Fraud risk management — detecting, preventing and investigating fraud across the insurance lifecycle.
These are 5 of the 294 IC-39 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.
Answer: D. To induce another to part with some valuable item or surrender a legal right
Section 17 of the Indian Contract Act 1872 explains about fraud. Fraud is explained as an act or course of deception, an internal concealment, omission or perversion of truth to gain unlawful or unfair advantage 2. induce another to part with some valuable item or surrender a legal right 3. inflict some injury in some manner 4. perform wrongful or criminal deception intended to result in financial or personal gain 5. perform crime by using dishonest methods to take something valuable from another person.
Answer: D. Insurance act 1938
Definition of fire insurance is stated in the Insurance Act, 1938 and is reframed as below: “The business of effecting, otherwise than incidentally to some other class of insurance business, contract of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against, In fire Insurance policies" Qs. Which of the following statement correctly represents the regulations passed at the time of Nationalisation of Insurance industry in India? Foreign private players are permitted to invest in non-life Insurance business with a limit of 49% Indian private players are permitted to set up non-life Insurance Company only Foreign private players are permitted to invest in life insurance business with a limit of 49% Indian private players are permitted to set up Life Insurance Company only ife and non-life insuiranne business ean he anerated in Inclia hy the Indian aavernment oniv
Answer: A. Screening is not done for new insurance proposals
Insurance Reference Service (IRS) was established in Australia in 1991. IRS is owned by its member insurance companies and its operating objective is to assist the insurance industry in the prevention and control of insurance fraud. IRS is routinely used to screen new insurance proposals and claims. IRS database currently consists of more than 13 million individual insurance claim records, in addition to publicly available information relating to bankruptcy and debtor judgments. Member insurance companies make more than 50000 enquiries per month. IRS operates under a code of conduct which establishes requisite privacy protocols and procedures.
Answer: E. All Of the above
Explanatlon: 17 0' Contract Act 1872 about Fraud means any act concealment Of fact misrepresentation made knowingly by a party to a contract or with his connivance or by his agent. with the Intent to deceive another party thereto Of his agent or to Induce him to enter into the Contract: Fraud IS als
Answer: A. Underwriting
Concealing material facts, providing false health/property histories, or misrepresenting risk particulars in the insurance proposal form constitutes underwriting (application) fraud.
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