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 5894]1) Life Insurance Corporation of India has signed an agreement with Central Depository Services to provide ___________ coverage to demat account holders.
a) Whole Life Insurance
b) Motor Insurance
c) Liability Insurance
d) Group Insurance
e) Health Insurance
2)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
3)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
4) An insurance cover that is linked with credit activities and aims to protect the credit is called ______
a) Claims
b) Retrocession
c) Retrospective Rating
d) Credit life
e) None of these
5) As per the regulations of IRDAI, which insurance policy cannot be declined to underwrite the policy?
a) Term Insurance Policy
b) Unit Linked Insurance Policy
c) Third Party Insurance Policy
d) Valued Insurance Policy
e) Whole Life Insurance Policy
6)What does ‘Co-insurance’ term mean in Health insurance?
a) Taking two insurance policies simultaneously
b) Taking Joint insurance
c) Percentage premium of Health and Vehicle insurance
d) Taking Property and Term Insurance
e) Percentage of Health expenditure paid by policyholder
7) Which of 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
8) Which of the following types of companies/organizations issue ULIP?
a) Insurance companies
b) SIDBI
c) NABARD
d) RBI
e) None of these
9) What is the limit of FDI in Insurance sector?
a) 47 percent
b) 50 percent
c) 49 percent
d) 51 percent
e) None of these
10) Compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or other party is called ___________
a) Insured amount
b) Arbitration
c) Reimbursement
d) Retention
e) None of these
Answers :
1) Answer: d)
Life Insurance Corporation of India has signed an agreement with Central Depository Services (India) to provide group insurance coverage to all eligible Demat account holders between the age of 18 years and 59 years. The scheme would provide a cover of ₹1 lakh to a maximum of ₹5 lakh for any single individual at a very nominal price.
2) Answer: b)
The person whose life is insured by an individual life policy is called life assured.
3) 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.
4) Answer: d)
Insurance that covers such a loan is known as credit life/credit disability.
5) Answer: c)
As per the IRDAI, no insurer can decline to underwrite third party insurance. Third Party Insurance Policy covers the third person who has been injured in an accident involving the owner and his/her car. It doesn’t provide direct benefit to the insured. This is a mandatory cover, along with the own damage cover, that a vehicle owner must purchase. This insurance cover is for any collateral damage to a third party.
6) Answer: e)
Coinsurance is a form of cost sharing for health services between insurance companies and the insured.
7) 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.
8) Answer: a)
ULIP stands for unit linked insurance plans. ULIP is a combination of insurance and investment. Here policyholder can pay a premium monthly or annually.
9) Answer: c)
The limit of FDI in Insurance sector is 49 percent.
10) Answer: c)
Compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or other party. Reimbursement of business expenses, insurance costs, and overpaid taxes are common examples.
This post was last modified on April 16, 2019 3:33 pm