LIC India Agent Exam Preparation

History of Insurance 

1. The First Life Insurance company in India  --> The Oriental Life Insurance co. Ltd (An English Company)
2. The First Non Life Insurance company In India --> Triton Insurance Co. Ltd. [Established in India]
3. The First Indian Insurance Company was  'Bombay Mutual Assurance Society Ltd.' formed in 1870 in Mumbai.


4. The Oldest Insurance Company in India is "National Insurance Company ltd was founded in 1906 & still running business.
5. Insurance Business in regulated by "Life Insurance Companies Act-1912".
6. First Legislation enacted to regulate conduct the insurance companies was "Insurance Act-1938".
7. Nationalization of Life Insurance Business -- 1st September, 1956
8. LIC (Life Insurance Corporation of India) was formed with Nationalization of Insurance Sector on 1st September, 1956.
9. Non-Life insurance business was nationalized in 1972 with enactment of GIBNAct (General Insurance Business Nationalization Act) 1972.
10. At that time, GIC (General Insurance Company) and its four subsidiaries were set up.
11. The passing of the Insurance Regulatory & Development Act, 1999 (IRDA) led to the formation of Insurance Regulatory and Development Authority (IRDA) in April 2000 as a statutory regulatory body both for life and non-life insurance industry.
12. Insurance Defining: Process where losses of a few are shared by others exposed to similar uncertain events/situations.
13. Risk Management Technique-


1. Risk Avoidance
2. Risk Retention
3. Risk Reduction and control
4. Risk Financing
14. Asset: Human Life Value (HLV), HLV concept considers human life as a kind of property or asset that earns an income It measures the value of human life based on an individual’s expected net future earnings.
15. Typical concerns faced by ordinary people, 1. Dying too early
    2. Living too long and 3. Living with disability
16.  Insurance Contract: Insurance involves a contractual agreement in which the insurer agrees to provide financial protection against certain specified risks for a price or consideration known as the premium
17. Elements of Financial Planning
1. Investing
2. Risk Management 
3. Retirement Planning
4. Tax and Estate Planning
5. Financing one’s needs
18.  A term assurance plan : Pays the full sum assured in case of death of the insured during the term.
19.  A pure endowment plan: Pays this amount if the insured survives at the end of the term
20. Money back plan: It is typically an endowment plan with the provision for return of a part of the sum assured in periodic installments during the term and balance of sum assured at the end of the term.
21. USP of Term Plan: The unique selling proposition (USP) of term assurance is its low price, enabling one to buy relatively large amounts of life insurance on a limited budget.
22. Universal Life Insurance: Universal life insurance is a form of permanent life insurance characterized by its flexible premiums, flexible face amount and death benefit amounts, and the unbundling of its pricing factors.
23. Non-traditional life insurance products
1. Variable insurance plans 
2. Unit linked insurance plans
24. Break-up of ULIP Premium
1. Expenses 
2. Mortality 
3. Investment


25. Investment fund options offered by ULIPs
1. Equity Fund
2. Debt Fund
3. Balanced Fund
4. Money Market Fund


26.  Difference between Life Insurance and Pension Products
27.  Types of Pensions


1. Public Pension
2. Personal Pension
3. Occupational Pension