IC39 - Fraud Risk Management In Insurance - 5

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Q 1. What strategy do some individuals employ to facilitate the laundering of money?

Government-sanctioned trade agreements.

Direct deposits into personal accounts.

Investing in foreign real estate.

Utilizing offshore tax havens.

Using non-profit organizations as conduits for money laundering.

Q 2. Underwriting fraud means ...

Not furnishing the required information

Issue of incorrect policy with limited cover subject

Submitting the wrong information

All of the above

Only A & b

Q 3. What is the maximum period for filing a petition by a third party?

30 days from the occurrence of the incident

6 months from the date of the incident

1 year from the occurrence of the incident

2 years from the date of the incident

5 years from the occurrence of the incident

Q 4. Which of the following basic principles of insurance apply to motor vehicle insurance?

Uttmos Good Faith, Insurable Interest, Proximate Clause

Good Faith, Insurable Interest, Indemnity, Subrogation

Insurable Interest, Indemnity, Contribution, Proximate Clause

Utmost Good Faith, Subrogation, Contribution

Utmost Good Faith, Indemnity, Proximate Clause, Contribution, Subrogation

Q 5. Which of the following statements is true?

Motor vehicles are permitted on the road without an insurance cover.

Motor vehicles are allowed to operate without a driving license.

Motor vehicles are not permitted on the road without an insurance cover.

Motor vehicles are exempted from road taxes.

Motor vehicles are not required to follow traffic rules.

Q 6. Which of the following fraudulent services did the scamsters not offer during the COVID-19 situation?

Free cam stores

Reliable home test kits

Back-door access to vaccines

Legitimate contact tracing software

Genuine access to vaccines

Q 7. Which section of the Companies Act 2013 casts responsibility on statutory auditors for detecting and reporting fraud to the central government?

Section 137(5)

Section 143(9)

Section 143(12)

Section 150(2)

Section 170(6)

Q 8. In Germany, what is the estimated cost of fraud in the insurance industry annually, as per the German Insurance Association?

2 billion euros

3 billion euros

4 billion euros

5 billion euros

It varies each year

Q 9. In the event of a loss suffered by the insured, the insurance company should: I) Act promptly and guide the insured in the right way, ensuring a timely and hassle-free payment of the claim amount. II) Monitor various intermediaries involved in the settlement of the claim proposal. III) Ensure that their services are delivered promptly and transparently. IV) Ensure that the insured receives the settlement with some inconvenience and some hardship caused by intermediaries during the entire procedure. Select the correct option: 

I only

I and II

I and III

II and IV

I, II, III, and IV

Q 10. Which piece of information is considered less crucial as evidence in the event of a fire incident?

Number of exits from the Premise.

Locations of fire extinguishers.

Eyewitness accounts of the fire's origin.

Photographs of the fire-affected areas.

Number of entrances to the Premises.

Q 11. What are the methods to prevent Fraud in Live stock insurance policy?

Underwriting

Tagging

Photo of the animal

Identification of the insured animal

All of the above

Q 12. Which of the following scenarios is NOT considered a liability insurance fraud?

An insured intentionally causes harm to someone and then files a claim for the resulting damages.

An insured exaggerates the extent of damages caused by an accident to receive a higher claim payout.

An insured providing false witnesses to support a claim and falsely establish liability on their part.

An insured engaging an experienced lawyer to defend their case during an insurance claim investigation.

An insured filing a claim for damages caused by an actual accident covered under the policy.

Q 13. Why are periodical servicing and regular maintenance of machinery essential in engineering insurance?

To minimize insurance premiums.

To extend the policy coverage period.

To increase the market value of the machinery.

To ensure compliance with insurance regulations.

To prevent potential breakdowns and losses.

Q 14. What is the mission of the International Association of Insurance Supervisors (IAIS)?

To foster international cooperation among insurance regulators

To promote effective and globally consistent supervision of the insurance industry

To advocate for consumer protection in insurance markets

To develop and maintain fair, safe, and stable insurance markets worldwide

All of the above

Q 15. the United States of America has a huge insurance industry that is very vibrant. Which organization serves to protect the public interest, promote competitive markets, and improve the state regulation of insurance?

Federal Insurance Commission

National Association of Insurance Commissioners (NAIC)

Insurance Regulatory Authority of America

Insurance Industry Regulatory Board

National Insurance Supervisory Council


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