MCQOPTIONS
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MCQOPTIONS
This section includes 48 Mcqs, each offering curated multiple-choice questions to sharpen your LIC AAO knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which among the following was formed in order to ensure fair business practices in the general insurance industry, in 1957? |
| A. | Insurance Association of India |
| B. | Insurance Institute of India |
| C. | National Insurance Academy |
| D. | General Insurance Council |
| E. | None of the above |
| Answer» E. None of the above | |
| 2. |
The Triton Insurance Company was established in 1850 in which among the following cities in India? |
| A. | Bombay |
| B. | Calcutta |
| C. | Madras |
| D. | Allahabad |
| E. | None of the above |
| Answer» C. Madras | |
| 3. |
The Life Insurance Corporation was formed in 1956 merging ________ Indian insurers and ________ on-Indian insurance companies. |
| A. | 152, 85 |
| B. | 189, 78 |
| C. | 154, 16 |
| D. | 145, 26 |
| E. | 155, 38 |
| Answer» D. 145, 26 | |
| 4. |
Which among the following enabled the government to collect statistical information regarding insurance companies in India? |
| A. | Indian Life Assurance Companies Act 1912 |
| B. | Indian Insurance Companies Act 1928 |
| C. | Insurance Act 1938 |
| D. | British Insurance Act 1870 |
| E. | None of the above |
| Answer» C. Insurance Act 1938 | |
| 5. |
The Government of India started publishing the returns of the insurance companies in India from the year - |
| A. | 1914 |
| B. | 1915 |
| C. | 1916 |
| D. | 1917 |
| E. | 1918 |
| Answer» B. 1915 | |
| 6. |
Which among the following is /are correct regarding the regulatory norms applicable for the Third Party Administrators (TPAs)? I. The foreign shareholding in TPAs cannot exceed 49% at any point of time. II. One of the members of the TPA should be a doctor registered with the Medical Council of India. III. The license is granted to TPAs for a period of 1 year after which it is required to be renewed. |
| A. | Both I and II |
| B. | Both II and III |
| C. | Both I and III |
| D. | Only III |
| E. | All I, II and III |
| Answer» B. Both II and III | |
| 7. |
The maximum number of companies for which an Insurance Marketing Firm can generate solicit business at one point of time is – |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 8 |
| E. | 12 |
| Answer» D. 8 | |
| 8. |
Which among the following is the minimum net worth required in order to apply for a license of web aggregator in India? |
| A. | Rs 10 lakhs |
| B. | Rs 20 lakhs |
| C. | Rs 25 lakhs |
| D. | Rs 50 lakhs |
| E. | Rs 1 crore |
| Answer» D. Rs 50 lakhs | |
| 9. |
The Principle of Subrogation is applicable in case of which among the following? |
| A. | Life Insurance |
| B. | Fire Insurance |
| C. | Marine Insurance |
| D. | Both B and C |
| E. | All A, B and C |
| Answer» E. All A, B and C | |
| 10. |
Which among the following describes that the insurer is liable to pay in order to make good of the losses suffered by the insured? |
| A. | Principle of Utmost Good Faith |
| B. | Principle of Indemnity |
| C. | Principle of Loss Minimization |
| D. | Principle of Subrogation |
| E. | None of the above |
| Answer» C. Principle of Loss Minimization | |
| 11. |
FSR stands for – |
| A. | Fiscal Standard Report |
| B. | Financial Stability Report |
| C. | Foreign Stressed Reserves |
| D. | Financially Stressed Reserves |
| E. | Final Stable Report |
| Answer» C. Foreign Stressed Reserves | |
| 12. |
The five pronged approach called SASHAKT to deal with NPAs in banks was recommended by – |
| A. | Sunil Mehta Committee |
| B. | Priyanka Deshmukh committee |
| C. | Urjit Patel Committee |
| D. | Abhijit Sen Committee |
| E. | Bimal Jalan Committee |
| Answer» B. Priyanka Deshmukh committee | |
| 13. |
The compounding frequency of the Kisan Vikas Patra scheme is- |
| A. | Monthly |
| B. | Monthly and Paid |
| C. | Semi-annually |
| D. | Quarterly |
| E. | Annually |
| Answer» F. | |
| 14. |
The annual interest rate offered on the Sukanya Samriddhi Account scheme for the quarter October-December 2018 is – |
| A. | 8.1% |
| B. | 8.2% |
| C. | 8.3% |
| D. | 8.4% |
| E. | 8.5% |
| Answer» F. | |
| 15. |
