LIC ADO INTERVIEW QUESTIONS

1. Tell me about yourself.

First of all, thank you for giving me this opportunity front of you.
My name is Muthukumar,
I am basically from Trichy, but currently staying in Nagercoil, Kanyakumari.
I have done my bachelor's degree in BCA..(Computer Application ) In Bharathidasan University,
Tiruchirappalli.
Other than this, I completed some of the certification courses in job Enchroment and Computer
Hardware & Softwares.
Totally, I have experience_____ years and _____months in HDB financial services Ltd Peeragarhi as
a collection executive.
In my family, there are 2 members and 2 child.
My wife have Completed B. Sc Mathematics and preparing for UPSC Civil Service Exam.
I have two child. 1st child is 2 year and another child is 6 month
My hobby is playing cricket.
That's all about me.

Thank you.

2. What do you know about Life Insurance?

3. Why have you applied for LIC ADO?
4. Where is Corporate Office/Head Quarter of LIC located?
5. Can you tell some of the objectives of LIC?
6. Do you explain who can buy a policy?
7. Do you know the role of LIC ADO/AAO?
8. How many types of insurance companies are there?
9. Tell something about General Insurance Companies.
10. What do you know about Life Insurance Company?
11. How would you improve upon our product/company?
12. Why are you the best person for this position?
13. Why is it important to get Life Insurance?
14. Why do you mean by word Insurance?
15. What are the major types of Insurance?
16. How many types of Insurance Companies are there?
17. What is the role of Development Officer?
18. What is the difference between Life Insurance and Life Assurance?

Insurance
The term "insurance" refers to the process of
compensating for a loss, for instance, losses
sustained due to an accident, fire, theft, flood,
and so on.
Insurance covers things like car
insurance, health insurance, and mobile phone
insurance, among other things.
In insurance, policyholders can usually renew
their policies once a year or when they expire.
Medical insurance, house insurance, property
insurance, car insurance, etc are covered by
insurance,
Theft, Burglary, Catastrophes, Fire, Accidents,
And Other Unknown Risks Are Covered By
Insurance,
Assurance
Providing monetary support for a particular
scenario is referred to as assurance. A severe
disease, death, or disability, for example.
Assurance includes life insurance, term
insurance, endowment plans, ULIPs, and other
financial products.
Renewability is not applicable for Assurance.
whereas assurance covers the life and disability
insurance.
whereas assurance typically covers death.

19. Name some different categories of life insurance products.

i. Insurance Plans
ii. Pension Plans
iii. Unit Linked Plans
 iv. Micro Insurance Plans
v. Withdrawn Plans
vi. Health Plans
20. Tell about Term Insurance Policies.
 Term Insurance is the simplest and purest form of life insurance.
 It provides financial protection to your family at the most affordable rates.
 With term insurance, you can get a large amount of life cover^ (i.e. sum assured)
at a relatively low premium rate.
 The benefit amount is paid out to the nominee in case of the death of the person
insured during the term of the policy.
Example:
1 LIC's New TECH TERM
2 LIC's New Jeevan Amar
3 LIC's Saral Jeevan Bima

21. What do you know about Endowment Policies?

 An endowment policy is a type of insurance plan where the insured receives a
lump sum amount either at the time of the maturity of the policy or on death.
 An endowment plan helps to save a good amount of money and also offers
financial security to your family in your absence.
Example:
1 LIC's Bima Jyoti
2 LIC's Bima Ratna
3 LIC's Dhan Sanchay
4 LIC's Jeevan Azad

22. What are money-back policies?

 In a money back plan, the insured person gets a percentage of sum assured at
regular intervals, instead of getting the lump sum amount at the end of the term.
  This policy is suitable for risk-averse individuals who wish to save through an
insurance plan and also maintain liquidity throughout.
 In case of death of the insured person, the nominee gets the entire sum assured
and the survival benefits are not deducted.
Example:

1 LIC's Dhan Rekha

2 LIC's Jeevan Umang
3 LIC's Jeevan Tarun

23. Which are the policies similar to mutual funds?

 ULIP is Unit Linked Insurance Plan.
 It provides the benefits of insurance and investment under one plan.
 One part of the premium paid goes towards life insurance and the rest goes
towards investment in market-linked securities.

