Financial & Insurance Awareness MCQs – LIC Assistant Mains Exam 2019

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Financial and Insurance Awareness section is of prime importance in the LIC Assistant Mains 2019 as it can help you fetch very high marks in the exam.  Keeping the same in mind we have come up with Insurance Awareness MCQs to help you learn and retain important Insurance Awareness facts, concepts and general information important from exam point of view.


Q.1. A nomination can be made only in favour of
a. Parents
b. Spouse and children
c. Spouse
d. Parents, spouse and children
e. Any individual

Answer: e

Q.2. Select the expanded form of SA as commonly used in life insurance
a. Sum Assured
b. Surrender of Assurance
c. Supplementary Assurance
d. Stamp Act
e. Survivor’s Annuity

Answer: a

Q.3. Which product offered by insurance companies that, unlike a pure insurance policy,
gives investors both insurance and investment under a single integrated plan?
a. Money Back Plan
b. Endowment Plans
c. Term Insurance Plans
d. Unit-linked insurance plan
e. Micro Insurance Plans

Answer: d

Q.4. In which Policy, if the policyholder survives till the end of this period, the risk cover
lapses, and no insurance benefit payment is made to him/her?
a. Money Back Plan
b. Endowment Plans
c. Term Insurance Plans
d. Unit-linked insurance plan
e. Micro Insurance Plans

Answer: c

Q.5. In which Policy, the insurer agrees to pay the assured or his nominees a specified sum
of money on his death or on the maturity of the policy whichever is earlier?
a. Money Back Plan
b. Endowment Plans
c. Annuity Policy
d. Unit-linked insurance plan
e. Micro Insurance Plans

Answer: b

Q.6. Select the expanded form of SV as commonly used in life Insurance
a. Summary Valuation
b. Selected Value
c. Surrender Value
d. Stamp Value
e. Survivor Value

Answer: c

Q.7. As per the Insurance Act, every insurer has to prepare at the end of financial year
a. Balance Sheet
b. Profit and Loss Account
c. Revenue Account for each class of Insurance business
d. Accounts of receipts and payments in respect of shareholders’ funds
e. All of the above

Answer: e

Q. 8. Which insurance company recently waives off charges on credit card payments?
a. Bharti AXA Life Insurance
b. Star Health Insurance
c. Tata AIG General Insurance
d. Life Insurance Corporation of India
e. None of these

Answer: d

Q.9. To promote digital transactions, Life Insurance Corporation waive off the convenience
fee on all payments to the national insurer, effective from______
A. 1st December 2019
b. 31st December 2019
c. 1st March 2020
d. 1st April 2020
e. None of these

Answer: a

Q.10. ______ principle in insurance means maximum truth.
a. Subrogation
b. Causa Proxima
c. Insurable interest
d. Contribution
e. Mitigation of loss

Answer: b


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