Which of the following is true about India Post Payments Bank? I. Central government owns 75% of equity in it. II. It can accept deposits upto Rs 1.5 lakh. III. It is not allowed to extend loans/credit. |
| A. | Only II |
| B. | Only III |
| C. | Only I and II |
| D. | Only II and III |
| E. | None of the above |
| Answer» C. Only I and II | |
| 16. |
Who has recently been appointed as the MD and CEO of UCO bank? |
| A. | A S Rajeev |
| B. | Atul Kumar Goel |
| C. | S Harisankar |
| D. | Packirisamy |
| E. | Ashok Kumar Pradhan |
| Answer» C. S Harisankar | |
| 17. |
As per the Interim Budget, the highest Direct Tax to GDP ratio in the last 10 years is pegged at – |
| A. | 4.97% |
| B. | 5.60% |
| C. | 5.98% |
| D. | 6.45% |
| E. | 6.12% |
| Answer» D. 6.45% | |
| 18. |
The fiscal deficit target for the FY22 is |
| A. | 2.9% |
| B. | 3% |
| C. | 3.1% |
| D. | 3.2% |
| E. | 3.4% |
| Answer» C. 3.1% | |
| 19. |
As per the Interim Budget, fiscal deficit for FY19 is what percent of GDP? |
| A. | 3.2 % |
| B. | 3.3 % |
| C. | 3.4 % |
| D. | 3.5 % |
| E. | 3.45 % |
| Answer» D. 3.5 % | |
| 20. |
The Ayushman Bharat-National Health Protection Mission is to integrate which of the following centrally sponsored schemes? I .Rashtriya Swasthya Bima Yojana II. Pradhan Mantri Vaya Vandana Yojana III. Varishtha Pension Bima Yojana. IV. Senior Citizen Health Insurance Scheme |
| A. | Only I and IV |
| B. | Only II and III |
| C. | Only I, II and IV |
| D. | Only II, III and IV |
| E. | All of the above |
| Answer» B. Only II and III | |
| 21. |
Which of the following offers reinsurance services in India? |
| A. | General Insurance Corporation |
| B. | Life Insurance Corporation |
| C. | United India Insurance |
| D. | National Insurance Company |
| E. | None of the above |
| Answer» B. Life Insurance Corporation | |
| 22. |
Which of the following is/are insurance repository/ies in India? I. CDSL II. NSDL III. CISR IV. RBI |
| A. | Only I and II |
| B. | Only II and III |
| C. | Only I, II and IV |
| D. | Only II, III and IV |
| E. | Only I, III and IV |
| Answer» B. Only II and III | |
| 23. |
The Insurance Repository system was launched by the IRDA in which year? |
| A. | 2012 |
| B. | 2013 |
| C. | 2014 |
| D. | 2015 |
| E. | 2018 |
| Answer» C. 2014 | |
| 24. |
In which year was the General Insurance Business nationalized in India? |
| A. | 1972 |
| B. | 1973 |
| C. | 1975 |
| D. | 1976 |
| E. | None of the above |
| Answer» C. 1975 | |
| 25. |
When was Life Insurance Corporation of India privatized? |
| A. | 1999 |
| B. | 2000 |
| C. | 2001 |
| D. | 2002 |
| E. | 2005 |
| Answer» D. 2002 | |
| 26. |
What is the present limit of FDI allowed in the insurance sector? |
| A. | 26% |
| B. | 49% |
| C. | 51% |
| D. | 74% |
| E. | 100% |
| Answer» E. 100% | |
| 27. |
The insurance sector was liberalized in which year? |
| A. | 1995 |
| B. | 1999 |
| C. | 2000 |
| D. | 2001 |
| E. | 2005 |
| Answer» D. 2001 | |
| 28. |
Which of the following committees recommended the introduction of the Rural Postal Life Insurance? |
| A. | Dubey Committee |
| B. | Pratap Committee |
| C. | Malhotra Committee |
| D. | Agastya Committee |
| E. | None of the above |
| Answer» D. Agastya Committee | |
| 29. |
Which of the following categories of people will NOT be covered under Postal Life Insurance? |
| A. | Government employees |
| B. | Semi-government employees |
| C. | Professionals |
| D. | Employees of listed companies |
| E. | All are covered |
| Answer» F. | |
| 30. |
What is the maximum amount of deposit per account that the India Post Payment Bank (IPPB) can accept? |
| A. | Rs 10,000 |
| B. | Rs 75,000 |
| C. | Rs 1,00,000 |
| D. | Rs 1,50,000 |
| E. | Rs 2,00,000 |
| Answer» D. Rs 1,50,000 | |
| 31. |
The India Post Payment Bank has recently tied up with which Insurance company to offer life insurance in rural areas? (September 2018) |
| A. | AEGON |
| B. | Bajaj Allianz |
| C. | LIC |
| D. | Birla Sun |
| E. | PNB Metlife |
| Answer» C. LIC | |
| 32. |
Which of the following is NOT a function of the IRDAI? |
| A. | Protecting the rights of insurance policy holders. |
| B. | Providing registration certification to life insurance companies |
| C. | Promoting professional organisations connected with insurance and reinsurance business |
| D. | Regulate investment of funds by insurance companies |
