BCP MAS Regulations & Compliance 1

Question 1

What is the purpose of MAS's Risk-Based Capital (RBC) framework for insurers?

Accepted Answer

To ensure insurers hold sufficient capital relative to their risk profile

Answer

To set maximum premium rates insurers can charge

Answer

To determine how many policies an insurer can write

Answer

To calculate agent commissions

Question 2

Under MAS Notice 120, what must insurers do regarding their appointed actuaries?

Accepted Answer

Appoint a qualified actuary to certify financial condition reports and advise on technical provisions

Answer

Appoint an actuary only for life insurance business

Answer

Allow agents to perform actuarial calculations

Answer

Submit actuarial reports only every 5 years

Question 3

What does MAS's 'fit and proper' criteria apply to in the insurance industry?

Accepted Answer

To directors, CEOs, and key officers of licensed insurers

Answer

Only to insurance products sold

Answer

Only to insurance agents

Answer

To all policyholders

Question 4

What is the Singapore Financial Reporting Standards (SFRS) requirement most relevant to insurance companies?

Accepted Answer

SFRS 17 on insurance contracts

Answer

SFRS 9 on financial instruments

Answer

SFRS 15 on revenue recognition

Answer

SFRS 16 on leases

Question 5

What is the role of an Insurance Broker under MAS regulations?

Accepted Answer

To represent clients and arrange insurance coverage on their behalf from various insurers

Answer

To represent the insurer and sell policies on their behalf

Answer

To regulate other insurance intermediaries

Answer

To process claims on behalf of MAS

Question 6

Under MAS's Individual Accountability and Conduct (IAC) standards, who bears primary responsibility for an insurer's conduct?

Accepted Answer

Senior managers and the board of directors

Answer

The compliance department

Answer

Individual insurance agents

Answer

The MAS-appointed actuary