Insurance Fraud Awareness Practice Test

These questions are part of the practice quiz. Start practicing

• Which statement is true regarding interstate premium fraud?
• What can a vehicle be declared after being severely damaged in an accident?
• Which type of fraud is characterized by intentional exaggeration of claims to increase profits?
• What is commonly referred to as a chop shop?
• Laws that impose criminal penalties on chop shop operations are referred to as:
• What could be a potential result of increased industry collaboration against insurance fraud?
• Which motive is commonly associated with committing insurance fraud?
• What action should a claim handler take if a claimant mentions hiring an attorney?
• A term used by insurance professionals to describe an auto accident that never happened but for which a property damage claim has been made is?
• An insurance applicant intentionally withholding a material fact is committing which dishonest act?
• Which of the following is NOT a primary objective of state anti-fraud bureaus?
• What general fraud morale indicator was represented in the case of George Holtz's fire-damaged business?
• What does a claimant's attempt to gain sympathy from a claim investigator suggest?
• If a claimant is frequently associated with individuals of questionable character, what does this indicate?
• What is the main objective of a title washing scheme?
• What is the primary characteristic of the salvage switch scheme?
• A natural disaster that destroys a property is an example of which type of hazard?
• What serves as a fraud indicator when a claimant threatens to call the state insurance commissioner for a quick settlement?
• Which of the following describes a situation that could indicate potential insurance fraud?
• Removing major components from a vehicle without damaging any parts is known as what?
• Which one of the following is NOT an objective of someone who commits arson fraud?
• State Alteration of Vehicle Identifying Numbers statutes make it a crime to:
• What is a crucial indicator in the case of a reported theft of a valuable collection shortly after asking about coverage?
• People who have committed insurance fraud have been primarily motivated by a desire for?
• What characterizes a situation that may cause the insured to purposefully create a loss?
• Which of the following statements about padded or exaggerated claims is NOT correct?
• Which statement is NOT true regarding the hiring of attorneys by claimants early in the claims process?
• What does a Department of Motor Vehicles salvage title indicate about a vehicle?
• Which of the following is NOT a common source of accidental vehicle fires?
• When the insured ignores a known manufacturing defect that could lead to a loss, this is an example of which hazard?
• Which one of the following is NOT a major goal of today's anti-fraud movement?
• An applicant answering "no" to having insurance claims in the past five years when they had claims is an example of what type of fraud?
• In cases of workers’ compensation claims, what is a concerning factor if the claimant has a history of poor job performance?
• What is the fraud indicator in Floyd Flanders' case with his car?
• What is a common method of detecting insurance fraud during the claim process?
• Which one of the following is NOT a characteristic of a good applicant for insurance?
• What database might an underwriter use to obtain information about an applicant’s claim history if their insurance company is a member of ISO's AISG?
• Which scenario presents a strong indicator of possible fraud related to theft claims?
• Which of the following represents a common motivation for committing insurance fraud?
• What percentage of the population sees no problem with committing insurance fraud under certain circumstances?
• What is confirmed by the Federal Certification Label on a vehicle?
• In the case of Leo Brenner, what factor indicated a potential fraud issue?
• What significant discrepancy raises suspicion about Janice Followell's claim regarding the antique clock?
• What type of fraud indicator does a claimant's association with questionable individuals represent?
• The agreement to employ a watchperson on the premises at night in exchange for a crime policy is an example of what?
• The "fraud tax" is so-called because?
• Some insurance fraud schemes have involved concurrent insurance, which means?
• Insurance fraud can lead to which of the following consequences for the insurance industry?
• Claims data from the Index System, PILR and various NICB databases can be accessed through what central tool?
• What is an important reason to conduct a timely claim investigation?
• Which type of vehicle is most likely to be considered salvage by an insurance company?
• What type of claim involves misrepresenting the extent of a loss after an incident?
• When is a vehicle considered "totaled" by an insurer?
• What makes a vehicle eligible for a salvage title?
• The act of getting rid of a vehicle to obtain money from an insurer by making a false insurance claim is commonly referred to as?
• What is a key indicator of fraud when a claimant is eager for a quick settlement and offers a reduced amount?
• Which moral hazard indicator is suggested by neglecting fire safety measures like faulty smoke detectors?
• Which term describes a situation where a person feels secure enough in their insurance that they take more risks?
