IC39 Mock Test Sample 2
Fraud risk management in insurance involves identifying misuse of claims, such as false health reimbursements, machinery claims, and internal employee fraud. Organizations like IMB help control maritime fraud, while IAIS promotes global insurance regulation. Concepts like utmost good faith form contractual duties, and insurers may reimburse legal costs with consent. Data sharing and technology play a vital role in fraud detection. Policies like agreed value ensure fixed coverage despite price fluctuations. Organized fraud often involves groups targeting financial gains. Legal provisions such as IPC Section 423 address fraudulent transactions. Overall, strong governance, awareness, and compliance are key to minimizing insurance fraud.
1. Which entities jointly formed the Agriculture Insurance Company of India Ltd.?
a) RBI and LIC
b) SEBI and GIC
c) NABARD, GIC, and Public Sector Insurance Companies
d) IRDAI and Agricultural Development Bank
2. How do insured individuals take advantage in insurance claims?
a) Reporting wear and tear losses
b) Reporting machines near replacement
c) Reporting both wear & tear and near replacement
d) Reporting machinery breakdown accidents
3. What term describes fraudulent claims from non-existing hospitals and patients?
a) Hospital billing fraud
b) Patient identity theft
c) Non-existent claim reimbursement
d) Health insurance fraud
4. Which Institute Cargo Clause covers the listed risks?
a) Only II, III
b) Only I, III
c) Only II, IV
d) Only II, III, IV
5. Which parties are involved in international trade (IMB)?
a) I, II, III
b) I, II, IV
c) I, II, III, IV
d) II, IV, V, VI
6. Which are types of evidence in burglary cases?
a) Number of entrances
b) Compound wall entry
c) Security deployment
d) All of the above
7. How can insurance leverage technology to combat fraud?
a) Reduce technology use
b) Avoid data sharing
c) Manual data analysis
d) Data collection, pooling, and sharing
8. Internal frauds are:
a) External fraud activities
b) Employee misconduct causing losses
c) Marketing strategies
d) Management improvement efforts
9. Purpose of "agreed value" in marine insurance?
a) Free insurance coverage
b) Domestic transport only
c) Remove insurable interest
d) Fixed agreed value despite price changes
10. These policies are issued for a fixed amount of:
a) Premium
b) Coverage period
c) Deductible
d) Sum assured
11. What term applies when loss occurs immediately after policy start?
a) Close proximity claim
b) Policy commencement loss
c) Inceptive incident report
d) Immediate loss occurrence
12. Unauthorized insurance solicitation scheme is called:
a) Pyramid scheme
b) Ponzi scheme
c) Multi-level marketing
d) Affiliate marketing
13. Organized insurance fraud offenders are typically:
a) Violent criminals
b) Solo criminals
c) Part of organized group
d) Property crime focused
14. Which organization prevents maritime fraud?
a) IMO
b) ICC
c) UNCITRAL
d) IMB
15. Utmost good faith becomes ______ in liability insurance.
a) Legal obligation
b) Ethical responsibility
c) Contractual duty
d) Fiduciary duty
16. Legal costs with insurer consent are:
a) Not reimbursed
b) Fully borne by insured
c) Partially reimbursed
d) Fully reimbursed
17. Common forensic technique in insurance investigation:
a) DNA Analysis
b) Digital Forensics
c) Voice Stress Analysis
d) Ballistics Analysis
18. Are manufacturing defects covered under policies?
a) Yes, always covered
b) Not covered
c) Depends on policy
d) Covered for certain machinery
19. IAIS represents what % of global insurance premium?
a) 70%
b) 80%
c) 90%
d) 97%
20. IPC section for fraudulent transfer with false consideration:
a) Section 419
b) Section 421
c) Section 423
d) Section 425
