LIC AAO Insurance Awareness Questions Asked in 2023

The LIC AAO exam is one of the most competitive recruitment processes in the insurance sector, and candidates aspiring for this role must have a strong command over both general awareness and domain-specific knowledge. Among all the sections, Insurance Awareness plays a crucial role, especially in the mains exam, where specialized knowledge can make a significant difference in the overall score. Many aspirants often underestimate this section, but those who prepared well for it in the LIC AAO 2023 exam found it highly scoring and straightforward.

LIC AAO Insurance Awareness Questions Asked

The Insurance Awareness section in 2023 was designed to test not just theoretical knowledge but also the practical understanding of policies, regulatory frameworks, and the functioning of the insurance industry in India. Candidates were expected to be familiar with the workings of LIC, IRDAI regulations, different types of insurance products, recent mergers and schemes, and government insurance initiatives.

LIC AAO Insurance Awareness Questions Asked in 2023

• The subscription list for a public issue is to be kept open for at least 3 working days and for a total period not exceeding 10 working days.
• The person assigning or transferring an insurance policy is called the Assignor.
• Headquarters of NASDAQ – New York, USA.
• When you opt out of a policy before its maturity, it is called surrendering the policy. The amount received at that time is the surrender value.
• Financial shenanigans are actions designed to misrepresent the true financial performance or position of a company.
• SWIFT – Society for Worldwide Interbank Financial Telecommunications.
• Bond prices and interest rates move in opposite directions.
• A dividend refers to a reward, in cash or otherwise, that a company gives to its shareholders.
• The Oriental Life Insurance Company, started by Europeans in Calcutta, was the first life insurance company in India.
• Instruments with a maturity of more than one year are not considered as money market instruments.
• IGST numerically equals CGST + SGST (i.e.,twice of CGST).
• Most life insurance policies come with a grace period of 30 days from the premium’s due date.
• Not a Credit Rating Agency – IBBI.
• The Insurance Amendment Bill, 2021 raised the FDI limit in the insurance sector from 49% to 74%.
• TEU – Twenty-foot Equivalent Unit.
• Documents of title to goods include bill of lading, dock warrant, warehouse keeper’s certificate, railway receipt, multimodal transport document, warrant or order for delivery of goods under the Sale of Goods Act, 1930.
• A Foreign Inward Remittance Certificate (FIRC) is a document that acts as proof of inward remittance to India.

• List of BSE Sensex 30 companies.
• An insurance contract is known as a contract of Uberrima Fides (Utmost Good Faith).
• SEBI regulates mutual funds and notified regulations in 1993.
• The All-India House Price Index (HPI) is a quarterly release by the RBI, based on transaction-level data from housing registration authorities in 10 major cities.
• Premium – the amount paid for a contract of insurance.
• Dematerialization is converting physical shares to electronic form, while Rematerialization is reconverting them into physical certificates (done within 30 days).
• Examples of entities that are not credit information companies.
• A reduction made to the accrued pension of a member to offset costs or changes in payment – Opportunity Cost.
• The issue when a company does not disclose its cash flow.
• The nature of charge for a home loan –Mortgage.
• Feedback on all services related to insurance.
• The separation of risk, investment, and expense in life insurance is called Unbundling.
• Free Look Period – a stipulated period during which the policyholder can review the terms and cancel the policy if not satisfied.