IC39 Mock Test Sample 11
These questions focus on key concepts in insurance, including fraud prevention, regulatory frameworks, underwriting practices, and claims management. They highlight the importance of ethical conduct, proper documentation, and coordinated efforts between regulators, insurers, and investigators to detect and prevent fraud. Topics such as AML compliance, due diligence, and customer identification stress financial security and transparency. Various insurance types like fire, marine, livestock, and health insurance are covered, along with modern techniques like RFID for risk identification. Overall, the content emphasizes the need for strong governance, accurate risk assessment, and vigilance to protect insurers and policyholders from financial losses and fraudulent activities.
1. In life insurance business, which practice should be avoided when making payments related to situations such as superannuation/gratuity accumulations and death benefits to legal heirs?
a) Direct payments to the beneficiaries
b) Payments through bank transfers
c) Payments to third parties
d) Payments to policyholders
2. What type of insurance business primarily includes coverage against loss and is often associated with fire or other occurrences as customary risks?
a) Life insurance
b) Health insurance
c) Fire insurance
d) Auto insurance
3. Which categories define the non-life insurance business as per the Insurance Act of 1938?
a) Fire insurance, marine insurance, and miscellaneous insurance
b) Health insurance, property insurance, and liability insurance
c) Auto insurance, travel insurance, and personal accident insurance
d) Crop insurance, aviation insurance, and engineering insurance
4. Which type of insurance fraud involves the insured intentionally causing damage to their property for pecuniary benefits?
a) Road accident fraud
b) Premium fraud
c) Deliberate property damage fraud
d) False injury claim fraud
5. Who works together to address suspected fraud in the insurance industry?
a) State Insurance regulators and insurance companies
b) State Insurance regulators and special investigation units
c) Insurance companies and special investigation units
d) State Insurance regulators, insurance companies, and special investigation units
6. Which of the following are examples of motor insurance frauds?
a) Losses prior to commencement of cover
b) Deliberate losses
c) Change of driver
d) All of the above
7. Which of the following is a preventive measure undertaken by the insurer?
a) Paying claims without investigation
b) Overstating value of goods
c) Ignoring packaging details
d) Checking whether packaging is as per trade customs
8. What are the new methods to identify an insured animal in livestock insurance?
a) Microchipping
b) RFID
c) Ear tagging with number
d) All of the above
9. How do terrorist and anti-social groups entice young individuals?
a) Educational scholarships
b) Counseling support
c) Cultural promotion
d) Financial incentives exploiting vulnerabilities
10. What is the main purpose of reconstructing the entire incident using available information?
a) Create fictional narrative
b) Confuse investigators
c) Increase complexity
d) Understand sequence of events
11. What is typically NOT included in Janata insurance policies?
a) Life coverage
b) Health coverage
c) Property coverage
d) Travel coverage
12. What are construction phase insurance policies also called?
a) Comprehensive policies
b) Operational policies
c) Period and one-time policies
d) All-risk policies
13. Which provision in health insurance helps reduce the burden of large hospital bills?
a) Co-payment
b) Deductible
c) Cashless treatment
d) Waiting period
14. What term describes taking multiple insurance policies on same subject and claiming from all?
a) Double insurance fraud
b) Concurrent coverage deception
c) Dual policy manipulation
d) Overlapping indemnity
15. Which organization runs the Insurance Fraud Bureau in the UK?
a) Association of British Insurers (ABI)
b) Financial Conduct Authority (FCA)
c) Insurance Fraud Enforcement Department (IFED)
d) National Crime Agency (NCA)
16. What term is defined as deliberate deception for unlawful gain?
a) Theft
b) Fraud
c) Embezzlement
d) Forgery
17. Multimodal transportation and postal parcels fall under which insurance?
a) Marine Hull Insurance
b) Marine Cargo Insurance
c) Marine Liability Insurance
d) Marine P&I Insurance
18. Which provision may be included as a warranty to prevent fraud?
a) Immediate claim settlement
b) Enhanced coverage clause
c) Premium exemption
d) Carcass disposal with insurer permission
19. Under PMLA, which section deals with adjudication of seizure and attachment of property?
a) Section 3
b) Section 5
c) Section 8
d) Section 10
20. What do “Due Diligence” and “Customer Identification” refer to?
a) Identity verification & employee checks
b) Business partner investigation & market analysis
c) Risk assessment & claim evaluation
d) Application accuracy check & identity verification
