LIC AAO Exam Pattern and Sample Questions

LIC AAO Exam Pattern and Sample Questions: The registration process for the AAO has started today 16 August 2025. Candidates who are serious about the job can check the exam pattern of both Preliminary and Mains. It would not be a difficult task for the candidate to attempt these questions on Reasoning, Quantitative Aptitude, GK and Current Affairs, Data Analysis and interpretation, as you are preparing for other exams.

Odd factor in the Main exam is Insurance and Financial Market Awareness questions, since you are entering into the Insurance and Financial Market, you must know the various terms used in this market. We have given you the sample of 10 questions at the bottom of this article

Preliminary Test or Test I

Mains Test or Test II

Candidate MUST pass in each Section separately and should also obtain minimum marks in the aggregate to qualify for the online examinations (Preliminary and Main) and the interview. The responses (answers) of individual candidates with other candidates would be analyzed to detect patterns of similarity of right and wrong answers

Sample Questions on Insurance and Financial Market Awareness

1. Who regulates insurance companies in India?

a) RBI

 b) IRDAI

 c) SEBI

 d) NABARD

2. What is the main objective of insurance?

a) Profit earning

b) Risk transfer

c) Market expansion

d) Pricing

3. In which insurance is the benefit received as soon as death occurs?

 a) Life insurance

 b) Health insurance

c) Property insurance

d) Accident insurance

4. What is meant by ‘premium’?

 a) Total cover amount

 b) Monthly payment

c) Deductible amount

d) Policy term

5. What is ‘underwriting’ in insurance?

a) Claim Process

b) Risk Assessment

c) Premium Calculation

d) Customer Service

6. Which insurance is for health expenses?

a) Property Insurance

b) Health Insurance

c) Vehicle Insurance

d) Travel Insurance

7. Which principle of insurance states that the insured should not benefit from the loss?

a) Principle of Payment

b) Principle of Full Good Faith

c) Both of the above

d) None of the above

8. What is ‘Deductible’?

a) Maximum Cover Limit

b) Initial Expenses

c) Premium Waiver

d) Policy Expiry Date

9. Which insurance is for financial loss due to legal action?

 a) Liability Insurance

b) Disability Insurance

c) Property Insurance

d) Life Insurance

10. What is ‘Death Benefit’ in Life Insurance?

a) Monthly Premium

b) Total Cover Amount

c) Cash Value

d) Age of the Policyholder

Answer key

1. b
2. b
3. a
4. b
5. b
6. b
7. c
8. b
9. a
10. b

The  LIC will adopt the following procedure for the marks obtained by the candidates:

• The number of questions answered correctly by a candidate in each objective test is considered for arriving at the Score.
• The score so obtained by a candidate are made equivalent to take care of the minor difference in difficulty level, if any, in each of the objective tests held in different sessions to arrive at the Equated Scores* * Scores obtained by candidates on any test are equated to the base form by considering the distribution of scores of all the forms.
• Test-wise scores and scores on the total is reported with a decimal point up to two digits.

FAQs

1. Is the question level tough?

The question level in the preliminary is not that tough.

2. What is the pass percentage in both the written exams?

The figure of pass percentage is different for UR, OBC, and EWS candidates compared to reserved category candidates.

Related:

Bank of Maharashtra Generalist Officer Scale II Recruitment 2025: Eligibility, Vacancy Job Profile, Documents, Salary, Exam Pattern, Minimum Qualifying Marks & More Junior Rural Development Officer 2025: Prelims & Screening Test