• Which situation is identified as a fraud indicator regarding a homeowner's and auto policy?
• Which one of the following statements about most insurance claims is NOT correct?
• What is the term for when a doctor inflates medical bills and bills both health and workers' compensation insurance?
• Fraudulent claims can commonly involve which of the following actions?
• What does the term "body swing" refer to in vehicle fraud?
• Which type of claim professional is hired by insureds to handle their claims?
• Which type of fraud is characterized by intent to deceive an insurance company for financial gain?
• What does having a history of suspicious claims imply about a claimant?
• Which action of an insured can raise suspicions before a loss occurs?
• Studies show that an estimated 25% of the population in the U.S. thinks it's okay for the average citizen to commit insurance fraud as long as it is?
• When should a claim investigator consider notifying the authorities in cases of suspected fraud?
• What is an example of a subjective injury?
• Which element is NOT part of the arson circle?
• An applicant with a history of five suspicious claims embodies which type of hazard?
• Why do professional arsonists use delayed ignition devices?
• In the case where someone pretends to be hit by a car to collect money, which type of hazard is exemplified?
• In which scenario would an insurer likely deny a claim?
• Insurance fraud can lead to increased costs in what overall market?
• Which scenario illustrates an insurance fraud attempt?
• What is indicated when a claimant has a pattern of filing suspicious claims?
• What is a claim professional who works full-time for an insurance company called?
• What is a key indicator of poor safekeeping in relation to insurance fraud?
• Which time period is often exploited by individuals committing fraud?
• Which one of the following underlying motives would be least likely to prompt Harry Boyle to commit insurance fraud?
• The used car Tom McKinnick bought had a dent in the passenger door. He reported the preexisting damage to the other driver’s insurance. In doing this, Tom committed insurance fraud by?
• What type of fraud often results from people misrepresenting facts to gain insurance benefits?
• In the case of Darrell Manwyler, what was a key indicator of potential fraud?
• What is the primary purpose of the Fair Credit Reporting Act?
• What type of vehicle is associated with title fraud?
• What indicator suggests that Arnie Forrest may have engaged in fraudulent behavior?
• What characterizes an incendiary fire?
• According to a study of insurance fraud, it is almost as widespread a crime as?
• Which of the following is NOT a result of careful marketing and underwriting?
• What is the fraud indicator in Waylon's case after his house burned down?
• What is a typical consequence for those convicted of insurance fraud?
• Which one of the following is NOT one of the four functions of claim investigation?
• What is a significant indicator of potential fraud in relation to increased policy limits?
• Which of the following statements about fake claims vs. padded or exaggerated claims is true?
• The law that makes it a federal offense to be directly or indirectly involved in a pattern of criminal activity is the:
• When fraudulent claims rise, which of the following usually does NOT happen within an insurance company?
• What is one of the main strategies employed by anti-fraud bureaus?
• What fraud indicator was revealed when an insured denied having duplicate auto insurance?
• Which of the following examples does NOT represent concealed or misrepresented material facts for a claim denial?
• Which of the following is NOT considered a basic element of claim handling?
• All of the following are favorite locations for staged auto accidents EXCEPT?
• In insurance, what is the term for a condition that increases the chance of a loss occurring?
• What are fraud indicators?
• What is considered an indicator of fraud if a claimant has trouble providing contact information?
• When insurance fraud is suspected, what is the first action a claim investigator should take?
• An individual who was injured in an accident caused by an insured made a claim against the insured. This type of claim is known as a/an?
• Which of the following is an example of insurance fraud?
• Who typically encounters a pre-planned insurance fraud scheme first?
• In which one of the following ways does insurance fraud NOT affect businesses?
• Which of the following examples is NOT an act of insurance fraud?
• What is a common motivation for individuals committing insurance fraud?
• What data bank supplies information about employees' previous work-related injuries?
• In which situation would workers' compensation benefits most likely be paid?
• Which phrase best describes the behavior of individuals committing fraud?
• Which of the following could indicate potential fraud based on rounded claim amounts?
• The law that makes it a felony to transmit writings or signals by wire to perpetrate a fraud is the:
• What action does the state vehicle owner fraud act classify as a felony?
• What happens during the underwriting process?
• The act of falsifying information on an insurance application is known as what?
• Which statement does NOT apply to the fraud scheme known as 'swoop and squat'?
• Since the mid-1980's, the number of staged auto accidents is estimated to have increased by?