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.
[WpProQuiz 5697]Click Here to Take LIC AAO Prelims Mock Test
1) When an insurer passes some part of or all risks to another Insurer called Reinsurer, this type of Insurance is called ____________
a) Self Insurance
b) Dual Insurance
c) Vold Insurance
d) Two Fold Insurance
e) Re-Insurance
2) A standing agreement between insurers and re-insurers. Under a treaty each party automatically accepts specific percentages of the insurer’s business is termed as _______
a) Catastrophe Reinsurance
b) Excess of Loss Reinsurance
c) Facultative Reinsurance
d) Treaty Reinsurance
e) None of these
3) Which of the following principles of Insurance denotes insurance of same subject matter with two different companies or with the same company under two different policies?
a) Principle of Proximate Cause
b) Principle of Subrogation
c) Double insurance
d) Principle of Indemnity
e) None of these
4) RSBY is a government-run health insurance programme for the Indian poor. What is the meaning of “S” in RSBY?
a) Service
b) Scheme
c) Security
d) Swasthya
e) System
5) Name the insurance that is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc.
a) Property Insurance
b) Health Insurance
c) Motor Insurance
d) Life Insurance
e) Travel Insurance
6) _______________ is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.
a) Risk Retention
b) Risk Management
c) Risk control
d) Risk Transfer
e) Risk Avoidance
7) The Executive Council of Insurers, previously known as Governing Body of Insurance Council (GBIC) has been established under the Insurance Ombudsman Rules ______________ to set-up and facilitate the Institution of Insurance Ombudsman in India.
a) 2015
b) 2016
c) 2014
d) 2018
e) 2017
8) The main objects of IBAI are to promote interaction among the Insurance/Re-insurance Broker members. IBAI stands for-
a) Insurance Banking Association of India
b) Insurance Brokers Assembly of India
c) Insurance Brokers Agency of India
d) Insurance Brokers Association of Institute
e) Insurance Brokers Association of India
9) ______ is the only dedicated Institution for education in Insurance and Actuarial Science in the World.
a) IBAI
b) IRDAI
c) IIRM
d) IIB
e) IGMS
10) Beneficiaries under RSBY are entitled to hospitalization coverage up to Rs. _______________ for most of the diseases that require hospitalization.
a) Rs. 30,000/-
b) Rs. 20,000/-
c) Rs. 50,000/-
d) Rs. 90,000/-
e) Rs. 10,000/-
Answers:
1) Answer: e)
Reinsurance refers to the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The Insurer passes some part of or all risks to another Insurer called Reinsurer
2) Answer: d)
A pre-negotiated agreement between the primary and the reinsurer.Under a treaty each party automatically accepts specific percentages of the insurer’s business is termed asTreaty Reinsurance
3) Answer: c)
Double insurance denotes insurance of same subject matter with two different companies or with the same company under two different policies. Insurance is possible in case of indemnity contract like fire, marine and property insurance.
4) Answer: d)
Rashtriya Swasthya Bima Yojana (RSBY) is a government-run health insurance programme for the Indian poor. The scheme aims to provide health insurance coverage to the unrecognised sector workers belonging to the BPL category and their family members shall be beneficiaries under this scheme.
5) Answer: d)
Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.
6) Answer: c)
Risk control is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.
7) Answer: e)
The Executive Council of Insurers, previously known as Governing Body of Insurance Council (GBIC) has been established under the Insurance Ombudsman Rules, 2017, to set-up and facilitate the Institution of Insurance Ombudsman in India. The Executive Council of Insurers consists of nine members including the Chairperson.
8) Answer: e)
The main objects of Insurance Brokers Association of India (IBAI) are to promote interaction among the Insurance/Re-insurance Broker members and to encourage, promote, facilitate and protect the interests of the members of IBAI and to provide an avenue to the members for further education, training and research in all fields of insurance and re-insurance and represent the interests of Brokers with other organizations.
9) Answer: c)
IIRM is the only dedicated Institution for education in Insurance and Actuarial Science in the World. It is unique in character as the Institute is promoted by the Regulator with the sole aim of developing the required work force for the entire Insurance sector. The Institute offers education through the regular and distance modes.
10) Answer: a)
Beneficiaries under Rashtiya Swasthiya Bima Yojana (RSBY) are entitled to hospitalization coverage up to Rs. 30,000/- for most of the diseases that require hospitalization.
