Claims and Underwriting Flashcards
6 cards from real BCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Claims and Underwriting flashcards as text
What is 'underwriting' in the Singapore insurance context?
Answer: The process of evaluating and assessing risks to determine whether to accept a proposal and at what premium
Underwriting involves evaluating the risk profile of an applicant to decide whether to issue a policy, what coverage to offer, and at what premium rate.
What is a 'proposal form' in Singapore insurance?
Answer: An application form completed by the applicant providing details for underwriting
The proposal form is the application document where the prospective policyholder provides personal details, medical history, and other information needed for the insurer to assess the risk.
In Singapore insurance claims, what does 'first notification of loss' mean?
Answer: The initial report by the policyholder to the insurer about a loss or incident
First notification of loss is when the policyholder formally reports a loss or claim event to the insurer. Timely notification is crucial for smooth claims processing.
What is a 'warranty' in a Singapore insurance contract?
Answer: A condition the insured must strictly comply with; breach may void the policy
A warranty in insurance is a fundamental condition that the insured promises to fulfill. Unlike conditions, breach of warranty can void the policy from the date of breach regardless of whether it contributed to the loss.
What role does a 'loss adjuster' play in Singapore insurance claims?
Answer: Independently investigates and assesses the extent of loss on behalf of the insurer
A loss adjuster is an independent professional appointed by the insurer to investigate the circumstances of a claim, determine the cause, and assess the quantum of loss.
What happens if an insured person in Singapore makes a fraudulent claim?
Answer: The entire claim may be rejected and the policy voided; criminal prosecution is also possible
Fraudulent claims are taken very seriously in Singapore. The insurer can reject the entire claim, void the policy, and the insured may face criminal charges under the Penal Code.