Insurance Awareness Quiz for LIC AAO- Set 8

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 among the following options is not correct?
   A) 1948 – Introduction of The Insurance Act
   B) 1956 – Nationalization of Life Insurance business
   C) 1972 – General Insurance Business (Nationalization) Act was passed
   D) 2000 – GIC was converted into National Re-insurer
   
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   Option A
   Explanation: The Insurance Act was introduced in 1938
2. The General Insurance Business (Nationalization) Amendment Act was passed in which year?
   A) 2000
   B) 2002
   C) 1999
   D) 1998
   
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   Option B
   Explanation: The General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) came into force from March 21, 2003.
3. GIC was formed in pursuance of which section of General Insurance Business (Nationalization) Act (GIBNA)?
   A) Section 8(1) 
   B) Section 7(1) 
   C) Section 9(1)
   D) Section 2(1) 
   
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   Option C
   Explanation: The General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA.
4. GIC was founded on ___________
   A) 1 July 1938
   B) 31 January 1994 
   C) 25 April 1959
   D) 22 November 1972
   
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   Option D
   
5. The General Insurance Corporation of India (GIC) was incorporated as a private company under which act?
   A) Insurance Act 1938
   B) General Insurance Business (Nationalisation) Act, 1972
   C) Companies Act, 1956
   D) Insurance Regulatory and Development Authority Act, 1999
   
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   Option C
   Explanation: General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares.
6. With the nationalization, the General Insurance business in India was merged into how many companies?
   A) 10
   B) 9
   C) 7
   D) 4
   
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   Option D
   Explanation: General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were grouped into 4 companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
7. How many insurance companies were nationalized under the General Insurance Business (Nationalization) Act (GIBNA) 1972?
   A) 107
   B) 255
   C) 98
   D) 130
   
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   Option A
   Explanation: 55 Indian insurance companies and 52 other general insurance operations of other companies were nationalized
8. Before GIC became the sole Re-Insurer in India, it had how many fully owned subsidiary companies?
   A) 3
   B) 1
   C) 2
   D) 4
   
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   Option D
   Explanation: National Insurance Company Limited. The New India Assurance Company Limited. The Oriental Insurance Company Limited. United India Insurance Company Limited 
9. Who is the Chairman-cum-Managing Director of GIC?
   A) Ravi Mital
   B) Alice G Vaidyan
   C) A. K. Das
   D) Usha Ramaswamy
   
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   Option B
   
10. The Indian insurance companies are required by law to cede __________ percent of every policy value to GIC Re w.e.f. 1 April 2013
    A) 5%
    B) 10%
    C) 15%
    D) 20%
    
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    Option A
    

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