24. Comment on Pension Policies.

 A pension is a fund into which a sum of money is added during an
employee's employment years and from which payments are drawn to support the
person's retirement from work in the form of periodic payments.
25. Who can buy an Insurance Policy?

 Parents with minor children

 Parents with special needs adult children
 Young and single adults
 New Families
 People with a home loan
 Business owners
 Life insurance for parents
26. What are the objectives of LIC?

27. When did the LIC of India come into existence?

 The Life Insurance Corporation of India was established on 1 September
1956, when the Parliament of India passed the Life Insurance of India Act,
nationalizing the insurance industry in India.
 Over 245 insurance companies and provident societies were merged together.

28. What is the Foreign Direct Investment (FDI) limit in Insurance Sector?
 FDI ceiling in the insurance sector was raised from 49% to 74% under the
automatic route.
 Additionally, 100% FDI has been permitted in insurance intermediaries,
including insurance brokers, reinsurance brokers, insurance consultants, etc.
29. What are the duties, powers and functions of IRDA?
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of
IRDAI..
Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of
the insurance business and re-insurance business.
Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include, -

 Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;
 protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
 settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance;
 specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents
 specifying the code of conduct for surveyors and loss assessors;

30. Who is the chairman of LIC?

Mr. Siddhartha Mohanty from 14 march 2023
31. Who is the chairman of IRDA?
Mr. Debasish Panda - from 21 February 2023
32. What is the difference between marketing and sales?

33. Where is Corporate office/Headquarters of LIC located?

Mumbai
34. What do you know about ADO?

LIC ADO Role and Responsibilty

 ADO is basically a sales administration job

 Recruit suitable candidates for LIC agents
 Required to train appointed LIC agents
 Analyze the performance of each agent
 Motivating to sell maximum LIC policies
 Assigning target quota
 Maintaining the integrity of sales as a whole
 Need to work in both Rural and Urban areas

35. What is your perception of Development Officer as a Career?

 The responsibility of these Development Officers of LIC of India is mainly to take
the in-charge of their territory for the development of insurance policies.
 Their responsibilities include marketing & procurement of business, training of
agents, meeting prospective clients, promoting the policies & getting contracts.

38. How is your field experience useful in performing this job?

39. Tell us your educational qualifications?

41. How these qualifications are helpful to you in dischargingthe duties of Development
Officer?
42. Why do you want to join in LIC as ADO?
43. What is the difference between with profit and without profit plans?
44. What is the Role of Development Officer?
45. What is Keyman Insurance?
46. What is IRDA?
47. What are the functions of IRDA?
48. Why should we hire you?
49. What are your strengths and weaknesses?
50. What is the difference between confidence and overconfidence?
51. Difference between hard work and smart work?
52. Are you willing to relocate or travel?
53. Can you work under pressure?
54. What motivates you for this job?
55. What are your outside interests?
56. How do you feel about working nights and weekends?
57. What was the toughest decision you ever had to make?
58. Where do you see yourself in 5 years from now?
59. According to your definition of success, how successful have you been so far?
60. Why you want job in a Government Bank when you can get better salary in Private Jobs?
61. What do you mean by Insurance Coverage?
62. What is a premium?
63. What do you mean by terms-insurer and insured?
64. Who is the beneficiary?
65. What is the contestable period’ in insurance policy?
66. What is the difference between “revocable beneficiary” and “irrevocable beneficiary”?
67. What is no-claim bonus?
68. What is ‘declaration page’ in insurance policy?
69. What do you mean by ‘Loss Payee’?
70. What do you mean by ‘Deductible’?
71. What is Co-insurance?
72. What do you mean by term “Annuity”?
73. What is the Surrender Value?
74. What is Paid Value?
75. Is it advisable to replace the policy with another policy?
76. How to claim the policy?
77. What happens if you fail to make required premium payments?
78. Is it safe to pay the premium through Insurance Agent?
79. Is it possible to get the full payment on cancelling the new policy in free look period?
80. What is the difference between the participating and non-participating policy?

81. What is ‘schedule of loss’ in home insurance?

 A schedule of loss in home insurance is what your provider will reimburse you on a claim
for something on which you've purchased additional coverage—called a schedule.
 A schedule is just insurance-speak for a list, usually of add-ons, clarifications, or
exclusions to your policy.

