Insurance Awareness Quiz for LIC AAO- Set 7

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 Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been launched  by __________
   A) Life Insurance Corporation of India
   B) Insurance Regulatory and Development Authority of India
   C) Employees’ Provident Fund Organisation
   D) Pension Fund Regulatory and Development Authority
   
   View answer

   Option A
    
2. IRDAI has permitted the life insurance companies which have completed _______ years of operations, to raise capital through initial public offerings (IPOs)
   A) 12 years
   B) 5 years
   C) 8 years
   D) 10 years
   
   View answer

   Option D
   Explanation: The Insurance Regulatory and Development Authority of India (IRDAI) recently
   allowed life insurance companies that have completed 10 years of operations to raise
   capital through initial public offerings (IPOs).
3. The insurance in which risks are shared between multiple insurers is known as __________
   A) Dual Insurance
   B) Co Insurance
   C) Self Insurance
   D) Reinsurance
   
   View answer

   Option B
   
4. An independent professional person registered under the Insurance Act who represents the insurance buyer to purchase the insurers policy is known as ___________
   A) Agent
   B) Insurer
   C) Claimant
   D) Broker
   
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   Option D
   Explanation: Brokers are not appointed by insurers. They solicit insurance quotes and/or policies from insurers by submitting completed applications on behalf of buyers.
5. The Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. This period is known as ___________
   A) Extended Period
   B) Lapsed Period
   C) Revival Period
   D) Renewed Period
   
   View answer

   Option C
   
6. An insurance policy designed to protect professionals and business owners when they are found to be at fault for a specific event such as misjudgment is termed as ____________
   A) Indemnity Insurance
   B) Business Default Insurance
   C) Risk Hall Insurance
   D) Entrepreneur Hall Insurance
   
   View answer

   Option A
   
7. What is the paid- up capital of National Insurance Company Ltd?
   A) Rs 300 crore
   B) Rs 500 crore
   C) Rs 200 crore
   D) Rs 100 crore
   
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   Option D
   
8. The situation where the benefits of insurance policy gets terminated due to non-payment of premium is called as ___________
   A) Surrender
   B) Lapse
   C) Terminate
   D) Dormant
   
   View answer

   Option B
   
9. What does ‘Paid Up’ policy means in insurance?
   A) Policy that requires no further premium payments and continues to provide benefits till maturity. 
   B) Policy that provide a life cover for a specific term
   C) Policy for which the premium is paid in a single period together
   D) Policy in which the premium gets reduced over a period of time and benefit increases till maturity
   
   View answer

   Option A
   
10. Which among the following is an accidental insurance scheme?
    A) PMJJBY
    B) PMFBY
    C) PMSBY
    D) PMVVY
    
    View answer

    Option C
    Explanation: Pradhan Mantri Surakhsa Beema Yojana (PMSBY); Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY); Pradhan Mantri Fasal Bima Yojana; Pradhanmantri Vaya Vandana Yojana (PMVVY)

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