MAS Regulations & Compliance 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 MAS Regulations & Compliance flashcards as text
What is the 'cooling-off period' in Singapore insurance and what right does it give policyholders?
Answer: A period (typically 14 days) during which policyholders can cancel and receive a full premium refund
The cooling-off period (typically 14 days from policy receipt) gives policyholders the right to cancel certain insurance policies and receive a full premium refund if no claims have been made.
What does MAS's 'balanced scorecard framework' for insurance intermediaries aim to achieve?
Answer: Ensuring remuneration structures do not create conflicts of interest that harm customers
The balanced scorecard framework ensures that insurance intermediaries' remuneration is linked not just to sales volume but also to quality of advice, customer outcomes, and compliance — reducing conflicts of interest.
Under Singapore law, what is required for an insurance agent to be appointed?
Answer: Completion of prescribed exams (e.g., BCP for general insurance) and registration with MAS
Insurance agents must complete prescribed qualifying examinations (such as the Basic Certificate in General Insurance for general insurance agents) and be registered with MAS through their appointed insurer.
What is the purpose of MAS's guidelines on unfair contract terms for insurance?
Answer: To protect policyholders from unreasonably one-sided contract terms and ensure fairness
MAS guidelines on unfair contract terms protect policyholders from contract clauses that are unreasonably one-sided or that create a significant imbalance in the parties' rights and obligations.
What regulatory action can MAS take against an insurer that repeatedly violates regulations?
Answer: Impose financial penalties, restrict business activities, or revoke the insurer's licence
MAS has a range of regulatory powers including imposing financial penalties, restricting or prohibiting certain business activities, and ultimately revoking an insurer's licence for serious or repeated violations.
What is the purpose of the annual financial condition report (FCR) that Singapore insurers must produce?
Answer: An independent assessment of the insurer's financial condition, adequacy of reserves, and risk profile
The Financial Condition Report (FCR) is an independent assessment by the appointed actuary of the insurer's overall financial condition, including reserve adequacy, risk profile, and capital position, submitted to MAS.