LIC AAO 2019 – Insurance Awareness Questions (Day – 34)

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 premium can be related to which element of a valid contract?

a) Free Consent

b) Offer & Acceptance

c) Consideration

d) Capacities of the Parties

e) None of the above

2) In case of delay in payment of claim due to any reason other than that mentioned in the regulation, the insurance company will be liable to pay an interest on claim @ ______ percent higher than bank rate applicable at the start of financial year in which claim was reviewed

a) 2%

b) 1%

c) 3%

d) 4%

e) 5%

3) Insurance Information Bureau of India (IIBI) was promoted by IRDA in which year?

a) 2004

b) 2009

c) 2011

d) 2000

e) 1999

4) Which among the following are the legal entities that help insurance market in redressal of consumer grievances?

a) Insurance Ombudsman

b) Consumer Court

c) Civil Court

d) Only a) and b)

e) All the above

5) Which among the following is the primary source of information about an applicant for the underwriter?

a) PAN Card

b) Medical Records

c) Aadhar Card

d) Proposal form

e) Medical Certificate

6) ___________is a fixed amount for a covered service, paid by a patient to the provider of service before receiving the service

a) Copay

b) Deductible

c) Claim

d) Surrender Value

e) None of the above

7) Which of these is not one of the main products of life insurance?

a) Term insurance

b) Personal accident insurance

c) Whole life insurance

d) Endowment Policy

e) All of these

8) An insurance company owned entirely by its policyholders is known as________

a) Stock Insurance Company

b) Policyholder Insurance Company

c) Mutual Insurance Company

d) Shared Insurance Company

e) None of these

9) 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) None of these

10) In life insurance, the amount that the policy’s beneficiaries receive upon the death of the insured is known as_______

a) Total value

b) Face value

c) Pay out

d) Cash value

e) SurrenderValue

Answers:

1) Answer: c)

Consideration means that the contract must contain some mutual benefit for the parties. The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.

2) Answer: a)

Where there is a delay on the part of the insurer in processing a claim for a reason other than the one covered by sub-regulation (iv), the life insurance company shall pay interest on the claim amount at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.

3) Answer: b)

Insurance Information Bureau of India was promoted in year 2009 by IRDA and is a registered society with a governing council of 20 members mostly from the insurance sector.

4) Answer: d)

Legal entities such as the Insurance Ombudsman, Consumer courts as well as civil courts also play a role in the health insurance market when it comes to redressal of consumer grievances.

5) Answer: d)

The primary source of information about an applicant, for the underwriter is his proposal form or application form, in which all the critical information related to the health and personal details of the proposer are collected

6) Answer: a)

A copayment or copay is a fixed amount for a covered service, paid by a patient to the provider of service before receiving the service

7) Answer: b)

The main products of life insurance includes: Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical and health. The general insurance products includes – Motor insurance, Fire/House owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance.

8) Answer: c)

A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums

9) 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.

10) Answer: b)          

For any life insurance policy, the face value is the death benefit. This is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. In most cases, the face value is transferred to the beneficiaries tax-free