LIC AAO Insurance Awareness Questions 2019 (Day – 60)

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 6424]

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) Consider the following statements regarding the Group Insurance Policy.

It can be group term insurance policy and group health insurance policy.

The premium is lesser than the premium in case of individual policies taken.

III. This is taken by companies for their employees as part of the employee benefits.

Which among the above statements is/are true?

a) Both I and II

b) Both II and III

c) Both I and III

d) Only II

e) All I, II and III

3) The profits allocated to each life insurance participating policy are paid in the form of __________.

a) Interim Bonus

b) Cash Bonus

c) Reversionary Bonus

d) Terminal Bonus

e) Pay-out Bonus

4) The one who will get the insured amount if you die, is referred to as __________

a) Insured or Policyholder

b) Nominee or Beneficiary

c) Insurer

d) Agent

e) Relatives

5) ______ is the amount the policy holder will get from the insurance company if he exits the policy before maturity.

a) Paid up value

b) Surrendered value

c) Annuity Value

d) Lapse Value

e) None of these

6) Under which section of Insurance act 1938, the Amalgamation and Transfer of Insurance Business came?

a) section 56

b) section 32

c) section 40

d) section 35

e) section 23

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

a) 2000

b) 1999

c) 2002

d) 2005

e) 2008

8) _____________ a/an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

a) Insurance

b) Banking

c) Market Risk

d) Premium

e) Prompt Corrective Action (PCA)

9) In 1972, the general insurance business was nationalized and ________ insurance companies were amalgamated into four companies.

a) 108

b) 107

c) 110

d) 112

e) 110

10) _______ is a policy contract that for some reason specified in the policy becomes free of all legal effect.

a) Salvage

b) Schedule

c) Retrospective Rating

d) Void

e) None of these

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: e)

Group Insurance Policies can be group term insurance and group health insurance policy. The premium costs less than the premium in case the individual policyholders had taken separate policies. This is because the risk is spread over a large group of persons, rather than one person.

3) Answer: c)

The profits allocated to each participating policy are paid in the form of a Reversionary Bonus.A reversionary bonus adds value to the total amount payable to the policyholder or nominee.A reversionary bonus is usually declared at the end of every financial year and it is payable at the time of a claim.

4) Answer: B)

A person who receives the benefit in case of death of the insured person is a nominee.

5) Answer: b)

Surrender value is the amount the policy holder will get from the insurance company if he exits the policy before maturity, but after payment of premium for full 3 years. So if a person has payed premium for 3 years, he can opt out of the policy and get the money proportionally (it will obviously be less than that he would have got at maturity)

6) Answer: d)

Under section 35 of Insurance act 1938, the Amalgamation and Transfer of Insurance Business came.

7) 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.

8) Answer: a)

Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

9) Answer: b)

In 1972, the general insurance business was nationalized and 107 general insurance companies were merged into four companies – New India Assurance, Oriental Insurance, United India Insurance and National Insurance Company.

10) Answer: d)

A policy or other contract that has no legal validity is described as void. When an insurance company voids a life insurance policy, it is usually due to the discovery of misrepresentation of material facts by the person insured. It is as though the voided policy was never in effect since all premiums paid are usually returned to the policy owner.

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