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 Complaint to Insurance Ombudsman must be registered within ____ year.
a) 1 year
b) 2 years
c) 3 years
d) 4 years
e) None of these
2) _______ is a coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.
a) Liquor Liability
b) Inflation Guard Clause
c) Inland Marine Insurance
d) Gap Insurance
e) None of these
3) What is the maximum claim amount for an Insurance Ombudsman complaint?
a) 10 lakh
b) 15 lakh
c) 5 lakh
d) 20 lakh
e) None of these
4) Any insurance risk resulting from a human decision is called _____
a) Partial Risk
b) Static Risk
c) Dynamic Risk
d) Pure Risk
e) None of these
5) A company owned by its policyholders that returns part of its profits to the policyholders as dividends is known as ______
a) Service Provider
b) Composite Insurer
c) Mutual Insurance Company
d) Municipal Bond Insurance
e) None of the Above
6) 168 A period of up to one month during which the purchaser of an annuity can cancel the contract without penalty is known as ______
a) Lock Period
b) Demutualization
c) Annuitization
d) Free Lock Period
e) None of these
7) Name the non-life insurance provider that has recently announced the launch of ‘E@Secure’, a Cyber Insurance Policy for individuals.
a) Bajaj Allianz General Insurance
b) HDFC ERGO
c) Bharti AXA General Insurance
d) ICICI Lombard
e) Reliance General Insurance
8) Life Insurance Corporation of India is an Indian state-owned insurance group and investment company headquartered in ___________
a) Hyderabad
b) Kolkata
c) Chennai
d) New Delhi
e) Mumbai
9) Which of the following insurance is mainly used for leased cars?
a) Double Insurance
b) Commercial Insurance
c) Industrial Insurance
d) Gap Insurance
e) None of these
10) The risk coverage under the PMSBY scheme is __________ lakh for accidental death and full disability and Rs. 1 lakh for partial disability.
a) Rs. 3 lakh
b) Rs. 5 lakh
c) Rs. 4 lakh
d) Rs. 1 lakh
e) Rs. 2 lakh
Answers :
1) Answer: a)
We must file the complaint with the ombudsman within a year of the rejection of our claim by the insurer.
2) Answer: a)
Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons.
3) Answer: d)
Ombudsman’s powers are restricted to insurance contracts of value not exceeding Rs. 20 lakhs.
4) Answer: c)
Integral part of a speculative decision where only three alternatives are possible: gain, loss, or break even. Dynamic risks are not insurable.
5) Answer: c)
A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are rebated to policyholders in the form of dividend distributions or reduced future premiums.
6) Answer: d)
A period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges is termed as Free Lock Period.
7) Answer: b)
HDFC ERGO announced the launch of ‘E@Secure’, a cyber-insurance policy for individuals. This policy aims to provide comprehensive protection to individuals and their families against any cyber- attacks, cyber frauds or digital threats that could lead to a financial loss and/or reputational loss.
8) Answer: e)
Life Insurance Corporation of India is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India.
9) Answer: d)
GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks.
10) Answer: e)
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is available to people in the age group 18 to 70 years with a bank account who give their consent to join/ enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account. The risk coverage under the scheme is Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability.
