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) _______ is a policy contract that for some reason specified in the policy becomes free of all legal effect.
a) Salvage
b) Schedule
c) Retrospective Rating
d) Void
e) None of these
2) 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
3)If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as _____.
a) Termination Value
b) Maturity Value
c) Pre-mature Value
d) Surrender Value
e) Holder Value
4)___ is the period within which, if you do not agree to the terms and conditions of the insurance policy you can seek refund?
a) Cancellation Period
b) Overlook Period
c) Free Look Period
d) Down Time Period
e) None of these
5) What is the amount of insurance coverage provided under the Pradhan Mantri Jan Arogya Yojana (PMJAY)?
a) Rs 25 lakh
b) Rs 12 lakh
c) Rs 18 lakh
d) Rs 20 lakh
e) Rs 5 lakh
6) Which among 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
7) The person in whose name the insurance policy is made is referred to as
a) Insured or Policyholder
b) Nominee or Beneficiary
c) Insurer
d) Agent
e) None of these
8) What does the principle of loss minimisation means?
a) The least possible loss will be repaid by insurance company.
b) It is the duty of the insurer to keep a check on insured property for minimum loss.
c) It is the duty of insured to take reasonable care to minimise the loss.
d) A and C both are true
e) All are true
9) 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
10) What does the term ‘bancassurance’ mean?
a) Assurance from the bank to its account holder regarding the safety of his money
b) A special product designed by the bank
c) Selling of insurance policies by banks
d) The understanding between banks and insurance companies
e) None of the given options is true
Answers :
1) Answer: d)
A policy or other contract that has no legal validity is described as void. When an insurance company voids a life insurance policy, it is usually due to the discovery of misrepresentation of material facts by the person insured. It is as though the voided policy was never in effect since all premiums paid are usually returned to the policy owner.
2) 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.
3)Answer: d)
If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.
4) Answer: c)
Free Look Period is the period within which, if you do not agree to the terms and conditions of the policy after reading the same, you can return the policy immediately and seek refund of premium from the insurance company. Normally, all life insurance policies and health insurance policies having a term of three years or more have a provision for free look period.
5) Answer: e)
Pradhan Mantri Jan Arogya Abhiyan (PMJAY) aims to provide insurance coverage of Rs. 5 lakh per family annually.The insurance cover will take care of almost all secondary care and most tertiary care procedures.It will be allowed to take cashless benefits from any public/private hospitals across the country.The benefits cover will also include pre and post-hospitalization expenses.
6) 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.
7) Answer: a)
A person or group in whose name an insurance policy is held is known as Insured or Policyholder.
8) Answer: c)
According to the principle of loss minimisation, it is the duty of the insured to take reasonable care to minimise the loss. The insured person has to make every possible effort to keep the property safe.
9) 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.
10)Answer: c)
Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company’s insurance products to its clients.
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