LIC AAO 2019 – Insurance Awareness Questions (Day – 26)

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.

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1)IndiaFirst Life Insurance Company, a life insurance company in India is a joint venture between UK’s financial and investment company Legal & General and which two banks?

a) State Bank of India and Vijaya Bank

b) Allahabad Bank and Bank of India

c) Bank of Baroda and Andhra Bank

d) Indian Overseas Bank and Union bank of India

e) State Bank of India and Andhra Bank

2) PNB MetLife was initially launched as MetLife India Insurance Company Limited. Headquarters of one of the share holders, MetLife International Holdings LLC of PNB MetLife is in

a) Paris, France

b) Rome, Italy

c) Geneva, Switzerland

d) New York, U.S.

e) Washington D.C, U.S

3) __________ is the amount the insurance company has to pay you when the policy matures that would also include the sum assured and the bonuses.

a) Fund

b) Annuity

c) Sum Assured

d) Maturity Value

e) Surrender Value

4) The payment of sum assured to the insured person which has become due by instalments under a money back policy is known as ______

a) Surrender Value

b) Paid-up value

c) Sum Assured

d) Survival Benefit

e) None of these

5) A whole life policy in which premiums are payable as long as the insured lives is called ________

a) Straight Life Annuity

b) Subrogation

c) Straight Life

d) Subjective Risk

e) None of these

6) ________ is a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years

a) Catastrophe Reinsurance

b) Excess of Loss Reinsurance

c) Facultative Reinsurance

d) Term Insurance

e) None of these

7) A type of insurance often used for high frequency low severity risks where risk is not transferred to an insurance company but retained and accounted for internally is known as ______

a) Hospital Insurance

b) Hull Insurance

c) Group Insurance

d) Self Insurance

e) None of these

8) Which of the following insurance is a coverage for damage to a vessel or aircraft and affixed items?

a) Renters Insurance

b) Hull Insurance

c) Group Insurance

d) Social Insurance

e) Economical Insurance

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 document given to an applicant for life insurance stating that the company’s acceptance is contingent upon determination of the applicant’s insurability is known as _______

a) Conditional Contract

b) Conditional Receipt

c) Conditional Renewable

d) Consequential loss

e) Conditional loss

Answers :

1) Answer: c)

It is a joint venture between two of India’s public sector banks – Bank of Baroda (44%) and Andhra Bank (30%), and UK’s financial and investment company Legal &General(26%). It was incorporated in November, 2009. It has its headquarters in Mumbai.

2) Answer: D)

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life insurance companies in India. PNB MetLife has as its shareholders MetLife International Holdings LLC (MIHL), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited (JKB) and others.MetLife International Holdings LLC is based in New York, New York.

3) Answer: d)

Maturity value is the amount the insurance company has to pay an individual when the policy matures.

4) Answer: d)

Survival benefits are benefit given to the policy holder during or upon completion of the policy tenure.

5) Answer: c)           

A straight life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums. This traditional life insurance is sometimes also known as whole life insurance or cash value insurance.

6) Answer: d)

Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period.

7) Answer: d)

Insurance of oneself or one’s interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.

8) Answer: b)

Generally Hull Insurance refers to an insurance policy that provides coverage for the physical integrity of a ship.

9) Answer: a)

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

10) Answer: b)

A receipt involved in life, health and certain property insurance contracts; if the insured is deemed to be covered by the insurer, the coverage begins on the date the insured receives the conditional binding receipt.

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