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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)?
|
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?
|
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?
|
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?
|
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.
|
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 | |