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Insurance Questions and Answers for LIC Exams – AAO, ADO

Insurance GK Questions & Answers – Bit Bank

Insurance Questions & Answers for LIC ADO Online Exam

LIC (Life Insurance Corporation)  is an apex insurance organization established in the year 1956 and its headquarters is located in Mumbai. Yearly, LIC is recruiting various no. of young qualified candidates to fill the fallback vacancies in different Officer Cadre Posts – AAO (Assistant Administrative Officer), AO ( Administrative Officer) & ADO ( Apprentice Development Officer ),  due to retirement of some of the employees and also to work in its newly opened branches.

Recently,  LIC has released a notification for recruiting the candidates for LIC Officer Cadre posts as Apprentice Development Officers (ADOs). Here we are providing the collection of questions and answers on insurance knowledge. Those who are preparing for LIC exams can go through these insurance questions and answers to get the good score in general awareness (related to insurance knowledge)  part of Online LIC ADO Exam.

Insurance GK Questions and Answers for LIC Exams – AAO, ADO

1. Life Insurance Corporation (LIC) has come into existence from the year ………………   
(a) 1954
(b) 1956
(c) 1960
(d) 1959
(e) 1971

2. The premium charged by the life insurer is calculated on the basis of
a) Mortality
b) Interest
c) Expenses
d) The rate of Deaths of very large number of persons insured.
e) All of the above.   

3. If the amount of claim is Rs.25 Lakhs, which consumer court will hear the grievances of the consumer?
a) Ombudsman
b) State level
c) National Level
d) District Level
e)Specially appointed tribunals

4. How does nomination gets automatically canceled?
(b) Consideration.
(c) As per trust act.
(d) Forfeiture.
(e) Both 2 and 3.

5. Which of the following is treated as evidence of the contract of life insurance?
a) First Receipt.
b) The sum of policy assured.
c)The policy bond.
d) Both 1 and 3.

6. The life insurance has its own origin in Rome.

7. Accidental Insurance was started in …………..
a) 1845
b) 1856
c) 1780
d) 1990
e) 1991

8. A person resident in India may take a general insurance policy issued by an insurer outside India provide that before taking that policy he has been obtained a no objection certificate from the
c) Central Govt. of India.
d) Finance Ministry.
e) Home Ministry.

9. IF a policyholder is reported missing for more than seven years then
a) Maturity claim is payable.
b) Death claim is payable is assuming non-accidental death.
c) Ex-gratia benefit is payable.
d) Either (1) and (2).
e) Both (2) and (3).

10. The analytical ability for an insurance agent is must for
a) The reasoning of customer objections.
b) Deciding on other investment options.
c) Narrating dreadful consequences of non-insurance.
d) Communicating the benefits of policies.

11. In Mortgage Redemption Policy, the sum assured can be payable
a) On death anytime.
b) On termination.
c) At the end of the term
d) On death within the term.
e) Both 2 and 3.

12. No person resident in India is permitted to take any general or Life insurance policy issued by an insurer outside India except for units located in
a) Bangladesh
b) Special Economic Zone
c) America
d) United Kingdom
e) Luxembourg

13. Which of the following is not a feature of a successful reinsurance market?
a) Mature financial markets.
b) Locational advantage.
c) Availability of knowledge capital
d) The role of foreign insurance.
e) Both 2 and 3.

14. The minimum paid-up equity capital of the insurer should be
a) 100 crores
b) 125 crores
c) 200 crores
d) 250 crores
e) 300 crores

15. Which of the following is a Term Assurance Policy?
a) Lifeguard of ICICI Prudential.
b) Bhīma Sandesh Plan 94 of LIC.
c) Term care plan of Bajaj Allianz.
d) ULIP & LIC.
e) Both 2 and 3

16. The policy acquires surrender value if runs for a period of
a) 3 years
b) 2 years
c) 5 years
d) 6 years
e) 7 years

17. The first insurance Act in India was passed in 1912. When was a detailed and amended act passed to look into investments, expenditure and management of these companies fund?
a) 1928
b) 1938
c) 1961
d) 1953
e) 1940

18. The insurance agent’s licence is valid for a period of …………. Years.
a) 2 years.
b) 3 years.
c) 4 years.
d) 5 years.
e) 7 years.

