IC39 - Fraud Risk Management In Insurance - 8

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Q 1. Which of the following are considered types of evidence in the case of a burglary?

Number of entrances to the premises.

Entrance of compound wall.

Security deployment on the premises.

Damage to the wall.

All of the above.

Q 2. How can the insurance industry leverage data and technology to combat fraud in life insurance products?

Reducing the use of technology to prevent data breaches.

Avoiding data sharing to protect customer privacy.

Implementing manual data analysis for accuracy.

Collecting, pooling, and sharing data among insurers.

Decreasing data collection to limit exposure.

Q 3. Internal frauds are _______________

Fraudulent activities conducted by external parties against a company

Employee misconduct that leads to financial losses within an organization

Marketing strategies designed to attract new customers

Management's efforts to improve internal processes and controls

Environmental regulations that impact business operations

Q 4. What is the purpose of incorporating the concept of "agreed value" in marine cargo insurance?

To allow the insured goods to be insured at no cost

To provide coverage for goods transported only within the country

To eliminate the need for insurable interest in the insured goods

To ensure the insurance premium remains constant over time

To allow the goods to be insured for a fixed or agreed-upon value despite fluctuations in cost during transit

Q 5. Certain health insurance policies are designed to support or complement government schemes like Universal Health Insurance and Rashtriya Swasthya Bima Yojana. These policies are issued for a fixed amount of:

Premium

Coverage Period

Deductible

Sum Assured

Co-payment

Q 6. What term is used when a claim is made which means that the loss occurred immediately after the policy inception?

Proximity claim

Policy commencement loss

Inceptive incident report

Immediate loss occurrence

Proximate policy claim

Q 7. What is the term that defines any scheme, program, arrangement, or plan to solicit and procure insurance business through unauthorized individuals, with or without consideration?

Pyramid scheme

Ponzi scheme

Multi-level marketing

Affiliate marketing

Direct selling

Q 8. What characteristics are typically associated with an organized crime offender involved in insurance fraud cases?

Involvement in violent crimes

Solo career criminal

Part of an organized group

Focus on property or paper-based crimes

Engagement in cybercrimes

Q 9. To prevent and control maritime fraud, what organization was established?

International Maritime Organization (IMO)

International Chamber of Commerce (ICC)

United Nations Commission on International Trade Law (UNCITRAL)

International Chamber of Shipping (ICS)

International Maritime Bureau (IMB)

Q 10. The implied duty of utmost good faith under common law is converted into ____________ of utmost good faith in liability insurance.

Legal obligations

Ethical responsibility

Contractual duty

Fiduciary duty

Statutory requirement

Q 11. In liability insurance, what happens to the legal costs incurred by the insured with the consent of the insurance company?

The insurance company denies reimbursement for legal costs.

The insured is responsible for all legal costs without any reimbursement.

The insured is partially reimbursed for legal costs.

The legal costs incurred are fully reimbursed by the insurance company.

Legal costs are reimbursed only if the claim is denied by the insurance company.

Q 12. Which of the following forensic techniques are commonly utilized by insurance companies to investigate and establish facts in various types of insurance claims?

DNA Analysis

Digital Forensics

Voice Stress Analysis

Ballistics Analysis

Lie Detector Tests

Q 13. Are manufacturing defects of machinery covered under the policies?

Yes, manufacturing defects are covered under the policies.

No, manufacturing defects are not covered under the policies.

Coverage for manufacturing defects varies depending on the policy.

Manufacturing defects are covered only for certain types of machinery.

Manufacturing defects are covered but with specific conditions.

Q 14. The International Association of Insurance Supervisors (IAIS) is a voluntary membership organization of insurance supervisors and regulators from over 200 jurisdictions, constituting what percentage of the world's insurance premiums?

70%

80%

90%

97%

100%

Q 15. Which section of the Indian Penal Code deals with the dishonest or fraudulent execution of a transfer containing a false statement of consideration?

Section 419

Section 421

Section 423

Section 425

Section 430



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