Insurance Questions for OICL AO Mains and AIC AO 2017

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Insurance Awareness for OICL AO Exam 2017

Just a few days are left for OICL AO Mains It is time to pace up your preparation of Insurance Awareness for OICL AO Mains and AIC AO. These questions related to Insurance Awareness will also help you in preparing for other upcoming banking and Insurance recruitment examination.

Q1. ____________ is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. 
(a) Health Insurance 
(b) Life Insurance
(c) Motor Insurance 
(d) Travel Insurance 
(e) Group Insurance

S1. Ans.(b)
Sol. Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.

Q2. ULIP is a life insurance product, which provides risk cover for the policyholder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. What is the meaning of "I" in ULIP? 
(a) Insurance
(b) Initial
(c) Investment
(d) Installment
(e) None of the given options is true

S2. Ans.(a)
Sol. Unit Linked Insurance Plans (ULIP) is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. As a single integrated plan, the investment part and the protection part can be managed according to specific needs and choices.

Q3. NAV is the value per share of a mutual fund or an exchange-traded fund (ETF) on a specific date or time. NAV stands for-
(a) Net Asset Voice
(b) Nominal Asset Value 
(c) Non Asset Value 
(d) Net Agency Value  
(e) Net Asset Value

S3. Ans.(e)
Sol. Net asset value (NAV) is value per share of a mutual fund or an exchange-traded fund (ETF) on a specific date or time.

Q4. In ________ insurance, schemes are offered by insurance companies to provide certain classes of individuals, the benefit of insurance coverage at moderate cost.
(a) group insurance
(b) motor insurance
(c) travel insurance
(d) life insurance
(e) health insurance

S4. Ans.(a)
Sol. Another kind of insurance is group insurance. In group insurance, schemes are offered by insurance companies to provide certain classes of individuals, the benefit of insurance coverage at moderate cost.

Q5. ____________ a/an is the section of an insurance policy dealing with various coverages, exclusions, duties of the insured, locations covered and conditions that terminate coverage.
(a) Actuary
(b) Broker
(c) Agent
(d) Clause
(e) None of the given options is true

S5. Ans.(d)
Sol. Clause is a section of an insurance policy dealing with various coverages, exclusions, duties of the insured, locations covered and conditions that terminate coverage.

Q6. In which among the following year the New India Assurance Company Limited (NIACL) was founded?
(a) 1919
(b) 1973
(c) 1949
(d) 1956
(e) 1988

S6. Ans.(a)
Sol. The New India Assurance Company Limited (NIACL) was founded by Sir Dorabji Tata on July 23rd, 1919 and nationalized in 1973 with merger of Indian companies.

Q7. Who is the present Chairman of Life Insurance Corporation of India (LIC)?
(a) Urjit R Patel
(b) VK Sharma
(c) MS Sahoo
(d) Alice G. Vaidyan
(e) A V Girija Kumar

S7. Ans.(b)
Sol. VK Sharma is the present Chairman of Life Insurance Corporation of India (LIC).

Q8. Which among the following public sector banks has announced that BNP Paribas Cardiff is keen to increase its stake from 26 percent to 36 percent?
(a) ICICI Bank
(b) Indian Bank
(c) State Bank of India
(d) Punjab National Bank
(e) Bank of Baroda

S8. Ans.(c)
Sol. State Bank of India has announced that BNP Paribas Cardiff is keen to increase its stake in SBI Life Insurance from 26 per cent to 36 per cent. Once the foreign joint venture partner increases its stake to 36 per cent, SBI’s stake in SBI Life will get diluted to 64 per cent.

Q9. The Government of __________ has launched the Atal-Amrit Abhiyan health insurance scheme, which would offer comprehensive coverage for six disease groups to the below-poverty line (BPL) and above poverty line (APL) families, with annual income below Rs 500,000 (US$ 7,500).
(a) Uttar Pradesh
(b) Assam
(c) West Bengal
(d) Bihar
(e) Uttarakhand

S9. Ans.(b)
Sol. The Government of Assam has launched the Atal-AmritAbhiyan health insurance scheme, which would offer comprehensive coverage for six disease groups to below-poverty line (BPL) and above-poverty line (APL) families, with annual income below Rs 500,000 (US$ 7,500).

Q10. The insurance company representative who sells policies on behalf of the insurer, is called? 
(a) Agent
(b) Broker
(c) Applicant
(d) Compulsory
(e) None of the given options is true

S10. Ans.(a)
Sol. Agent is the insurance company representative who sells policies on behalf of the insurer. An independent agent represents more than one company; a captive agent represents only one company.

Q11. Which of the following companies has not contributed towards the share capital of Agriculture Insurance Company of India Limited (AIC)? 
(a) Insurance Regulatory and Development Authority of India (IRDAI)
(b) General Insurance Corporation of India (GIC)
(c) National Bank for Agriculture and Rural Development (NABARD)
(d) Oriental Insurance Company Limited (OICL)
(e) National Insurance Company Limited (NICL)

S11. Ans.(a)
Sol. Promoters (Share Holding) of Agriculture Insurance Company of India Limited (AIC) is given below:-
General Insurance Corporation of India - 35 %
National Bank for Agriculture And Rural Development (NABARD) - 30 %
National Insurance Company Limited - 8.75 %
The New India Assurance Company Limited - 8.75 %
The Oriental Insurance Company Limited - 8.75 %
United India Insurance Company Limited - 8.75 %

Q12. Where is the head office of National Insurance Company Limited (NICL)?
(a) Hyderabad
(b) Kolkata
(c) New Delhi
(d) Mumbai
(e) Chennai

S12. Ans.(b)
Sol. The Head Office of National Insurance Company Limited (NICL) is in Kolkata.

Q13. What is the authorised capital of National Insurance Company Limited (NICL)?
(a) Rs.1500 crore 
(b) Rs.100 crore 
(c) Rs.200 crore
(d) Rs.500 crore 
(e) Rs.1000 crore

S13. Ans.(c)
Sol. The authorized capital and paid-up equity capital of the National Insurance Company Limited (NICL) is Rs.200 crore and Rs.100 crore respectively.

Q14. IRDAI has allowed insurers to invest up to ___________ in additional tier 1 (AT1) bonds, that are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.
(a) 25 percent 
(b) 30 percent 
(c) 20 percent 
(d) 10 percent
(e) 15 percent

S14. Ans.(d)
Sol. IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds, that are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.

Q15. Who is the present Chairman of IRDAI?
(a) Harsh Kumar Bhanwala
(b) Kshatrapati Shivaji
(c) Urjit Patel
(d) Ajay Tyagi
(e) TS Vijayan

S15. Ans.(e)
Sol. Mr. T S Vijayan took charge as Chairman of Insurance Regulatory & Development Authority of India in February 2013.
Since then Mr. Vijayan has been playing a key role in various initiatives for enhancing insurance awareness and making insurance affordable to all sections of population. He has also taken various measures for optimum utilization of technology in the insurance space.


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