Notes, 2024 Edition; official weight 21%.
- Ethical and Other Related Issues. Duties to policyholders, personal data (PDPO), equal opportunity, AML/CTF (AMLO and GL3), corruption (POBO) and insurance fraud. Chapter 7 of the IA Paper 1 Study Notes, 2024 Edition; official weight 7%.
How to prepare
- Read each chapter of the study notes once, then practise that topic straight away while it is fresh.
- Learn the principles of insurance by applying them to facts: most marks are lost on which principle a scenario turns on.
- Keep a list of every rule you get wrong and review it before each mock.
- Sit full timed mocks at the real length and pass mark. When you clear 70% with a margin on two fresh mocks, book your sitting.
Not sure Paper 1 is the only paper you need? Read which IIQE papers do I need. Booking soon? See IIQE fees and booking and how to find the next sitting. Then sit the free Paper 1 mock or practise on the Paper 1 page.
Frequently asked questions
What is the IIQE Paper 1 exam format?
IIQE Paper 1 (Principles and Practice of Insurance) is 75 multiple-choice questions in 2 hours, pass mark 70%, according to the Insurance Authority's IIQE fact sheet as checked on 31 Oct 2026.
Who needs IIQE Paper 1?
Paper 1 is the common paper for insurance intermediaries: licensed insurance agents and technical representatives sit it alongside the paper for the class of business they will handle (Paper 2, 3 or 5). Some qualifications give exemptions; the Insurance Authority lists them.
Who runs the IIQE sittings?
The Insurance Authority's IIQE page names the the Vocational Training Council (VTC), through the PEAK Exam Centre as the appointed examination body (checked 31 Oct 2026). You enrol and book through the VTC.
Are IIQE Prep's questions real exam questions?
No. Every question is original practice material written to the public syllabus, never a past or recalled exam question. IIQE Prep is independent and not endorsed by the Insurance Authority or the VTC.
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Start practising →IIQE Prep is an independent study service, not affiliated with or endorsed by the Insurance Authority, the IIQE administrator (the Vocational Training Council) or the Mandatory Provident Fund Schemes Authority (MPFA). 'IIQE' and 'MPF' are used only to describe the examinations.