BCP Ethics and Professional Conduct 2

Question 1

What continuing professional development (CPD) requirements apply to insurance agents in Singapore?

Accepted Answer

Agents must complete a minimum number of CPD hours annually to maintain their licence

Answer

Licensed insurance representatives must complete mandatory CPD hours each year to stay current with industry developments, regulatory changes, and best practices.

Question 2

What is 'rebating' in the context of Singapore insurance regulations?

Accepted Answer

Returning part of the commission to the client as an inducement to purchase insurance, which is prohibited

Answer

Rebating — giving back part of the agent's commission to the client to induce a sale — is prohibited under the FAA as it undermines fair competition and may compromise the quality of advice.

Question 3

What must an insurance agent in Singapore do when they discover a client has been sold an unsuitable product?

Accepted Answer

Inform the client, review the policy, and recommend appropriate corrective action

Answer

Agents have a professional duty to act in the client's best interest. If they discover an unsuitable product, they must inform the client transparently and help explore better alternatives.

Question 4

Under the Personal Data Protection Act (PDPA) in Singapore, what obligation does an insurance company have regarding client data?

Accepted Answer

They must obtain consent for collecting, using, and disclosing personal data, and protect it with reasonable security measures

Answer

Under the PDPA, insurance companies must obtain consent before collecting personal data, use it only for stated purposes, and implement adequate security arrangements to protect it.

Question 5

What is the duty of an insurance agent when a client's circumstances change significantly?

Accepted Answer

The agent should review the client's coverage to ensure it remains appropriate and recommend adjustments if needed

Answer

Good professional practice requires agents to proactively review client portfolios when they become aware of significant life changes (marriage, children, job change) to ensure coverage remains adequate.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Ethics and Professional Conduct 2