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) Which global insurance company has become the latest Olympic Games sponsorship partner, signing a 10-year deal with the International Olympic Committee?
a) Metlife Insurance Company
b) Aviva Insurance Company
c) ING Insurance Company
d) Allianz Insurance Company
e) AXA Insurance Company
2) What do you understand by term “Revival Period” used extensively in insurance sector?
a) Period offered by the insurer to revive the policy before grace period
b) Period offered by the insurer to revive the policy post grace period
c) Period to claim the policy post maturity
d) Period to reclaim the unearned premium after termination
e) Period allow to claim maturity amount
3) DICGC insures all bank deposits up to the limit of Rs. 100,000 of each deposit in a bank. “G” in ‘DICGC’ stands for which of the following term?
4) Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver up to what amount?
a) Rs. 5 lakhs
b) Rs. 10 lakhs
c) Rs. 15 lakhs
d) Rs. 20 lakhs
e) Rs. 2 lakhs
5) 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
6) The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called _____
c) Service Provider
e) None of these
7) Recently, Insurance Regulatory and Development Authority of India (IRDAI) issued the draft guidelines for ‘Standard Health Product’ under the provisions of Section 34 (1) (a) of Insurance Act, 1938. How many days were fixed as ‘Grace Period’ for yearly payment of mode?
a) 15 Days
b) 10 Days
c) 30 Days
d) 25 Days
e) 45 Days
8) A person can transfer his rights, title, and interest in a life insurance policy to another. This is called _______
e) None of the above
9) ________ is a savings linked insurance policy with a specific maturity date.
a) Unit Linked Policy
b) Endowment Policy
c) Third Party Policy
d) Re-insurance Policy
e) None of these.
10) What do you mean by term “Underwriting’’ used in insurance sector?
a) Licensing to insurance firms
b) Writing the contract between insurer and re-insurer
c) Process of assessing risks for insurance
d) Assessing annual average cost of premium
e) Assessing the total benefits post maturity of policy
1) Answer: d)
German insurance company “Allianz” has signed up as a global Olympic sponsor for a 4-Games period of 10 years.
2) Answer: b)
Insurance policy lapses when the insured defaults on the payments of renewal premium beyond a grace period. Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. This period offered by the insurer to revive the policy and avail benefits pertaining to it is termed as revival period.
3) Answer: d)
G in “DICGC” stands for – Guarantee (Deposit Insurance and Credit Guarantee Corporation). Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India) It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.
4) Answer: c)
Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs. 15 lakhs 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.
5) 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.
6) Answer: b)
Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.
7) Answer: c)
In February, 2019 Insurance Regulatory and Development Authority of India (IRDAI) issued the draft guidelines for ‘Standard Health Product’. The Guidelines on Standard Health Product are issued under the provisions of Section 34 (1) (a) of Insurance Act, 1938. Guidelines issued by IRDAI regarding ‘Grace Period’ for premium payment: For Yearly payment of mode, a fixed period of 30 days is given as Grace Period. All other modes of payment except, Yearly payment of mode a fixed period of 15 days is allowed as a Grace Period. There are four modes of payment -Monthly, Quarterly, Half Yearly, Yearly.
8) Answer: d)
A person can transfer his rights, title and interest in a life insurance policy to another by assigning it to him. This process is called Assignment. The person who transfers the rights is called assignor and the rights transferred to a person are called Assignee.
9) Answer: b)
An Endowment Policy is a savings linked insurance policy with a specific maturity date. if an unfortunate event by way of death or disability occur to you during the period, the Sum Assured will be paid to your beneficiaries. On your surviving the term, the maturity proceeds on the policy become payable.
10) Answer: c)
Underwriting is the process of assessing proposals/risks for insurance. Underwriting involves measuring risk exposure and determining the premium that needs to be charged to insure that risk.