Thursday 25 February 2016

50+ MCQ for LIC AAO

👉INSURANCE - 1
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MCQ FOR LIC AAO
1. Which of the following is NOT an operating goal of an insurer?
1) Comply with legal requirements.
2) Concentrate risk.
3) Meet customer needs.
4) Earn a profit.
5) Fulfill its duty to society.

2. What are the three core functions that exist within a typical insurer?
1) Accounting, actuarial, and underwriting.
2) Actuarial, claims, and underwriting.
3) Accounting, marketing and distribution, and sales.
4) Claims, marketing and distribution, and underwriting.
5) Actuarial, marketing and distribution, and sales.



3. Which of the following errors is the most significant problem in measuring insurer profitability?
1) Errors in setting adequate rates.
2) Errors in estimating future investment returns.
3) Errors in estimating loss reserves.
4) Errors in estimating sales growth.
5) Errors in classification of loss exposure units.

4. Which of the following is NOT a reason insurers are subject to governmental regulation?
1) Protect consumers against fraud.
2) Guarantee insurer profit.
3) Maintain insurer solvency.
4) Prevent unfair discrimination.
5) Protect consumers against unethical marketing behavior.

5. Which of the following is the primary reason insurer solvency is monitored by regulators?
1) Insurers hold large sums of money for the benefit of consumers.
2) Insurers are inherently financially unstable
3) The cost of insurer insolvencies is shifted to taxpayers.
4) Solvency of insurers is easily measured without much cost.
5) The claims-paying ability of insurers can be analyzed by most consumers and businesses.

6. Which of the following are the three major goals of insurance rate regulation?
1) Ensure that rates are adequate, are not excessive, and are unfairly discriminatory.
2) Ensure that rates guarantee insurance company solvency, are affordable, and are not overly complex.
3) Ensure that rates do not allow insurers excessive or unreasonable profits, are high enough to pay all claims and expenses, and result in fair, consistent, and equitable charges among all insured groups.
4) Ensure that rates are not affected by competition, are not excessive, and are not discriminatory.
5) Ensure that rates are actuarially sound, are affordable to all, and are equitable.

7. Which of the following types of insurance customer is most likely to have the broadest choice of risk financing alternatives?
1) Individual.
2) Professional partnership.
3) Small business.
4) Middle market account.
5) National account.

8. Which of the following are advantages of allowing qualified producers to handle certain types of claims?
I. Lower loss adjustment expenses.
II. Larger payments to claimants.
III. Quicker service to policyholders.
1) I only.
2) I and II only.
3) I and III only.
4) II and III only.
5) I, II, and III.

9. Which of the following is the principal method of determining a prospect’s insurance needs?
1) Having a conversation to determine what insurance coverage the prospect wants to purchase.
2) Performing a thorough risk management review of the prospect’s loss exposures.
3) Selling the prospect as much coverage as it can afford, given its insurance purchasing budget.
4) Determining if the prospect’s insurance needs can be placed in the standard market or placed in the residual market.
5) Determining which insurer offers the most attractive contingent commission arrangement for the prospect’s desired coverage.

10. Which of the following does NOT determine the underwriting capacity of an insurer?
1) The volume of premiums written relative to the insurer’s policyholders’ surplus.
2) Availability and cost of adequate reinsurance.
3) Regulatory guidelines.
4) Ability to generate an acceptable return on equity.
5) Standardized methods used to organize underwriting activities.
ANSWERS
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1. 2 2. 4 3. 3 4. 2 5. 1
6. 3 7. 5 8. 3 9. 2 10. 5

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👉Insurance - 2
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MCQ for LIC AAO
Q 1. Which first bank in India to fully own an insurance business ?
1) HDFC Bank
2) Kotak Mahindra Bank
3) ICICI Bank
4) IDBI Bank

Q 2. Aam Admi Bima Yojana provide insurance of ………. on natural death–
1) Rs. 75000
2) Rs. 30000
3) Rs. 50000
4) Rs. 10000

Q 3.The Central Government rolled out a new Crop Insurance Scheme through which it will bring down the rate of premium to be paid by farmers to a maximum of 2.5 per cent of the sum insured, Currently, farmers have to pay premium ranging from __________ per cent to insure crops.
1) 3 to 12
2) 5 to 15
3) 4 to 15
4) 2 to 10
5) None of these

Q 4. Which of the following is the first mortgage guarantee company in India?
1) Unit Trust of India
2) Life Insurance Corporation
3) General Insurance Corporation
4) National Housing Bank
5) None of the above

Q5. _________ insurance is general insurance that covers common property under the management of a _______ title or body corporate entity.
1) Residential, strata
2) Commercial, strata
3) Agriculture, crop
4) Medical indemnity, health
5) None of these

Q 6. A __________ is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the __________.
1) ULIP
2) Bancassurance
3) Term Insurance
4) Whole Life Insurance
5) None of these

