Dear Aspirants, LIC HFL is one of the most important exam in the competitive examination. LIC HFL mains exam consists of three sections i.e. Reasoning ability and Numerical Ability, General knowledge & Current affairs and Insurance & Financial Market Awareness. LIC HFL Insurance Awareness & Financial Market Awareness section comprises of 50 questions. LIC HFL 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 HFL Insurance Awareness Questions 2019. Aspirants can make use of this LIC HFL Insurance Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.
1) Insurance policy lapses when the insured defaults on the payments of renewal premium beyond __________.
a) Exclusion Period
b) Affiliation Period
c) Grace Period
d) Revival Period
e) Waiting Period
2) Which insurance policy is designed to pay off a policyholder’s debt if the policyholder dies?
a) Whole life insurance
b) Credit Life Insurance
c) Universal Life Insurance
d) Individual Life Insurance
e) None of these
3) BNP Paribas Cardif partner of ______________ recently sold 5 crore shares of the company for Rs 2,889 crore.
a) Aviva Life Insurance
b) Bajaj Allianz Life Insurance
c) Bharti AXA Life Insurance
d) SBI Life Insurance
e) HDFC Life Insurance
4) Which of the following principles of insurance does not apply to life insurance?
a) Utmost good faith
d) Both 2 and 3
e) Both 1 and 2
5) In June 2019 __________was appointed new Secretary General of the General Insurance Council.
a) Usha Ananthasubramanian
b) MN Sarma
c) Alice Vaidyan
d) Sanjeev Srinivasan
e) Bhargav Dasgupta
6) An insurance company has an incurred claim ratio of 90%. What does it indicate?
a) Rs.10 is the profit to the company.
b) It suffered a loss of Rs. 90 in their business
c) For every Rs.100 earned as premium, Rs.90 were spent on the claims settled by the insurer
d) Both a & C
e) All of the above
7) What amount of accidental insurance cover that provided under Pradhan Mantri Jan Dhan Yojana?
a) Rs. 30000
b) Rs. 10000
c) Rs. 100000
d) Rs. 200000
e) Rs. 500000
8) HDFC ERGO General Insurance Company, announced a collaboration to co-create new _________based solutions on IBM Cloud.
d) Artificial Intelligence
9) In Feb, 2019 MobiKWik partnered with _________ to roll out the microinsurance product that offers Rs. 1 Lakh for a premium of Rs.20.
a) Bajaj Allianz Life Insurance Company
b) Bharti AXA Life Insurance Company
c) IDBI Federal Life Insurance Company
d) ICICI Prudential Life Insurance Company
e) IndiaFirst Life Insurance Company
10) ‘Satellite Sampark’ offices are dedicated to which of the following insurance companies/banks?
a) None of these
b) Life Insurance Corporation of India
c) General Insurance Corporation of India
d) National Insurance Company
e) HDFC General Insurance Company
1) Answer: c)
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.
2) Answer: b)
Credit life insurance is a life insurance policy designed to pay off a borrower’s debt if that borrower dies. The face value of a credit life insurance policy decreases proportionately with an outstanding loan amount as the loan is paid off over time until both reach zero value.
3) Answer: d)
BNP Paribas Cardif, the foreign partner of SBI Life Insurance, sold 5 crore shares of the company for Rs 2,889 crore. The sale was done at average price of Rs 577.93 per equity share.
4) Answer: d)
Indemnity means the insured in case of loss against which the policy has been insured, shall be paid the actual cost of loss not exceeding the amount of the insurance policy.
In life insurance, principle of indemnity does not apply as there is no question of actual loss. The insurer is required to pay a fixed amount upon in advance in the event of accident, death or at the expiry of the fixed term of the policy. Thus, a contract of a life insurance is a contingent contract and not a contract of indemnity.
If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. The principle of contribution is a corollary to the doctrine of indemnity. It applies to any insurance which is a contract of indemnity. So, it does not apply to life insurance.
5) Answer: b)
MN Sarma, the former Chairman & Managing Director (MD) of United India Insurance will be the new Secretary General of the General Insurance Council. He will be supported by CR Vijayan, a former director of the GIC Re, who has been selected as the deputy Secretary General of the GI Council.
6) Answer: d)
An insurance company’s incurred claim ratio is 90%. Then it indicates that, for every Rs.100 earned as premium, Rs.90 spent on the claims settled by the insurer. Therefore, Rs.10 is the profit to the company. If this incurred claim ratio is over and above 100%, then it indicates that they suffered a loss in their business.
7) Answer: d)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
The scheme provides accidental insurance cover of Rs. 2.00 Lakh and life cover of Rs. 30,000/- payable on the death of the beneficiary, subject to fulfilment of the eligibility condition.
8) Answer: d)
IBM and HDFC ERGO General Insurance Company, India’s third largest non-life insurance provider in the private sector, announced a collaboration to co-create new Artificial Intelligence (AI) based solutions on IBM Cloud, that will redefine customer experience in India.
9) Answer: d)
MobiKwik has announced the launch of digital life insurance on its app to its users. MobiKwik partnered with ICICI Prudential to roll out first the group microinsurance product. It offers a life cover of Rs. 1 Lakh for a monthly premium as low as Rs. 20.
10) Answer: b)
With a vision of providing easy access to its policyholders, Life Insurance Corporation of India launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.