IC39 Mock Test Sample 12
These questions highlight key concepts in insurance fraud, investigation practices, and risk management. They explain different fraud types such as deliberate losses, staged burglaries, cargo fraud, and employee misrepresentation. The importance of indemnity, proper investigation techniques, and regulatory roles like IRDAI and FIU-IND is emphasized. Topics such as AML compliance, black money sources, and fraud detection through research and analytics are also covered. The content underlines the need for vigilance, ethical practices, and thorough verification in insurance operations. Overall, it provides a comprehensive understanding of fraud prevention, claims assessment, and regulatory frameworks essential for maintaining integrity in the insurance industry.
1. Fake loss or stage-managed loss is also called as ____________
a) Misadventure fraud
b) Deliberate loss
c) Fortuitous deception
d) Incidental fabrication
2. Exaggeration of the quantum of loss is more prevalent when the loss is due to which type of events?
a) Fire accidents
b) Theft
c) Natural calamities like flood, cyclone, earthquake, etc.
d) Machinery breakdown
3. What is the ultimate essence of indemnity in insurance?
a) Ensuring profit for the insured
b) Providing full replacement value
c) Bringing the insured back to pre-loss position
d) Adjusting indemnity based on age
4. Losses due to _____________ or carelessness are projected as accidental losses.
a) Accidental incidents
b) Natural disasters
c) Human negligence
d) Machinery breakdown
5. What is price skimming?
a) Maximum profitability pricing
b) Increasing prices gradually
c) High initial price then gradual reduction
d) Discount-based pricing
6. The Insurance Fraud Bureau (IFB) operates in which country?
a) USA
b) United Kingdom
c) Canada
d) Australia
7. What does the investigator do before reaching the incident site?
a) Ignores the area
b) Takes a detour
c) Studies the affected area
d) Relies on eyewitness
8. Which authority can impose sanctions for non-compliance with Section 12?
a) RBI
b) IRDAI
c) SEBI
d) FIU-IND Director
9. Which entities support FIU-IND in AML activities?
a) RBI
b) Tax consultants
c) Local police
d) Financial institutions submitting STR/CTR
10. What is a key research activity of the Coalition Against Insurance Fraud?
a) Sponsoring major research studies
b) Internal research only
c) Academic collaborations
d) Publishing journals
11. What is the nature of claim fraud?
a) Only partial fraud
b) Only complete fraud
c) Both partial and total fraudulent claims
d) Only genuine claims
12. Selling insured cargo and claiming it stolen is an example of:
a) Genuine loss
b) Accidental damage
c) Losses not occurred fraud
d) Mechanical failure
13. Which insurance faces fake accident, driver change, fake victims frauds?
a) Motor own damage
b) Third-party insurance
c) Health insurance
d) Both a & b
14. Marine cargo coverage falls under:
a) ICC X, Y, Z
b) ICC A, B, C
c) ICC I, II, III
d) ICC 1, 2, 3
15. General Insurance Council acts as:
a) Regulatory authority
b) Self-Regulatory Organization (SRO)
c) Government agency
d) Fraud prevention agency
16. Primary sources of black money are:
a) Gambling & tourism
b) Inheritance & gifts
c) Salary & dividends
d) Crime, corruption, business
17. Investigator approach during site visit:
a) Focus only affected area
b) Ignore unaffected area
c) Visit one department
d) Examine all sections thoroughly
18. Common frauds in livestock insurance include:
a) Distorted cause of death
b) Death of uninsured animal
c) Pre-insurance death claim
d) All of the above
19. Stage-managed burglary means:
a) Legal recovery process
b) Fraud by planned burglary/theft
c) Security enhancement
d) Special insurance policy
20. Misrepresenting subcontractor employees as own employees is:
a) Employee classification fraud
b) Subcontractor liability representation
c) Fictitious employment claim
d) Misidentified employee insurance scam
