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Singapore Insurance Law & MAS Regulations Flashcards

6 cards from real PGI 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 Law & MAS Regulations flashcards as text

  1. Under Singapore's Insurance Act, what is the difference between a 'direct insurer' and a 'reinsurer'?

    Answer: A direct insurer provides coverage to policyholders; a reinsurer provides coverage to other insurers, and both require separate MAS licences

    A direct insurer contracts directly with policyholders providing coverage. A reinsurer contracts with other insurers (cedants) providing coverage for portions of their risks. Both require separate MAS licences to operate in Singapore.

  2. What is the MAS requirement regarding the appointment of a 'Chief Risk Officer' (CRO) for larger insurers?

    Answer: Larger insurers (above specified thresholds) must appoint a CRO responsible for enterprise-wide risk management, approved by MAS

    MAS requires larger insurers (meeting certain size thresholds) to appoint a dedicated Chief Risk Officer responsible for overseeing enterprise-wide risk management, with the appointment subject to MAS's fit and proper assessment.

  3. What is 'ORSA' (Own Risk and Solvency Assessment) under Singapore's RBC 2 framework?

    Answer: An insurer's internal process to self-assess its risk profile, capital needs, and solvency position prospectively

    ORSA is the insurer's own forward-looking assessment of its risks, capital adequacy, and solvency position. Under RBC 2, Singapore insurers must conduct ORSA and submit reports to MAS, demonstrating self-awareness of their risk and capital position.

  4. Under MAS corporate governance guidelines for insurers, what is the required minimum proportion of independent directors?

    Answer: At least one-third of the board must be independent directors

    MAS guidelines require that at least one-third of an insurer's board consists of independent directors, ensuring independent oversight and challenge of management decisions.

  5. What is 'ring-fencing' of insurance funds under Singapore law?

    Answer: The legal requirement that insurance fund assets be kept separate from shareholders' assets and used only for policyholder obligations

    Ring-fencing requires each insurance fund's assets to be legally separated from the insurer's shareholders' funds. These ring-fenced assets can only be used to meet obligations to policyholders of that specific fund.

  6. What does Singapore's Terrorism (Suppression of Financing) Act require of insurers?

    Answer: Insurers must screen customers, freeze assets of designated entities, and report links to terrorist financing to authorities

    Singapore's counter-terrorism financing laws require insurers to screen customers and transactions against designated terrorist lists, freeze relevant assets, and report any connections to authorities as part of AML/CFT obligations.