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) Which among the following investigates insurance claims to determine the extent of the insuring company’s liability?
a) Insurance Agent
c) Claim Adjuster
2) Which among the following acts was the first legislative measure to regulate life business?
a) The Indian Insurance Companies Act, 1928
b) The Indian Life Assurance Companies Act, 1912
c) The IRDAI Act, 1999
d) Life Insurance Companies Act, 1956
e) General Insurance Business (Nationalization) Act, 1972
3) ‘Bima Bemisaal’ is the brand name for which of the following organization’s insurance awareness campaign?
a) Life Insurance Corporation (LIC)
b) Insurance Regulatory and Development Authority of India (IRDAI)
c) General Insurance Corporation of India (GIC)
d) Employee Provident Fund Organisation (EPFO)
e) Pension Fund Regulatory and Development Authority (PFRDA)
4) Minimizing the risk associated with a loss due to unwanted events is called ____.
a) Insurable Risk
b) Investment Risk
e) Reinsurance Risk
5) As per the regulations of IRDAI, which insurance policy cannot be declined to underwrite the policy?
a) Term Insurance Policy
b) Unit Linked Insurance Policy
c) Third Party Insurance Policy
d) Valued Insurance Policy
e) Whole Life Insurance Policy
6) What is Micro Insurance Plan?
a) Insurance given to small group of people.
b) Insurance given to villagers.
c) Insurance given to low income households
d) Insurance given to single entity
e) All of the above
7) The government of India proposed the merger of which three insurance companies?
a) National Insurance, Oriental Insurance, United India Insurance
b) National Insurance, General Insurance Corporation of India, United India Insurance
c) National Insurance, General Insurance Corporation of India, New India Assurance
d) National Insurance, General Insurance Corporation of India, Oriental Insurance
e) New India Assurance, General Insurance Corporation of India, Oriental Insurance
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) A whole life policy in which premiums are payable as long as the insured lives is called ________
a) Straight Life Annuity
c) Straight Life
d) Subjective Risk
e) None of these
10) The term ‘insurable interest’ is related to which of the following types of insurance?
a) Life Insurance
b) Fire Insurance
c) Marine Insurance
d) General Insurance
e) All of the above
1) Answer: c)
A claims adjuster investigates insurance claims to determine the extent of the insuring company’s liability.
Claims adjusters verify insurance claims and determine a fair amount for settlement. These can be any type of claim, from personal injury to property damage.
Underwriter – An underwriter is any party that evaluates and assumes another party’s risk for a fee.
Rider – Riders are the supplementary benefits added in the primary life insurance policy purchased by the insured.
2) Answer: b)
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies.
3) Answer: b)
‘Bima Bemisaal’ is the brand name for the Insurance Regulatory and Development Authority of India’s (IRDAI) insurance awareness campaign.
It is a consumer education initiative.
The tagline of the campaign ‘Promoting Insurance. Protecting Insured’.
Bima Bemisaal educates policyholders about their rights and obligations and informs them about the complaints resolution methods available to them.
It also creates awareness about insurance among the general public.
4) 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.
5) Answer: c)
As per the IRDAI, no insurer can decline to underwrite third party insurance. Third Party Insurance Policy covers the third person who has been injured in an accident involving the owner and his/her car. It doesn’t provide direct benefit to the insured. This is a mandatory cover, along with the own damage cover, that a vehicle owner must purchase. This insurance cover is for any collateral damage to a third party.
6) Answer: c)
Micro Insurance Plan refers to the insurance plan given to the low income households.
- This is like any other insurance plan but it focuses on low income peoples.
- Under this the premium paid is very low.
7) Answer: a)
The government of India proposed the merger of National Insurance, Oriental Insurance and United India Insurance.The government wants the merger to be completed by March 31, 2019.
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: c)
A straight life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums. This traditional life insurance is sometimes also known as whole life insurance or cash value insurance.
10) Answer: e)
Insurable interest refers to the interest in the property or thing insured. Only the owner can have the insurable interest in the property. It is related to all types of insurance. In case of life insurance it is related to the life of insured person and in other cases it is related to the subject matter that is insured.