LIC ADO Mains key terms

A form of logical reasoning where conclusions are drawn from two or more statements assumed true, often tested using Venn diagrams to check whether a conclusion definitely follows.

A reasoning puzzle where people or objects are placed in a line, circle, or rectangle according to clues about relative positions, facing directions, and distances, and questions ask about final arrangements.

A reasoning topic that asks you to identify family relationships between people from statements describing links such as father, sister, or maternal uncle, often using a family tree.

A reasoning exercise where words, letters, or numbers are converted into a code using a rule; you must identify the rule and apply it to new input.

A reasoning format where a question is followed by statements; you decide whether the data given is enough to answer, without necessarily calculating the final answer.

A reasoning question where mathematical inequality symbols are replaced by letters or symbols; you decode the expressions and test which conclusion follows logically.

A reasoning topic about tracing a person's path using turns and distances, then finding the final direction, shortest distance, or relative position from the starting point.

A fraction expressed per hundred; used to compare quantities, calculate increase or decrease, and solve profit, interest, and data interpretation questions accurately.

A ratio compares two quantities of the same kind; a proportion states that two ratios are equal, helping solve mixture, partnership, and scaling problems.

Interest calculated only on the original principal for the whole period, using the formula principal × rate × time divided by 100 when rate is annual.

Interest calculated on the principal plus accumulated interest from earlier periods, so the amount grows faster than under simple interest over multiple periods.

A quantitative topic measuring how long individuals or groups take to finish a task, using rates of work and sometimes efficiency ratios or wages.

A quantitative relationship where distance equals speed multiplied by time; used for trains, boats, races, and relative motion problems in exams.

A section presenting data in tables, charts, or graphs; candidates calculate percentages, averages, ratios, and differences to answer questions accurately and quickly.

A measure between zero and one of how likely an event is, calculated by dividing favourable outcomes by total equally likely outcomes in the sample space.

The interest rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities; a key monetary policy tool to control liquidity and inflation.

The rate at which the Reserve Bank of India absorbs surplus liquidity from commercial banks by borrowing funds against government securities; usually lower than the repo rate.

The share of a bank's net demand and time liabilities that must be kept as cash with the Reserve Bank of India, earning no interest and reducing funds available for lending.

A sustained rise in the general price level of goods and services, which reduces the purchasing power of money and is measured by indices such as CPI or WPI.

Gross Domestic Product, the total market value of all final goods and services produced within a country's borders during a specified period, usually a year or a quarter.

The gap between the government's total expenditure and its total receipts excluding borrowings; it shows how much the government must borrow to fund its spending.

The Reserve Bank of India's actions to manage money supply, credit, and interest rates to achieve price stability while supporting growth, using tools such as repo rate and CRR.

A government-backed life insurance scheme offering a renewable one-year term cover of ₹2 lakh for subscribers aged 18 to 50, with a small annual premium, usually auto-debited.

A contract where the insurer pays a sum assured to the nominee on the policyholder's death or to the policyholder on maturity, in exchange for regular premiums.

The amount a policyholder pays to an insurer, at agreed intervals or as a single payment, to keep an insurance policy in force and to fund the promised benefits.

The amount stated in a life insurance policy that the insurer guarantees to pay on death or maturity, before bonuses or other additions, subject to policy terms.

A person named by the policyholder to receive the insurance benefit in case of the policyholder's death, helping ensure the claim proceeds reach the intended beneficiary.

The insurer's process of assessing an applicant's risk, health, habits, and financial details to decide whether to issue a policy and on what terms or premium.

A professional who uses mathematics, statistics, and financial theory to assess insurance risks, set premium rates, calculate reserves, and design insurance products.

A distribution arrangement where a bank sells insurance products to its customers, often using its branch network and customer relationships to reach buyers efficiently.

The percentage of claims an insurer has settled compared with the total claims received, often used as an indicator of an insurer's reliability and customer service.

A pure life insurance policy that pays the sum assured only if the insured dies during the chosen term, with no maturity payout if the insured survives the term.

A life insurance policy that pays the sum assured plus bonuses either on maturity if the insured survives or to the nominee on death during the policy term.

A word that has the same or nearly the same meaning as another word in a particular context, tested through direct questions or vocabulary-based reading comprehension.

A word that expresses the opposite meaning of another word, such as scarce for abundant, often tested by asking candidates to choose the most suitable opposite.

A fixed expression whose meaning cannot be understood from the literal words alone, such as break the ice; candidates must identify its correct usage or meaning.

A passage with one or more words removed and replaced by blanks; candidates choose the option that best restores grammatical and contextual meaning to each blank.

A passage followed by questions about its main idea, details, tone, and inferences; success depends on careful reading and locating evidence in the text.

An English question type where a sentence is divided into parts and candidates identify the part containing a grammatical error, or conclude that no error exists.