IC39 Mock Test Sample 16
These questions cover key concepts in insurance, fraud, and financial regulations. Internal audits help identify procedural lapses and improve compliance. Life insurance types like whole life plans provide lifelong coverage, while liability concepts such as AAL define insurer limits per accident. Money laundering involves converting illegal funds into legitimate assets. Fraud includes deliberate acts like staged accidents, fake charities, and misrepresentation of medical conditions. Cashless treatment shifts payment responsibility to insurers. Suspicious indicators like inconsistent receipts signal fraud. Concepts like “average offender,” burden of proof, and trade-based money laundering are important. Overall, the focus is on risk management, fraud detection, and ensuring transparency and accountability in insurance practices.
1. Which of the following is a benefit of conducting periodic internal audits in the insurance industry?
a) Identifying lapses and deviations from standard procedures
b) Enhancing customer satisfaction
c) Increasing profitability
d) Streamlining administrative processes
2. Under which life insurance plan is the sum assured paid upon the death of the policyholder, regardless of when it occurs?
a) Endowment Plan
b) Term Plan
c) Whole Life Plan
d) Money Back Plan
3. Which statement accurately describes the Anyone Accident Limit (AAL)?
a) Maximum liability of insured per accident
b) Maximum liability of insurer per accident
c) Maximum liability of insured per policy period
d) Maximum liability of insurer per policy period
4. What is the definition of money laundering?
a) Generating legal income
b) Converting illegal funds into legitimate assets
c) Investing in high-risk ventures
d) Tax evasion practices
5. When was life insurance nationalized in India and what was formed?
a) 1956 – LIC formed
b) 1956 – GIC formed
c) 1947 – LIC formed
d) 1947 – GIC formed
6. Which term means causing wrongful gain or loss intentionally?
a) Fraud
b) Corruption
c) Dishonesty
d) Deception
7. Which of the following is motor insurance fraud?
a) Regular maintenance
b) Reporting genuine accident
c) Deliberately pushing vehicle to claim loss
d) Upgrading vehicle
8. In cashless treatment, who settles the bill?
a) Insured
b) Hospital
c) Insurance company
d) Government
9. Which receipt situation raises suspicion of fire insurance fraud?
a) Receipts from different shops
b) Chronological purchase dates
c) Proper submission of receipts
d) Same shop receipts with irregular dates
10. Correct definition of life insurance policy:
a) Agreement between insurers
b) Contract with medical provider
c) Investment arrangement
d) Contract paying death benefit to beneficiary
11. Impact of "hard fraud" on insured life:
a) Financial loss
b) Life endangered
c) Emotional distress
d) No loss or damage
12. What must be submitted when insured animal dies?
a) Ear tag
b) Photograph
c) Documents
d) Carcass
13. What is an "average offender"?
a) High policy holder
b) Person committing insurance fraud
c) Underreporting claims person
d) High premium insurer
14. When does Overseas Health Insurance coverage begin?
a) Ticket booking
b) Arrival at destination
c) Visa issuance
d) Boarding flight
15. False claim of ornament damage is due to:
a) Vermin and mildew
b) Fire and flood
c) Natural disasters
d) Accidental breakage
16. How do fake charities commit fraud?
a) Providing genuine services
b) Helping legally
c) Pretending to be real charities
d) Promoting transparency
17. Wrong disease reporting fraud is called:
a) Misrepresentation fraud
b) Premium evasion
c) Change of diagnosis fraud
d) False documentation
18. Burden of proof if policyholder is not alive lies on:
a) Insurance company
b) Legal representative
c) Beneficiaries
d) Court
19. Which is NOT health insurance fraud?
a) Hiding medical history
b) Inflating bills
c) Delaying claim processing
d) Providing correct information
20. Trade-based money laundering method:
a) Over-invoicing
b) Under-reporting income
c) Multiple invoices
d) Transparent reporting
