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 6504]
1) What does “Reinsurance” mean?
a) Double insurance taken by an entity or person
b) Insurance for insurance companies
c) Term insurance taken by a person
d) Taking insurance by person from multiple insurance companies
e) Life time insurance taken by a person
2) According to data released by Insurance Regulatory and Development Authority of India (IRDAI), what percentage of life insurance policies bought by women in 2017-18?
3) Which insurance company has recently bought stake in ‘CSC e-Governance services India Limited’?
a) ICICI Prudential Life Insurance Company
b) IDBI Federal Life Insurance Company
c) HDFC Life Insurance Company
d) IndiaFirst Life Insurance Company
e) Bajaj Allianz Life Insurance Company
4) The value payable to the policy holder in the event of his deciding to terminate the policy before the maturity of the policy is known by which term?
b) Actual Cash Value
c) Surrender Value
d) Lapsed Value
e) None of these
5) A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation is known by which of the following term?
a) Survival Benefit
b) Actual Cash Value
c) Surrender Value
d) Sub standard Value
e) Limited Payment Value
6) Period between the date of subscription to an insurance-cum-pension policy and the time at which the first installment of pension is received is known by which term in insurance sector?
a) Days of Grace
b) Deferment Period
c) Maturity Period
d) Lapsed Period
e) None of these
7) If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as _____.
a) Termination Value
b) Maturity Value
c) Pre-mature Value
d) Surrender Value
e) Holder Value
8) IRDAI has announced that it will adopt RBC regime from the current solvency principle to improve protection for policyholders. What is the full form of RBC?
a) Risk Based Capacity
b) Repo Based Capital
c) Rating Based Capital
d) Risk Based Capital
e) Regressive Tax based Capacity
9) LIC of India was incorporated on 1st September, 1956 by amalgamating ________ Companies by the Act of Parliament called Insurance Act, 1956.
10) Which insurance company has launched first-of-its kind ‘Trip Protector’ insurance policy?
a) Bajaj Allianz General Insurance
b) Bharti AXA General Insurance
c) HDFC ERGO General Insurance
d) National Insurance Company Limited
e) Reliance General Insurance
1) Answer: b)
Reinsurance is insurance that is purchased by an insurance company. The purpose of reinsurance is for a company to avoid having too large a risk or concentration of risks, within the company.
2) Answer: d)
While women constitute nearly 48% of the country’s population, their contribution to the number of life policies bought in 2017-18 stood at 32% of the 2.82 crores policies sold. According to the IRDAI annual report, of the 90 lakhs policies bought by women in 2017-18, Maharashtra (12%), West Bengal (10.3%) and Uttar Pradesh (9.4%) accounted for a third of these.
3) Answer: d)
IndiaFirst Life Insurance Company has announced that it has bought nine per cent stake in CSC e-Governance Services India Ltd. IndiaFirst Life Insurance is a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), while CSC is an integral part of Digital India initiative of the government under Ministry of Electronics and Information Technology.
4) Answer: c)
The value payable to the policy holder in the event of his deciding to terminate the policy before the maturity of the policy is known as ‘Surrender Value’.
5) Answer: b)
In the property and casualty insurance industry, Actual Cash Value (ACV) is a method of valuing insured property, or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.
6) Answer: b)
Period between the date of subscription to insurance – cum – pension policy and the time at the first instalment of pension is received. Such policies generally prescribe a minimum and maximum limit on the deferment period.
7) Answer: d)
If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.
8) Answer: d)
Insurance regulator IRDAI has announced that it is in the process of moving towards the Risk-Based Capital (RBC) regime to improve protection for policyholders. The decision to move to the RBC structure from the current solvency principle regime was taken after recommendations of a panel which gave its report.
9) Answer: d)
LIC of India was incorporated on 1st September, 1956 by amalgamating 243 Companies by the Act of Parliament called Insurance Act, 1956. LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959 and Insurance Regulatory and Development Authority Act 1999.
10) Answer: c)
The first-of-its kind ‘Trip Protector’ insurance policy was launched by ‘HDFC ERGO General Insurance Company’ which is the third-largest non-life insurance provider in the private sector in India.
This policy states that in case a flight or a hotel booking is cancelled, travelers will be safeguarded financially against the cost of cancellation levied on them by the respective hotels or airlines for both domestic and international travel.
The policy will allow customers to choose between refundable and non-refundable tickets. Refundable tickets shall be paid for in case of cancellation.