82. What is the difference between the ‘All perils’ and ‘Specified perils’ coverage in home
insurance coverage?
 All-risk policies cover any event that the policy doesn't specifically exclude. These
policies are also known as open perils policies.
 Named perils policies cover only the events listed in the policy. For example, a named
perils policy that only covers floods won't pay for damage to your home caused by a fire.

83. What is a ‘PLPD’ insurance stand for?

PLPD stands for personal liability and property damage

insurance.
 Bodily injury: Also called personal liability, this covers up
to a certain amount for the other party’s
medical expenses and loss of income if injured
in an accident and forced to take time off work.
 Property damage: This type of insurance covers up to a
certain amount of the other party’s car, home,
or other property repairs, as well as legal fees
should you go to court.
84. What is ‘collision coverage’ and ‘comprehensive coverage’ in Auto insurance?

85. What is the difference between the ‘single limit liability’ coverage and ‘split liability
coverage’?

86. What is ‘gap insurance’?

 Gap insurance is an optional car insurance coverage that helps pay off your auto
loan if your car is totaled or stolen and you owe more than the car's depreciated
value.
 Gap insurance may also be called "loan/lease gap coverage."

87. What is Personal Accident cover?

 A personal accident insurance policy gives you coverage against medical
treatment, accidental death, or disability.
  It is part of a health insurance policy and provides coverage for all medical-
related expenses caused due to an accident.

88. Does beneficiary have to pay tax on the proceeding of life insurance policy?
No.
89. What is ‘group life’ insurance?
 Group life insurance is a single contract that provides coverage to a group of
people, typically those who work for the same company.
 The employer owns the policy, which covers the employees. Your beneficiaries
will get a payout if you pass away while covered by group insurance.
90. What is Elimination period in insurance?
 Elimination period is a term used in insurance to refer to the time period between
an injury and the receipt of benefit payments.
 In other words, it is the length of time between the beginning of an injury or
illness and receiving benefit payments from an insurer.
92. What do you mean by term ‘cash value’?
 The face value and the cash value of a life insurance policy are not the
same. The face value of a life insurance policy is the coverage amount you
purchase.
 The cash surrender value in a life insurance policy is the cash value minus any
loans, surrender charges, and any other fees the insurance company may
charge.
93. What happens to the cash value after the policy is fully paid up?
 The company plans to use the cash value to pay premiums until you die. If you
take cash value out, there may not be enough to pay premiums.
 The company could require you to resume paying premiums, or reduce the
amount of the death benefit to an amount that the remaining cash value will
support.
94. What is subrogation?
 When you file a claim, your insurer can try to recover costs from the person
responsible for your injury or property damage.
 This is known as subrogation.
For example:
Your insurance company pays your doctor for your treatment following an auto
accident that someone else caused.
95. What do you mean by term ‘Double Indemnity’?

 Double indemnity refers to payment by a life insurance policy of two times the
face value when death results from an accident (e.g., an auto accident) as
opposed to a health problem (e.g., cardiac arrest).

96. What does ‘Indemnity’ term means?

 Indemnities are contractual agreements that provide compensation for losses,
damages, or liabilities sustained by another party.
 When you are indemnified, you are absolved from the responsibility for losses
incurred during a mishap.
97. What does General Insurance Policy cover?
General insurance covers non-life assets - such as your
 home,
 vehicle,
 health,
 travel – from floods, fire, thefts, accidents and man-made disasters.
Not Covered General Insurance
 Medical treatment expenses for pregnancy and abortion
98. What is the difference between the participating and non-participating policy?

99. Can beneficiary claim the policy if the insured person is missing or disappeared for
several years?
 As per section 108 of the Indian Evidence Act, death presumption can be filed only
after seven years of filing the missing First Information Report (FIR) of a person.
 So, as a family member of a missing person, you have to wait for seven years before
filing the claim against his/her term insurance policy.

100. What do you mean by ‘Additional insured’?

 A named insured is entitled to 100% of the benefits and coverage provided by the
policy.
 An additional insured is someone who is not the owner of the policy but who, under
certain circumstances, may be entitled to some of the benefits and a certain amount of
coverage under the policy.
 Policy holder with additional person covered in the insurance.