Insurance & FM Awareness Quiz For LIC AAO Mains 2023-9th March

Q1. What do we call a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves, and other values?
(a) Actuary
(b) Agent
(c) Applicant
(d) Billing Clerk
(e) Broker
Q2. What do we call the representative who sells policies on behalf of the insurer?
(a) Actuary
(b) Agent
(c) Applicant
(d) Billing Clerk
(e) Broker
Q3. Who is a prospective policyholder who completes and signs the insurance application?
(a) Actuary
(b) Agent
(c) Applicant
(d) Billing Clerk
(e) Broker
Q4. Who’s the person responsible for revenue billing?
(a) Actuary
(b) Agent
(c) Applicant
(d) Billing Clerk
(e) Broker
Q5. Who’s the person which represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured?
(a) Actuary
(b) Agent
(c) Applicant
(d) Billing Clerk
(e) Broker
Q6. What are Fortuitous Losses?
(a) Unintentional loss occurring by accident or chance
(b) Intentional loss occurring by accident or chance
(c) Unintentional loss occurring by meticulous planning
(d) Intentional loss occurring by meticulous planning
(e) None of the above
Q7. What is the full form of IBNR?
(a) Incurred but not rechecked
(b) Incurred but not reported
(c) Incentivized but not rewarded
(d) Institutional but not retail
(e) Incremental but not reciprocal
Q8. What is Legislated?
(a) Determined by Custom
(b) Determined by President
(c) Determined by law.
(d) Determined by People
(e) Determined by Police
Q9. Who is a person hired by the insurer to investigate and settle claims on behalf of the insurance company?
(a) Broker
(b) Billing Clerk
(c) Actuary
(d) Independent Adjuster
(e) Agent
Q10. An economic device whereby the individual or business pays a cost (premium) in exchange for protection against financial loss is called?
(a) Fixed Deposit
(b) FDI
(c) FII
(d) Gold Saving
(e) Insurance

Solutions

S1. Ans. (A)
Sol. An Actuary is a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.
S2. Ans. (B)
Sol. The insurance company representative who sells policies on behalf of the insurer is called Agent.
S3. Ans. (C)
Sol. A prospective policyholder who completes and signs the insurance application is called an applicant.
S4. Ans. (D)
Sol. The person responsible for revenue billing is called Billing Clerk.
S5. Ans. (E)
Sol. A broker is a person who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured.
S6. Ans. (A)
Sol. Unintentional loss occurring by accident or chance is called Fortuitous Loss.
S7. Ans. (B)
Sol. Incurred but not reported losses. This is for losses that have occurred during a stated period, usually a calendar year but have not yet been reported to the insurer.
S8. Ans. (C)
Sol. Legislated is determined by law.
S9. Ans. (D)
Sol. An adjuster is hired by the insurer to investigate and settle claims on behalf of the insurance company.
S10. Ans. (E)
Sol. Economic device whereby the individual or business pays a cost (premium) in exchange for protection against financial loss. The agreement is a contract also known as an insurance policy.