LIC AAO 2019 – Insurance Awareness Questions (Day – 31)

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. LIC AAO 2019 Insurance Awareness Questions questions play an important role in boosting up the score in mains examination and also helps in the interview. Here we are providing a new series of LIC AAO 2019 Insurance Awareness Questions. Aspirants can make use of this LIC AAO 2019 Insurance Awareness Questions, to improve score in the Insurance & Financial Market Awareness section.

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1) The Insurance Regulatory and Development Authority (IRDA) was constituted in

a) 2000

b) 2001

c) 2004

d) 1999

e) None of these

2) _____________ is the only public sector company in the field of life insurance in India

a) NIACL

b) NICL

c) LIC

d) GIC Re

e) None of these

3) ULIP is a product offered by

a) Government

b) Public Sector Banks

c) Financial Institutions

d) Insurance companies

e) None of these

4) Which of the following organization provides export credit insurance support to Indian exporters?

a) ECGC

b) IRDA

c) LIC

d) GIC Re

e) None of these

5) The minimum paid up capital for any insurance business- Life or General is ___________

a) Rs.50 Crore

b) Rs.100 Crore

c) Rs.150 Crorw

d) Rs.200 Crore

e) None of these

6) The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as _______

a) Universal Life Insurance

b) Unauthorized Reinsurance

c) Unearned Premium

d) Retrospective Rating

e) None of these

7) Which body/official determines the risk coverage for calculation of premium for life insurance policies?

a) Actuary of the life insurance company

b) IRDAI

c) The chief executive of the life insurance company

d) The board of directors of the life insurance company

e) None of the given options is true

8) Authority that is not specifically expressed or defined in writing, but which an employee or agent assumes to possess in order to conduct business on behalf of an agency is known as________

a) Express authority

b) Specific authority

c) Actual authority

d) Implied authority

e) None of these

9) The maximum length of the period offered by most term insurance policy is ________

a) 30 years

b) 10 years

c) 15 years

d) 20 years

e) 22 years

10) An insurance company incorporated in a country other than the country where it is providing insurance coverage is termed as:

a) Foreign insurer

b) Alien insurer

c) International insurer

d) Domestic insurer

e) Broker

Answers:

1) Answer: a)

Following the recommendations of the Malhotra Committee, in 1999 the Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop the insurance industry and was incorporated in April 2000.

2) Answer: c)

There are currently, a total of 24 life insurance companies in India. Of these, Life Insurance Corporation of India (LIC) is the only public sector insurance company in the field of life insurance

3) Answer: d)

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan.

4) Answer: a)

The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

5) Answer: b)

The Bill will allow companies, exclusively into the business of health insurance, to operate with a minimum paid up capital of Rs 50 crore against the current minimum paid up capital of Rs 100 crore for any insurance business- Life or General. For re-insurance business the minimum paid-up capital will be Rs 200 crore.

6) Answer: d)

An insurance policy with a premium that adjusts according to the losses experienced by the insured company, rather than according to an industry-wide loss experience is called Retrospective Rating.

7) Answer: a)

Actuary of the life insurance company determines the risk coverage for calculation of premium for life insurance policies.

8) Answer: d)

Authority that is not specifically expressed or defined in writing, but which an employee or agent assumes to possess in order to conduct business on behalf of an agency is known as Implied authority.

9) Answer: a)

The maximum length of the period offered by most term insurance policy is 30 years and the Minimum length is 10 years.

10) Answer: b)

An alien insurer is an insurance provider offering coverage in a country other than the company’s home country. Tthe relationship between the country of incorporated and the location where it sells a given policy defines if an insurer is alien.

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