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. 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 5763]
1) LIC of India was incorporated on 1st September, 1956 by amalgamating ________ Companies by the Act of Parliament called Insurance Act, 1956.
2) Recently, Insurance Regulatory and Development Authority of India (IRDAI) issued the draft guidelines for ‘Standard Health Product’ under the provisions of Section 34 (1) (a) of Insurance Act, 1938. How many days were fixed as ‘Grace Period’ for yearly payment of mode?
a) 15 Days
b) 10 Days
c) 30 Days
d) 25 Days
e) 45 Days
3) ‘Agriculture Insurance Company of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India. The headquarters of AIC is located in which city?
e) New Delhi
4) What is the name of new micro insurance plan launched by ‘Life Insurance Corporation (LIC)’ recently?
b) Micro Bachat
e) None of these
5) Oriental Insurance Company Limited was incorporated in which year?
6) A person must be benefited by that thing which he wants to be insured is called ?
b) Insurable Interest
d) Contribution of That person
e) None of These
7) What is the amount of risk created by an insurance company, which is not re-insured ?
e) None of These
8) Presently how many Insurance Ombudsman’s offices have been established in India?
9) TIEA provides for the exchange of information on requests relating to a specific criminal or civil tax investigation or civil tax matters under investigation. What is the expanded form of ‘TIEA’ ?
a) Tax Information Enabled Agreement
b) Technology Information Exchange Agreement
c) Time Information Exchange Authority
d) Tax Information Exchange Agreement
e) Tax Identification Enforcement Agreement
10) Subrogation is not applied to which type of contracts?
1) Answer: d)
LIC of India was incorporated on 1st September, 1956 by amalgamating 243 Companies by the Act of Parliament called Insurance Act, 1956. LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959 and Insurance Regulatory and Development Authority Act 1999.
2) Answer: c)
In February, 2019 Insurance Regulatory and Development Authority of India (IRDAI) issued the draft guidelines for ‘Standard Health Product’. The Guidelines on Standard Health Product are issued under the provisions of Section 34 (1) (a) of Insurance Act, 1938. Guidelines issued by IRDAI regarding ‘Grace Period’ for premium payment: For Yearly payment of mode, a fixed period of 30 days is given as Grace Period. All other modes of payment except, Yearly payment of mode a fixed period of 15 days is allowed as a Grace Period. There are four modes of payment -Monthly, Quarterly, Half Yearly, Yearly.
3) Answer: e)
‘Agriculture Insurance Company Of India Limited’ (AIC) (Headquarters-New Delhi) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.
4) Answer: b)
In February, 2019, a new micro insurance plan ‘Micro Bachat’ was launched by the Life Insurance Corporation (LIC) of India. It provides a coverage of up to 2 lakhs and is the first micro-insurance plan to do so. It provides both protection and savings and is a regular premium, non-linked, participating endowment micro insurance plan. In case a policyholder dies, this plan would provide financial assistance to the family. For surviving policyholders, a lump sum amount at the time of maturity shall be provided It can be availed only by standard healthy citizens in the age group of 18-55 years without undergoing any medical examination.
5) Answer: e)
The Oriental Insurance Company Ltd was incorporated in the year 1947. The Oriental Insurance Company Ltd. is a public sector general insurance company of India. The headquarters of the company is located in New Delhi. A.V. Girija Kumar is Chairman& MD of the company.
6) Answer: b)
Insurable interest (refers to the home owner and life insurance) — For homeowner insurance, this is when a person has a legal financial interest in the property that is the subject of the insurance. For life insurance, the policy owner or beneficiary would suffer a genuine loss if a loss occurred.
7) Answer: c)
Retention is the amount of risk created by an insurance company, which is not re-insured. Retentions moderate their risk by placing a financial responsibility onto those they insure, which may moderate riskier behaviors. Retentions, such as deductibles or self-insured retention, moderate premium costs for those purchasing insurance.
8) Answer: b)
The office of the Insurance Ombudsman has been established in 17 cities of India, each having its own jurisdiction. List of Insurance Ombudsmen’s offices; Ahmedabad, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai, Noida, Patna, Pune, Jaipur, Ernakulam. In the event of a claim, you have to approach the Ombudsman under the jurisdiction the insurance Companies office lies with.
9) Answer: d)
Tax information exchange agreements (TIEA) provide for the exchange of information on request relating to a specific criminal or civil tax investigation or civil tax matters under investigation. A model TIEA was developed by the OECD Global Forum Working Group on Effective Exchange of Information.
10) Answer: c)
Subrogation is not applied to non-indemnity contracts. Non-indemnity contracts are the contracts in which there is no obligation to pay for the losses. Subrogation means to pay for the damages caused. So, when a non-indemnity contract is signed, subrogation is itself exempted. Example – gifts.