CMFAS Life Insurance M5 4

Question 1

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

Accepted Answer

14 days

Answer

Singapore mandates a 14-day free-look period during which the policyholder can cancel a new life insurance policy and receive a full refund of premiums paid.

Question 2

What is a non-participating policy?

Accepted Answer

A policy with guaranteed benefits that does not share in the insurer's profits

Answer

A non-participating policy provides guaranteed benefits only and does not share in the insurer's surplus or profits. Benefits are fixed and predictable.

Question 3

What is the MAS Notice on Product Advertising for insurance?

Accepted Answer

Rules governing how insurance products can be advertised to the public

Answer

MAS Notices on product advertising set out rules and standards that insurance companies must follow when advertising their products to ensure fair and accurate representation.

Question 4

What is the surrender value of a policy?

Accepted Answer

The amount a policyholder receives when terminating the policy before maturity

Answer

The surrender value is the cash amount a policyholder receives from the insurer when they voluntarily terminate (surrender) their policy before its maturity date.

Question 5

What is underwriting in life insurance?

Accepted Answer

The process of assessing risk and deciding whether to accept an applicant

Answer

Underwriting is the process where the insurer evaluates the risk of insuring an applicant based on their health, age, occupation, and lifestyle to determine premiums and acceptance.

CMFAS Practice Test

CMFAS Practice Test

CMFAS Life Insurance M5 4