BCP Claims and Underwriting

Question 1

What is 'underwriting' in the Singapore insurance context?

Accepted Answer

The process of evaluating and assessing risks to determine whether to accept a proposal and at what premium

Answer

Underwriting involves evaluating the risk profile of an applicant to decide whether to issue a policy, what coverage to offer, and at what premium rate.

Question 2

What is a 'proposal form' in Singapore insurance?

Accepted Answer

An application form completed by the applicant providing details for underwriting

Answer

The proposal form is the application document where the prospective policyholder provides personal details, medical history, and other information needed for the insurer to assess the risk.

Question 3

In Singapore insurance claims, what does 'first notification of loss' mean?

Accepted Answer

The initial report by the policyholder to the insurer about a loss or incident

Answer

First notification of loss is when the policyholder formally reports a loss or claim event to the insurer. Timely notification is crucial for smooth claims processing.

Question 4

What is a 'warranty' in a Singapore insurance contract?

Accepted Answer

A condition the insured must strictly comply with; breach may void the policy

Answer

A warranty in insurance is a fundamental condition that the insured promises to fulfill. Unlike conditions, breach of warranty can void the policy from the date of breach regardless of whether it contributed to the loss.

Question 5

What role does a 'loss adjuster' play in Singapore insurance claims?

Accepted Answer

Independently investigates and assesses the extent of loss on behalf of the insurer

Answer

A loss adjuster is an independent professional appointed by the insurer to investigate the circumstances of a claim, determine the cause, and assess the quantum of loss.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Claims and Underwriting