BCP Insurance Principles 2

Question 1

Which principle prevents an insured from claiming from multiple insurers for the same loss to make a profit in Singapore?

Accepted Answer

Principle of contribution

Answer

Principle of subrogation

Answer

Principle of proximate cause

Answer

Principle of indemnity

Question 2

What is subrogation in the context of Singapore insurance?

Accepted Answer

The insurer's right to take over the insured's legal rights against a third party after paying a claim

Answer

The insured's right to cancel a policy

Answer

The agent's right to earn commission

Answer

The insured's right to increase coverage

Question 3

What does 'proximate cause' determine in a Singapore insurance claim?

Accepted Answer

The dominant or effective cause of the loss

Answer

The nearest physical location of the loss

Answer

The time of the loss

Answer

The amount of the premium

Question 4

Under MAS guidelines, what must a financial adviser in Singapore do before recommending an insurance product?

Accepted Answer

Conduct a Financial Needs Analysis (FNA)

Answer

Offer the cheapest product available

Answer

Recommend only one insurer's products

Answer

Require the client to undergo a medical exam

Question 5

What is the role of the Life Insurance Association (LIA) of Singapore?

Accepted Answer

To represent and promote the interests of life insurance companies in Singapore

Answer

To regulate insurance companies

Answer

To sell insurance policies directly to consumers

Answer

To set premium rates for all insurers

Question 6

What is a 'material fact' that must be disclosed when applying for insurance in Singapore?

Accepted Answer

Any fact that would influence the insurer's decision to accept or rate the risk

Answer

Any fact that is interesting to the applicant

Answer

Only facts about the applicant's nationality

Answer

Only facts about previous claims