IC39 Mock Test Sample 13
These questions cover essential insurance concepts including legal frameworks, fraud detection, claims handling, and underwriting principles. They highlight compulsory third-party motor insurance, the role of investigators and loss adjusters, and the importance of proposal forms in contracts. Fraud types like premium diversion and warranty misuse are explained along with detection techniques such as paint analysis. Legal provisions under IPC and PMLA emphasize compliance and anti-money laundering efforts. The content also explains liability insurance coverage, exclusions like intoxication, and the structured process of claim settlement. Overall, it stresses ethical practices, proper investigation, and regulatory adherence to ensure fair claim handling and prevent financial losses in insurance.
1. According to the Motor Vehicles Act, which type of insurance policy is compulsory for all motor vehicles?
a) Comprehensive Policy
b) Third-Party Policy
c) Non-Package Policy
d) Standalone Own Damage Policy
2. Whose responsibility is it to identify or trigger a fraudulent claim?
a) The insured
b) The insurance company
c) The government
d) The police
3. According to Section 50 of the Insurance Act, who is prohibited from transacting insurance business after the 2015 Amendment?
a) Principal agents
b) Chief agents
c) Special agents
d) All a, b, c
4. Which characteristic is associated with a criminal offender in insurance fraud?
a) Violent crimes
b) Cybercrimes
c) White-collar crimes
d) Property/paper-based crimes
5. What is true about discharge of contract under Indian Contract Act 1872?
a) No provision exists
b) Discharge through agreement, performance, impossibility, law
c) Criminal penalties imposed
d) Only monetary damages allowed
6. Legal costs in liability insurance are borne by the:
a) Insurer
b) Beneficiary
c) Claimant
d) Insured
7. How are fire insurance claims typically handled?
a) Automatically approved
b) Negotiated and settled with insured consent
c) Settled without discussion
d) Denied by default
8. Purpose of paint exchange analysis in accidents?
a) Weather analysis
b) Identify paint type
c) Determine cause/impact surface
d) Check fuel efficiency
9. In which year was “miscellaneous insurance” defined?
a) 1921
b) 1938
c) 1945
d) 1952
10. Punishment under Section 406 IPC (breach of trust)?
a) Up to 1 year
b) Up to 2 years
c) Up to 3 years
d) Up to 5 years
11. Most common fraud by agents keeping premiums is:
a) Premium diversion
b) Policy padding
c) False advertising
d) Collusion
12. Which discrepancy raises fire fraud suspicion?
a) Higher tax than cost
b) Lower tax than cost
c) No relation
d) Equal tax and cost
13. Claiming during warranty despite repair obligation is:
a) Manufacturer liability
b) Service fraud
c) Insurance duplication
d) Warranty fraud
14. Relationship between proposal form and contract:
a) Proposal is basis; policy separate
b) Both separate documents
c) Proposal optional
d) Policy is basis
15. Next step after investigation completion:
a) Verbal presentation
b) Artistic representation
c) Awareness campaign
d) Detailed report preparation
16. Law to prevent money laundering in India:
a) PCA
b) IPC
c) PMLA
d) FEMA
17. Why term insurance has strict underwriting?
a) Short-term investment
b) Flexible premiums
c) Attract youth
d) No cash surrender value
18. Who determines cause of loss for liability decision?
a) Insured
b) Agent
c) Fire department
d) Loss adjuster
19. Vehicle damage in accident is covered under:
a) Third-party section
b) Personal accident section
c) Own damage section
d) Package section
20. Accident under drunken condition is excluded under:
a) Hazardous activities
b) Natural disaster
c) Intoxication exclusion
d) Workplace exclusion
