Free CIFI Practice Questions

Question 1

An SIU investigator reviews a property claim and finds that the insured reported a burglary two days after increasing coverage limits. The insured also cannot provide receipts for several high-value items and gives inconsistent descriptions of when the items were purchased. Which combination of findings should most strongly increase the investigator's fraud concern?

Accepted Answer

The timing of coverage changes combined with inconsistent loss documentation

Answer

The claim involves personal property and was reported shortly after the loss

Answer

The insured requested a preferred repair vendor

Answer

The insured has previously filed a legitimate automobile claim

Question 2

An investigator is reviewing a suspected staged loss. Which action best demonstrates recognizing fraud potential before making a fraud determination?

Accepted Answer

Document indicators and gather additional objective evidence

Answer

Immediately deny the claim because fraud is suspected

Answer

Inform the insured that criminal charges will be filed

Answer

Close the investigation because one indicator proves fraud

Question 3

A special investigator receives a referral involving possible claim fraud. Before beginning extensive investigative activity, what is the most appropriate first consideration?

Accepted Answer

Whether investigation objectives are reasonable and related to claim issues

Answer

Whether surveillance should begin immediately

Answer

Whether the insured should be confronted with allegations

Answer

Whether all available personal information should be collected

Question 4

During a claim investigation, an SIU investigator obtains a witness statement. Which practice best supports the reliability of the investigative report?

Accepted Answer

Separating documented facts, witness statements, and opinions

Answer

Recording only the investigator's conclusions

Answer

Including only information supporting the fraud theory

Answer

Avoiding documentation that does not affect the claim outcome

Question 5

An attorney asks an investigator about a statement made by a person unavailable to appear in court. The primary evidentiary issue is:

Accepted Answer

Hearsay

Answer

Comparative negligence

Answer

Policy interpretation

Answer

Appraisal procedures

Question 6

A claims file contains photographs, recorded interviews, and surveillance footage collected during an investigation. The investigator's primary responsibility is to:

Accepted Answer

Preserve and document evidence so its origin and handling can be established

Answer

Discard materials that do not immediately prove fraud

Answer

Share all materials publicly to deter fraud

Answer

Modify materials to highlight suspicious activity

Question 7

A policyholder submits a suspicious claim. The insurer wants to investigate thoroughly while maintaining contractual obligations. Which principle is most important?

Accepted Answer

The policy remains a contract with duties that must still be followed during investigation

Answer

The insurer may delay all claim activity until suspicion is eliminated

Answer

A fraud referral automatically voids every policy condition

Answer

Suspicion alone establishes a basis to deny every claim

Question 8

An insurer identifies possible misrepresentation in a claim. Which action best balances fraud investigation with fair claim handling?

Accepted Answer

Conduct a reasonable investigation while continuing to evaluate coverage obligations

Answer

Deny immediately to protect the insurer

Answer

Ignore indicators to avoid bad-faith allegations

Answer

Require the insured to prove innocence before review

Question 9

A claims professional communicates with an insured using unsupported accusations of criminal conduct. What legal risk is most directly increased?

Accepted Answer

Exposure from improper handling and potential bad-faith allegations

Answer

Automatic cancellation of all insurance contracts

Answer

Elimination of insurer investigative rights

Answer

A requirement that every claim be paid

Question 10

Evidence suggests a claim may be fraudulent but is incomplete. Which approach best reflects good-faith claim handling?

Accepted Answer

Continue a documented, reasonable investigation before reaching a conclusion

Answer

Publicly identify the claimant as fraudulent

Answer

Refuse all future communication

Answer

Assume the claim is valid because fraud is not proven

Free CIFI Practice Questions

Domain 1: 510 Recognizing Fraud

Question 1

Question 2

Domain 2: 511 Special Investigation

Question 3

Question 4

Domain 3: 512 Proving Fraud

Question 5

Question 6

Domain 4: 513 Handling Suspicious Claims: The Policy and Its Requirements

Question 7

Question 8

Domain 5: 514 Avoiding Bad Faith and Civil Liability in Handling Suspicious Claims

Question 9

Question 10

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