LIC ADO Insurance Awareness Questions 2019 (Day – 94)

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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LIC ADO Insurance Awareness Questions 2019 (Day – 94)

maximum of 10 points
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1) General Insurance Corporation (GIC) of India is a state owned enterprise in India. Where is the head office of GIC?

a) Kolkata

b) Chennai

c) New Delhi

d) Mumbai

e) Hyderabad

2) The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called _____

a) Adjuster

b) Appointee

c) Service Provider

d) Aggregate

e) None of these

3) What does “Reinsurance” mean?

a) Taking insurance by person from multiple insurance companies

b) Double insurance taken by an entity or person

c) Insurance for insurance companies

d) Term insurance taken by a person

e) Life time insurance taken by a person

4) Loan under insurance policy should not exceed which of the following?

a) Surrender Value

b) Sum Assured

c) Total premium paid

d) Bonus

e) None of them

5) 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

6) A person can transfer his rights, title, and interest in a life insurance policy to another. This is called _______

a) Cession

b) Nomination

c) Assignment

d) Arbitration

e) None of the above

7) When an insurer passes some part of or all risks to another Insurer called Reinsurer, this type of Insurance is called

a) Self Insurance

b) Dual Insurance

c) Vold Insurance

d) Two Fold Insurance

e) Re-Insurance

8) ________ 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.

9) The Insurance Regulatory and Development Authority of India has been granted the powers to frame rules for insurance sector in India under ________ of the Insurance Act 1938.

a) Section 114

b) Section 114A

c) Section 112

d) Section 115A

e) Section 116A

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

Answers :

1) Answer: d)

GIC of India is a state owned enterprise in India. The head office of GIC is in Mumbai

2) Answer: b)

Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.

3) Answer: c)

Reinsurance is insurance that is purchased by an insurance company. The purpose of reinsurance is for a company to avoid having too large a risk or concentration of risks, within the company.

4) Answer: a)

The cash surrender value is the sum of money an insurance company pays to the policyholder or annuity holder in the event his policy is voluntarily terminated before its maturity or the insured event occurs. It is also known as “cash value,” “surrender value” and “policyholder’s equity.”

5) 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.

6) 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.

7) Answer: e)

Reinsurance refers to the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The Insurer passes some part of or all risks to another Insurer called Reinsurer

8) 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.

9) Answer: b)

The Insurance Regulatory and Development Authority of India came up in India in 2000 with the objective of regulating the insurance sector in the country. It was given the powers to regulate the insurance companies in India as per the provisions of the Section 114A of the Insurance Act 1938.

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.

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