LIC AAO 2019 – Insurance Awareness Questions (Day – 09)

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.  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.

LIC AAO Insurance Awareness Questions Day -09

maximum of 10 points
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1) _____________ 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)

2) IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of “B” in IBAI?

a) Basel

b) Broadcasting

c) Board

d) Brokers

e) Banking

3) The term _______________ relates to a type of insurance that essentially covers your medical expenses.

a) Health Insurance

b) Life Insurance

c) Travel Insurance

d) Group Insurance

e) Motor Insurance

4) The General insurance industry was nationalized in _________ and 107 insurers were grouped and amalgamated into four Companies.

a) 1949

b) 1956

c) 1972

d) 1982

e) 1988

5) LIC was formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. _______________ from the Government of India.

a) Rs. 10 crore

b) Rs. 50 crore

c) Rs. 100 crore

d) Rs. 1 crore

e) Rs. 5 crore

6) Insurance Regulatory and Development Authority (IRDA) was set up as autonomous body under which act?

a) IRDA Act, 1996

b) IRDA Act, 1999

c) IRDA Act, 2000

d) IRDA Act, 2002

e) IRDA Act, 1995

7) Name the insurance that is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc?

a) Property Insurance

b) Health Insurance

c) Motor Insurance

d) Life Insurance

e) Travel Insurance

8) In 2003 all shares of Oriental Insurance Company Limited held by the General Insurance Corporation of India have been transferred to___________

a) LIC

b) IRDAI

c) Central Government

d) RBI

e) Finance Ministry

9) _______________ is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.

a) Risk Retention

b) Risk Management

c) Risk control

d) Risk Transfer

e) Risk Avoidance

10) Where is the head office of General Insurance Council?

a) Pune

b) Chennai

c) Mumbai

d) New Delhi

e) Kolkata

Answers :

1) 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.

2) Answer: d)

Insurance Brokers Association of India (IBAI) was incorporated as a Company under Section 25 of the Companies Act, 1956.

3) Answer: a)

The term ‘Health Insurance’ relates to a type of insurance that essentially covers your medical expenses. A health insurance policy like other policies is a contract between an insurer and an individual / group in which the insurer agrees to provide specified health insurance cover at a particular “premium” subject to terms and conditions specified in the policy.

4) Answer: c)

The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.

5) Answer: e)

LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

6) Answer: b)

Insurance Regulatory and Development Authority (IRDA) set up as autonomous body under the IRDA Act, 1999.

7) Answer: d)

Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.

8) Answer: c)

The Oriental Insurance Company Ltd was incorporated at Bombay on 12th September 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 ( till the General Insurance Business was nationalized in the country). In 2003 all shares of our company held by the General Insurance Corporation of India have been transferred to Central Government.

9) Answer: c)

Risk control is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.

10) Answer: c)

The Head Office of General Insurance Council is in Mumbai.

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