BCP Regulatory Framework 2

Question 1

What is the role of appointed actuaries in Singapore insurance companies?

Accepted Answer

To ensure the insurer's liabilities are properly valued and the company remains financially sound

Answer

Appointed actuaries are responsible for valuing insurance liabilities, advising on pricing, and ensuring the insurer maintains adequate reserves and meets solvency requirements under MAS regulations.

Question 2

What is the 'fit and proper' criteria imposed by MAS on insurance company directors and key officers?

Accepted Answer

They must demonstrate competence, honesty, integrity, and financial soundness to hold their positions

Answer

MAS requires directors and key officers of insurance companies to meet 'fit and proper' criteria covering competence, character, financial soundness, and integrity to safeguard policyholders' interests.

Question 3

Under Singapore regulations, when must an insurer notify MAS about a significant event?

Accepted Answer

As soon as practicable after the event occurs

Answer

Insurers must notify MAS promptly of significant events such as material losses, changes in key management, regulatory actions in other jurisdictions, or anything that may affect the insurer's financial condition.

Question 4

What is the purpose of the Singapore Actuarial Society (SAS)?

Accepted Answer

To promote the actuarial profession and set professional standards for actuaries in Singapore

Answer

The SAS promotes the development of the actuarial profession in Singapore, sets professional and ethical standards, and provides continuing education for its members.

Question 5

What anti-money laundering obligations do Singapore insurers have?

Accepted Answer

They must conduct customer due diligence (CDD), monitor transactions, and file suspicious transaction reports (STRs)

Answer

Under MAS Notice 314 and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, insurers must conduct CDD, ongoing monitoring, and report suspicious transactions to STRO.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Regulatory Framework 2