NIACL AO flashcards
NIACL AO · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Insurable interest
- The legal right to insure a subject where the insured benefits from its preservation. In life insurance it must exist at proposal; in general insurance at the time of loss.
- Principle of indemnity
- The insured is restored to the same financial position as before the loss, no better. It applies to general insurance, not to life insurance, which pays the sum assured.
- Subrogation
- After paying a claim, the insurer acquires the insured's right to recover the loss from the party responsible. It supports indemnity and applies only to general insurance.
- Utmost good faith
- Both parties must disclose all material facts honestly. Non-disclosure or misrepresentation can make a policy voidable by the insurer, even after the policy is issued.
- Repo rate
- The rate at which RBI lends short-term funds to banks against government securities. A cut in repo rate generally lowers borrowing costs and supports credit growth.
- CRR and SLR
- CRR is the share of net demand and time liabilities held as cash with RBI. SLR is the share held in approved securities such as government bonds.
- IRDAI
- The Insurance Regulatory and Development Authority of India, constituted in 2000 under the IRDA Act 1999. It licenses insurers and intermediaries and protects policyholders.
- Insurance penetration
- Total insurance premium expressed as a percentage of a country's GDP. India's penetration is low compared with global averages, indicating untapped potential.
- Bancassurance
- Distribution of insurance products through bank branches and staff. It is a major channel in India, regulated by IRDAI with coordination from RBI.
- ULIP
- Unit Linked Insurance Plan: part of the premium buys life cover and the rest is invested in market-linked funds. It has a minimum five-year lock-in.
- Term insurance
- A pure risk-cover plan that pays the sum assured only on death during the policy term. There is no maturity benefit, so premiums are the lowest among life plans.
- NAV
- Net Asset Value of a mutual fund unit equals total assets minus liabilities, divided by units outstanding. It is declared daily for open-ended schemes.
- Non-performing asset
- A loan or advance on which principal or interest is overdue for more than 90 days. Gross NPA is before provisions; net NPA is after provisions.
- PMJJBY
- Pradhan Mantri Jeevan Jyoti Bima Yojana: a renewable one-year life insurance scheme offering Rs 2 lakh cover on death for a small annual premium.
- PMSBY
- Pradhan Mantri Suraksha Bima Yojana: an accidental death and disability insurance scheme with Rs 2 lakh cover, offered through bank accounts.
- Payment bank limits
- Payment banks can accept deposits up to Rs 2 lakh per customer and cannot lend. They issue debit cards and offer payments and remittance services.
- MPC inflation target
- India's Monetary Policy Committee targets consumer price inflation of 4% with a tolerance band of plus or minus 2%, i.e. 2% to 6%.
- Yours faithfully usage
- The complimentary close used in a formal letter when the salutation is 'Dear Sir/Madam'. If the recipient is named, use 'Yours sincerely' instead.
- Essay thesis statement
- A single sentence in the introduction that states the writer's stand on the topic. Every body paragraph should support it, and the conclusion restates it.
- Letter subject line
- A short phrase placed after the receiver's address and before the salutation, stating the purpose of the letter in a few words, without a full stop.
- Syllogism validity test
- A conclusion is valid only if it is true in every possible Venn diagram of the premises. One counter-diagram makes the conclusion invalid.
- Facing outward reversal
- In seating puzzles, when people face away from the centre, their left is the observer's right. Fix the facing direction before placing anyone.
- Binary to decimal
- Multiply each binary digit by its positional weight, 128, 64, 32, 16, 8, 4, 2, 1 from left, and add the results. Eight bits make one byte.
- Compiler versus interpreter
- A compiler translates the entire program before execution; an interpreter translates and executes line by line. RAM is volatile; ROM retains data without power.
- Data sufficiency rule
- Test each statement alone, then both together. Stop as soon as a unique answer is possible; you are not required to compute the actual value.
- Relative speed
- When two bodies move in opposite directions, relative speed is the sum of speeds; in the same direction it is the difference. Convert km/h to m/s by multiplying 5/18.
- CI minus SI two years
- For two years, the difference between compound and simple interest equals P times (R/100) squared, where P is principal and R the annual rate.
- Alligation rule
- To mix two ingredients at prices cheaper and dearer to get a mean price, the ratio of quantities is (mean minus cheaper) to (dearer minus mean).
- Successive percentage change
- Two successive changes of a% and b% give a net change of a + b + ab/100 percent. A rise then equal fall always produces a net decrease.
- One of plural rule
- In 'one of the', the noun following is plural and the verb agreeing with 'one' is singular, as in 'One of the boys is absent'.
- Para jumble opener
- The first sentence usually has no pronoun, no definite article and no contrast connector. It introduces the subject, and later sentences link back by pronouns and connectors.
- Cloze test elimination
- Read the full sentence, then eliminate options that break grammar or collocation first. The correct word must fit both form and meaning in context.