Dear Aspirants, LIC AAO is one of 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. LIC AAO Insurance Awareness & Financial Market Awareness section comprises of 30 questions. LIC AAO Insurance Awareness Questions 2019 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 Insurance Awareness Questions 2019. Aspirants can make use of this LIC AAO Insurance Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.
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1) In the Retirement plans, an investor can claim tax deductions up to ________ per year under Section 80C of the Income Tax Act, 1961.
a) ₹ 50000
b) ₹ 250000
c) ₹ 200000
d) ₹ 100000
e) ₹ 150000
2) The term ‘insurable interest’ is related to which of the following types of insurance ?
a) Life Insurance
b) Fire Insurance
c) Marine Insurance
d) General Insurance
e) All of the above
3) As per the guidelines by the Insurance Regulatory and Development Authority of India, insurers that have completed _______ in the business can raise capital from the market through IPOs.
a) 12 years
b) 5 years
c) 7 years
d) 8 years
e) 10 years
4) You can cancel the insurance policy offered by insurers over distance mode within _____ of receipt of the policy.
a) 20 days
b) 30 days
c) 60 days
d) 28 days
e) 25 days
5) Oriental Life Insurance Company, first life insurance company of India was established in which city?
a) Madras
b) Bombay
c) Calcutta
d) Mysore
e) Delhi
6) As per the regulations of IRDAI, which insurance policy cannot be declined to underwrite the policy?
a) Term Insurance Policy
b) Unit Linked Insurance Policy
c) Third Party Insurance Policy
d) Valued Insurance Policy
e) Whole Life Insurance Policy
7) Insurance coverage for more than one item of property at a single location, or two or more items of property in different locations is known as
a) Blanket Coverage
b) Blanket Value
c) Blanket Assign
d) Blanket Bond
e) None of these
8) A sum of money charged by the insurer from the policy holder to provide life cover is ________
a) Coverage Charge
b) Service Charge
c) Policy Charge
d) Mortality Charge
e) Hidden Charge
9) The government of India proposed the merger of which three insurance companies?
a) National Insurance, Oriental Insurance, United India Insurance
b) National Insurance,General Insurance Corporation of India, United India Insurance
c) National Insurance, General Insurance Corporation of India, New India Assurance
d) National Insurance, General Insurance Corporation of India, Oriental Insurance
e) New India Assurance, General Insurance Corporation of India, Oriental Insurance
10) Selling insurance through groups is called ________
a) Affinity sales
b) Provisions
c) Annuitization
d) Proximate Clause
e) None of these
Answers :
1) Answer: e)
An investor can claim tax deductions up to ₹ 150000 per year under Section 80C of the Income Tax Act, 1961. 1/3rd of the accumulated pension can be withdrawn without paying any taxes. Retirement Plan offers the benefits of both investment and insurance cover. In this plan, a person can invest a certain amount regularly to accumulate over a specific tenure in a phase-by-phase manner.
2) Answer: e)
Insurable interest refers to the interest in the property or thing insured. Only the owner can have the insurable interest in the property. It is related to all types of insurance. In case of life insurance it is related to the life of insured person and in other cases it is related to the subject matter that is insured.
3) Answer: e)
As per the guidelines by the Insurance Regulatory and Development Authority of India, insurers that have completed 10 years in the business would be allowed to raise capital from the market through initial public offerings (IPOs).Insurance firms having completed 8 years of operations in general and reinsurance, and 10 years in life insurance, can go for mandatory listing.
4) Answer: b)
In case of disagreement with the terms of the policy under all life contracts and covers tied to credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3 years or more, you have the right to cancel the insurance policy offered by insurers over distance mode within 30 days of receipt of the policy, provided no claim has already been made on the policy.
5) Answer: c)
Oriental Life Insurance Company, first life insurance company of India was established in Calcutta.It was established by Europeans in 1818.Its major purpose was to provide insurance services to British companies and citizens.
6) Answer: c)
As per the IRDAI, no insurer can decline to underwrite third party insurance. Third Party Insurance Policy covers the third person who has been injured in an accident involving the owner and his/her car. It doesn’t provide direct benefit to the insured. This is a mandatory cover, along with the own damage cover, that a vehicle owner must purchase. This insurance cover is for any collateral damage to a third party.
7) Answer: a)
Blanket coverage refers to a category of business insurance policies covering multiple properties that are similar in nature but not at the same location.
8) Answer: d)
The insurer company charges a sum of money from the policy holder to maintain the policy. This is known as the Mortality Charge. It is also known as the cost of Insurance.
9) Answer: a)
The government of India proposed the merger of ​​​ National Insurance, Oriental Insurance, United India Insurance.​The government wants the merger to be completed by March 31, 2019.
10) Answer: a)
The sale of insurance through groups such as business or professional associations is known as Affinity sales
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