Dear Aspirants, LIC AAO is one 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. Insurance & Financial Market Awareness section comprises of 30 questions. Â Insurance & Financial Market Awareness questions plays an important role in boosting up the score in mains examination and also helps in interview. Here we are providing new series of Practice Questions on Insurance awareness. Aspirants can make use of it, to improve score in Insurance & Financial Market Awareness section.
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1) An insurance cover that is linked with credit activities and aims to protect the credit is called ______
a) Claims
b) Retrocession
c) Retrospective Rating
d) Credit life
e) None of these
2) Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to ________________ for a premium of Rs. 750 per annum, a move to provide some succour to road accident victims.
a) Rs 15 lakh
b) Rs 10 lakh
c) Rs 25 lakh
d) Rs 05 lakh
e) Rs 50 lakh
3) Which refers damaged property an insurer takes over to reduce its loss after paying a claim?
a) Salvage
b) Schedule
c) Retrospective Rating
d) Credit life
e) None of these
4) Insurance companies’ ability to pay the claims of policyholders is termed as _______
a) Solvency
b) Schedule
c) Retrospective Rating
d) Credit life
e) None of these
5) 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
6) Risks for which it is difficult for someone to get insurance is called ______
a) Partial Risk
b) Uninsurable Risk
c) Covariant Risk
d) Pure Risk
e) None of these
7) _______ 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
8) Which of the following is the first life insurance company in India?
a) United India Insurance
b) Oriental Insurance
c) LIC
d) New India Assurance
e) None of these
9) The Complaint to Insurance Ombudsman must be registered within ____ year(s)
a) 4
b) 3
c) 2
d) 1
e) 6
10) ______ is a coverage that guarantees bondholders timely payment of interest and principal even if the issuer of the bonds defaults.
a) Internet Liability Insurance
b) Kidnap/Ransom Insurance
c) Municipal Bond Insurance
d) Gap Insurance
e) None of these
Answers :
1) Answer: d)
Insurance that covers such a loan is known as credit life/credit disability.
2) Answer: a)
Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs. 15 lakh for a premium of Rs. 750 per annum, a move to provide some succour to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs. 1 lakh and Rs. 2 lakh, respectively. The owner-drivers also have the option of a cover over and above Rs. 15 lakh on payment of additional premium.
3) Answer: a)
Salvage refers Damaged property an insurer takes over to reduce its loss after paying a claim. Insurers receive salvage rights over property on which they have paid claims, such as badly-damaged cars.
4) Answer: a)
Solvency refers to an enterprise’s capacity to meet its long-term financial commitments.
5) Answer: d)
Under section 35 of Insurance act 1938, the Amalgamation and Transfer of Insurance Business came.
6) Answer: b)
A situation that you cannot protect yourself against by buying insurance because it is impossible to calculate how likely it is to happen, or how much damage it will cause.
7) 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.
8) Answer: b)
Oriental Life Insurance Company started by Europeans in Kolkata was the first life insurance company on Indian Soil.
9) Answer: d)
We must file the complaint with the ombudsman within a year of the rejection of our claim by the insurer.
10) Answer: c)
Municipal bond insurance companies guarantee that the interest and principal of a municipal bond will be paid on time if the bond issuer is unable to do so.
