LIC ADO Insurance Awareness Questions 2019 (Day – 93)

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.

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1) ‘Pradhan Mantri Fasal Bima Yojana’ was launched to provide insurance coverage to the farmers in the event of crop failure. What is the rate of premium for Kharif Crops?

a) 2%

b) 2.5%

c) 1.5%

d) 5%

e) 3%

2) 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

3) Limit of an insurance company’s liability under a particular insurance policy is called ______.

a) Premium

b) Surplus

c) Accrual

d) Sum Insured

e) Product Liability

4) Which of the following is NOT true regardingthe life insurance cover scheme PMJJBY?

a) PMJJBY stands for ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’

b) People in the age group of 18 to 60 having bank account are eligible for scheme

c) The premium payable is Rs.330/- per annum per subscriber.

d) The scheme offers a risk Coverage of Rs.2 Lakh in case of death for any reason

e) All the given statements are true

5) The International Association of Insurance Supervisors (IAIS) is a voluntary membership-driven standards-setting organization of insurance supervisors and regulators. The headquarters of IAIS is located at which place?

a) Vienna

b) Brussels

c) New York

d) Basel

e) Geneva

6) What do you mean by “Ceding Company” used in insurance field?

a) Insurance Company that passes its risk to government.

b) Insurance company that passes its risk to reinsurance firms.

c) Insurance Company that only cover non-life policies

d) Insurance Company that covers Agriculture sector

e) Insurance Company that passes its risk to Provident funds

7) When was United India Insurance Company Limited Incorporated?

a) 12 September 1947

b) 22 November 1972

c) 18 February 1938

d) 1 September 1956

e) 5 December 1906

8) Insurance regulator ‘IRDAI’ has recently constituted a panel to analyse the feasibility of payment of claims in installments. Who was appointed the head of this panel?

a) Manjunath Bavuri

b) P.J. Joseph

c) Suresh Mathur

d) G.R. Surya Kumar

e) V.S. Narendra Chandra

9) Who is the present chairman-cum-Managing Director of National Insurance Company of India?

a) Alice G. Vaidyan

b) Naina Lal Kidwai

c) T. L. Alamelu

d) MR Kumar

e) Tajinder Mukherjee

10) Institute of Insurance and Risk Management (IIRM) is located in which among the following cities?

a) Manila

b) New Delhi

c) Singapore

d) Hyderabad

e) London

Answers :

1) Answer: a)

The Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) was launched by Prime Minister of India Narendra Modi on 18 February 2016.It envisages a uniform premium of only 2 per cent to be paid by farmers for Kharif crops, and 1.5 per cent for Rabi crops. The premium for annual commercial and horticultural crops will be 5 per cent.

2) 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.

3) Answer: d)

Limit of an insurance company’s liability under a particular insurance policy is called ‘Sum Insured’.

4) Answer: b)

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Scheme for Life Insurance Cover

Eligibility: Available to people in the age group of 18 to 50 and having a bank account.

Premium: Rs.330 per annum. It will be auto-debited from account in one installment.

Risk Coverage: Rs.2 Lakh in case of death for any reason.

The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with participating banks for this purpose.

5) Answer: d)

The IAIS (International Association of Insurance Supervisors) is a nonprofit organization headquartered in Basel, Switzerland. The IAIS is hosted by the Bank for International Settlements (BIS).

6) Answer: b)

A ceding company is an insurance company that passes the part or all of its risks from its insurance policy portfolio to a reinsurance firm.

7) Answer: c)

United India Insurance Company Limited was incorporated as a Company on 18th February 1938. General Insurance Business in India was nationalized in 1972.

8) Answer: c)

In October, the Insurance Regulatory and Development Authority of India (IRDAI) formed a panel to examine claims in installments. This panel will be headed by Suresh Mathur. It will look in to the feasibility of the proposal of general and health insurance companies for payment of claims in installments as against lump sum payments.

9) Answer: e)

Ms. Tajinder Mukherjee is the chairman and Managing director of National Insurance Company of India.

10) Answer: d)

Institute of Insurance and Risk Management (IIRM) is located in Hyderabad. It is promoted by IRDAI with the sole aim of developing the required workforce for the entire Insurance Sector.

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