| E. | All are functions |
| Answer» F. | |
| 33. |
Who is the present chairman of IRDAI? |
| A. | M Ramprasad |
| B. | Subhash Chandra Khuntia |
| C. | T S Vijayan |
| D. | Shaktikanta Das |
| E. | Dinesh Tyagi |
| Answer» C. T S Vijayan | |
| 34. |
Where is the headquarters of the IRDA situated? |
| A. | Lucknow |
| B. | Chandigarh |
| C. | Mumbai |
| D. | Delhi |
| E. | Hyderabad |
| Answer» F. | |
| 35. |
Self insurance is also known as – |
| A. | Risk retention |
| B. | Risk declaration |
| C. | Risk reduction |
| D. | Risk prevention |
| E. | None of the above |
| Answer» B. Risk declaration | |
| 36. |
Consider the following example- Rashmi does not venture outside the house for fear of meeting with an accident. This is an example of – |
| A. | Risk detection |
| B. | Risk retention |
| C. | Risk avoidance |
| D. | Risk Control |
| E. | Risk Reduction |
| Answer» D. Risk Control | |
| 37. |
The principle which involves collection of many individual contributions called premium from various people is known as – |
| A. | Contribution |
| B. | Pooling |
| C. | Contract |
| D. | Peril |
| E. | Compensation |
| Answer» C. Contract | |
| 38. |
The Insurance Act was passed in year – |
| A. | 1912 |
| B. | 1934 |
| C. | 1938 |
| D. | 1939 |
| E. | 1944 |
| Answer» D. 1939 | |
| 39. |
Which of the following was the first non-life insurer to be established in India? |
| A. | Bombay Mutual Assurance |
| B. | Oriental Insurance |
| C. | National Insurance |
| D. | Triton Insurance |
| E. | None of the above |
| Answer» E. None of the above | |
| 40. |
The premium that stays stable over the life of the insurance policy and does not increase with age is known as – |
| A. | Level premium |
| B. | Elevated premium |
| C. | Risk Premium |
| D. | Office premium |
| E. | Regular premium |
| Answer» B. Elevated premium | |
| 41. |
Which of the following does NOT decrease the value of human life as an asset? |
| A. | Living too long |
| B. | Dying too early |
| C. | Living with disability |
| D. | Living a normal life |
| E. | None of the above |
| Answer» E. None of the above | |
| 42. |
Who developed the concept of Human Life Value? |
| A. | Prof. Hubener |
| B. | Prof.Nanajing |
| C. | Prof. Abneto |
| D. | Prof. Loreto |
| E. | None of the above |
| Answer» B. Prof.Nanajing | |
| 43. |
What is the aim of transferring the risk of a n individual to an insurer? |
| A. | To have peace of mind and plan ahead. |
| B. | So that the individual can undertake risky activities. |
| C. | To profit in case a loss causing event occurs. |
| D. | To be able to ignore the risks facing the assets. |
| E. | None of the above |
| Answer» B. So that the individual can undertake risky activities. | |
| 44. |
The insurers maintain _______ in order to make provisions for future payments towards losses. |
| A. | Premium Reserve |
| B. | Loss Reserve |
| C. | Accidental Reserve |
| D. | Future Reserve |
| E. | None of the above |
| Answer» C. Accidental Reserve | |
| 45. |
If a loss occurs by chance and not by the intention of any person it is known as - |
| A. | Expired Risk |
| B. | Earned Risk |
| C. | Fortuitous Risk |
| D. | Unearned Risk |
| E. | None of the above |
| Answer» D. Unearned Risk | |
| 46. |
Which among the following is known as a Paid-up Policy? |
| A. | It is a policy for which all the premium are paid. |
| B. | It is a policy for which the one time premium is paid and the final amount is due. |
| C. | It is a policy that only covers for the amount paid to the insurance company. |
| D. | It is a policy in which the policyholder has discontinued the payment of the premium after a specified period as decided by the insurer. |
| E. | None of the above |
| Answer» E. None of the above | |
| 47. |
A policy in which all the benefits have ceased for non-payment of premium is known as - |
| A. | Lapsed Policy |
| B. | Terminated Policy |
| C. | External Policy |
| D. | Extended Policy |
| E. | None of the above |
| Answer» B. Terminated Policy | |
| 48. |
This is the field of science which deals with mathematics and statistics to determine the risks assessment in finance? |
| A. | Actuarial Science |
| B. | Data Interpretation |
| C. | Data Crunching |
| D. | Data Science |
| E. | None of the above |
| Answer» B. Data Interpretation | |