19. Which of the following is the most prevalent method for transferring fund from once city
Another by Indian Banks
a) Internet
b) EDI
c) TT
d) Fax
e) None

20. In the field of life insurance, the “material facts” refers to
a) Age, weight, the height of the insured.
b) Facts of a common language.
c) Facts that required being disclosed
d) Facts which lessen the risk.

Insurance Questions and Answers

21. Two basic principles specially governing life insurance contract are
a) Offer and acceptance.
b) Insurable interest and almost good faith.
c) Proposal and agent’s report.
d) Personality history and medical report.

22. The main office of the Salary Savings Schemes division of LIC of India is located in
a) Bhopal.
b) Jaipur.
c) Lucknow.
d) Mumbai
e) Banglore

23. The principle of Indemnity does not apply to
a) Life Insurance.
b) Fire Insurance.
c) Marine Insurance.
d) Earthquake Insurance.

24. Every policyholder is given the option to choose the premium payment
(a) Method.
(b) Mode.
(c) System.
(d) Procedure.
(e) None.

25. Under which of the cases insurable interest is to be established
a) Creditor and Debtor.
b) Husband and Wife.
c) Brothers and Sisters.
d) Employee and Employer.

26. Which of the following LIC group scheme provides pension to employees on their retirement from service?
a) Group Insurance Scheme in Lieu of EDLI.
b) Group Term Insurance Schemes
c) Group Superannuation Scheme.
d) Group Gratuity Scheme.
e) None

27. Customers of LIC can now get information about their policies by dialing which of the following telephone numbers?
a) 135
b) 136
c) 1251
d) 101

28. Under which of the following sections of the income tax Act the LIC Policyholders cannot get any income tax benefit?
a) Section 68 A, B and C.
b) Section 80 CD
c) Section 80 C
d) Section 80 CCC.

29. A person who acts as an arbitrator under section 114 of insurance act is
(a) Ombudsman.
(b) Arbitrator.
(c) Councilor.
(d) Mediator.

30. The Life Insurance Corporation of India has how many zonal offices in India?
a) Seven
b) Eight
c) Fifteen
d) None of these.

31. The slogan of Life Insurance Corporation is …………………..

a) Your welfare is our responsibility
b) Welfare and Responsibility.
c) Customers, Welfare is Our Responsibility
d) Savings and Investments.

32. If an Organization wishes to start insurance business. At first, it has to obtain a license from which of the following?
a) IBA (Indian Banks Association)
b) SEBI (Securities and Exchange Board of India)
c) TAC (Tariff Advisory Committee)
d) IRDA (Insurance Regulatory and Development Authority)
e) None of these.

33. Which of the following is a pension plan of the Life Insurance Corporation?
a) Jeevan Adhar.
b) Jeevan Akshay.
c) Amulya Jeevan.
d) Jeevan Anand.
e) None of these.

34. The premium charged by the Life Insurance Corporation is calculated on the basis of
a) Interest
b) Expenses
c) Mortality
d) All of the above.

35. Which of the following documents is an evidence of the contract in life insurance?
a) Medical Report.
b) Policy document.
c) Proposal Form.
d) Premium Receipt.
e) None of these.

36. Revival and days of race are an
a) Rider.
b) Guarantee
c) Options
d) None of these. 

37. An insurer who wish to start life insurance business in the year 2000 or later is required to underwrite in the fifth financial year, at least,
a) 15%.
b) 5%.
c) 20%.
d) 25%.

38. The fact which is material is decided by the
(a) Proposer.
(b) Agent.
(c) Underwriters.
(d) None of these.

39. When a fire breaks out it destroys the building, machinery and contacts of the firms which are insured. Then, this damage is covered under the
a) Capital loss policy.
b) Material damage policy.
c) Property damage policy.
d) None of these.

