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100+ Free III IC-39 Practice Questions

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2026 Statistics

Key Facts: III IC-39 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

30

Credit points for IC-39

III credit-point system

INR 600

India paper fee (30 credits) w.e.f. 1.4.2026

III Table of Fees

INR 800

Fresh registration (India) w.e.f. 1.4.2026

III Table of Fees

III IC-39 is a 100-question, 2-hour online MCQ paper on Fraud Risk Management in Insurance. Passing requires 60% (Distinction from 75%). India paper enrollment for this 30-credit subject is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-39 Practice Questions

Try these sample questions to test your III IC-39 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following is considered a primary driver of insurance fraud?
A.Economic pressures and financial desperation
B.Strict regulatory oversight
C.High levels of customer satisfaction
D.Excessive transparency in claims processing
Explanation: Economic pressures are a significant driver of insurance fraud, leading individuals to commit fraud for financial gain.
2What is the main objective of Anti-Money Laundering (AML) regulations in the insurance sector?
A.To prevent criminals from disguising the illegal origin of funds
B.To maximize premium collection
C.To speed up claims processing
D.To reduce the cost of insurance policies
Explanation: AML regulations are designed to detect and prevent money laundering, where criminals attempt to hide the origins of illicit funds.
3Which of the following represents a common 'red flag' for potential claims fraud?
A.Claim reported immediately after the incident
B.Consistent details provided by the claimant
C.Receipts submitted for newly purchased high-value items with cash shortly before the loss
D.Police report matching the claimant's statement perfectly
Explanation: Cash purchases of high-value items shortly before a loss event often serve as a red flag for staged or exaggerated claims.
4What is the role of India's Financial Intelligence Unit (FIU-IND) under the PMLA framework?
A.To receive and analyse Suspicious Transaction Reports (STRs) from reporting entities
B.To sell high-yield insurance products
C.To determine the pricing of insurance policies
D.To handle customer complaints regarding delayed claims
Explanation: FIU-IND is India's central agency that receives, analyses, and disseminates intelligence from Suspicious Transaction Reports (STRs) and related reports filed by insurers and other reporting entities under the Prevention of Money Laundering Act (PMLA).
5Which of the following best describes 'hard fraud'?
A.Deliberately planning or faking an accident, theft, or fire
B.Exaggerating the value of items stolen in a legitimate burglary
C.Failing to disclose a minor medical condition on an application
D.A provider billing for a more expensive service than provided
Explanation: Hard fraud occurs when someone deliberately plans or invents a loss, such as faking an accident or staging a theft.
6In corporate governance, what is the significance of the 'Tone at the Top' regarding fraud?
A.It refers to the leadership's commitment to ethical behavior and anti-fraud measures
B.It indicates the volume of the company's public address system
C.It determines the highest possible claim payout
D.It is a strategy for aggressive marketing
Explanation: Tone at the top refers to the ethical atmosphere created in the workplace by the organization's leadership, which is critical in preventing fraud.
7Which legal concept requires an insured to disclose all material facts before a policy is issued?
A.Subrogation
B.Indemnity
C.Utmost Good Faith (Uberrimae Fidei)
D.Proximate Cause
Explanation: Utmost Good Faith requires both the insurer and the insured to deal honestly and disclose all material facts.
8Phishing and ransomware attacks aimed at insurance companies fall under which category of fraud?
A.Cyber Fraud
B.Internal Fraud
C.Underwriting Fraud
D.Claims Fraud
Explanation: Phishing and ransomware are forms of cybercrime targeting digital infrastructure and data.
9During a fraud investigation, what is the primary purpose of an 'interview' versus an 'interrogation'?
A.An interview is non-accusatory and gathers facts, while an interrogation is accusatory and seeks an admission of guilt
B.An interview is meant to extract a confession, while an interrogation is just for gathering facts
C.There is no difference; the terms are interchangeable
D.Interviews are only for witnesses, while interrogations are only for suspects
Explanation: Interviews are informational and non-accusatory. Interrogations are accusatory and designed to obtain a confession or admission.
10What does KYC stand for in the context of preventing insurance fraud and money laundering?
A.Keep Your Cash
B.Key Yield Calculation
C.Know Your Customer
D.Knowledge of Yearly Claims
Explanation: Know Your Customer (KYC) is a crucial process for identifying and verifying the identity of clients to prevent financial crimes.

About the III IC-39 Exam

The III IC-39 Fraud Risk Management in Insurance exam assesses fraud typology, line-of-business fraud patterns, fraud-fighting frameworks, investigation methods, and money laundering controls across the official 15-chapter syllabus (Edition 2023).

Assessment

100 objective multiple-choice questions in a single online paper. IC-39 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam Fee

INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees. (Insurance Institute of India (III))

III IC-39 Exam Content Outline

20 questions

Insurance Fraud Landscape & Line Frauds

Fraud typology and line-specific patterns (fire, engineering, marine, motor, health, liability, rural/livestock, life) per IC-39 Ch.2 and 5–13.

17 questions

Fraud Fighting & Corporate Governance

Tone at the top, FRM frameworks, segregation of duties, whistle-blowing, and board-level anti-fraud governance (IC-39 Ch.3–4 themes).

16 questions

AML / CFT & Money Laundering

KYC/CDD/EDD, FIU-IND STRs, laundering stages, PEPs, sanctions, and insurance money-laundering red flags (IC-39 Ch.15).

16 questions

Investigation of Losses

SIU methods, OSINT, interviews, chain of custody, analytics, and expert support (IC-39 Ch.14).

13 questions

Cyber Fraud

Phishing, vishing, ransomware, BEC, insider cyber threats, and access-control failures.

9 questions

Red Flags & Detection

Claims, underwriting, documentary, and behavioural red flags that trigger investigation.

9 questions

Legal Framework

Utmost good faith, material facts, void ab initio, burden of proof, subrogation, and related legal remedies.

How to Pass the III IC-39 Exam

What You Need to Know

  • Passing score: 60% (Distinction at 75% or above)
  • Assessment: 100 objective multiple-choice questions in a single online paper. IC-39 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

III IC-39 Study Tips from Top Performers

1Study the official III IC-39 coursebook chapter by chapter (15 chapters, Edition 2023) before mixed mocks.
2Drill AML/CFT items with Indian terms: FIU-IND, STR, PMLA, KYC/EDD, and sanctions screening.
3Sit full 100-question, 2-hour mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-39 exam?

The III objective papers, including IC-39, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-39 passing score?

Passing marks for III online MCQ papers are 60% or above. Candidates scoring at least 75% earn Distinction in that subject.

How many credit points does IC-39 carry?

This paper (IC-39) carries 30 credit points under the Insurance Institute of India credit system.