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. Â Insurance & Financial Market Awareness questions plays an important role in boosting up the score in mains examination and also helps in interview. Here we are providing new series of Practice Questions on Insurance awareness. Aspirants can make use of it, to improve score in Insurance & Financial Market Awareness section.
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1) Loan under policy should not exceed which of the following?
a) Surrender Value
b) Sum Assured
c) Total premium paid
d) Bonus
e) None of them
2) Choose the correct statement from the given below statements.
a) Assignment in a policy takes precedence over nomination.
b) A nominee will receive the benefits of an insurance policy only on the death of the insured
c) An assignee will get the benefits of an insurance policy only on the death of the insured.
d) The assignment of a policy are of three types
e) Both a) and b)
3)Â A person can transfer his rights, title, and interest in a life insurance policy to another.This is called _______
a) Cession
b) Nomination
c) Assignment
d) Arbitration
e) None of the above
4) Which of the following is a case of Premium Diversion?
a) An insurance agent not transferring premium to underwriter
b) Selling of insurance without license
c) An insurance agent transferring premium to underwriter
d) A policy holder not transferring premium to agent on time
e) Both a) and b)
5) A wrongful act or an infringement of a right leading to legal liability is called ________.
a) Term
b) Tort
c) Peril
d) Slip
e) Cede
6) What is meaning of Blanket Insurance?
a) Provides an annuity for a certain number of years
b) A broad commercial policy that covers all liability exposures of a business
c) Insurance that covers liability for errors and omissions
d) A policy designed to provide coverage under a single limit for two or more items
e) None of these
7) 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
8) Read the following statements carefully:
- Insurance companies are not liable to compensate accident claims for public transport vehicles plying without permits, the Supreme Court said.
2.’Permits’ are authorization given by State authorities to use motor vehicles as transport vehicles.
- Insurance companies are liable to compensate accident claims for public transport vehicles plying without permits, the Supreme Court said.
4.’Permits’ are authorization given by Central authorities to use motor vehicles as transport vehicles.
Which of the above statements is/are correct?
a) Only 1 and 4
b) Only 3 and 4
c) Only 1 and 2
d) Only 2 and 3
e) Only 4
9) Which among the following is the tagline of the Religare Health Insurance Company Limited?
a) Values that bind
b) You never understand yourself
c) Never underestimate your health
d) We know your health needs
e) None of the above
10) What is the tagline of the Apollo Munich Health Insurance Company?
a) Let’s Uncomplicate
b) We know your health needs.
c) Health Insurance is more important than health and we know that.
d) We are your healthy friends.
e) None of the above
Answers :
1) Answer: a)
The cash surrender value is the sum of money an insurance company pays to the policyholder or annuity holder in the event his policy is voluntarily terminated before its maturity or the insured event occurs. It is also known as “cash value,” “surrender value” and “policyholder’s equity.”
2) Answer: e)
i) Assignment in policy takes precedence over the nomination.
ii) A nominee will receive the benefits of an insurance policy only on the death of the insured.
iii) An assignee will get the benefits of an insurance policy during the lifetime of the insured.
iv)Â The assignment of policy is of two types.
3) Answer: d)
A person can transfer his rights, title and interest in a life insurance policy to another by assigning it to him. This process is called Assignment. The person who transfers the rights is called assignor and the rights transferred to a person is called Assignee.
4) Answer: e)
We purchase insurance, through an insurance agent. But the insurance policy is actually provided by an underwriter who receives your premiums through the agent.
Premium diversion is a case
1)When you are giving your premium to respective insurance agent but that amount is not delivered to the underwriter. And he keeps your premium for personal use.
2) When someone sells insurance without a license, collects the premium payments, and then fails to pay claims.
5) Answer: b)
- The period of time for which a policy is issued is called a Term.
- A wrongful act or an infringement of a right leading to legal liability is called Tort.
- The cause of immediate loss or danger is called Peril. Hazard is not included in this danger.
- A term used to describe a summary of contract terms and conditions are shown to an underwriter by a broker when a risk is offered is called Slip.
- To transfer risk from an insurer to a reinsurer is called Cede.
6) Answer: d)
‘Blanket Insurance’ A single policy on an insured property that covers more than one type of property at the same location, the same kind of property at more than one location, or two or more kinds or property at two or more locations.
7) 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.
8) Answer: c)
Insurance companies are not liable to compensate accident claims for public transport vehicles plying without permits, the Supreme Court said. ‘Permits’ are authorisation given by State authorities to use motor vehicles as transport vehicles. The verdict came on an accident involving a truck which fatally hit a two-wheeler rider in February 2013 at Pathankot.
9) Answer: a)
The tagline of the company is ‘Values that bind’.The Religare Health Insurance Company Limited is a joint venture between Religare enterprise limited, Corporation Bank and Union Bank of India.It came into existence in July 2012.
10) Answer: a)
The tagline of the company is ‘Let’s Uncomplicate’. The Apollo Munich Health Insurance Company is based in Gurgaon, Haryana. It was founded in the year 2007.
