Insurance Awareness Quiz for LIC AAO- Set 22

Insurance Awareness Quiz: We have created quiz questions on Insurance Awareness which are most important for insurance exams. These questions and answers will guide you in all insurance exams like LIC (AAO/ADO), NIACL assistant and AO, UIIC, IRDA and other Bank PO exams and all competitive exams. So attempt these multiple choice questions now based on the exam pattern syllabus.

1. Any complainant must approach to the Insurance Ombudsman within ___________ period of the rejection by the insurer
   A) 3 months
   B) 6 months
   C) 12 months
   D) 9 months
   
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   Option C
   
2. The “Nomination by policy-holder” is defined in which section of The Insurance Act, 1938?
   A) Section 28
   B) Section 39
   C) Section 12
   D) Section 30
   
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   Option B
   Explanation: The holder of a policy of life insurance may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death
3.  An insurance company owned entirely by its policyholders is known as __________
   A) Mutual Insurance Company
   B) Insured Insurance Company
   C) Swap Insurance Company
   D) Co Insurance Company
   
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   Option A
   
4. The date from which the annuity holder starts receiving the policy benefits of a regular stream of income is known as ________
   A) Penetration Date
   B) Coverage Date
   C) Annuity Date
   D) Vesting Date
   
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   Option D
   Explanation: This date marks the end of the accumulation phase and the start of the distribution phase of the annuity plan.
5. CGL is a type of insurance policy that provides coverage to a business for bodily injury, personal injury and property damage caused by the business’ operations, products, or injury that occurs on the business’ premises. Expand CGL.
   A) Combined General Liability
   B) Commercial General Liability
   C) Common General Liability
   D) Captive General Liability
   
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   Option B
   
6. A decrease in the value of property over a period of time due to wear and tear or obsolescence is termed as ____________
   A) Depreciation
   B) Decrement
   C) Wear & Tear
   D) Outdated
   
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   Option A
   
7. A __________ is a type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance
   A) Surplus Reinsurance
   B) Treaty Reinsurance
   C) Facultative Reinsurance
   D) Proportional Reinsurance
   
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   Option C
   
8. The Jeevan Dhara Life is an insurance policy launched by which company?
   A) Aviva Life Insurance Company
   B) Life Insurance Corporation of India
   C) HDFC Life Insurance
   D) Max Life Insurance
   
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   Option B
   
9. A life insurance policy taken by a person on the life of another person who is or was his employee/connected to his business in any manner whatsoever.
   A) With-Profit Policy
   B) Money Back Policy
   C) Limited Payment Life Policy
   D) Keyman Insurance Policy
   
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   Option D
   
10. _____________ is the restoration of a lapsed policy to in-force status
    A) Reinstatement
    B) Indemnity
    C) Franchise
    D) Deferment
    
    View answer

    Option A
    

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