LIC HFL Insurance Awareness Questions 2019 (Day – 98)

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.

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1) LIC of India was incorporated on 1st September, 1956 by amalgamating ________ Companies by the Act of Parliament called Insurance Act, 1956.

a) 156

b) 234

c) 324

d) 243

e) 367

2) 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

3) ‘Agriculture Insurance Company of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India. The headquarters of AIC is located in which city?

a) Bengaluru

b) Chennai

c) Mumbai

d) Kolkata

e) New Delhi

4) The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called?

a) Instalment

b) Contribution

c) Premium

d) EMI

e) None of these

5) What is called the insurance cover that is linked to credit activities and is the goal of protecting credit ?

a) Credit file

b) Worth file

c) Assets

d) Arbitration

e) None of the above

6) What is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans?

a) External investor

b) Institutional investor

c) Co-operative investor

d) Internal investor

e) None of these

7) Under which of the following Act, the General Insurance Council was established?

a) Indian Insurance Act, 1956

b) Life Insurance Corporation Act, 1992

c) Life Insurance Corporation Act, 1984

d) Indian Insurance Act, 1938

e) Indian Insurance Act, 1932

8) When the bank sells insurance products, such arrangement is called as ?

a) Insurance joint venture

b) Bancassurance model

c) Hybrid Insurance Model

d) Insurance Broking

e) Integrated Model

9) Funds that a lender collects to receive monthly premiums in mortgage as well for paying home owners insurance, and sometimes to pay property taxes is called ____?

a) Affinity sales

b) Demutualization

c) Escrow Account

d) Earned Premium

e) Demat account

10) Which of the following scenario defines a situation whereby an insurance company moves ahead to sue the third party who caused insurance loss to insured?

a) Subrogation

b) Indemnity

c) Risk recovery

d) Sum coverage

e) None of the above

Answers :

1) Answer: d)

LIC of India was incorporated on 1st September, 1956 by amalgamating 243 Companies by the Act of Parliament called Insurance Act, 1956. LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959 and Insurance Regulatory and Development Authority Act 1999.

2) 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.

3) Answer: e)

‘Agriculture Insurance Company Of India Limited’ (AIC) (Headquarters-New Delhi) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.

4) Answer: c)

The insurance companies collect a fixed amount from its customers at a fixed interval of time, It is called “Premium”

5) Answer: a)

Credit file is the insurance cover that is linked to credit activities and is the goal of protecting credit.

6) Answer: b)

An Institutional investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. * There are usually six types of institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds and insurance companies.  It trades in large amounts or in dollar amount of securities, which qualifies for preferential treatment and low commission.

7) Answer: d)

Under section 64C of the Indian Insurance Act 1938, the General Insurance Council was established. The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. The General Insurance Council is an important link between the Insurance Regulatory and Development Authority of India and the non-Life insurance industry.

8) Answer: b)

The bank insurance model (BIM), also sometimes known as bancassurance or allfinanz, is the partnership or relationship between a bank and an insurance company, or a single integrated organisation, whereby the insurance company uses the bank sales channel in order to sell insurance products. Thus banks acting as the agent of the respective companies

9) Answer: c)

It’s the Escrow account, which is more specifically used in real estate’s, where the buyer pays the building price to the owner and also along with that pay their insurance and taxes accruing out of the house bought.

10) Answer: a)

It’s the principle of subrogation which stands for a legal right reserved by most insurance carriers. It is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. By doing this company recovers the amount of the claim paid by them to the insured for the loss.