IC39 Mock Test Sample 14
These questions focus on insurance fraud, regulatory compliance, and investigative practices. They explain fraud types such as underwriting fraud, accounting fraud, and third-party collusion, along with legal concepts like tort and civil liability. Key principles like proximate cause and KYC requirements are highlighted to ensure proper risk assessment and customer identification. The role of institutions like FIU-IND, FATF, and the Coalition Against Insurance Fraud emphasizes global efforts in combating financial crimes. Growth areas in insurance and discrepancies indicating fraud are also covered. Overall, the content underscores the importance of vigilance, data analysis, legal awareness, and ethical conduct in preventing fraud and ensuring fair insurance practices.
1. In liability insurance, what is the potential fraudulent activity associated with connivance between the third party and the insured?
a) Third-party collusion
b) Insurance conspiracy
c) Grey area fraud
d) Connivance deception
2. What does the principle of "proximity clause" in insurance entail?
a) Determining primary cause of loss
b) Physical proximity of property
c) Relationship between insured & insurer
d) Time proximity of loss
3. What is the term for an action causing damage to another party leading to compensation?
a) Criminal offense
b) Civil liability
c) Legal tort
d) Contract breach
4. What are "Accounting frauds" in insurance?
a) Policyholder fraud
b) Industry deceptive practices
c) External fraud
d) Manipulation of financial records
5. What is the KYC threshold in insurance contracts?
a) ₹50,000
b) ₹75,000
c) ₹1,00,000
d) ₹1,50,000
6. In which legal act is "fraud" defined?
a) IPC 1860
b) Companies Act 2013
c) Consumer Protection Act
d) Indian Contract Act 1872
7. Which insurance lines have seen substantial growth recently?
a) Auto & home
b) Health & life
c) Property & casualty
d) Motor, health, liability, crop, rural
8. Claiming loss due to uninsured peril is:
a) Legitimate claim
b) Honest mistake
c) Standard procedure
d) Insurance fraud
9. Fastest growing classes in miscellaneous insurance (besides motor & health):
a) Liability & travel
b) Property & pet
c) Rural & life
d) Liability & rural
10. Which discrepancy may indicate fire fraud?
a) Valuable items present
b) Missing household items
c) Inclusion of new items
d) Missing personal items
11. Fraud triggers are based on:
a) Legal regulations
b) Industry practices
c) Expert opinions
d) Past experience & data
12. Which US law protects debtors?
a) FDCPA
b) DRPA
c) CDPA
d) FRDRA
13. Physical evidence in investigation includes:
a) Building damage
b) Machinery damage
c) Stock damage
d) All of the above
14. Suspicious transactions are reported to:
a) RBI
b) CBI
c) IRDAI
d) FIU-IND
15. Which is NOT part of KYC?
a) Passport
b) Utility bill
c) Bank statement
d) Employment verification
16. In Australia, fraud-involved individuals are called:
a) Claimants
b) Insured
c) Offenders
d) Policyholders
17. Why was the Coalition Against Insurance Fraud formed?
a) Combat fraud rise
b) Promote collaboration
c) Awareness & policy
d) All a, b, c
18. FATF reviews which area?
a) Cybersecurity risks
b) Investment fraud
c) Virtual assets & crypto
d) Insider trading
19. Value of young bloodstock depends on:
a) Offspring
b) Trainer
c) Owners
d) Parents
20. Fraud during underwriting is called:
a) Policy manipulation
b) Underwriting fraud
c) Risk misrepresentation
d) Insurer deception
