IC39 Mock Test Sample 4
The insurance ecosystem is regulated by IRDAI, which focuses on protecting policyholders and ensuring fair practices. Fraud detection is supported by collaborative units, analytics systems, and global frameworks like FATF. Investigators play a key role in gathering evidence, conducting inquiries, and determining claim authenticity. Proposal forms now include stricter disclosures like source of funds to prevent money laundering. Specialized insurance such as engineering and livestock policies require proper risk assessment and identification methods. Legal provisions like PMLA govern prosecution of financial crimes. Challenges such as lack of evidence or complex investigations may hinder action against fraudsters, highlighting the need for strong governance and compliance.
1. What is the primary purpose of IRDAI?
a) Promoting competition
b) Ensuring profitability
c) Protecting policyholders
d) Facilitating mergers
2. Entities formed to address suspected frauds are called:
a) State Insurance Fraud Task Forces
b) Collaborative Fraud Investigation Units
c) Special Fraud Prevention Teams
d) Joint Fraud Response Committees
3. What constitutes physical/material evidence in fire cases?
a) Fire origin and pattern
b) Fire control installations
c) Quantity of debris
d) All of the above
4. Under which section of PMLA are offenders prosecuted in special courts?
a) Section 35
b) Section 40
c) Section 44A
d) Section 50
5. What should be included in proposal form for single premium policies?
a) Cash value details
b) Medical history
c) Investment returns
d) Source of funds & bank details
6. Activities of Coalition Against Insurance Fraud include:
a) Fraud warnings
b) Reporting guidance
c) Anti-fraud legislation
d) All of the above
7. Purpose of FATF recommendations:
a) Encourage money laundering
b) Promote corruption
c) Enable tax evasion
d) Prevent global financial crimes
8. In blood stock insurance, when animal stops performing:
a) Terminated
b) Euthanized
c) Withdrawn
d) Slaughtered
9. Fraud by auditors hiding violations is called:
a) Auditor misconduct
b) Fraudulent auditing
c) Auditor vigilance lapses
d) Suppression fraud
10. Deliberate misrepresentation at policy inception is:
a) Fraudulent
b) Inadvertent
c) Negligent
d) Innocent
11. Benefit of fraud analytics system:
a) Faster claims
b) Reduce underwriters
c) Advanced fraud detection
d) Increase complexity
12. Investigator’s key responsibility:
a) Wildlife documentation
b) Collect recipes
c) Artistic sketches
d) Gather relevant claim information
13. How does investigator gather information?
a) Only official reports
b) Ignore neighborhood
c) Single source
d) Discreet enquiries
14. Mandatory requirement for animal insurance:
a) Medical history
b) DNA sample
c) Age & weight
d) Photograph of animal
15. Features of Engineering insurance:
a) All risk coverage
b) Covers manufacturing defects
c) Reinstatement value
d) a & c
16. Entity handling falsely described goods in trade:
a) Financial institutions
b) Customs & excise departments
c) NGOs
d) Trade organizations
17. Why is animal identification important?
a) Portfolio creation
b) Showcase diversity
c) Personalization
d) Accurate risk assessment
18. APL in liability insurance means:
a) Any one year limit
b) Any single accident limit
c) Aggregate limit
d) Excess limit
19. Reasons for no action against fraudster:
a) Fear of payouts
b) Complex investigation
c) Lack of evidence
d) All of the above
20. Life insurance industry in India is:
a) Largest in world
b) Second largest
c) Largest in Asia
d) Fastest growing
