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LIC AAO Insurance Awareness Questions 2019 (Day – 61)

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.

LIC AAO Insurance Awareness Questions 2019 (Day – 61)

1) Uberrima fides, is the Latin name for which Principle of Insurance?

a) Principle of Utmost good faith

b) Principle of Contribution

c) Principle of Proximate cause

d) Principle of Indemnity

e) All of these

2) With respect to insurance industry, the amount of policies and contracts sold by each sales employee is called ________

a) Productivity

b) Durability

c) Output

d) Work Rate

e) Feasibility

3) In case the life insurance policy proceeds are taxable but does not increase Rs __________, then no TDS is deducted by the insurer

a) Rs 1 lakh

b) Rs 1.5 lakh

c) Rs 2 lakh

d) Rs 2.5 lakh

e) Rs 2.25 lakh

4) ________ is known as approaching a client by an insurer or an intermediary with a view to convince the client to purchase an insurance policy

a) Solicitation

b) Reinstatement

c) Proposal

d) Claim

e) Settlement

5) As per IRDA, the maximum limit to pay insurance premium via cash mode is___________

a) Rs 2,00,000

b) Rs 75,000

c) Rs 50,000

d) Rs 1,00,000

e) Rs 25,000

6) The only public sector company in the field of life insurance is _________

a) General insurance company

b) New India assurance company

c) Oriental insurance company

d) Life Insurance Corporation of India

e) None of these

7) The regulator of insurance sector in India is

a) RBI

b) AMFI

c) IRDA

d) SEBI

e) None of these

8) The person who identifies the customer and gets the necessary insurance for him is called

a) Intermediary

b) Retailer

c) Broker

d) Agent

e) None of the above

9) How many members of IRDA are appointed as full time members?

a) Four members

b) Three members

c) Five members

d) Ten members

e) Nine members

10) India First Life Insurance Company Limited, a joint venture between which of the following?

Bank of Baroda

Andhra Bank

Legal and General

a) Only 1

b) Only 1 and 2

c) Only 1 and 3

d) Only 2 and 3

e) All are correct

Answers :

1) Answer: a)

Uberrima fides, is the Latin name for Principle of Utmost good faith

2) Answer: a)

With respect to insurance industry, the amount of policies and contracts sold by each sales employee is called Productivity.

3) Answer: a)

Even if these proceeds are taxable as per section 10(10D) but do not exceed Rs 100,000, then also no TDS is to be deducted by the insurer when making the payment to the insured.

4) Answer: a)

Solicitationis known as approaching a client by an insurer or an intermediary with a view to convince the client to purchase an insurance policy

5) Answer: c)

Premium is required to be paid in advance and can be paid via cash up to Rs 50,000, (the limit set by IRDA for cash payments) cheque or DD. Further, most insurance companies have provided for payment of premium online.

6) Answer: d)

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of ₹1,560,482 crore.

7) Answer: c)

The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India. The agency’s headquarters are in Hyderabad.

8) Answer: d)

An agent is a person who represents an insurance firm and sells insurance policies on its behalf. Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance.

9) Answer: c)

According to IRDAI act 1999 IRDA has 10 members consisting of a chairman, five full and four part time members. Tenure of Chairman and full time members is five years from the date of joining.

10) Answer: e)

India First Life Insurance Company Limited, a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), has announced its tie-up with Oxigen Services India Pvt. Ltd. It will establish the distribution of its insurance products at Oxigen retail outlets. Oxigen is one of the leading providers of money transfers and prepaid recharges as low as Rs. 10.

 

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