Tuesday, 26 January 2016


Dear expert mm readers, Here are some expected interview questions that can be asked in the interview of LIC- ADO (Apprentice Development Officer) 

1.    What do you know about Life Insurance?
i. Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to reimburse the occurrence of the insured individual's death or other event such as terminal illness or critical illness. The insured agrees to pay the cost in terms of insurance premium for the service. 
The contract is valid for payment of the insured amount during:
i. The date of maturity, or
ii. Specified dates at periodic intervals, or
iii. Unfortunate death, if it occurs earlier.
2.    Why is it Important to get life insurance?
Ans. i. Life insurance policies give people the tranquility of knowing that their families will not be left unprotected in case of the death of the policyholder.
ii. This insurance is ideal for people that wish to make the necessary arrangements to guarantee the wellness of their loved beings after their death.
iii. This is very important nowadays, especially for a family's parents because he might leave many debts regarding credit cards or loans, for example, and these might become very difficult for the family to pay.
iv. It will assist you financially if you should suffer a serious illness or injury as well as help your loved ones financially should you die.
v. It also lowers the cost to the taxpayer in having to support families of people who have become seriously ill, injured or who have died. 
3.    What do you mean by word Insurance?
i. Insurance means a promise of compensation for any potential future losses.
ii. It facilitates financial protection against by reimbursing losses during crisis.
iii. There are different insurance companies that offer wide range of insurance options and an insurance purchaser can select as per own convenience and preference. 
Types of Insurance:
Major types of insurances are as mentioned below:
i. Life insurance
ii. Automobile insurance
iii. Health insurance
iv. Credit insurance
v. Property insurance
4.    How many types of Insurance companies are there?
Insurance companies can be categorized into two main divisions which are as follows:
i. General Insurance Companies: They provide all types of insurance apart from life insurance.
ii. Life Insurance Companies: The companies, dealing with life insurance, pension products and annuities are life insurance companies.
5.    What is the Role of Development Officer?
Ans. i. To guide, supervise and direct the activities of the Agents placed under your supervision by the Corporation.
ii. To introduce suitable persons to the Corporation for Appointment as new Agents.
iii. To act generally in such a way as to activise existing Agents and motivate new Agents, so as to develop a stable agency force.
6.    What is the difference between Life Assurance and Life Insurance?
Ans. i. Life Insurance insures you for a specific period of time.
ii. Then if you die at the same time as the policy is in force, the insurance company pays the claim.
iii. However, if you survive to the end of the term, the policy is finished and has no lasting value whatsoever. Even at the same time as the Life Insurance policy is in force it only has any value if you have a claim – in that context it’s just like your home insurance!
iv. Life Insurance is much cheaper than Life Assurance and, in our experience, Life Insurance is what most people need.

With Life Assurance you have an important investment element. 
i. A Life Assurance policy joins a guaranteed insured sum with a none guaranteed investment, the value of the investment being directly related to the size of the guaranteed sum on your policy, the number of years the policy has been in force and Insurance Company’s investment performance.
ii. If you were to die during a Life Assurance policy’s term, the policy pays out the guaranteed sum (just as with Life Insurance) or the value of the annual investment bonuses that had been added to the policy by the Insurance Company to date, whichever is the larger. 
iii. However, if you survive to the end of the policy, your investment value is increased. You then get the annual bonuses plus a terminal bonus.
7.    Name some different Categories of life insurance products?
Life insurance products come in a variety of offerings catering to the investment needs and objectives of different kinds of investors. Following is the list of broad categories of life insurance products:
1. Term Insurance Policies:
i. The basic premise of a term insurance policy is to secure the immediate needs of nominees or beneficiaries in the event of sudden or unfortunate demise of the policy holder. 
ii. Term insurance policies are also relatively cheap to acquire compared to other insurance products.
2. Endowment Policies:
i. This basically falls into the category of an insurance-cum-investment product.
ii. Unlike a regular term insurance policy, an endowment plan provides returns on investment at the end of the policy term. 
iii. There are several varieties of endowment plans, and the rate of returns and the type of benefits can vary based on the kind of endowment plan an individual has opted for.
iv. With an endowment plan, a persona can opt for insurance products that provide both the benefit of insurance as well as investment.
3. Money-back Policies:
i. Money back policies are basically an extension of endowment plans wherein the policy holder receives a fixed amount at specific intervals throughout the duration of the policy.
ii. In the event of the unfortunate death of the policy holder, the full sum assured is paid to the beneficiaries.
4. Unit-linked Insurance Policies (ULIP):
i. Unit linked insurance policies again belong to the insurance-cum-investment category where one gets to enjoy the benefits of both insurance and investment. 
ii. While a part of the monthly premium pay-out goes towards the insurance cover, the remaining money is invested in various types of funds that invest in debt and equity instruments.
iii. ULIP plans are more or less similar in comparison to mutual funds except for the difference that ULIPs offer the additional benefit of insurance.
5. Pension Policies:
i. Pension policies let individuals determine a fixed stream of income post retirement.
ii. This basically is a retirement planning investment scheme where the sum assured or the monthly pay-out after retirement entirely depends on the capital invested, the investment time frame, and the age at which one wishes to retire.
8.    Who can buy a Insurance Policy?
i. Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.
ii. Policies can also be taken, subject to certain conditions, on the life of one’s spouse or children.
iii. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent’s income and other relevant factors are considered by the Corporation.
9.    What are the Objectives of LIC ?
i. Spread and provide life insurance to the masses at a reasonable cost.
ii. Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.
iii. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.
iv. Act as trustees of the insured public in their individual and collective capacities.
v. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.
10.  When was the LIC of India came into existence ?
11.  Foreign Direct Investment (FDI) limit in Insurance Sector?
First there is 26% limit but now it has increase to 49%.
12.  What are the Duties, powers and functions of IRDA?
Ans. i. issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
ii. promoting efficiency in the conduct of insurance business;
iii. protection of the interests of the policy holders in matters concerning assigning of policy,
iv.  specifying the code of conduct for surveyors and loss assessors;
v. specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector;
13.  Chairman of LIC/ IRDA?
Chairman of LIC - D.K. Mehrotra
Chairman of IRDA – T.S. Vijayan replaced J Hari Narayan
14.  What is the difference between Marketing and Sales?
Marketing and Sales are important aspects in business. Both are inevitable activities in any organisation.

i. Marketing is considered to be a wider term than sales. It includes identifying customers, producing innovative products, branding, advertising, public relations,sales, etc. Thus, sales is just a stage or an activity of marketing.
ii. Marketing is the process of creating demand for a product in the market whereas sales is refers to fulfilling these demands.
iii. Marketing helps the organisation to create a brand image of the product or service in the minds of the people while sales involves the selling of that product or service.
iv. Marketing is an indirect activity whereas sales is a direct activity.
v. Marketing targets a large group or the general public. Sales on the other hand targets individuals.
15.  Where is Corporate Office/Head Quarter of LIC located?

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