IC39 Mock Test Sample 9
These questions focus on key insurance principles, fraud detection, and regulatory aspects. Topics include record maintenance, actuarial pricing, impartial investigations, and documentation requirements. Concepts like agreed value, indemnity, and liability insurance disclosures are highlighted. The role of government-supported health insurance, fraud motivations, and mis-selling prevention through agent training are covered. Legal provisions include penalties under the Insurance Act and fraud definitions under the Indian Contract Act. Additionally, engineering insurance valuation, IAIS establishment, and ICP 21 supervision standards are discussed. Overall, the set emphasizes ethical practices, accurate risk assessment, and effective fraud prevention mechanisms in the insurance sector.
Q1. What is the requirement for maintaining and submitting records in insurance coverage?
a) Maintain records only if the animal is unwell
b) Submit records annually
c) Maintain records only if condition changes
d) Maintain proper records (feeding, milk yield, etc.) and submit when requested
Q2. Premium rate for life insurance is mainly determined by:
a) Actuarial calculations
b) Risk assessment
c) Underwriting analysis
d) Past claims experience
Q3. Why must investigations be conducted impartially?
a) To complete quickly
b) To prioritize insurer
c) To minimize financial impact on both parties
d) To maximize insured loss
Q4. Which document is NOT typically required for car fire insurance claims?
a) Vehicle registration proof
b) Fire department report
c) Photos of damaged car
d) Manufacturer’s warranty information
Q5. "Agreed value" modifies which principle in marine insurance?
a) Insurable Interest
b) Utmost Good Faith
c) Indemnity
d) Subrogation
Q6. Government-supported health insurance policies generally have:
a) Affordable premiums
b) High deductibles
c) Excessive co-payments
d) Expensive renewals
Q7. What right does the insurer have if loss occurred before contract inception?
a) Increase premium
b) Deny claim and reject contract
c) Offer extra coverage
d) Extend contract
Q8. Penalty under Section 51(5) for unregistered intermediary:
a) ₹1 lakh
b) ₹5 lakh
c) ₹10 lakh
d) ₹20 lakh
Q9. Why do offenders engage in insurance fraud?
a) Financial stability
b) Organized crime involvement
c) Violent tendency
d) Quick and easy money
Q10. Intentional overvaluation and destruction of property is called:
a) Double indemnity
b) Double coverage
c) Double fraud
d) Double claim
Q11. What is very important in liability insurance?
a) Medical history
b) Family details
c) Travel preferences
d) Details of profession and past liabilities
Q12. How can insurers prevent mis-selling?
a) Increase commissions
b) Offer incentives
c) Set strict targets
d) Train agents properly
Q13. Objective of final investigation conclusion:
a) Speculation
b) Identify unrelated events
c) Least likely scenario
d) Determine actual/probable cause
Q14. Sum insured in engineering insurance should be:
a) Market value
b) Purchase price
c) Replacement cost
d) Reinstatement value
Q15. IAIS was established in:
a) 1982
b) 1994
c) 2001
d) 2010
Q16. According to ICP 21, review process includes:
a) Supervisor resources
b) Onsite inspections
c) Training effectiveness
d) All of the above
Q17. IRS database contains more than how many claim records?
a) 5 million
b) 8 million
c) 13 million
d) 18 million
Q18. Livestock insurance covers:
a) Wild animals
b) Endangered species
c) Domestic animals and livestock
d) Marine animals
Q19. Fraud by external parties is called:
a) Internal fraud
b) Collusive fraud
c) Insider trading
d) External fraud
Q20. According to Indian Contract Act 1872, fraudulent acts include:
a) Promise without intention to perform
b) Acts fitted to deceive
c) Good intention contract
d) Both a & b
