LIC AAO 2019 – Insurance Awareness Questions (Day – 38)

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.

LIC AAO 2019 – Insurance Awareness Questions (Day – 38)

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1) Which term is used for options given to policyholders of ULIPs to move their investments from one fund to another within one plan?

a) Transfer Pricings

b) Trade Options

c) Switches

d) Unit Payments

e) Dual Payments

2) Which among the following is an insurance contract in which there is only maturity benefit and no death benefit?

a) Pure Endowment Policy

b) Pure Term Policy

c) Whole Life Insurance Policy

d) Mixed Term Plan

e) None of the above

3)________ is a savings linked insurance policy with a specific maturity date.

a) Unit Linked Policy

b) Endowment Policy

c) Third Party Policy

d) Re-insurance Policy

e) None of these.

4) Which principle specifies an insured should not collect more than the actual cash value of a loss?

a) Indemnity

b) Premium

c) Annuity

d) Liquidity

e) None of these

5) A person with expertise in field of economics, statistics and mathematics, who helps in risk assessment and estimation of premium rates for insurance business is known as ___ ?

a) Mortality

b) Actuary

c) Annuity

d) Agent

e) None of these

6) What do you understand by term “Life Assured” used extensively in insurance sector?

a) The payment to the policy holder at the end of the stipulated term of the policy

b) The person whose life is insured by an individual life policy

c) The scope of protection provided under a contract of insurance

d) These are policies where the payment stays fixed

e) All of the above

7) Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to ________________ for a premium of Rs. 750 per annum, a move to provide some succour to road accident victims.

a) Rs 15 lakh

b) Rs 10 lakh

c) Rs 25 lakh

d) Rs 05 lakh

e) Rs 50 lakh

8) In which year General Insurance Corporation of India is notified as Reinsurer?

a) 2000

b) 1999

c) 2002

d) 2005

e) 2008

9) IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of “B” in IBAI?

a) Basel

b) Broadcasting

c) Board

d) Brokers

e) Banking

10) Choose the correct statement from the given below statemets.

a) Assignment in a policy takes precedence over nomination.

b) A nominee will receive the benefits of an insurance policy only on the death of the insured

c) An assignee will get the benefits of an insurance policy only on the death of the insured.

d) The assignment of a policy are of three types

e) Both a) and b)

Answers:

1) Answer: c)

Switches are options given to policyholders of ULIPs to move their investments from one fund to another, within one plan. You can transfer units fully or partially between fund options — equity, debt and equity to debt.

2) Answer: a)

Pure Endowment Plan is such that it only gives maturity benefit i.e. the sum assured becomes payable on maturity of the policy. The claim amount is payable if death occurs within the policy term or if the insured survives the total term of the policy, whichever takes place earlier.

3) Answer: b)

An Endowment Policy is a savings linked insurance policy with a specific maturity date. if an unfortunate event by way of death or disability occur to you during the period, the Sum Assured will be paid to your beneficiaries. On your surviving the term, the maturity proceeds on the policy become payable.

4) Answer: a)

The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss.

5) Answer: b)

Actuary is the term for such a person.

6) Answer: c)

The person whose life is insured by an individual life policy is called life assured.

7) Answer: a)

Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs. 15 lakh for a premium of Rs. 750 per annum, a move to provide some succour to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs. 1 lakh and Rs. 2 lakh, respectively. The owner-drivers also have the option of a cover over and above Rs. 15 lakh on payment of additional premium.

8) Answer: a)

General Insurance Corporation of India is notified as Reinsurer in 2000and through administrative instruction, its supervisory role over the four subsidiaries was ended.With the General Insurance Business (Nationalisation) Amendment Act 2002, GIC ceased to be a holding company of its subsidiaries.GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance.

9) Answer: d)

Insurance Brokers Association of India (IBAI) was incorporated as a Company under Section 25 of the Companies Act, 1956.

10) Answer: e)

i) Assignment in policy takes precedence over the nomination.

ii) A nominee will receive the benefits of an insurance policy only on the death of the insured.

iii) An assignee will get the benefits of an insurance policy during the lifetime of the insured.

iv) The assignment of policy is of two types.

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