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 5800]
1) Suresh Mathur committee on Insurance marketing firms has recommended the migration of an individual agent to Insurance Service Provider. Currently, what is the salary of an ISP?
a) Rs. 2500
b) Rs. 5000
c) Rs. 1000
d) Rs. 7500
e) Rs. 10000
2) What is the minimum capital requirement for reinsurance companies?
a) Rs. 250 Crore
b) Rs. 50 Crore
c) Rs. 500 Crore
d) Rs. 100 Crore
e) Rs. 200 Crore
3) Which among the following investigates insurance claims to determine the extent of the insuring company’s liability?
a) Insurance Agent
c) Claim Adjuster
4) In Insurance Sector, what is the full form of ‘RAM’?
a) Risk Annuity Management
b) Reverse Annuity Mortgage
c) Renewal Action on Mortgage
d) Risk Analysing Management
e) Return on Adjusted Mortgage
5) As per the guidelines by the Insurance Regulatory and Development Authority of India, insurers that have completed _______ in the business can raise capital from the market through IPOs.
a) 12 years
b) 5 years
c) 7 years
d) 8 years
e) 10 years
6) According to the latest report by IRDAI, the health insurance has reported a growth of ________ percentage in premium collection.
7) 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
8) Insurance regulator IRDAI has constituted a working group to update the norms for insurance surveyors. Who was appointed head of this group?
a) Harsh Kumar Bhanwala
b) Mohammad Mustafa
e) YegnaPriya Bharat
9) Insurance company “Policybazaar.com” has entered into partnership with which data company to implement blockchain solutions for secure purchase of insurance?
a) FintechPvt. Ltd.
b) Accrivis Network Pvt. Ltd.
c) HCL Technologies
d) Oracle Pvt. Ltd.
e) None of these
10) ‘HDFC ERGO General Insurance Company’ has recently announced tie-up with which bank for the distribution of insurance products through the network of bank branches?
a) Indian Bank
b) Federal Bank
c) Canara Bank
d) Syndicate Bank
e) Axis Bank
1) Answer: b)
The salary of Insurance Service Providers is Rs. 5000.
Insurance marketing firms are registered by the IRDAI to sell insurance products and services through the ISPs who are employed with these firms.
Suresh Mathur committee on Insurance Marketing Firms recommended that the migration from an agent to ISP and the continuation of renewal commission/benefits of the individual agency and a reduction in the net-worth requirement to Rs. 5 lakh from Rs. 10 Lakh at time of registration.
2) Answer: e)
The minimum capital requirement for reinsurance companies is Rs. 200 Crore.Any New life insurance company or non-life insurance company will not be registered unless the company has a paid-up equity capital of a minimum Rs. 100 crores.In the case of a re-insurance company the minimum paid-up equity capital will have to be Rs. 200 crores.
3) Answer: c)
A claims adjuster investigates insurance claims to determine the extent of the insuring company’s liability.
Claims adjusters verify insurance claims and determine a fair amount for settlement. These can be any type of claim, from personal injury to property damage.
Underwriter – An underwriter is any party that evaluates and assumes another party’s risk for a fee.
Rider – Riders are the supplementary benefits added in the primary life insurance policy purchased by the insured.
4) Answer: b)
Reverse Annuity Mortgage is the full form of RAM.
It is a mortgage in which a homeowner’s equity is gradually depleted by a series of payments from the mortgage holder to the homeowner.
5) Answer: e)
As per the guidelines by the Insurance Regulatory and Development Authority of India, insurers that have completed 10 years in the business would be allowed to raise capital from the market through initial public offerings (IPOs).
Insurance firms having completed 8 years of operations in general and reinsurance, and 10 years in life insurance, can go for mandatory listing.
6) Answer: b)
According to the latest annual report of the Insurance Regulatory and Development Authority of India, the health insurance segment has reported a growth of more than 20% in premium collection.In 2017-18, general and health insurance companies collected Rs. 37029 Crore as health insurance premium, registering a growth of 21.8% over 2016-17.
7) 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.
8) Answer: e)
Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 7 member working group for updating the norms for insurance surveyors. The 7-member working group has been formed to address areas pertaining to licensing, renewal and IIISLA Membership in the context of the existing regulatory framework for Surveyors and Loss Assessors. The group will headed by YegnaPriya Bharat, Chief General Manager (Nonlife), IRDAI.
9) Answer: b)
Recently, Policybazaar.com partnered with Accrivis Network Pvt. Ltd., a data integration platform provider, to implement blockchain solutions for secure purchase of insurance.
10) Answer: b)
Recently in December 2018, HDFC ERGO General Insurance Company, India’s leading private sector general insurance company and Federal Bank, announced tie-up for the distribution of HDFC ERGO’s range of non-life insurance offerings to the customers of the bank through its network branches.