There is exemption in some papers by doing FII. For more info on the same Please visit III website - www.insuranceinstituteofindia.com and check "Important notice" on top of right panel of the site.
There is no entrance exam for CII. But you should be graduate for certificate course of CII. For any info about CII certificate - www.cii.co.uk.
Franchies in India - I have no idea.