LIC AAO 2019 – Insurance Awareness Questions (Day – 41)

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 life insurance company has unveiled an Artificial Intelligence (AI) –powered customer service app “Khushi”?

a) ICICI Prudential Life Insurance

b) SBI Life Insurance Company

c) HDFC Life Insurance Company

d) PNB Metlife India Insurance Company

e) Aegon Life Insurance Company

2)The charges towards providing the death cover under an ULIP Policy are known as ________.

a) Mortality charges

b) Premium Mortality Charges

c) Fund Management Fee

d) Surrender Charges

e) Fund Switching Fees

3)“National Insurance Academy” is located in which city of India?

a) Mumbai

b) New Delhi

c) Chennai

d) Chandigarh

e) Pune

4) ________ is the amount of money an insurance policy guarantees to pay before any bonuses are added.

a) Fund

b) Annuity

c) Sum Assured

d) Maturity Value

e) None of these

5) When all the benefits of an insurance policy gets terminated due to non-payment of premium, then the policy is said to be _____

a) Paid up

b) Graced

c) Charged

d) Lapsed

e) Remitted

6) An insurance cover that is linked with credit activities and aims to protect the credit is called ______

a) Claims

b) Retrocession

c) Retrospective Rating

d) Credit life

e) None of these

7) Insurance companies’ ability to pay the claims of policyholders is termed as _______

a) Solvency

b) Schedule

c) Retrospective Rating

d) Credit life

e) None of these

8) A policy taken by a person on the life of another person who is his employee or connected with the business is called ________.

a) Business Insurance

b) Facultative Insurance

c) Keyman Insurance

d) Treaty Insurance

e) Credit Risk Insurance

9) The General insurance industry was nationalized in _________ and 107 insurers were grouped and amalgamated into four Companies.

a) 1949

b) 1956

c) 1972

d) 1982

e) 1988

10) Which of the following is a case of Premium Diversion?

a) An insurance agent not transferring premium to underwriter

b) Selling of insurance without license

c) An insurance agent transferring premium to underwriter

d) A policy holder not transferring premium to agent on time

e) Both a) and b)

Answers:

1) Answer: d)

Life insurer company ‘PNB Metlife India Insurance Company’ has unveiled an Artificial Intelligence (AI)-powered customer service app ‘Khushi’. The app is designed to be a one-stop shop providing insurance-related information, anytime, anywhere, such as policy features, premium due details besides providing fund value and portfolio details. It has been designed by PNB Metlife’s innovation centre of Singapore.

2) Answer: a)

In an ULIP Policy, the cost of insurance coverage towards death benefit is known as the mortality charges in the policy. Fund Management Fees in ULIP Policy are levied towards the fees for the management of units allocated under various mutual funds. Surrender Charges under ULIP Policy are levied in case the policy surrendered before the date of maturity. Fund switching charges in an ULIP Policy are collected in case the insured wants to switch the funds towards which the investments are being made under the policy.

3) Answer: e)

The National Insurance Academy (NIA) is situated in Pune, India. It was founded in 1980 by the Finance Department of the Indian government with capital patronage from LIC and public sector general insurance industry.

4) Answer: c)

Sum Assured is the guaranteed amount the policyholder will receive.

5) Answer: d)           

Policy is said to be lapsed in such a situation.

6) Answer: d)

Insurance that covers such a loan is known as credit life/credit disability.

7) Answer: a)

Solvency refers to an enterprise’s capacity to meet its long-term financial commitments

8) Answer: c)

Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman. The ‘keyman’ should hold less than 51% shares of the company. The total number of shares of the company held by the keyman and his family should be less than 70%. The insurance worth of a keyman is 10 times of the keyman’s annual compensation package.

9) Answer: c)

The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.

10) Answer: e)

We purchase insurance, through an insurance agent. But the insurance policy is actually provided by an underwriter who receives your premiums through the agent.

Premium diversion is a case

1)When you are giving your premium to respective insurance agent but that amount is not delivered to the underwriter. And he keeps your premium for personal use.

2) When someone sells insurance without a license, collects the premium payments, and then fails to pay claims.

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