IC39 Mock Test Sample 15
These questions focus on insurance laws, fraud detection, investigation practices, and regulatory frameworks. They highlight that insurance contracts are governed by the Indian Contract Act, while fraud-related penalties come under laws like the IPC and Insurance Laws Amendment Act. Fraud prevention is a key responsibility of insurers, regulators like IRDAI, and investigative units. Common fraud types include deliberate losses, fake claims, and collusion. Effective investigation requires impartiality, proper evidence collection, and strong domain knowledge. Concepts like indemnity, proximate cause, and claims-made basis are essential. Organizations like NAIC and FATF support regulation and AML efforts. Overall, the emphasis is on compliance, transparency, and protecting both insurers and policyholders.
1. For work under civil contracts, particularly from the government, is it mandatory for the contractors to insure the works or projects?
a) Yes, it is mandatory for the contractors to insure the works or projects.
b) No, contractors are not required to insure the works or projects.
c) Insurance is optional and depends on the contractor's preference.
d) Contractors may insure the works or projects, but it is not mandatory.
2. Which of the following issues are emphasized in the mission statement of IRDAI regarding their anti-fraud policy?
a) Protecting the interest of policyholders
b) Ensuring speedy settlement of genuine claims
c) Preventing insurance frauds and malpractices
d) All of the above
3. What type of knowledge is essential for an investigator?
a) Different types of dance forms
b) Varieties of exotic plants
c) Historical events
d) Concepts of insurance products and perils
4. What is a crucial aspect of the investigation process?
a) Neglecting evidence
b) Relying on personal opinions
c) Avoiding record keeping
d) Collecting and recording evidence meticulously
5. Who might be involved in collusion for fraudulent claims?
a) Insurance agents
b) Investigators
c) Attorneys
d) Policyholders
6. What are the common causes of fire incidents?
a) Electrical faults
b) Mechanical failures
c) Natural disasters
d) Both a & b
7. Which terms refer to the same type of motor insurance policy?
a) Liability Only Policy
b) Act Only Policy
c) Motor Third Party Policy
d) All of the above
8. In the Motor Vehicles Act, which section replaced sections 163A and 140?
a) Section 150
b) Section 170
c) Section 161
d) Section 164
9. Punishment under Section 424 IPC includes:
a) Up to 1 year imprisonment
b) Up to 2 years imprisonment
c) Up to 3 years imprisonment
d) Up to 5 years imprisonment
10. Which Act does NOT specifically deal with insurance fraud?
a) Indian Penal Code 1860
b) Indian Evidence Act 1872
c) Indian Contract Act 1872
d) Insurance Act 1938
11. Whistleblowers as a source of fraud identification include:
a) Only internal employees
b) Only external individuals
c) Both internal and external individuals
d) Only regulators
12. Essential requirement for an investigation report:
a) Omitting details
b) Personal opinions
c) Excluding witnesses
d) Thorough investigation & conclusion
13. Claims Made basis means:
a) Covers claims made during policy period (even earlier occurrence)
b) Immediate settlement of claims
c) Covers only occurrence during policy period
d) Covers post-expiry claims
14. Key factor for premium rate determination:
a) Policy type
b) Age and gender
c) Market conditions
d) Past claim experience
15. Marine insurance covers:
a) Fire losses
b) Natural disasters
c) Marine losses
d) Theft
16. ICP 21 focuses on:
a) Financial stability
b) Profitability
c) Regulatory compliance
d) Anti-fraud controls effectiveness
17. Objective of NAIC:
a) Protect insurers
b) Ensure profits
c) Financial stability
d) Protect consumers & fair market
18. Fraud trigger in fire insurance:
a) Decrease in sum insured
b) Prompt intimation
c) Full disclosure
d) Undisclosed multiple past claims
19. Organized maritime fraud is called:
a) Phantom Ship Fraud
b) Fictitious Vessel Fraud
c) Cargo Pilferage
d) Smuggling deception
20. What is required to establish fraud?
a) Negligence
b) Recklessness
c) Innocence
d) Intent
