Ethics and Professional Conduct 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 Ethics and Professional Conduct flashcards as text
What continuing professional development (CPD) requirements apply to insurance agents in Singapore?
Answer: Agents must complete a minimum number of CPD hours annually to maintain their licence
Licensed insurance representatives must complete mandatory CPD hours each year to stay current with industry developments, regulatory changes, and best practices.
What is 'rebating' in the context of Singapore insurance regulations?
Answer: Returning part of the commission to the client as an inducement to purchase insurance, which is prohibited
Rebating — giving back part of the agent's commission to the client to induce a sale — is prohibited under the FAA as it undermines fair competition and may compromise the quality of advice.
What must an insurance agent in Singapore do when they discover a client has been sold an unsuitable product?
Answer: Inform the client, review the policy, and recommend appropriate corrective action
Agents have a professional duty to act in the client's best interest. If they discover an unsuitable product, they must inform the client transparently and help explore better alternatives.
Under the Personal Data Protection Act (PDPA) in Singapore, what obligation does an insurance company have regarding client data?
Answer: They must obtain consent for collecting, using, and disclosing personal data, and protect it with reasonable security measures
Under the PDPA, insurance companies must obtain consent before collecting personal data, use it only for stated purposes, and implement adequate security arrangements to protect it.
What is the duty of an insurance agent when a client's circumstances change significantly?
Answer: The agent should review the client's coverage to ensure it remains appropriate and recommend adjustments if needed
Good professional practice requires agents to proactively review client portfolios when they become aware of significant life changes (marriage, children, job change) to ensure coverage remains adequate.
What is 'tied agency' versus 'independent financial adviser' (IFA) in Singapore?
Answer: A tied agent represents only one insurer while an IFA can recommend products from multiple insurers
A tied agent is contracted to sell products of one insurance company only, while an IFA operates independently and can recommend products from the full range of insurers in the market.