IC39 - Fraud Risk Management In Insurance - 10

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Q 1. Which of the following types of insurance policies are associated with "Policy Specific Frauds" within miscellaneous insurance? I) Personal accident insurance II) Employers’ liability insurance III) Jewellers block insurance IV) Bankers blanket insurance and money insurance V) Burglary insurance

I and II only

II and III only

III and IV only

I, II, and V only

All of the above
 
Q 2. The Amendment to the Motor Vehicles Act 2019 provides a maximum coverage amount of up to 5 lakh rupees for which event in the insurance policy?

Death

Total Disability

Partial Disability

Property Damage

Vehicle Theft
 
Q 3. Which section of the Indian Penal Code deals with the offense of causing wrongful loss or damage to the public or any person by destroying property, diminishing its value or utility, or causing injurious effects?

Section 419

Section 422

Section 425

Section 428

Section 433
 
Q 4. Which Act contains provisions related to the prohibition of rebates in insurance premiums?

Indian Penal Code 1860

Indian Evidence Act 1872

Indian Contract Act 1872

Insurance Act 1938

Companies Act 2013
 
Q 5. What are the types of insurance offenders recognized in Australia?

Average offender

Criminal offender

Organized crime offender

Both a & b

All a,b,c
 
Q 6. Which of the following options accurately describes the nature of anti-fraud policy measures in the insurance industry?

Anti-fraud policy measures are standardized and consistent across all companies in the industry.

Anti-fraud policy measures are solely determined by the geographical area of operations.

Anti-fraud policy measures are solely determined by the type of insurance underwritten.

Anti-fraud policy measures are solely determined by the nature of fraud and claims experienced.

Anti-fraud policy measures are company-specific, considering factors such as type of insurance underwritten, geographical area of operations, nature of fraud, claims experienced, quality of employees, and customers.
 
Q 7. What type of policy is issued to cover a large number of people under a single policy?

Group policy.

Individual policy.

Comprehensive policy.

Term policy.

Variable policy.
 
Q 8. When a liability insurance policy is continuously renewed without any break, the dates of commencement of the first policy are referred to as the __________ and are explicitly mentioned in the subsequent renewals of the policies.

Grace period

Policy inception date

Retroactive period

Expiry date

Coverage period
 
Q 9. How can insurance companies prevent fraud related to "Phantom Policies"?

Offering discounts on high-valued policies.

Implementing age-based premium adjustments.

Increasing coverage limits for aged persons.

Exercising strict vigilance on the sales force.

Providing additional benefits for high-valued policies.
 
Q 10. In India, contracts of marine insurance are transacted within the ambit of which act?

Insurance Regulatory and Development Authority Act 2019

Indian Contract Act 1982

Marine Insurance Act, 1963

General Insurance Business (Nationalisation) Act 1972

Life Insurance Corporation Act 1956
 
Q 11. According to the International Association of Insurance Supervisors (IAIS), which of the following recommendations are provided for insurance supervisors to contribute to or promote anti-fraud initiatives? I) Collaborating with relevant industry and United Nations associations II) Establishing dedicated fraud committees III) Developing a centralized fraud database IV) Facilitating information exchange between insurers and intermediaries V) Enhancing public awareness and education about fraud and various ways to commit fraud VI) Encouraging effective cooperation among organizations combating fraud in the insurance sector

I, II, and III

II, IV, and V

III, IV, and VI

I, IV, V, and VI

All of the above
 
Q 12. In which year was the National Association of Insurance Commissioners (NAIC) founded?

1871

1923

1967

1989

2005
 
Q 13. What issue may arise when an insured is unable to provide purchase receipts, manuals, and other documentary proofs of the property that was stated to have been damaged, for which a claim is made?

Policy premium increase

Delayed claim settlement

Policy cancellation

Suspicions of fire insurance fraud

Automatic claim denial
 
Q 14. When the seller submits forged documents to the banker, against which payment is released, and the buyer later realizes the fraud when they do not receive any goods, this type of fraud is known as:

Documentation Fraud

Letter of Credit Fraud

Phishing Scam

Cargo Theft Deception

Collateral Damage Hoax
 
Q 15. Which of the following areas are typically included in a comprehensive audit conducted in the insurance industry? I) Underwriting II) Reinsurance III) Collection and deposition of premiums in the bank monthly once IV) Reconciliation of bank account V) Claims processing and nondisposal of salvage Select the correct options:

I, II, III

I, III, IV

I, II, IV, V

II, III, IV, V

I, II, III, IV, V


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