LIC AAO 2019 – Insurance Awareness Questions (Day – 33)

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) Which of the following is not a Public Sector Non-Life Insurance Companies in India?

a) Future Generali India Insurance

b) Agriculture Insurance Company of India

c) Export Credit Guarantee Corporation of India

d) Both b) and c)

e) The Oriental Insurance Company

2) Which among the following facilitates buying and holding all insurance policies in electronic form?

a) Insurance Restoration

b) Insurance Ceding

c) Insurance Repository

d) Insurance Reinstatement

e) Insurance Concealment

3) In which of the following year ,the Insurance Act of 1938 was amended to set minimum solvency margins & regulate investments?

a) 1955

b) 1968

c) 1975

d) 1993

e) 1959

4) Which among the following is used to estimate the insurance risks and the premium of the policy?

a) Underwriting

b) Endorsement

c) Appraisal

d) Precertification

e) Waiving

5) Which among the following organizations was set up to provide credit risk insurance and services for exports?

a) General Insurance Corporation of India –

b) Export Credit Guarantee Corporation of India

c) Export-Import Bank of India

d) Clearing Corporation of India

e) Confederation of Indian Industry

6) The person whose life is insured by an individual life policy is called _________.

a) Life Assured

b) Named Insured

c) Guaranteed Life

d) Life Annuity

e) Assured Sum

7) The period offered by the insurer to restore the insurance policy and benefits relating to it is called ___________

a) Accumulation period

b) Deferment period

c) Grace period

d) Revival period

e) Elapsed period

8) _______ is a process for the settlement of disputes between insurance companies and insurers by accepting a third party’s decision.

a) Intercession

b) Exclusion

c) Intestate

d) Mediation

e) Arbitration

9) The concept of TPA is introduced by IRDAI. In TPA, ‘P’ denotes

a) Policy

b) Party

c) Promotion

d) Pension

e) Plan

10) The Indian Life Assurance Companies Act was enacted in which of the following years to collect information about insurance companies?

a) 1912

b) 1950

c) 1956

d) 1928

e) 1907

Answers:

1) Answer: a)          

Future Generali India Insurance is not a Public Sector Non-Life Insurance Companies in India. It is a joint venture between Future Group, India and Generali, a 187 years old global insurance group featuring among the world’s 60 largest companies. It was incorporated in September 2007 with the objective of providing retail, commercial, personal and rural insurance solutions to individuals and corporates to help them manage and mitigate risks.

2) Answer: c)

An Insurance Repository (IR) is a company for maintaining data of insurance policies in electronic form on behalf of Insurers. An IR will enable policyholders to buy and keep insurance policies in electronic form. Only entities approved by Insurance Regulatory and Development Authority of India (IRDAI) can become an Insurance Repository.

3) Answer: b)

In the year 1968, the Insurance Act of 1938 was amended to set minimum solvency margins & regulate investments.The Tariff Advisory Committee was also set up then. It is a body incorporated to control and regulate the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business.

4) Answer: a)

Underwriting is the methodology applied by life insurers to examine or assess the insurance risks before accepting or rejecting coverage and determining the appropriate premiums for them.

5) Answer: b)

ECGC Ltd. (Formerly known as Export Credit Guarantee Corporation of India Ltd.) wholly owned by Government of India, was set up with the objective of promoting exports from the country by providing credit risk insurance and related services for exports. The Corporation has introduced various export credit insurance schemes to meet the requirements of commercial banks extending export credit. The insurance covers enable the banks to extend timely and adequate export credit facilities to the exporters.

6) Answer: a)

The person whose life is insured by an individual life policy is called Life Assured. The insured can claim the amount or in the event of the death of the assured, the nominee will receive the insurance amount.

7) Answer: d)

After the grace period, the insurance companies provide an option of reactivating the lapsed policy to the insured defaults within a specific time period. The period offered by the insurer to revive the insurance policy and benefits pertaining to it is termed as revival period.

8) Answer: e)

Arbitration is a procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party. In this process, a third party negotiate with both the parties to reach a voluntary settlement and decisions.

9) Answer: b)

The concept of TPA or the Third Party Administrator has been introduced by IRDAI (Insurance Regulatory and Development Authority of India) for the benefit of both the insured and the insurer.

10) Answer: d)

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.

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