LIC AAO flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Syllogism conversion rule

'All A are B' converts to 'Some B are A'. 'No A is B' converts to 'No B is A'. 'Some A are B' converts to 'Some B are A'. 'Some A are not B' has no valid conversion. Use these to test conclusions.

Circular seating left-right rule

For people facing the centre of a circle, a person's left is clockwise and right is anticlockwise. When facing outward, the directions reverse: left is anticlockwise and right is clockwise.

Data sufficiency decision order

Test statement I alone, then statement II alone. If either alone answers the question, pick that statement. Combine only when neither alone suffices and the pair together does.

Blood relation tree notation

Draw generations as horizontal rows. A vertical line joins parent to child; a double horizontal line joins siblings or spouses. Read the relation from the fixed person outward, never backwards.

Direction sense displacement formula

Net displacement equals the square root of the sum of squared east-west and north-south components. Facing direction after turns equals total turns taken modulo four.

Successive percentage change formula

Two successive changes of a percent and b percent produce a net change of a + b + ab/100. A rise then an equal fall of a percent always gives a net fall of a squared divided by 100.

CI minus SI shortcut

For two years the difference between compound and simple interest is P times (r/100) squared. For three years it is P times (r/100) squared times (3 + r/100).

Average speed equal distances

When a body covers two equal distances at speeds a and b, average speed is 2ab divided by (a + b). It is never the arithmetic mean of the two speeds.

Boat and stream formulas

Downstream speed equals boat plus stream; upstream equals boat minus stream. Boat speed is half the sum of downstream and upstream; stream speed is half their difference.

Combined work formula

If A finishes work in x days and B in y days, together they need xy divided by (x + y) days. Using the LCM of x and y as total work units avoids fractions.

Alligation ratio rule

The ratio in which two ingredients at prices c and d must be mixed to reach mean price m is (m minus c) divided by (d minus m). Quantities are inversely proportional to price differences.

Circular permutation formula

The number of ways to arrange n distinct people around a circle is (n minus 1) factorial, because rotations are treated as identical. For a necklace or garland, divide further by two.

Subject-verb agreement traps

'One of the' plus a plural noun takes a singular verb. Each, every, either and neither take singular verbs. Collective nouns take a singular verb when acting as one unit.

Article use with vowel sounds

Use 'an' before a vowel sound, not a vowel letter: an hour, an MBA. Use 'a' before consonant sounds even when spelt with a vowel: a university, a European.

Fixed preposition collocations

Memorise pairs: comply with, averse to, capable of, deprived of, insist on, prefer to, superior to, inferior to, prior to, and confide in. Superior and inferior never take 'than'.

Reported speech tense shift

When the reporting verb is past, present becomes past, past becomes past perfect, and will becomes would. Time words shift: now to then, today to that day, tomorrow to the next day.

Third conditional structure

An unreal past condition uses past perfect in the if-clause and would have plus past participle in the main clause. Example: If she had applied, she would have qualified.

Para jumble opening sentence test

The first sentence introduces the topic without starting from a pronoun or a dependent connector. Sentences beginning with 'this', 'hence' or 'but' almost never open the paragraph.

Reading comprehension extreme options

Options containing always, never, only, must or entirely are usually wrong because passages rarely support absolutes. Prefer hedged options such as 'may' or 'suggests'.

RBI establishment facts

The Reserve Bank of India was set up on 1 April 1935 under the RBI Act 1934 and nationalised in 1949. It is headquartered in Mumbai and issues all currency notes except one-rupee notes.

Fundamental Rights constitutional part

Fundamental Rights occupy Part III of the Indian Constitution, Articles 12 to 35. Directive Principles of State Policy sit in Part IV, Articles 36 to 51, and are not enforceable in courts.

Scheduled bank meaning

A scheduled bank is any bank listed in the Second Schedule of the RBI Act 1934. Listing requires paid-up capital and reserves of a prescribed minimum and satisfaction of RBI conditions.

Bank nationalisation years

Fourteen major commercial banks were nationalised in 1969, followed by six more in 1980. Regional Rural Banks were created in 1975 to serve rural credit needs.

Fundamental Duties amendment

Fundamental Duties were inserted by the 42nd Constitutional Amendment in 1976 on the Swaran Singh Committee's recommendation. They appear in Part IVA as Article 51A.

IRDAI establishment and role

The Insurance Regulatory and Development Authority of India was constituted in 1999 and became statutory in 2000 under the IRDA Act. It regulates insurers, brokers and agents from Hyderabad.

Insurable interest principle

Insurable interest means the policyholder gains from the subject's survival and loses from its damage. In life insurance it must exist at inception; in general insurance, at both inception and loss.

Utmost good faith meaning

Both insurer and insured must disclose all material facts fully and honestly. Non-disclosure or misrepresentation lets the insurer avoid the contract, which is why proposal forms carry declaration clauses.

Subrogation and contribution

Subrogation lets the insurer step into the insured's shoes to recover losses from a third party after paying a claim. Contribution shares a loss among insurers covering the same risk.

ULIP versus endowment plan

A ULIP is market-linked: part of the premium buys units whose value fluctuates. An endowment plan gives a guaranteed sum assured plus bonuses at maturity, with no market risk.

DICGC deposit cover

The Deposit Insurance and Credit Guarantee Corporation insures bank deposits up to five lakh rupees per depositor per bank, covering principal and interest across all branches combined.

PMJJBY and PMSBY covers

Pradhan Mantri Jeevan Jyoti Bima Yojana gives two lakh rupees life cover, and Pradhan Mantri Suraksha Bima Yojana gives two lakh rupees for accidental death or total disability.

Bancassurance distribution model

Bancassurance is the sale of insurance policies through bank branches and staff. Banks earn commission, and IRDAI rules limit how many life and general insurers each bank may partner.