Q 7. Aam Admi Bima Yojana is an insurance scheme for rural landless households introduced by–
1) LIC
2) UTI
3) ICICI
4) None of these

Q 8. Government has issued an ordinance announcing ULIP as 'Insurance Product'. Who is now the regulator of ULIPs?
1) SEBI
2) IRDAI
3) Both 'a' and 'b'
4) Government of India

Q 9.Which among the following committee recommended the establishment of IRDA?
1) P.N. Mehrotra Committee
2) R.N. Malhotra Committee
3) D.R. Gadgil Committee
4) Rajmannr Committee
5) None of these

Q 10. Who among the following is the current chairman of Insurance Regulatory & Development Authority of India?
1) J. Harinarayan
2) Rana Pratap
3) T.S. Vijayan
4) K.T.S. Tulsi
5) None of these

Q 11. The entire general insurance business in India which was nationalised by General Insurance Business (Nationalisation) Act, _________ (GIBNA).
1) 1973
2) 1963
3) 1972
4) 1962
5) None of these
Answers
=======
1. 2
2. 2
3. 3
4. 4
5. 1
6. 4
7. 1
8. 2
9. 2
10. 3
11. 3

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👉INSURANCE - 3
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MCQ FOR LIC AAO
1. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash - Sab ki Surakhsa Hamare Paas?
1) Life Insurance Corporation
2) Oriental Insurance Company
3) New India Assurance
4) General Insurance Company
5) None of these

2. With which of the fields is actuarial science associated?
1) Insurance
2) Banking
3) Micro-finance
4) Space technology
5) None of these

3. Which of the following terms is used in the field of finance and banking?
1) Elasticity
2) Inflation
3) Pulse rate
4) Hot waves
5) None of these

4. Expand the term IFRS.
1) Indian Financial Reporting Standards
2) Indian Financial Reporting Systems
3) International Financial Reporting Standards
4) International Financial Reporting Systems
5) None of these

5. What does the term FSDC, used in financial sectors stand for?
1) Financial Security and Development Council
2) Financial Stability and Development Council
3) Fiscal Security and Development Convention
4) Fiscal Stability and Development Council
5) None of these

6. Which of the following is the regulator of the credit rating agencies in India?
1) RBI
2) SBI
3) SEBI
4) ICRA
5) None of these

7. FDI refers to
1) Fixed Deposits in India
2) Foreign Direct Investment
3) Foreign Deposits in India
4) Future Derivative Investment
5) None of these

8. State financial Corporations give assistance mainly to develop which of the following?
1) Small and medium scale industries
2) Agricultural sector
3) Cotton industry
4) Large scale industries
5) None of these

9. Whose signatures are found on one rupee note in India ?
1) Governor, Reserve Bank of India
2) Finance Minister, Government of India
3) Finance Secretary, Ministry of Finance Government of India
4) One rupee note does not have any signatures
5) None of these

10. Which of the following insurance plan is not launched by LIC?
1) Jeevan Abhaya
2) Life Mahalife Gold Plan
3) Child Career Plan
4) Child Future Plan
5) Jeevan Saral
Answers
=======
1. 2 2. 1 3. 2 4. 3 5. 2
6. 3 7. 2 8. 1 9. 3 10. 2

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👉INSURANCE - 4
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MCQ FOR LIC AAO
1. Which of the following types of companies/organisations issue ULIP?
1) Insurance companies
2) Banks
3) NABARD
4) RBI
5) None of these

2. Which amongst the following is not an insurance company functioning in India?
1) ICICI prudential
2) ING Vysya
3) National Securities Depository Limited
4) New India Assurance company
5) General insurance company

3. Which of the following is the only public sector company in the field of life insurance?
1) General insurance company
2) New India assurance company
3) Oriental insurance company
4) Life Insurance Corporation of India
5) None of these

4. “A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against” is technically known as
1) Death coverage
2) Life insurance
3) Savings for future
4) Provident fund
5) None of these

5. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?
1) New India Assurance Ltd.
2) Insurance Australia Group
3) Lehman Brothers Holdings Inc.
4) Allianz
5) None of these

6. Which of the following is the regulator of insurance sector in India?
1) RBI
2) AMFI
3) IRDA
4) SEBI
5) None of these

7. Which of the following terms is NOT related to the insurance sector?
1) Indemnity
2) Coverage
3) Misuse Alert
4) Annuity
5) None of these

8. Which of the following public sector companies/organizations provides insurance cover to exporters?
1) ECGC
2) NABARD
3) SIDBI
4) IRDA
5) None of these

9. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called?
1) Instalment
2) Contribution
3) Premium
4) EMI
5) None of these

