Dear Aspirants, LIC AAO is one the most important exam in the competitive examination. LIC AAO mains exam consists of four sections i.e. Reasoning ability, Data Analysis & Interpretation, General knowledge & Current affairs and Insurance & Financial Market Awareness. Insurance & Financial Market Awareness section comprises of 30 questions. LIC AAO 2019 Insurance Awareness Questions questions play an important role in boosting up the score in mains examination and also helps in the interview. Here we are providing a new series of LIC AAO 2019 Insurance Awareness Questions. Aspirants can make use of this LIC AAO 2019 Insurance Awareness Questions, to improve score in the Insurance & Financial Market Awareness section.
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1)What do you understand by term “Life Assured” used extensively in insurance sector?
a) The payment to the policy holder at the end of the stipulated term of the policy
b) The person whose life is insured by an individual life policy
c) The scope of protection provided under a contract of insurance
d) These are policies where the payment stays fixed
e) All of the above
2)Which is a fixed amount for a covered service in health sector?
a) Coinsurance
b) Deductible
c) Copay
d) Health Insurance
e) None of these
3) On what basis, the policy administration charge is levied in the Unit Linked Insurance Plan?
a) Monthly Basis
b) Daily Basis
c) Yearly Basis
d) Quarterly Basis
e) Half Yearly Basis
4) An agreement between an insurance company and an agent, granting the agent authority to write insurance from that company is called ________
a) Affirmative Warranty
b) Aggregate Limits
c)Aleatory contract
d) All-Risk Agreement
e) None of these
5) In the Retirement plans, an investor can claim tax deductions up to ________ per year under Section 80C of the Income Tax Act, 1961.
a) ₹ 50000
b) ₹ 250000
c) ₹ 200000
d) ₹ 100000
e) ₹ 150000
6)Which among the following correctly defines the Principle of Contribution in an insurance contract?
a) It defines that the premium should be equally distributed among all the insurance companies.
b) It defines that the loss should be shared by all the insurance companies involved.
c) It defines that the loss amount should be paid to all the family members or legal heirs of the insured.
d) It defines that the insured can claim only up to the amount of actual loss either from one insurer or from all the insurers combined.
e) None of the above
7) _______ is a policy contract that for some reason specified in the policy becomes free of all legal effect.
a) Salvage
b) Schedule
c) Retrospective Rating
d) Void
e) None of these
8) A single Insurance company offers both life and non-life policies is known as _________
a) Service Provider
b) Composite Insurer
c) Mutual Insurance Company
d) Single Plan insurance
e) None of the Above
9) Name the insurance that is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc?
a) Property Insurance
b) Health Insurance
c) Motor Insurance
d) Life Insurance
e) Travel Insurance
10) IRDAI has constituted a ______ member committee to examine motor third party insurance pricing aspects and make recommendations on the premium rates for 2019-20.
a) 10
b) 12
c) 14
d) 16
e) 18
Answers:
1) Answer: b)
The person whose life is insured by an individual life policy is called life assured.
2) Answer: c)
A copayment or copay is a fixed amount for a covered service, paid by a patient to the insurance company before patient receives service from physician
3) Answer: a)
Policy Administration Charge is a fee levied for the administration of the policy and is charged on monthly basisby the cancellation of units from all the funds chosen.This could be flat throughout the policy term or vary at a pre-determined rate
4) Answer: a)
An affirmative warranty is a statement regarding a fact at the time the contract was made.
5) Answer: e)
An investor can claim tax deductions up to ₹ 150000 per year under Section 80C of the Income Tax Act, 1961. 1/3rd of the accumulated pension can be withdrawn without paying any taxes. Retirement Plan offers the benefits of both investment and insurance cover. In this plan, a person can invest a certain amount regularly to accumulate over a specific tenure in a phase-by-phase manner.
6) Answer: d)
The Principle of Contribution defines that the insured can claim the actual loss amount from one insurer or from all the insurers combined. It is actually a corollary of the Principle of Indemnity in an insurance contract. Therefore, it is applicable to all the contracts of indemnity of insurance.
7) Answer: d)
A policy or other contract that has no legal validity is described as void. When an insurance company voids a life insurance policy, it is usually due to the discovery of misrepresentation of material facts by the person insured. It is as though the voided policy was never in effect since all premiums paid are usually returned to the policy owner.
8) Answer: b)
Composite Insurer refers to an insurance company which sells both casualty insurance and life insurance against damage to household contents, automobiles, and travel plans.
9) Answer: d)
Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.
10) Answer: d)
Insurance regulator IRDAI has constituted a 16-member committee to examine motor third party insurance pricing aspects and make recommendations on the premium rates for 2019-20. This is for the first time the Insurance Regulatory and Development Authority of India has formed such a committee. IRDAI Member – Non Life P.J. Joseph will be the Chairman of the committee.
