Insurance Awareness Quiz for LIC AAO- Set 20

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. The Comprehensive insurance is generally associated with the insurance of____________
   A) Bank Lockers
   B) Life
   C) Health
   D) Automobile
   
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   Option D
   Explanation: Comprehensive insurance is a type of automobile insurance that helps to pay for damage to your vehicle from causes other than a collision like fire, vandalism or falling objects (like a tree or hail).
2. What is the minimum cooling-off period available on all insurance policies?
   A) 3 days
   B) 7 days
   C) 14 days
   D) 30 days
   
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   Option C
   Explanation: By law, all insurance policies have a minimum 14-day cooling-off period. During this period, you can cancel the policy for any reason and get a refund of any premiums you’ve paid.
3. CTP insurance is needed when registering a vehicle. What does it stands for?
   A) Compulsory Third Party Insurance
   B) Common Travel Plan Insurance
   C) Cover Trip Period Insurance
   D) Car Term Policy Insurance
   
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   Option A
   Explanation: Compulsory Third Party (CTP) Personal Injury Insurance, also known as a Green Slip must be purchased before you can register your vehicle. CTP insurance is intended for the situation where another person is injured or killed in an accident, which is caused by the driver of the insured vehicle.
4. A situation where the policy holder may not have enough insurance claim to cover the value of the insured property is known as_____________
   A) Co-Insurance
   B) Underinsurance
   C) Overinsurance
   D) Self insurance
   
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   Option B
   Explanation: Underinsurance refers to inadequate insurance coverage held by a policyholder. In the event of a claim, underinsurance may result in economic losses to the policyholder, since the claim would exceed the maximum amount that can be paid out by the insurance policy
5. What is Fidelity insurance?
   A) insurance taken by a company for the Board members of the company
   B) the vehicle insurance provided by a company to its employees
   C) insurance of all important bank documents
   D) insurance taken out by an employer against losses incurred through dishonesty by employees
   
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   Option D
   
6. The amount received by the policy holder from the insurance company if he exits the policy before maturity is known as__________
   A) Low value
   B) Paid up value
   C) Surrendered value
   D) Penetration value
   
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   Option C
   
7. Which among the following insurance company is known for insuring the acclaimed film Bahubali 2?
   A) Future Generali India Insurance
   B) Bharti AXA Life Insurance
   C) IDBI Federal Life Insurance
   D) PNB MetLife India Insurance
   
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   Option A
   Explanation: the film Bahubali 2 was insured for a sum of Rs 200 crore
8. What is the share of Reliance Capital in the total equity capital of the Reliance General Insurance?
   A) 51%
   B) 100%
   C) 75%
   D) 69%
   
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   Option B
   Explanation: Unlike most insurance companies, who have foreign partners, the firm is promoted solely by Reliance Capital.
9. The Bajaj Allianz General Insurance Company Limited has its headquarter in which city?
   A) Gurgaon
   B) Mumbai
   C) Kolkata
   D) Pune
   
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   Option D
   
10. The policy for which all benefits to the policyholder cease and is terminated due to non payment of premium amount on the due date or even after the grace period is called as _______
    A) Locked policy
    B) Overdue policy
    C) Lapsed policy
    D) Knock-out policy
    
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    Option C
    

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