IC39 - Fraud Risk Management In Insurance- 1

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Q 1. ________ defines fraud as a combination of misrepresentation, concealment of facts, and intent to deceive

Section 15 of the Indian Contract Act 1872

Section 16 of the Indian Contract Act 1872

Section 17 of the Indian Contract Act 1872

Section 18 of the Indian Contract Act 1872

Section 19 of the Indian Contract Act 1872

Q 2. How is the Financial Action Task Force (FATF) commonly regarded in combating financial crimes?

The Global Financial Crimes Unit (GFCU)

The International Financial Investigation Bureau (IFIB)

The Global Anti-Money Laundering Task Force (GAMTF)

The Global Money Laundering and Financial Terrorist Watchdog (GMLFTW)

The International Financial Action Task Force (IFATF)

Q 3. When a client claims for a large amount of compensation for the negligence of the professional from whom he availed the service and suffered a loss due to the professional''s negligence, what type of insurance coverage does this situation fall under?

Professional Indemnity Insurance

General Liability Insurance

Errors and Omissions Insurance

Malpractice Insurance

Business Interruption Insurance

Q 4. How are insurance policies for antiques and works of art typically dealt with in terms of value?

Market value at the time of loss

Replacement cost at the time of loss

Depreciated value over time

Value determined at the time of signing the insurance contract

Value assessed by independent appraisers

Q 5. Stage-managed burglary and theft losses are found in the case of which of the following?

Accidental damage to property

Natural disasters

Human errors

Wear and tear losses

High-value electronic equipment and medical instruments

Q 6. Who founded the Financial Action Task Force (FATF), also known as Groupe d''action financière, in 1989?

The G7 Nations

The United Nations

The G20 Nations

The Organization for Economic Cooperation and Development (OECD)

The World Bank

Q 7. What aspects does an insurance claim investigator typically assess during their investigation process?

A. Claimant's Age

B. Incident Verification

C. Financial Analysis

D. Witness Statements

E. All of them 

Q 8. What areas should be examined during an investigation to gain a comprehensive understanding?

Only the most affected areas.

Ignoring partly affected areas.

Focusing solely on unaffected areas.

Examining areas without distinction.

Examining mostly affected, partly affected, and unaffected areas.

Q 9. Which of the following acts is related to liability and provides compensation for work-related injuries and accidents?

Fatal Accidents Act, 1855

The Consumer Protection Act, 1986

The Law of Strict Liability

Workmen's Compensation Act, 1923

All of the above

Q 10. What qualifications should investigators possess to excel in their role?

Impartial and not prejudiced & impeccable integrity and moral standards

Proficiency in multiple languages, Extensive knowledge of forensic science & In-depth understanding of ancient history.

Timely delivery of the report is a must and should have basic knowledge of insurance The report should be concluded with maximum evidence and no assumptions

& c

& b

Q 11. Individual health insurance policies can cover:

Only the insured individual.

Only the family members of the insured.

Either the insured alone or his family members.

Only the insured individual and their spouse.

Only the children of the insured.

Q 12. In the Marine Insurance Act of 1963, the principle of utmost good faith is dealt with in:

Section 19

Section 5

Section 10

Section 25

Section 15

Q 13. What term describes the fraudulent practices of reporting a loss without damage to the insured property and exaggerating the actual loss, including damage due to uninsured perils?

Claim manipulation

Property fraud

Claim fraud

Exaggerated peril claims

Peril claims

Q 14. What are the types of policies issued in motor insurance?

Liability-only policy or act-only policy

Package or comprehensive policy (for 1-year duration)

Liability-only policy or comprehensive policy (for 1-year duration)

All A, B, C

Only A&B

Q 15. What are some examples of money laundering activities involving insurers?

Indulging in complex money laundering transactions by hiding the identity of the real owners

Shifting money to tax-neutral jurisdictions to avoid tax evasion

Creating Ponzi schemes to defraud people and generate illicit funds

Engaging in transparent financial transactions with proper documentation

Cooperating with authorities to combat money laundering activities



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