Explanation:

- Life Insurance Corporation of India (LIC) is a renowned state-owned entity in India.

- Correct Answer: Option 1: "a" - The statement is properly used because 'a' precedes a noun starting with a consonant sound.

- The sentence should read: "Life Insurance Corporation of India (LIC) is a state-owned insurance group."

- The front part of the sentence, "headquartered in Mumbai," is a simple factual description of where LIC is based.

- The law, "Life Insurance of India Act," was passed on 19 June 1956, leading to LIC's operations starting in September 1956.

- LIC gathered the operations of numerous smaller insurers, centralizing them under state control.

- The Industrial Policy Resolution of 1956 laid the groundwork for increased state oversight in industries, including life insurance.