Insurance Awareness Quiz for LIC AAO- Set 23
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.
- You can cancel the insurance policy offered by insurers over distance mode within _____ of receipt of the policy.
A) 20 days
B) 30 days
C) 60 days
D) 28 days
View answer
Option B
Explanation: In case of disagreement with the terms of the policy under all life contracts and covers tied to credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3 years or more, you have the right to cancel the insurance policy offered by insurers over distance mode within 30 days of receipt of the policy, provided no claim has already been made on the policy.
- You can seek cancellation a life insurance policy within ____ from the date of receipt of the policy document in case you disagree with any of the terms or conditions in the policy.
A) 15 days
B) 30 days
C) 10 days
D) 25 days
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Option A
Explanation: For offline mode free cancellation within 15 days; For distance mode- 30 days
- ___ is the period within which, if you do not agree to the terms and conditions of the insurance policy you can seek refund?
A) Cancellation Period
B) Overlook Period
C) Free Look Period
D) Down Time PEriod
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Option C
Explanation: Free Look Period is the period within which, if you do not agree to the terms and conditions of the policy after reading the same, you can return the policy immediately and seek refund of premium from the insurance company. Normally, all life insurance policies and health insurance policies having a term of three years or more have a provision for free look period.
- A _______ is the form completed by the policyholder when applying for insurance.
A) acceptance form
B) annuity form
C) policy form
D) proposal form
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Option D
Explanation: A proposal form seeks basic information of the proposer and the life assured. This includes the name, age, address, education and employment details of the proposer.
- The insurer has a duty to furnish free of charge a copy of the proposal form within ______ of the acceptance of the proposal.
A) 15 days
B) 60 days
C) 30 days
D) 45 days
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Option C
Explanation: The insurer has a duty to furnish free of charge a copy of the proposal form within 30 days of the acceptance of the proposal.
- Insurance company has to comply to the instructions of Insurance Ombudsman within how many days of receiving the instructions?
A) 10 days
B) 15 days
C) 28 days
D) 30 days
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Option D
Explanation: Within 30 days
- What is the interest rate payable by the Insurer in case of late payment of death claims under the Life Insurance Policy?
A) Bank rate + 2%
B) Bank rate + 1%
C) Bank rate + 3%
D) Bank rate + 5%
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Option A
Explanation: A death claim under a life insurance policy shall be paid or be rejected or repudiated giving all the relevant reasons, within 30 days from the date of receipt of all relevant papers and required clarifications. If there is delay on the part of Insurer beyond the timelines mentioned above, the insurer shall pay interest at a rate, which is 2% above bank rate from the date of receipt of last necessary document
- The ratio of losses suffered to the amount of insurance in effect is known as?
A) Expense Ratio
B) Burning Ratio
C) Loss Ratio
D) Manual Ratio
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Option B
Explanation: Burning Ratio- The ratio of losses suffered to the amount of insurance in effect.; Loss Ratio- The proportionate relationship of incurred losses to earned premiums expressed as a percentage.
- _________ refers to increase in probability of loss that result from dishonesty in the character of the insured person.
A) False Hazard
B) Fake Hazard
C) Loss Hazard
D) Moral Hazard
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Option D
Explanation: Moral Hazard- Moral Hazard refers to increase in probability of loss that result from dishonesty in the character of the insured person
- ___ refers to the property which an insurance company takes over after paying the claims of any damaged building?
A) Overtake
B) Portability
C) Salvage
D) Sight
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Option C
Explanation: Salvage
