Banking Awareness

Q1. ____________ is a percentage of the premium appropriated towards charges before allocating the units under the policy.
(a) Premium Allocation Charge
(b) Surrender Charges
(c) Policy/Administration Charges
(d) Fund Management Fees
(e) Mortality Charges

S1. Ans.(a)
Sol. Premium Allocation Charge is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge normally includes initial and renewal expenses apart from commission expenses.

Q2. Which among the following is not a public sector insurance company?
(a) Life Insurance Corporation of India (LIC)
(b) Bajaj Allianz Life Insurance
(c) The new India assurance company limited (NIACL)
(d) Agriculture insurance company of India limited (AICIL)
(e) National insurance company limited (NICL)

S2. Ans.(b)
Sol. Bajaj Allianz General Insurance is a private general insurance company in India.

Q3. The _____________ is usually comprised of organizations that are owned and operated by the government and exist to provide services for its citizens.
(a) citizen sector
(b) limited sector
(c) public sector
(d) private sector
(e) None of the given options is true

S3. Ans.(c)
Sol. The Public Sector is usually comprised of organizations that are owned and operated by the government and exist to provide services for its citizens.

Q4. The party who pays for loss in an insurance arrangement is called?
(a) Premium
(b) Agent
(c) Broker
(d) Insurer
(e) Insured

S4. Ans.(d) Sol. Insurer are pays for loss in an insurance arrangement.

Q5. The premium of _____________ per person per annum is shared equally by the Central Government and the State Government in the Aam Admi Bima Yojana (AABY)?
(a) Rs.1000
(b) Rs.1500
(c) Rs.3000
(d) Rs.500
(e) Rs.200

S5. Ans.(e)
Sol. The premium of Rs.200 per person per annum is shared equally by the Central Government and the State Government in the Aam Admi Bima Yojana (AABY).

Q6. A separate fund called "Aam Admi Bima Yojana Premium Fund" has been set up by Central Govt. to pay the Govt. contribution. Fund is maintained by- 
(a) Life Insurance Corporation of India (LIC)
(b) Reserve Bank of India (RBI)
(c) The new India assurance company limited (NIACL)
(d) Agriculture insurance company of India limited (AICIL)
(e) National insurance company limited (NICL)

S6. Ans.(a)
Sol. A separate fund called "Aam Admi Bima Yojana Premium Fund" has been set up by Central Govt. to pay the Govt. contribution. Fund is maintained by LIC. A free add-on benefit in the form of scholarship to children is also available under the Scheme.

Q7. HDFC Life has entered into a bancassurance tie-up with Catholic Syrian Bank to distribute its individual life insurance products to the private lender’s customers. Catholic Syrian Bank based in-?
(a) Mumbai
(b) Thrissur
(c) Jaipur
(d) Varanasi
(e) Bengaluru

S7. Ans.(b)
Sol. HDFC Life has entered into a bancassurance tie-up with Catholic Syrian Bank to distribute its individual life insurance products to the private lender’s customers. Catholic Syrian Bank based in Thrissur, Kerala.

Q8. The written insurance contract that may include all clauses, riders and endorsements. It is called?
(a) Liabilities
(b) Premium
(c) Installment
(d) Policy
(e) Assets

S8. Ans.(d)
Sol. Policy is the written insurance contract that may include all clauses, riders and endorsements.

Q9. UHIS has launched by the Government of India is already in existence for persons and families below the poverty line with element of subsidy from the Government. UHIS stands for-
(a) Universal Health Insurance System
(b) Universal Health Insurance Service
(c) Universal Health Insurance Scheme
(d) Universal Health Insurance Solutions
(e) Universal Health Insurance Scenario

S9. Ans.(c)
Sol. The Universal Health Insurance Scheme (UHIS) has launched by the Government of India is already in existence for persons and families below the poverty line with element of subsidy from the Government. In addition, the Rashtriya Swasthya Bima Yojana (RSBY) was also rolled out from by the Government to provide the health insurance coverage for Below Poverty Line (BPL) families. 

Q10. Agriculture Insurance Company of India Limited (AIC) was incorporated in which year?
(a) 20th December 1999
(b) 20th December 2007
(c) 20th December 1992
(d) 20th December 2004
(e) 20th December 2002

S10. Ans.(e)
Sol. Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.