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 5819]
1) Which among the following acts was the first legislative measure to regulate life business?
a) The Indian Insurance Companies Act, 1928
b) The Indian Life Assurance Companies Act, 1912
c) The IRDAI Act, 1999
d) Life Insurance Companies Act, 1956
e) General Insurance Business (Nationalization) Act, 1972
2) If a person has a health insurance policy of 8 Lakhs with New India Assurance Company, the same person is eligible to get a discount offer of ________ in premium of New India Mediclaim Policy.
3) A person has entered into a contract with the Insurance Company to sell the products of the particular company is called _________.
a) Insurance Broker
b) Independent Agent
c) Special Agent
d) Captive Agent
e) Intermediate Agent
4) IRDAI cannot have more than ____ part-time members.
5) You can cancel the insurance policy offered by insurers over distance mode within _____ of receipt of the policy.
a) 20 days
b) 30 days
c) 60 days
d) 28 days
e) 25 days
6) Recently, the government has revised the guidelines of PMFBY. Insurance companies should pay _________ interest rate to farmers for the delay in settlement claims beyond 10 days of the prescribed cut-off date for payment of claims.
7) _____________ is the period within which, if you do not agree to the terms and conditions of the insurance policy you can seek refund?
a) Cancellation Period
b) Overlook Period
c) Free Look Period
d) Down Time Period
e) None of these
8) What is the current rate of contribution of employers and employees under ESIC respectively?
a) 4% and 1%
b) 3% and 1%
c) 4% and 2%
d) 3% and 2%
e) 4% and 3%
9) ____________is the maximum amount an insurer will pay for covered losses during a policy period.
a) Extended Coverage
b) Conditional Receipt
c) Affirmative Warranty
d) Aggregate Limits
e) None of these
10) What is the shareholding of National Agricultural and Rural Development Bank (NABARD) in Agriculture Insurance Company of India Limited (AIC)?
1) Answer: b)
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business.In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies.
2) Answer: d)
A discount of 5% shall be offered in Premium of New India Mediclaim Policy, to the Insured’s who has Health Insurance Policy with New India Assurance Company. New India Mediclaim Policy is available for any Person who has a Health Insurance Policy with Sum Insured of 8 lakhs and above.
3) Answer: d)
A Captive Agent can only sell the products of specific insurance companies. They are not necessarily employed by that company, but they have entered into a contract with that insurance company and can only offer products and services from that company. Independent agents are not tied to any individual insurance company and work directly for the customer.
4) Answer: b)
The IRDAI authority shall consist of the following members, namely:– (a) A Chairperson; (b) Not more than five whole-time members; (c) Not more than four part-time members.
5) Answer: b)
In case of disagreement with the terms of the policy under all life contracts and covers tied to credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3 years or more, you have the right to cancel the insurance policy offered by insurers over distance mode within 30 days of receipt of the policy, provided no claim has already been made on the policy.
6) Answer: d)
The government has comprehensively revised the Operational Guidelines of the PradhanMantriFasalBimaYojana (PMFBY) which have become effective from Rabi 2018-19. Insurance companies should pay 12% interest rate per annum to farmers for the delay in settlement claims beyond 10 days of the prescribed cut-off date for payment of claims. State Government must pay 12% interest rate for delay in the release of the State share of Subsidy beyond three months of the prescribed cut-off date of requisition by Insurance Companies.
7) Answer: c)
Free Look Period is the period within which, if you do not agree to the terms and conditions of the policy after reading the same, you can return the policy immediately and seek refund of premium from the insurance company. Normally, all life insurance policies and health insurance policies having a term of three years or more have a provision for free look period.
8) Answer: a)
The current rate of contribution of employers and employees under ESIC are 4% and 1% respectively.
9) Answer: d)
The annual aggregate limit is the total amount an insurer will pay in a given single year.
10) Answer: a)
Indian General Insurance Corporation – 35 % ; National Agricultural and Rural Development Bank (NABARD) – 30 % ; National Insurance Company Limited – 8.75 % ;The New India Assurance Company Limited – 8.75 % ;The Oriental Insurance Company Limited – 8.75 % ;United India Insurance Company Limited – 8.75 %