10. Which of the following is/are the various types of insurance?
a) Life insurance
b) Health insuranc
c) Liability insurance
1) Only (a)
2) Only (a) and (b)
3) Only (b) and (c)
4) All the three
5) Only (a) and (c)
Answers
=======
1. 1 2. 3 3. 4 4. 2 5. 2
6. 3 7. 3 8. 1 9. 3 10. 4

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👉INSURANCE - 5
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MCQ FOR LIC AAO
1. The punch line of the advertisement of which of the following organization is “Jindagi ke sath bhi Jindagi ke bad bhi” ?
1) New India Assurance
2) General Insurance Corporation
3) ICICI Prudential
4) Life Insurance Corporation Of India
5) None of these

2. The central office of the Life Insurance Corporation of India (LIC) is located at
1) Kolkata
2) New Delhi
3) Chennai
4) Pune
5) Mumbai

3. If an organization wishes to venture into Insurance Business it has to obtain a licence first from which of the following ?
1) Indian Banks Association (IBA)
2) Security and Exchange Board of India (SEBI)
3) Tariff Advisory Committee (TAC)
4) Insurance Regulatory and Development Authority of India (IRDAI)
5) None of these

4. Which of the following is not the name of an Insurance Scheme launched by the Government of India
1) Janashree Bima Yojana
2) Krishi Shramik Sarnajik Suraksha Yojana
3) Shiksha Sahyog Yojana
4) Varsha Bima Yojana
5) National Saving Scheme Programme

5. Which of the following insurance companies writes its punch line in the advertisements “Insurance is the subject matter of solicitation” ?
1) CIC
2) LIC
3) ING Vysya Life InsuranceCo.
4) Tata AIG Life Insurance Co
5) None of these

6. Which of the following was the parent company of New India Assurance ?
1) LIC
2) GIC
3) Oriental Insurance Co. Ltd.
4) United India Insurance
5) None of these

7. Which of the following words/ terms is closely associated with the insurance business
1) Archives
2) Donation
3) Actuary
4) Quest
5) All are associated with insurance

8. The New India Assurance Company was established in 1919 by
1) Dorab Tata
2) G. D. Birla
3) Jamunalal BajaJ
4) Kamlapat Singhania
5) None of these

9. Which of the following is largest Non Life Insurance Company in India ?
1) ICICI Lombard General Insurance Company Ltd.
2) United India Insurance Company Ltd.
3) General Insurance Company Ltd.
4). New India Assurance Company Ltd.
5) None of these

10. Which is the sole reinsurance company in the Indian insurance market ?
1) United India Insurance Company Limited
2) General Insurance Corporation of India
3) New India Assurance Company Limited
4) The Oriental Insurance Company
5) Life Insurance Corporation of India
ANSWERS
=========
1. 4 2. 5 3. 4 4. 4 5. 2
6. 2 7. 3 8. 1 9. 4 10. 2

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👉Insurance - 6
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MCQ for LIC AAO
1)The entry level capital requirement for an insurance company in India is
1. Rs 1 cr
2. Rs 5 cr
3. Rs 500 cr
4.Rs 100 cr

2)Which of the following regulates the insurance business in India ?
1. Lic of India
2. ECGC
3. SEBI
4. None of the above

3)Under a contract of insurance,the payment is made of the insured amount on which of the following dates ?
1. date of maturity
2.specified dates at periodic intervals
3.death, in case it happens earlier
4.death only in all the case

4) As per insurance ombudsman scheme the ombudsman is empowered to redress customer grievances where the insured amount amount is ?
1.up to 1 lakhs
2.less than 5 lakhs
3.up to 10 lakhs
4.less than 20 lakhs

5)The tariff of insurance are prescribed generally by ?
1.IRDAI
2.insurance companies themselves
3.General insurance company
4.none of the above

6)To be eligible under Aam Aadmi Bima Yojna the range of age prescribed in
policy ?
1.15-25 yrs
2.15-60 yrs
3.18-59 yrs
4.18-60 yrs

7)What is the amount of insurance Under Aam Aadmi Bima Yojna for natural
death and accidental death ?
1. Rs 30000 for each
2. Rs 75000 for each
3. Rs 30000 for natural death and 75000 for accidental death
4. Rs 75000 for natural death and 30000 for accidental death

8)The objective of creating IRDAI ?
1. to facilitate opening of insurance company for increasing business
2. to regulate and develop insurance business
3. to develop insurance products so that all the insurance company adopt them on a uniform pattern
4. All the above

9) Which of the following is not correct regarding Group Insurance ?
1. There is low cost of insurance cover
2. The insurance policy save administration cost
3.the group selection is aimed at forming a group which will show nominal rate of mortality
4. None of the above

10) Insurance business is divided into ?
1. 3 classes
2. 4 classes
3.2 classes
4.None of the above
Answers
=======
1. 4
2. 4
3. 4
4. 4
5. 4
6. 3
7. 3
8. 2
9. 3
10. 3
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