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.
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1) UIIC headquarter is located in which city?
a) Chennai
b) Kerala
c) Bangalore
d) Mangalore
e) Hyderabad
2) Which organisation has formed a committee to investigate the systemically important insurers?
a) IRDAI
b) SEBI
c) RBI
d) FSDC
e) AMFI
3) What is the new name of HDFC Standard Life Insurance?
a) HDFC Static Life Insurance
b) HDFC Life Insurance
c) HDFC Insurance Ltd
d) HDFC House & Life Insurance
e) None of these
4) PradhanMantriVayaVandanaYojana (PMVVY) is a scheme for people of what age group?
a) 65 years and above
b) 60 years and above
c) 50 years and above
d) 55 years and above
e) 45 years and above
5) The government of India proposed the merger of which three insurance companies ?
a) National Insurance, Oriental Insurance, United India Insurance
b) National Insurance,General Insurance Corporation of India, United India Insurance
c) National Insurance, General Insurance Corporation of India, New India Assurance
d) National Insurance, General Insurance Corporation of India, Oriental Insurance
e) New India Assurance , General Insurance Corporation of India, Oriental Insurance
6) Which insurance company has recently bought stake in ‘CSC e-Governance services India Limited’?
a) ICICI Prudential Life Insurance Company
b) IDBI Federal Life Insurance Company
c) HDFC Life Insurance Company
d) IndiaFirst Life Insurance Company
e) Bajaj Allianz Life Insurance Company
7) The premium charged by the insurer must incorporate the risk premium that covers not only the claims but also the capital requirements, also called the ________.
a) Liability Requirements
b) Reinsurance
c) Term Insurance
d) General Insurance
e) Solvency Requirements
8) Limit of an insurance company’s liability under a particular insurance policy is called ______.
a) Premium
b) Surplus
c) Accrual
d) Sum Insured
e) Product Liability
9) What do you understand by term “Revival Period” used extensively in insurance sector?
a) Period offered by the insurer to revive the policy before grace period0
b) Period offered by the insurer to revive the policy post grace period
c) Period to claim the policy post maturity
d) Period to reclaim the unearned premium after termination
e) Period allowed to claim maturity amount
10) Which insurance company has announced to set up a remote sensing lab for crop insurance?
a) Apollo Munich Insurance
b) Bajaj Allianz General Insurance
c) Bharti AXA General Insurance
d) HDFC ERGO General Insurance
e) Max Bupa General Insurance
Answers :
1) Answer: a)
UIIC is headquartered in Chennai, while IRDAI is in Hyderabad.
2) Answer: a)
IRDAI has formed a committee to investigate the systemically important insurers.
3) Answer: b)
HDFC Standard Life Insurance changed its name to HDFC Life Insurance in January 2019. The name was changed to align the corporate name of the company with its brand name. HDFC Life Insurance is a life-insurance provider and a joint venture of Housing Development Finance Corporation Ltd (HDFC) and Standard Life Aberdeen PLC.
4) Answer: b)
PMVVY stands for PradhanMantriVayaVandanaYojana and is a pension scheme exclusively for elderly persons aged 60 years and above. The citizens can invest a maximum investment of 15 Lakhs in the PMVVY scheme and the scheme is valid till March 31, 2020. The senior citizens will get assured returns of 8% per annum for 10 years depending on their investments. The exclusive privilege to operate the scheme has been given to the Life Insurance Corporation of India (LIC).
5) Answer: a)
The government of India proposed the merger of National Insurance, Oriental Insurance, United India Insurance.The government wants the merger to be completed by March 31, 2019.
6) Answer: d)
IndiaFirst Life Insurance Company has announced that it has bought nine per cent stake in CSC e-Governance Services India Ltd. IndiaFirst Life Insurance is a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), while CSC is an integral part of Digital India initiative of the government under Ministry of Electronics and Information Technology.
7) Answer: e)
The premium charged by the insurer must incorporate the risk premium that covers not only the claims but also the capital requirements, also called the solvency requirements. In the event that the matching is not done in a pragmatic manner, the underwriting risk arises.
8) Answer: d)
Limit of an insurance company’s liability under a particular insurance policy is called ‘Sum Insured’.
9) Answer: b)
Insurance policy lapses when the insured defaults on the payments of renewal premium beyond a grace period. Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. This period offered by the insurer to revive the policy and avail benefits pertaining to it is termed as revival period.
10) Answer: d)
In November, 2018, HDFC ERGO General Insurance set up a remote sensing lab for crop insurance. It will help in early detection of information and will be used to alert the farmers.
