Dear Aspirants, LIC HFL is one of the most important exam in the competitive examination. LIC HFL mains exam consists of three sections i.e. Reasoning ability and Numerical Ability, General knowledge & Current affairs and Insurance & Financial Market Awareness. LIC HFL Insurance Awareness & Financial Market Awareness section comprises of 50 questions. LIC HFL 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 HFL Insurance Awareness Questions 2019. Aspirants can make use of this LIC HFL Insurance Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.
1) What does “Reinsurance” mean?
a) Double insurance taken by a entity or person
b) Insurance for insurance companies
c) Term insurance taken by a person
d) Taking insurance by person from multiple insurance companies
e) Life time insurance taken by a person
2) According to data released by Insurance Regulatory and Development Authority of India (IRDAI), what percentage of life insurance policies bought by women in 2017-18?
3) Which insurance company has recently bought stake in ‘CSC e-Governance services India Limited’?
a) ICICI Prudential Life Insurance Company
b) IDBI Federal Life Insurance Company
c) HDFC Life Insurance Company
d) IndiaFirst Life Insurance Company
e) Bajaj Allianz Life Insurance Company
4) Institute of Insurance and Risk Management has been incorporated as a company under section _______ of the Companies Act, 1956.
5) The General Insurance Corporation of India subscribed AIC of India Limited with an initial paid-up capital of _______ crores.
6) As per the recent data of IRDAI, _________ has topped the industry charts with the highest claims paid ratio in terms of the number of policies for 2017-18.
a) Max Life Insurance Company
b) Life Insurance Corporation of India
c) Bharti AXA Life Insurance
d) New India Assurance Company
e) ICICI Prudential Life Insurance
7) Minimizing the risk associated with a loss due to unwanted events is called ____.
a) Insurable Risk
b) Investment Risk
e) Reinsurance Risk
8) The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as _______
a) Universal Life Insurance
b) Unauthorized Reinsurance
c) Unearned Premium
d) Retrospective Rating
e) None of these
9) Which body/official determines the risk coverage for calculation of premium for life insurance policies?
a) Actuary of the life insurance company
c) The chief executive of the life insurance company
d) The board of directors of the life insurance company
e) None of the given options is true
10) Which of the following is the amount which the insurance company has to pay before any bonuses are added?
a) Sum assured
c) Maturity value
e) None of the above
1) Answer: b)
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.
2) Answer: d)
While women constitute nearly 48% of the country’s population, their contribution to the number of life policies bought in 2017-18 stood at 32% of the 2.82 crores policies sold. According to the IRDAI annual report, of the 90 lakhs policies bought by women in 2017-18, Maharashtra (12%), West Bengal (10.3%) and Uttar Pradesh (9.4%) accounted for a third of these.
3) Answer: d)
IndiaFirst Life Insurance Company has announced that it has bought nine per cent stake in CSC e-Governance Services India Ltd. IndiaFirst Life Insurance is a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), while CSC is an integral part of Digital India initiative of the government under Ministry of Electronics and Information Technology.
4) Answer: d)
Institute of Insurance and Risk Management (IIRM) is an educational and research organization, set up in the year 2002, by the Insurance Regulatory and Development Authority of India [IRDAI] in association with the Government of Andhra Pradesh, under a Memorandum of Understanding. IIRM has been incorporated as a company under Section 25 of the Companies Act, 1956.
5) Answer: a)
Agriculture Insurance Company of India Limited (AIC) is the largest provider of crop insurance. It was formed under the Indian Companies Act 1956 and Based in New Delhi. The company provides insurance coverages to farmers for protection against crop damages. The Government of India had authorized a capital of Rs. 1500 crore to Agriculture Insurance Company of India. The General Insurance Corporation of India subscribed AIC of India Limited with an initial paid-up capital of Rs. 200 crores.
6) Answer: a)
Max Life Insurance Company has topped the industry charts with the highest claims paid ratio in terms of the number of policies at 98.26% for 2017-18.
The company has outperformed insurance behemoth LIC, whose claims paid ratio came in at second rank (98.04%). The overall private industry average has improved to 95.24% in 2017-18 from 93.72% in the previous year.
7) Answer: c)
Minimizing the risk associated with a loss due to unwanted events is called mitigation. It is an important factor which an insurance business should take into consideration so as to reduce the losses due to unwanted events.
8) Answer: d)
An insurance policy with a premium that adjusts according to the losses experienced by the insured company, rather than according to an industry-wide loss experience is called Retrospective Rating.
9) Answer: a)
Actuary of the life insurance company determines the risk coverage for calculation of premium for life insurance policies.
10) Answer: a)
The sum assured is the amount of money an insurance policy guarantees to pay up before any bonuses are added. In other words, sum assured is the guaranteed amount the policyholder will receive. This is also known as the cover or the coverage amount and is the total amount for which an individual is insured.