LIC AAO 2019 – Insurance Awareness Questions (Day – 21)

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.

LIC AAO 2019 – Insurance Awareness Questions (Day – 21)

maximum of 10 points
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1) The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called ____________

a) Deductible

b) Cancellation

c) Collectable

d) Renewable

e) None of these

2) TDI stands for _____________

a) Trade Demand Insurance

b) Trade Disruption Insurance

c) Tax Disruption Insurance

d) Total Disruption Insurance

e) None of these

3)The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called   

a) Adjuster

b) Appointee

c) Service Provider

d) Aggregate

e) None of these

4) ________ is the period between the date of subscription to an insurance-cum-pension policy and the time at which the first instalment of pension is received.

a) Appreciation

b) Depreciation

c) Deferment

d) Recognition

e) None of these

5) The person in whose name the insurance policy is made is referred to as

a) Insured or Policyholder

b) Nominee or Beneficiary

c) Insurer

d) Agent

e) None of these

6) The Payment to the policyholder at the end of the stipulated term of the policy is called      

a) Surrender Value

b) Paid-up value

c) Sum Assured

d) Maturity Claim

e) None of these

7) Insurance coverage for more than one item of property at a single location, or two or more items of property in different locations is known as

a) Blanket Coverage

b) Blanket Value

c) Blanket Assign

d) Blanket Bond

e) None of these

8) The ratio of losses incurred to premiums earned actually experienced in a given line of insurance activity in a previous time period is called     

a) Actual Loss Ratio

b) Acts Of God

c) Actuarial Cost Assumptions

d) Combined Ratio

e) None of these

9) An agreement between an insurance company and an agent, granting the agent authority to write insurance from that company is called           

a) Affirmative Warranty

b) Aggregate Limits

c) Aleatory contract

d) All-Risk Agreement

e) None of these

10) A property or liability insurance contract in which all risks of loss are covered is called ___________

a) Affirmative Warranty

b) Aggregate Limits

c) Aleatory contract

d) All-Risk Agreement

e) None of these

Answers :

1) Answer: a)

The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called Deductible

2) Answer: b)

TDI – Trade Disruption Insurance

3) Answer: b)

Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.

4) Answer: c)

Period between the subscription date of an insurance-cum-pension policy and the time at which the first instalment of pension is received is called as deferment period.

5) Answer: a)

A person or group in whose name an insurance policy is held is known as Insured or Policyholder.

6) Answer: d)

The Payment to the policyholder at the end of maturity date is known as maturity claim.

7) Answer: a)

Blanket coverage refers to a category of business insurance policies covering multiple properties that are similar in nature but not at the same location.

8) Answer: a)

Loss Ratio in insurance is the ratio of total amount paid out in claims plus adjustment expenses divided by the total earned premiums.

9) Answer: a)

An affirmative warranty is a statement regarding a fact at the time the contract was made.

10) Answer: d)

A property or liability insurance contract in which all risks of loss are covered except those specifically excluded is called All-Risk Agreement.

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