LIC AAO Mains 2019- Financial and Insurance Market Questions

Dear Aspirants,

LIC AAO Mains 2019- Financial and Insurance Market Questions

As we know, LIC has released both the vacancies of AAO (Assistant Administrative Officer) & ADO (Apprentice Development Officer). Insurance Market & Financial Awareness is a newly introduced section which will be asked in both the exams. LIC AAO mains 2019 is scheduled to be held on 28th June. While LIC ADO Prelims 2019 is scheduled to be held on 6th & 13th July. Here is a quiz on Insurance Market & Financial Awareness being provided by Adda247 for free to let you practice the best of latest pattern Questions for LIC examination for sure shot selection.

Q1. The Executive Council of Insurers, previously known as Governing Body of Insurance Council (GBIC) has been established under the Insurance Ombudsman Rules ______________ to set-up and facilitates the Institution of Insurance Ombudsman in India.

2015

2016

2014

2018

2017

Solution:

The Executive Council of Insurers, previously known as Governing Body of Insurance Council (GBIC) has been established under the Insurance Ombudsman Rules, 2017, to set-up and facilitate the Institution of Insurance Ombudsman in India. The Executive Council of Insurers consists of nine members including the Chairperson.

Q2. The four public sector general insurance companies have been implementing UHIS for improving the access of health care to poor families. What is the full form of UHIS?

Usually Health Insurance Scheme

Unique Health Insurance Scheme

Universal Health Insurance Service

Universal Health Insurance Scheme

Universal Health Insurance Security

Solution:

Universal Health Insurance Scheme (UHIS)- The four public sector general insurance companies have been implementing Universal Health Insurance Scheme for improving the access of health care to poor families.

Q3. Who is the present Chairman of Office of the Executive Council of Insurers?

Sudhir Shyam

Nilesh Sathe

MR Kumar

Sanjeev Nautiyal

SS Gopalarathnam

Solution:

MEMBERS OF THE EXECUTIVE COUNCIL OF INSURERS (Office of the Executive Council of Insurers).
Sri M. R. Kumar, Chairman, LIC of India - Chairman.

Q4. The Universal Health Insurance Scheme (UHIS) has been redesigned targeting only the BPL families. The premium subsidy has been enhanced from ___________________ to ____________________ for an individual.

Rs 300 to Rs 500

Rs 100 to Rs 200

Rs 400 to Rs 500

Rs 300 to Rs 800

Rs 1000 to Rs 1200

Solution:

The Universal Health Insurance Scheme (UHIS) has been redesigned targeting only the BPL families. The premium subsidy has been enhanced from Rs.100 to Rs.200 for an individual, Rs.300 for a family of five and Rs.400 for a family of seven, without any reduction in benefits.

Q5. IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956 in-

2001

1999

2005

1998

2003

Solution:

Insurance Brokers Association of India (I.B.A.I.) was incorporated as a Company under Section 25 of the Companies Act, 1956 vide Certificate of Incorporation No. U 67120 MH 2001 NPL 132860 dated 25th July 2001. IBAI has a Memorandum of Association as well as an Articles of Association, as required under the Companies Act, 1956. IBAI is run by a Board of Directors who are elected by the members.

Q6. What is risk in insurance sector?

The funds an insurance company sets aside to pay for reported but outstanding claims

Voluntary programs that is available from the government or private firms

The uncertainty concerning the occurrence of a financial loss

A course or principle of action adopted or proposed by an organization or individual

Avoiding the risk altogether

Solution:

Risk- The uncertainty concerning the occurrence of a financial loss.

Q7. The main objects of IBAI are to promote interaction among the Insurance/Re-insurance Broker members. IBAI stands for-

Insurance Banking Association of India

Insurance Brokers Assembly of India

Insurance Brokers Agency of India

Insurance Brokers Association of Institute

Insurance Brokers Association of India

Solution:

The main objects of Insurance Brokers Association of India (IBAI) are to promote interaction among the Insurance/Re-insurance Broker members and to encourage, promote, facilitate and protect the interests of the members of IBAI and to provide an avenue to the members for further education, training and research in all fields of insurance and re-insurance and represent the interests of Brokers with other organizations.

Q8. __________________ is a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.

Actuary

Applicant

Agent

Assuming Company

Assets

Solution:

Actuary- A professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.

Q9. Where is the Corporate Office of Insurance Brokers Association of India?

Gurugram

Pune

New Delhi

Mumbai

Lucknow

Solution:

Mumbai is the Corporate Office of Insurance Brokers Association of India.

Q10. _____________ is a term which is private wrong against a person for which the injured person may recover damages, i.e. monetary compensation in insurance sector.

Premium

Tort

Loss

Agency

Policy

Solution:

Tort is conduct that harms other people or their property. It is a private wrong against a person for which the injured person may recover damages, i.e. monetary compensation. The injured party may sue the wrongdoer (tortfeasor) to recover damages to compensate for the harm or loss incurred.

Q11. The RBI sells government securities to control the _______.

Flow of Finance in banks

Flow of Credit

Flow of Governmental Securities

All of these

None of the given options is true

Solution:

The RBI sells government securities to control the flow of credit.

Q12. A bond that is issued at a deep discount to its face value but pays no interest is known as-?

Appreciation bond

Interest bond

Zero coupon bond

Depreciated bond

None of the given options is true

Solution:

Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of the bond.

Q13. Short term promissory notes are unsecured and not collateralized against securities, hence it is classified as-?

Commercial Paper

Bond

Debentures

Treasury Bills

None of the given options is true

Solution:

A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore, doesn’t require any guarantee.

Q14. Commercial paper was introduced in-?

2002

2000

1990

1995

1980

Solution:

CP was introduced in India in 1990.

Q15. Exchange markets and over counter markets are considered as two types of-?

Primary market

Secondary market

Risky market