Explore topic-wise MCQs in LIC AAO.

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