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. 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.
[WpProQuiz 5681]
1) The insured can change a normal policy into a paid-up policy if he has paid premium for a period of at least ________ years.
a) Three
b) Four
c) Five
d) Six
e) Ten
2) Which of the following is an insurance policy which provides payment at regular intervals especially after the retirement?
a) Accident Insurance Policy
b) Pension Policy
c) Annuity Policy
d) Double Accident Benefit Policy
e) None of the above
3) Which among the following is an insurance contract that covers the death of one person and the sum assured is payable if the person dies within the policy term?
a) Single Life Insurance Policy
b) Endowment Life Insurance Policy
c) Term Policy
d) Pure Term Policy
e) None of the above
4) Where is the headquarters of the Tata AIG General Insurance Company situated?
a) Mumbai
b) New Delhi
c) Kolkata
d) Chennai
e) None of the above
5) The Insurance Regulatory and Development Authority of India has been granted the powers to frame rules for insurance sector in India under ________ of the Insurance Act 1938.
a) Section 114
b) Section 114A
c) Section 112
d) Section 115A
e) Section 116A
6) The headquarters of the SBI Life Insurance Company is located at ________.
a) New Delhi
b) Mumbai
c) Lucknow
d) Gurugram
e) None of the above
7) In 1972, the general insurance business was nationalized and ________ insurance companies were amalgamated into four companies.
a) 108
b) 107
c) 110
d) 112
e) 110
8) The amount that is payable to the insured in case of premature exit from the policy is known as ________.
a) Surrender Value
b) Lapse Value
c) Maturity Value
d) Exceptional Value
e) None of the above
9) The New India Assurance Company was established in ________.
a) 1919
b) 1929
c) 1948
d) 1909
e) 1914
10) Which among the following is the basic insurance principle that mandates that the insured should take all necessary steps to prevent any kind of loss to the insured property?
a) Principle of Indemnity
b) Principle of CausaProxima
c) Principle of Subrogation
d) Principle of Insurable Interest
e) Principle of Loss Minimization
Answers :
1) Answer: a)
A normal policy can be changed into a paid-up policy after the payment of three premiums in full. In case of a paid-up policy, even if the premium is not paid, the policy does not lapse. However, the sum assured in a paid-up policy gets reduced in proportion to the number of premiums paid by the insured.The insured can change a normal policy into a paid-up policy if he has paid premium for a period of at least 3 years
2) Answer: c)
Annuity Policy is such that it has the option to provide payment to a person at specific intervals, especially after the retirement. In this policy, the premium is paid for a certain period of time and after that, the periodic payment is made to the insured.
3) Answer: a)
The Single Life Insurance Plan is meant to cover for any loss to a single person. The chosen sum assured will be payable to the nominee of the insured in case of death of the policyholder during the policy term. Once the policy expires, the cover would end.
4) Answer: a)
The Tata AIG General Insurance Company is a joint venture between Tata Group and American International Group. The headquarters of the company is based in Mumbai, Maharashtra. It was founded in the year 2001.
5) Answer: b)
The Insurance Regulatory and Development Authority of India came up in India in 2000 with the objective of regulating the insurance sector in the country. It was given the powers to regulate the insurance companies in India as per the provisions of the Section 114A of the Insurance Act 1938.
6) Answer: b)
The SBI Life Insurance Company is a joint venture between SBI and BNP Paribas Cardif. It was founded in the year 2001 and is based in Mumbai, Maharashtra. The present MD-CEO of the company is Mr.SanjeevNautiyal.
7) Answer: b)
In 1972, the general insurance business was nationalized and 107 general insurance companies were merged into four companies – New India Assurance, Oriental Insurance, United India Insurance and National Insurance Company.
8) Answer: a)
Surrender Value is defined as the amount that the policyholder may get in case of a premature exit from the policy. This is permissible only after three years of full payment of premium to the insurer.
9) Answer: a)
The New India Assurance Company was established in the year 1919 by Sir Dorabji Tata. This was nationalized in the year 1972 as per the provisions of the General Insurance Business (Nationalization) Act 1972. The head office of NIACL is situated in Mumbai. It is also the largest general insurance company in India.
10) Answer: E)
The Principle of Loss Minimization defines that the insured should take all the necessary steps in order to prevent any kind of loss to the insured property in case of any uncertain event. It is one of the seven basic principles of any insurance contract.
This post was last modified on March 30, 2019 5:09 pm