Dear Aspirants, LIC ADO is one of the most important exam in the competitive examination. LIC ADO mains exam consists of three sections i.e. Reasoning ability and Numerical Ability, General knowledge & Current affairs and Insurance & Financial Market Awareness. LIC ADO Insurance Awareness & Financial Market Awareness section comprises of 50 questions. LIC ADO 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 ADO Insurance Awareness Questions 2019. Aspirants can make use of this LIC ADO Insurance Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.
1) What is the insurance penetration ratio?
a) Insurance premium to Total Population
b) Insurance premium to GDP
c) Number of Insured to Total Population
d) Number of Insured to GDP
e) None of the above
2) Which of the following is/are not covered under health insurance?
a) Cosmetic Surgery
b) Pre-existing disease
c) Mental Illness
d) Accidental abortion
e) All of the above
3) Which committee recommended Rural Postal Life Insurance (RPLI)?
a) Bimal Jalan Committee
b) Rangarajan Committee
c) Narsimham Committee
d) Malhotra Committee
e) Sharma Committee
4) ________ is done to recover the amount of the claim paid by the insurance carrier to the insured for the loss.
5) Who is known as the father of insurance education?
a) Solomon Huebner
b) Frederick Wilhelmina
c) Evans Hughes
d) Mildred Stone
e) Charles Webb
6) According to recent reports by ASSOCHAM-APAS, Indian insurance industry expected to grow to USD ______billion by FY 2020.
7) Which of the following private insurers, recently launched a new Click 2 Protect 3D Plus policy offering life cover to a maximum age of 85?
a) HDFC Standard Life Insurance
b) Bajaj AXA Life Insurance
c) SBI Life Insurance
d) Birla Sun Life Insurance
e) DHFL Pramerica Life Insurance
8) What is the minimum purchase price of LIC’s Jeevan Shanti Plan?
a) Rs. 25,000
b) Rs. 50,000
c) Rs. 1,00,000
d) Rs 1,50,000
e) Rs. 2,00,000
9) In which of the following years, Agriculture Insurance Company of India Limited (AIC) was established?
10) Which of the following is/are benefits of Term Insurance plans?
a) Term Insurance plan offers high coverage at a minimum premium rate.
b) It also offers the option of additional rider benefit to enhance the coverage of policy.
c) There is no pay-out if the life assured outlives the policy term.
d) Under it, the Premiums paid towards the plans are eligible for tax exemption under section 80C of Income Tax Act 1961.
e) All of the above
1) Answer: b)
Insurance penetration ratio is defined as the ratio of insurance premium to Gross Domestic Product (GDP). It is a key indicator of the spread of insurance coverage and insurance culture.
2) Answer: a)
A cosmetic surgery is not covered under health insurance as it is not life-threatening or hamper the health.
IRDAI made provisions to ensure mental illness in 2018. According to Section 21(4) of Mental Healthcare Act 2017, every insurer needs to make provisions for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.
3) Answer: d)
Rural Postal Life Insurance (RPLI) started from 24 March 1995 as per the recommendation of the Official Committee for Reforms in the Insurance Sector- Malhotra Committee.
The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas and to spread insurance awareness among the rural population.
4) Answer: d)
Subrogation is done to recover the amount of the claim paid by the insurance carrier to the insured for the loss. It is a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured.
5) Answer: a)
Solomon Huebner is known as the father of insurance education. He discovered the concept of human life value that becomes the standard methodology to calculate the value of insurance.
He is best known for his book “Life Insurance” that came out in 1915.
6) Answer: c)
According to an ASSOCHAM-APAS study, The Indian insurance industry is expected to grow to USD 280 billion by FY 2020 with the government’s flagship Ayushman Bharat – the National Health Protection Mission (AB-NHPM) and other growth drivers like rising disposable incomes, presence of global players and easing of the regulatory regime, helping penetration of the insurance culture in the country.
7) Answer: a)
HDFC standard Life Insurance has launched a new Click 2 Protect 3D Plus policy offering life cover to a maximum age of 85 and a policy term to 50 years. Also, the policy has enhanced with a premium payment term up to 75 years and Critical Illness Plus Rider which comes under this policy has offered up to ₹ 1.5 crore.
8) Answer: d)
The minimum purchase price of LIC’s Jeevan Shanti is ₹ 1.5 Lakh.
Life Insurance Corporation of India launched a new plan named as the LIC’s Jeevan Shanti. The product is introduced with intent to provide life-long regular income in the form of pension. The minimum purchase price is Rs 1.50 lakh without any restriction on the upper limit. The deferment period is between 1 to 20 years.
9) Answer: d)
Agriculture Insurance Company of India Limited (AIC) was incorporated under the Indian Companies Act 1956 on 20th December 2002 with an authorized share capital of ₹ 15 billion and paid up capital of ₹ 2 billion. AIC has commenced business from 1st April 2003.
10) Answer: e)
Term Life Insurance Policy
It provides death risk cover for a specified period. In case the life assured passes away during the policy period, the life insurance company pays the death benefit to the nominee. It is a pure risk cover plan that offers high coverage at low premiums.
There is no pay-out if the life assured outlives the policy term. However, there are companies offering Term Plans with Return of Premiums (TROPS), where insurance companies payback all the paid premium amount in case the life assured outlives the term period.