Singapore Insurance Act & Legal Framework 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 Singapore Insurance Act & Legal Framework flashcards as text
Under the Consumer Protection (Fair Trading) Act, what must an insurer ensure when selling insurance products?
Answer: Consumers receive full and accurate disclosure
Under consumer protection laws, insurers must ensure consumers receive full, accurate, and clear disclosure of product terms, benefits, exclusions, and costs to make informed decisions.
What is the role of the Financial Industry Disputes Resolution Centre (FIDReC) in Singapore?
Answer: To provide an independent dispute resolution service for consumers
FIDReC provides an independent and affordable dispute resolution service for consumers who have disputes with financial institutions, including insurance companies, as an alternative to court proceedings.
Which type of insurance business is an insurer NOT allowed to combine in the same legal entity in Singapore?
Answer: Life and general insurance
Under the Singapore Insurance Act, life insurance and general insurance businesses must be conducted by separate legal entities. Combining them in one company is prohibited.
The concept of 'utmost good faith' (uberrimae fidei) in Singapore insurance law requires:
Answer: Both parties to disclose all material facts relevant to the contract
Utmost good faith requires both the insurer and insured to disclose all material facts that could affect the contract. Failure to do so can render the contract voidable.
What is a 'with-profits' policy under Singapore insurance classification?
Answer: A policy where policyholders share in the insurer's investment profits through bonuses
A with-profits policy allows policyholders to participate in the insurer's investment returns through the allocation of bonuses (reversionary or terminal), providing potential upside beyond guaranteed benefits.
Under MAS regulations, how long must insurers typically retain records of insurance contracts?
Answer: 5 years after expiry
MAS regulations generally require insurers to retain records related to insurance contracts and transactions for a minimum of 5 years, ensuring audit trails and regulatory compliance.