IC39 Mock Test Sample 8
These questions cover key concepts of insurance fraud, policy types, and regulatory frameworks. Topics include fake hospitalization, fire insurance fraud indicators, survival benefits in life insurance, and unethical practices during natural calamities. It also highlights fraud categories such as burglary misrepresentation, debt collection scams, and livestock insurance fraud. Legal aspects include provisions under the Companies Act, IPC sections, and corporate fraud management. Additionally, concepts like phantom shipment, intermediary fraud, and policy transfer in motor insurance are discussed. Overall, the set emphasizes fraud detection, ethical practices, and regulatory compliance in the insurance industry.
Q1. What is fake hospitalisation in health insurance?
a) Submitting genuine documents for hospitalisation
b) Claiming hospitalisation with valid medical reasons
c) Submitting fake documents for hospitalisation and claiming payment
d) Claiming hospitalisation for pre-existing health conditions
Q2. What scenario related to the insured's actions may raise suspicions of fire insurance fraud?
a) Providing all necessary documents promptly
b) Fully cooperating with investigation
c) Disclosing all previous claims
d) Claiming original documents are lost and providing only photocopies
Q3. What is the term used for payment when the insured survives till the end of policy term?
a) Death benefit
b) Premium payment
c) Early withdrawal
d) Survival benefit
Q4. What unethical behaviour involves taking advantage of natural calamities for financial gain?
a) Responsible reporting of damages
b) Prompt claim notification
c) Helping community members
d) Inflating claims or reporting false losses
Q5. Which of the following sections are NOT related to fraudulent activities?
a) Section 412
b) Section 415 & 421
c) Section 423
d) Section 25
Q6. A travel insurance variant covering students abroad is called:
a) Student Travel Policy
b) Education Abroad Insurance
c) Study Abroad Coverage
d) Students' Global Health Policy
Q7. Losses falsely claimed as burglary due to improper storage fall under:
a) Accidental damage misrepresentation
b) Embellishment scam
c) Improper storage deception
d) Burglary insurance fraud
Q8. How do scammers engage in debt collection fraud?
a) Providing legitimate services
b) Helping debtors resolve debts
c) Posing as agencies and demanding fake payments
d) Following legal guidelines
Q9. Which Act deals with corporate fraud management in India?
a) Indian Penal Code 1860
b) Indian Evidence Act 1872
c) Indian Contract Act 1872
d) Indian Companies Act 2013
Q10. Intermediate fraud is committed by:
a) Agents
b) Corporate agents
c) Intermediaries
d) Third-Party Administrators (TPAs)
Q11. Which is NOT a factor for growth of health insurance?
a) Awareness increase
b) Modern hospitals
c) Government initiatives
d) Self-medication trend
Q12. What is "Phantom Shipment"?
a) Fake invoices and bills for non-existent trade
b) Legal intangible trade
c) Exchange without documentation
d) Untraceable transport routes
Q13. Common frauds in livestock insurance include:
a) Distorted cause of death
b) Claim for uninsured animal
c) Exploitation during calamities
d) All of the above
Q14. What suspicious action may an insured take during fraud investigation?
a) Providing documents
b) Cooperating fully
c) Hiring a lawyer
d) Changing date of occurrence
Q15. Engineering insurance policies are mostly:
a) Comprehensive policies
b) Standard policies
c) Specialized policies
d) Limited policies
Q16. Fraud by employees like forgery and collusion is called:
a) Employee fraud
b) Insider collusion
c) Internal deception
d) Employee misconduct
Q17. Which IPC section deals with preventing debt availability for creditors?
a) Section 416
b) Section 419
c) Section 422
d) Section 425
Q18. Which organization was established by insurance companies in Canada?
a) Insurance Bureau of Canada
b) NAIC
c) Insurance Regulatory Agencies of Canada
d) Canadian Insurance Companies Association
Q19. In Pre-existing Disease Fraud, doctors may:
a) Provide false records
b) Misdiagnose condition
c) Collude with insured
d) All of the above
Q20. Transfer of insurance when a vehicle is sold is called:
a) Policy modification fraud
b) Vehicle title switch
c) Ownership insurance transfer
d) Transfer of insurance consequent to vehicle sale
