Dear Aspirants, LIC AAO is one of 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. LIC AAO Insurance Awareness & Financial Market Awareness section comprises of 30 questions. LIC AAO Insurance Awareness Questions 2019 play an important role in boosting up the score in mains examination and also helps in the interview. Here we are providing a new series of LIC AAO Insurance Awareness Questions 2019. Aspirants can make use of this LIC AAO Insurance Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.
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1)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
2) Where is the headquarters of General Insurance Corporation of India?
a) New Delhi
b) Mumbai
c) Hyderabad
d) Chennai
e) Ahmedabad
3)Suresh Mathur committee on Insurance marketing firms has recommended the migration of an individual agent to Insurance Service Provider. Currently, what is the salary of an ISP?
a) ₹ 2500
b) ₹ 5000
c) ₹ 1000
d) ₹ 7500
e) ₹ 10000
4) Which among the following acts was the first legislative measure to regulate life business?
a) The Indian Insurance Companies Act, 1928
b) The Indian Life Assurance Companies Act, 1912
c) The IRDAI Act, 1999
d) Life Insurance Companies Act, 1956
e) General Insurance Business (Nationalization) Act, 1972
5) Which of the following is correct about ‘First Class Life’?
a) It comes under the low-risk category of life insurance
b) The premium charged is very high
c) It comes under the high-risk category of life insurance
d) The maturity amount is paid in instalments
e) None of the above
6) 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
7) The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called ____________
a) Deductible
b) Cancellation
c) Collectable
d) Renewable
e) None of these
8) The term ‘insurable interest’ is related to which of the following types of insurance?
a) Life Insurance
b) Fire Insurance
c) Marine Insurance
d) General Insurance
e) All of the above
9) Which organisation has formed a committee to investigate the systemically important insurers?
a) IRDAI
b) SEBI
c) RBI
d) FSDC
e) AMFI
10) The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as _______
a) Universal Life Insurance
b) Unauthorized Reinsurance
c) Unearned Premium
d) Retrospective Rating
e) None of these
Answers :
1) Answer: b)
The person whose life is insured by an individual life policy is called life assured.
2) Answer: b)
General Insurance Corporation of India (GIC)
Headquarters: Mumbai
Chairman and Managing Director: Alice G Vaidyan
Tagline: AapatkaleRakshisyami
Year of Establishment: 1972
3) Answer: b)
The salary of Insurance Service Providers is ₹ 5000.
Insurance marketing firms are registered by the IRDAI to sell insurance products and services through the ISPs who are employed with these firms.
Suresh Mathur committee on Insurance Marketing Firms recommended that the migration from an agent to ISP and the continuation of renewal commission/benefits of the individual agency and a reduction in the net-worth requirement to ₹ 5 lakh from ₹ 10 Lakh at time of registration.
4) Answer: b)
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies.
5) Answer: a)
First class life is a categorical term present in the classification of life insurance risk. First class life comes under the low-risk category of life insurance and thus is charged normal premium charges. An individual identified as first-class life is subject to normal premium rates for an insurance policy.
6) 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.
7) Answer: a)
The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called Deductible
8) Answer: e)
Insurable interest refers to the interest in the property or thing insured. Only the owner can have the insurable interest in the property. It is related to all types of insurance. In case of life insurance it is related to the life of insured person and in other cases it is related to the subject matter that is insured.
9) Answer: a)
IRDAI has formed a committee to investigate the systemically important insurers.
10) Answer: d)
An insurance policy with a premium that adjusts according to the losses experienced by the insured company, rather than according to an industry-wide loss experience is called Retrospective Rating.
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