40. When did the brokers regulation was passed?
(a) 1999.
(b) 2000.
(c) 2001.
(d) 2002.
(e) None of the given options.

41. In mortgage redemption policy, the sum assured is payable
a) On termination.
b) On death anytime.
c) At the end of the term.
d) On death within the term.

42. What is the similarity between insurance and reinsurance?
a) The principle of almost good faith.
b) The principle of indemnity.
c) Conditional contracts.
d) All of the above.

43. A person who acts as an arbitrator under section 114 of insurance act is
(a) Ombudsman.
(b) Arbitrator.
(c) Councilor.
(d) Mediator.

44. Which of the following is correctly matched?
(a) Pure Risk: It exists when a situation is characterized by uncertainty as to whether or not   loss will occur.
(b) Speculative: When an event can result in either a gain or a loss or a status quo.
(c) Dynamic Risk: Arising from changes that can take place in every society.
(d) All of the Above.

45. The large amounts in the life insurance company come by way of
(a)Policy Loan Interests.
(b) Premium and Return on Investment (ROI).
(c) The policies which lapse.
(d) Other Services.

46. In marine insurance, the loss due to roles and vermin is
a) A statutory exclusion.
b) Floating policy.
c) Consequential loss.
d) None of these.

47. The proposal forms are to be signed by the
a) The proposed and the life to be assured.
b) The proposed and the witness by the third party.
c) The proposed and the agent.
d) 1 and 3.

48. By producing which documents the duplicate policies are issued?
a) Indemnity bond.
b) Medical Report
c) Guaranteed) None of these.

49. Infirmities are related to
a) Old age.
b) Lose of limbs.
c) Sickness
d) All of the above.

50. The rural insurance scheme is regulated by
(a) Govt. of India.
(b) Insurance Act of 1938.
(c) IRDA.
(d) None of those.

51. Which of the following companies in India is considered as ‘Indian Reinsurer’ and gives support to all public and private insurance companies?
(a) New India Insurance Company.
(b) Life Insurance Corporation of India.
(c) General Insurance Corporation of India.
(d) Oriental Insurance Company Ltd.,
(e) United Insurance Company.

52. Which of the following is a social security scheme of the LIC?
(a)Jeevan Saathi.
(b) Bima Nivesh.
(c) Market Plus
(d) Jeevan Surabhi
(e) None of these.

53. LIC allows its policyholders to use which of the following for payment of premium?
(a) The Internet
(b) Electronic Clearing Service.
(c) ATM’s of some selected Banks.
(d) Only A. (b) Only B. (c) Only C. (d) Both A & B. (e) All A, B, & C.

54.Which of the following is single premium money back policy?
(a) Bima Bachat.
(b) Jeevan Pramukh
(c) Jeevan Saral
(d) Jeevan Aadhar
(e) None of these.

55. Which of the following types of companies issue ‘ULIP’?
(a) Insurance Companies.
(b) RBI.
(d) Banks.
(e) All of these.

56. Insurance Business in India is regulated by which of the following authorities?
(b) IRDA
(c) CII
(d) NFCG.

57. Which of the following is the only public sector company in the field of life insurance?
(a) General Insurance Company.
(b) New India Assurance Company.
(c)  Oriental Insurance Company.
(d) Sahara Life Insurance.
(e) Life Insurance Corporation of India.

 58.The insurance companies collect a fixed amount from its customers at a fixed interval of time. What it is called?
(a) Instalment.
(b) Contribution.
(c) Premium.
(d) EMI.
(e) Service Charge.

59. In which of the following years the govt. of India nationalized the general insurance business under the General Insurance Business (Nationalization) Act?
(a) 1970
(b) 1972
(c) 1973
(d) 1981.

60. The Life Insurance Corporation of India was established in September 1956 under an Act of the Indian Parliament. The government of India invested a capital of ……………. In this corporation.
(a) Rs.5 crore.
(b) Rs.7 crore.
(c) Rs.4 crore.
(d) Rs.3 crore.

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