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) The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called _____
a) Adjuster
b) Appointee
c) Service Provider
d) Aggregate
e) None of these
2) Which principle specifies an insured should not collect more than the actual cash value of a loss?
a) Indemnity
b) Premium
c) Annuity
d) Liquidity
e) None of these
3) The one who will get the insured amount if you die, is referred to as __________
a) Insured or Policyholder
b) Nominee or Beneficiary
c) Insurer
d) Agent
e) Relatives
4) ________ is the amount of money an insurance policy guarantees to pay before any bonuses are added.
a) Fund
b) Annuity
c) Sum Assured
d) Maturity Value
e) None of these
5) The payment of sum assured to the insured person which has become due by instalments under a money back policy is known as ______
a) Surrender Value
b) Paid-up value
c) Sum Assured
d) Survival Benefit
e) Maturity Value
6) _______ is legal contract in which the outcome depends on an uncertain event.
a) Affirmative Warranty
b) Aggregate Limits
c)Aleatory contract
d) All-Risk Agreement
e) None of these
7) 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
8) A policy that can be cancelled or have the premiums raised by the insurer on a specific anniversary date, subject to certain reasons written into the policy is known as ________
a) Conditional Contract
b) Conditional Receipt
c) Conditional Renewable
d) Consequential loss
e) Acts Of God
9) _______ is the age at which the receipt of pension starts in an insurance-cum-pension plan.
a) Surrender age
b) Starting age
c) Vesting age
d) Maturity age
e) Fidelity Age
10) To use life insurance policy benefits as collateral for a loan is called ______
a) Surrender Value
b) Paid-up value
c) Collateral Assignment
d) Maturity Claim
e) Blanket Assign
Answers:
1) Answer: b)
Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.
2) Answer: a)
The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss.
3) Answer: b)
A person who receives the benefit in case of death of the insured person is a nominee.
4) Answer: c)
Sum assured is the guaranteed amount the policyholder will receive.
5) Answer: d)
Survival benefits are benefit given to the policy holder during or upon completion of the policy tenure.
6) Answer: c)
An aleatory contract is a contract in which the performance of one or both parties is contingent upon the occurrence of a particular event.
7) Answer: a)
An affirmative warranty is a statement regarding a fact at the time the contract was made.
8) Answer: c)
A contract of health insurance stating that the policy is renewable under certain conditions as defined in the contract.
9) Answer: c)
The age at which you start receiving pension in an insurance-cum-pension plan is known as vesting age.
10) Answer: c)
A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan.
