IC39 - Fraud Risk Management In Insurance - 7

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Q 1. Which of the following insurance policies are included in construction phase insurance policies? I) Contractors all risk insurance II) Erection all risk insurance III) Marine cum erection insurance policy IV) Contractors plant and machinery insurance V) Advanced loss of profit insurance policy

I, II, and III

II, III, and IV

I, IV, and V

I, II, and V

All of the above
 
Q 2. In the insurance industry, intermediaries like insurance brokers and agents play a role in:

Setting premium rates for insurance policies

Determining the coverage limits of insurance policies

Procuring the premium from policyholders

Providing medical services to insured individuals

Assessing the risk of potential policyholders
 
Q 3. Which of the following insurance policies are issued in miscellaneous insurance? I) Personal Accident Insurance II) Employers Liability Insurance III) Burglary Insurance IV) Money Insurance V) Bankers Blanket Indemnity Insurance VI) Professional Indemnity Insurance VII) Blood Stock Insurance

I, II, III, V, VI

I, II, IV, VI, VII

I, II, III, IV, V, VI

III, IV, V, VI, VII

I, II, III, IV, V, VI, VII
 
Q 4. According to reports from the Insurance Fraud Bureau (IFB), fraudulent claims are generally understood to be increasing at what approximate rate per year?

1%

3%

5%

7%

10%
 
Q 5. Which organization provides the following definition of fraud: "an act or omission intended to gain dishonest or unlawful advantage for a party committing the fraud and other related parties"?

IRDA (Insurance Regulatory and Development Authority)

RBI (Reserve Bank of India)

SEBI (Securities and Exchange Board of India)

CCI (Competition Commission of India)

NCLT (National Company of law & tribunal)
 
Q 6. Which of the following are considered frauds in marine insurance?

Claims for losses not occurred

Exaggeration of claim amount

Double Insurance

Scuttling frauds

All of the above
 
Q 7. In a situation where the theft of an animal is not covered under the insurance policy and a claim for the theft is not payable, what action might the insured take to seek compensation?

Filing a claim for accidental injury to the animal.

Submitting a claim for the theft as an uninsured event.

Reporting the incident to the authorities for investigation.

Providing evidence of animal ownership to the insurer.

Declaring the animal as dead and preferring a claim.
 
Q 8. What requirement does every insurance company need to fulfill, as specified under rule 9?

Conduct background checks on all employees.

Implement cybersecurity measures.

Establish internal audit procedures.

Implement the process in specific regional offices.

Implement the ''Due Diligence'' process in all the offices.
 
Q 9. What is the primary need for insurance?

Generating financial profits for insurance companies

Providing tax benefits for policyholders

Ensuring legal compliance for businesses

Offering financial security to the insured, enabling claims for damaged assets, and providing strong financial support to surviving family members

Mitigating risks and uncertainties in the stock market
 
Q 10. As per the Motor Vehicles Act 1988, which type of motor insurance is mandatory and required for all vehicles?

Comprehensive Motor Insurance

Collision Coverage Insurance

Third-Party Liability Insurance

Personal Injury Protection Insurance

Uninsured/Underinsured Motorist Insurance
 
Q 11. Who plays a major role in controlling the exaggeration of claim amount by cross-checking with various inputs of loss amount?

Insurance agents

Policyholders

Underwriters

Surveyors

Claim adjusters
 
Q 12. Which of the following are associated with insurance as intermediaries?

Insurance agents

Third-party administrators

Insurance investigators

All a,b,c

Only A & b
 
Q 13. What is defined as every wrongful act willfully committed by the master or crew to the prejudice of the owner?

Perjury

Barratry

Embezzlement

Sabotage

Forgery
 
Q 14. What is the purpose of the price skimming strategy in the context of pricing?

Maximizing profitability by targeting high-end customers

Offering discounts to attract a wider customer base

Gradually increasing prices to match inflation rates

Capturing each step on the demand curve by targeting different customer segments with decreasing prices

Setting prices based on the cost of production and desired profit margin
 
Q 15. In which country does the Association of British Insurers (ABI) run the Insurance Fraud Bureau?

United Kingdom

United States of America

Canada

Australia

Germany


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