Insurance Awareness Quiz for LIC AAO- Set 15

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. Which country is the first in the world to introduce the concept of Insurance Repository services?
   A) India
   B) United States
   C) United Kingdom
   D) France
   
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   Option A
   Explanation: On 16 September 2013, IRDA launched “insurance repository” services in India. It is a unique concept and first to be introduced in India. 
2. A foreign company is not allowed to hold at any time, more than __________ percent of the total paid-up equity of the Indian Insurance Company
   A) 10%
   B) 26%
   C) 50%
   D) 49%
   
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   Option D
   Explanation: No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid up equity capital of such Indian Insurance company 
3. What is the authorized capital of the ECGC Limited?
   A) Rs 2000 crores
   B) Rs 5000 crores
   C) Rs 2500 crores
   D) Rs 4000 crores
   
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   Option B
   Explanation: The present paid-up capital of the company is Rs. 1200 crores and authorized capital Rs.5000 crores
4. Which Section of the Insurance Regulatory and Development Authority Act, 1999 specifies the composition of IRDAI?
   A) Section 7
   B) Section 2
   C) Section 4
   D) Section 6
   
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   Option C
   
5. Which among the following is not a type of intermediaries in insurance business?
   A) Insurance Agents
   B) Insurance Brokers
   C) Bancassurance
   D) Distribution Channel
   
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   Option D
   
6. Which among the following is not an insurance company?
   A) National Securities Depository Limited 
   B) ICICI Lombard
   C) Tata AIG 
   D) New India Assurance Co. Ltd
   
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   Option A
   
7. The Insurance Advisory Committee advises IRDAI on development, disclosures and regulatory aspects of the insurance industry. The Committee cannot have more than ___________ members at any point of time
   A) 15
   B) 20
   C) 25
   D) 10
   
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   Option C
   Explanation: Currently there are 24 members in the committee. 
8. The amount paid by the policy holder before an insurance provider begins to pay any expenses is known as___________
   A) Premium
   B) Deductibles
   C) Co-Payments
   D) Annuity
   
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   Option B
   
9. What is the total stake of the Punjab National Bank in the insurance firm PNB MetLife India Ltd?
   A) 30%
   B) 50%
   C) 35%
   D) 55%
   
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   Option A
   Explanation: PNB MetLife was initially launched as MetLife India Insurance Company Limited in 2001. In 2013, PNB acquired 30% stake in MetLife India Insurance and the new private sector life insurer was re-branded as PNB MetLife India Ltd
10. Which Section of the IRDA Act 1999, specifies the Duties, Powers and Functions of the Authority?
    A) Section 12
    B) Section 8
    C) Section 10
    D) Section 14
    
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    Option D
    

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