BCP Insurance Principles

Question 1

Under Singapore's insurance regulations, what is the principle of 'utmost good faith' (uberrima fides)?

Accepted Answer

Both insurer and insured must disclose all material facts honestly

Answer

Only the insurer must disclose policy terms

Answer

Only the insured must pay premiums on time

Answer

Neither party needs to disclose anything before contract

Question 2

What does the principle of indemnity mean in a basic insurance policy sold in Singapore?

Accepted Answer

The insured is restored to the same financial position as before the loss

Answer

The insured can profit from a claim

Answer

The insurer pays double the loss amount

Answer

The insured receives a fixed sum regardless of actual loss

Question 3

Which Singapore authority regulates the insurance industry?

Accepted Answer

Monetary Authority of Singapore (MAS)

Answer

Housing Development Board (HDB)

Answer

Central Provident Fund Board (CPF)

Answer

Ministry of Manpower (MOM)

Question 4

What is 'insurable interest' as required in Singapore insurance law?

Accepted Answer

Having a financial interest in the subject matter of insurance

Answer

Owning shares in an insurance company

Answer

Being employed by an insurance firm

Answer

Having a Singapore citizenship

Question 5

Under the Insurance Act (Cap. 142) of Singapore, which type of insurer must be registered to operate?

Accepted Answer

All insurers carrying on insurance business in Singapore

Answer

Only life insurers

Answer

Only general insurers

Answer

Only reinsurers

Question 6

What is the 'free-look' period for life insurance policies purchased in Singapore?

Accepted Answer

14 days

Answer

7 days

Answer

30 days

Answer

60 days