BCP Regulatory Framework

Question 1

Under MAS regulations, what is the minimum paid-up capital requirement for a direct life insurer in Singapore?

Accepted Answer

SGD 10 million

Answer

SGD 5 million

Answer

SGD 25 million

Answer

SGD 50 million

Question 2

What is the purpose of the Financial Advisers Act (FAA) in Singapore?

Accepted Answer

To regulate the provision of financial advisory services including insurance advice

Answer

To regulate the manufacturing of insurance products

Answer

To set interest rates for savings plans

Answer

To manage CPF contributions

Question 3

What certification must an insurance representative in Singapore obtain to sell life insurance?

Accepted Answer

CMFAS Module 9 (Life Insurance) certification

Answer

BCP (Basic Certificate in Insurance)

Answer

A university degree in finance

Answer

ACII certification

Question 4

What is the General Insurance Association (GIA) of Singapore?

Accepted Answer

A trade association representing general insurance companies in Singapore

Answer

The government regulator for insurance

Answer

A consumer protection group

Answer

A reinsurance company

Question 5

Under Singapore's MAS guidelines, what is the 'balanced scorecard' framework for financial advisers?

Accepted Answer

A framework that evaluates advisers on non-sales measures like compliance, quality of advice, and customer outcomes, not just sales volume

Answer

A tool for calculating premiums

Answer

A method for ranking insurance products

Answer

A tool for claim processing

Question 6

What is 'risk-based capital' (RBC) framework as applied to Singapore insurers?

Accepted Answer

A framework requiring insurers to hold capital proportionate to the risks they underwrite

Answer

A framework for setting premium prices

Answer

A framework for distributing bonuses to policyholders

Answer

A framework for marketing insurance products