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LIC AAO Insurance and Financial Market Awareness (Mains Specialist) Flashcards
53 question-and-answer cards covering Insurance and Financial Market Awareness (Mains Specialist) as it is examined in LIC AAO. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Insurance and Financial Market Awareness (Mains Specialist) deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is the grace period and policy lapse in life insurance?
The grace period (15 days for monthly, 30 days otherwise) is extra time to pay a due premium without losing cover. If premium is unpaid beyond the grace period, the policy lapses and benefits cease until revived.
What is reinsurance and why do insurers use it?
Reinsurance is insurance for insurers - an insurer (cedant) transfers part of its risk to a reinsurer. It helps spread risk, increase underwriting capacity, stabilise results, and protect against catastrophic losses.
What is the difference between facultative and treaty reinsurance?
Facultative reinsurance covers a single specific risk negotiated individually. Treaty reinsurance is an agreement automatically covering a whole class/portfolio of risks over a period without case-by-case negotiation.
What is bancassurance?
Bancassurance is the partnership where a bank sells insurance products of an insurance company to its customers, using the bank's distribution network. It benefits insurers with wider reach and banks with fee income.
What is the national reinsurer of India?
General Insurance Corporation of India (GIC Re), the sole national reinsurer, which receives obligatory cessions from Indian insurers as mandated by IRDAI.
What is the IRDAI and when was it established?
The Insurance Regulatory and Development Authority of India (IRDAI) is the apex statutory body regulating and developing the insurance sector. It was constituted under the IRDA Act, 1999, and is headquartered in Hyderabad.
What are the main functions of the IRDAI?
Issuing/renewing/cancelling registration of insurers, protecting policyholders' interests, prescribing qualifications and code of conduct for intermediaries, regulating premium rates and investments, and promoting orderly growth of the insurance industry.
What is the composition of the IRDAI?
IRDAI is a ten-member body: a Chairperson, five whole-time members, and four part-time members, all appointed by the Government of India.
What is the Insurance Act, 1938 and its significance?
The Insurance Act, 1938 is the principal legislation governing the functioning of insurance business in India, covering registration, accounts, investments, licensing of agents, and policyholder protection. It is administered by IRDAI.
What key change did the Insurance Laws (Amendment) Act, 2015 introduce regarding FDI?
It raised the foreign direct investment (FDI) cap in Indian insurance companies from 26% to 49%. (Subsequently raised to 74% in 2021 via the Insurance Amendment Act, 2021.)
What is Section 45 of the Insurance Act regarding claim repudiation?
Section 45 states that a life insurance policy cannot be called into question on any ground after 3 years from the date of issuance/revival/rider addition, even on grounds of fraud or misstatement (the indisputability clause).
When was the LIC Act passed and what did it do?
The Life Insurance Corporation Act, 1956 nationalised life insurance in India by merging 245 private insurers and provident societies to create the Life Insurance Corporation of India (LIC) on 1 September 1956.
What was the major recent development for LIC in 2022?
LIC launched India's largest-ever IPO in May 2022, listing on stock exchanges. The LIC Act was amended (via Finance Act 2021) to allow public shareholding, reducing the mandated government stake over time.
What avenues does the IRDAI provide for insurance consumer grievance redressal?
Approach the insurer's Grievance Redressal Officer, then IRDAI's Bima Bharosa (formerly IGMS) portal/Grievance Call Centre, and finally the Insurance Ombudsman for unresolved complaints.
What is the Insurance Ombudsman and its monetary jurisdiction?
The Insurance Ombudsman is a body under the Insurance Ombudsman Rules, 2017 that resolves policyholder complaints free of cost. It can award compensation up to ₹30 lakh (raised from ₹20 lakh).
What does the Consumer Protection Act, 2019 add for consumers including insurance buyers?
It established the Central Consumer Protection Authority (CCPA), introduced e-filing of complaints, product liability, mediation, and revised pecuniary jurisdiction for District, State, and National consumer commissions.
Compare PMJJBY and PMSBY social security insurance schemes.
PMJJBY (Jeevan Jyoti Bima Yojana) is a life insurance scheme giving ₹2 lakh on death for an annual premium of ₹436, ages 18-50. PMSBY (Suraksha Bima Yojana) is accident insurance giving ₹2 lakh (death/full disability) for ₹20/year, ages 18-70.
What is the Atal Pension Yojana (APY)?
APY is a government-backed pension scheme for the unorganised sector (ages 18-40) providing a guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60, based on contributions. It is administered by PFRDA.
What is the Economic Survey and who presents it?
The Economic Survey is the flagship annual document reviewing the economy's performance, prepared by the Chief Economic Adviser (CEA) in the Department of Economic Affairs, and tabled in Parliament by the Finance Minister a day before the Union Budget.
What is the difference between fiscal deficit and revenue deficit in the Union Budget?
Fiscal deficit is the excess of total expenditure over total receipts (excluding borrowings). Revenue deficit is the excess of revenue expenditure over revenue receipts, indicating dis-saving by the government.
What is the difference between GDP and GNP?
GDP (Gross Domestic Product) is the value of goods and services produced within a country's borders. GNP (Gross National Product) is GDP plus net factor income earned by residents from abroad.
What is the difference between CPI and WPI as measures of inflation in India?
CPI (Consumer Price Index) measures retail price changes faced by consumers and is the RBI's policy anchor (4% target). WPI (Wholesale Price Index) measures price changes at the wholesale/producer level and excludes services.
What is the primary mandate of the International Monetary Fund (IMF)?
The IMF (HQ Washington D.C.) promotes international monetary cooperation, exchange rate stability, and provides short-term financial assistance to member countries facing balance-of-payments problems. Its reserve asset is the SDR (Special Drawing Rights).
How does the World Bank differ from the IMF?
The World Bank focuses on long-term development and poverty reduction through project loans to developing nations (via IBRD and IDA). The IMF focuses on short-term monetary stability and balance-of-payments support.
What this deck covers
The Insurance and Financial Market Awareness (Mains Specialist) deck follows the LIC AAO Insurance and Financial Market Awareness (Mains Specialist) syllabus — 4 chapters and 16 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 13.3 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 211 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Insurance and Financial Market Awareness (Mains Specialist) flashcards FAQ
How many Insurance and Financial Market Awareness (Mains Specialist) flashcards are in this LIC AAO deck?
53 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these LIC AAO flashcards free?
Yes. The preview here is free to read with no signup, and the full 53-card deck is free inside the Examius app.
What do the Insurance and Financial Market Awareness (Mains Specialist) cards cover?
They follow the LIC AAO Insurance and Financial Market Awareness (Mains Specialist) syllabus — 4 chapters and 16 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.