Insurance Knowledge Questions for LIC AAO 2019 | Insurance and FMA Quiz 2 at Smartkeeda

Directions: Read the following questions carefully and choose the right answer.
Important for :
1
Which of the following categories of people will NOT be covered under Postal Life Insurance?
» Explain it
E
In 2017, it was announced that the benefits of PLI will no more be confined to Government and semi-Government employees, but will also be available to professionals such as Doctors, Engineers, Management Consultants, Charted Accountants, Architects, Lawyers, Bankers etc. and to employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).  The decision has been taken to enlarge the cover of social security and bring maximum number of people under the protection of Postal Life Insurance (PLI).

Hence, option E is correct.
 
2
Which of the following committees recommended the introduction of the Rural Postal Life Insurance?
» Explain it
C
The Rural Postal Life Insurance (RPLI), introduced on March 24, 1995 on recommendations of Malhotra Committee, provides insurance cover to people residing in rural areas, especially weaker sections and women living in rural areas. Low Premium and High Bonus is the unique feature of PLI and RPLI schemes.

Hence, option C is correct.
 
3
The insurance sector was liberalized in which year?
» Explain it
C
The insurance sector was liberalized in the year 2000.

Hence, option C is correct.
 
4
What is the present limit of FDI allowed in the insurance sector?
» Explain it
B
The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014.

Hence, option B is correct.
 
5
When was Life Insurance Corporation of India privatized?
» Explain it
C
The Life Insurance Corporation of India was privatized in 2001.

Hence, option C is correct.