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.[WpProQuiz 6312]
1) In which of the following year, the Life Insurance Companies Act and the Provident Fund Act were passed?
2) ICR metric indicates a general insurer’s ability to pay claims. ‘I’ in ICR stands for_________.
3) LIC’s _________ is exclusively designed for male lives having Aadhaar Card issued by UIDAI.
a) Aadhaar Stambh Plan
b) Aadhaar Shila Plan
c) Aadhaar Shashakt Plan
d) Aadhaar Vardaan Plan
e) None of the above
4) What is the Paid-up Share Capital of Agriculture Insurance Company of India?
a) Rs. 200 crores
b) Rs. 500 crores
c) Rs. 750 crores
d) Rs. 100 crores
e) Rs. 600 crores
5) ‘LIC should pay interest on delays in payment beyond 30 days’ was one of the recommendations of committee formed in the year 1993. It was headed by __________.
a) Y.V Reddy
b) Jagdish Bhagwati
c) Kaushik Basu
d) R.N. Malhotra
e) Bimal Jalan
6) What is the maturity age of Whole life Insurance policy?
a) 50 years
b) 60 years
c) 75 years
d) 100 years
e) 120 years
7) Recently launched LIC’s Micro Bachat plan provides the maximum coverage up to ___________.
a) ₹ 50000
b) ₹ 100000
c) ₹ 150000
d) ₹ 200000
e) ₹ 250000
8) The government is expecting the completion of the merger of __________ state-owned general insurance companies by 2019-20.
9) IRDAI is set to stop the annual fixing of the premium for third party insurance for motor vehicles from _________.
a) FY 2022-23
b) FY 2021-22
c) FY 2019-20
d) FY 2020-21
e) FY 2023-24
10) IRDAI recently, constituted a working group to the norms for insurance surveyors. In that context which of the following is/ are correct? (August, 2018)
a) It is a 5-member working group
b) It has been formed to address areas pertaining to licensing, renewal and others in the context of the existing regulatory framework for Surveyors and Loss Assessors.
c) The working group will submit its report with recommendations within nine weeks.
d) The group will be headed by Yegna Priya Bharat
e) Both (b) & (d)
1) Answer: b)
In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by professional that analyses financial risk using mathematics, statistics and financial theories i.e. an actuary.
2) Answer: b)
The Incurred claims ratio (ICR) metric indicates a general insurer’s ability to pay claims. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year. For instance, an ICR of 70% implies that the company has spent 70 on claims for every Rs 100 collected as premium.
3) Answer: a)
Aadhaar Stambh Plan is exclusively designed for male lives having Aadhaar Card issued by UIDAI financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder.
4) Answer: a)
The paid- up share capital of Agriculture Insurance Company of India is Rs. 200 crores, while the Authorised Share Capital – Rs. 1500 Crores. It was incorporated in 20th December 2002 and commenced operations on 1st April 2003.
5) Answer: d)
In 1993, Malhotra Committee, led by former secretary and RBI Governor, R.N. Malhotra, was formed to evaluate the Indian Insurance Industry and for recommending its future directions. It recommended that LIC should pay interest on delays in payment beyond 30 days.
Its other important recommendation were-
Government stake in the Insurance companies to be brought down to 50%
Private companies with minimum paid up capital of Rs. 1 billion should be allowed to enter in industry.
Mandatory investment of LIC life fund in Government Securities to be reduced from 75 percent to 50 percent.
6) Answer: d)
Whole life insurance policy has a maturity age of 100 years. It provides life coverage until the death of the life assured. The policy stays in force throughout the life if the life assured pays the premium. If the life assured dies before the age of 100 years, the nominee receives the sum assured. Tax benefit and loans can be availed against whole life insurance policies.
7) Answer: d)
LIC’s Micro Bachat was recently, launched which provide coverage up to ₹ 2 lakh. The minimum basic sum assured is ₹ 50,000.It is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings.
It provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholders.
8) Answer: b)
The government expects to complete the merger of three state-owned general insurance companies by 2019-20.
The merger of National Insurance Company, United India Insurance Company and Oriental India Insurance Company was first announced in the Budget 2018-19 and the government planned to complete the process in the current fiscal.
9) Answer: d)
The Insurance Regulatory and Development Authority has shown that it would stop the practice of annual fixing of the premium for third party insurance for motor vehicles from the financial year 2020-21.
Currently, the fixed premium for TP insurance cover is mandatory for every vehicle that plies on the road.
10) Answer: e)
The 7-member working group headed by Yegna Priya Bharat has been formed to address areas pertaining to licensing, renewal and IIISLA Membership in the context of the existing regulatory framework for Surveyors and Loss Assessors. The working group will submit its report with recommendations within six weeks.
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