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 purpose of MAS's Risk-Based Capital (RBC) framework for insurers?
Answer: To ensure insurers hold sufficient capital relative to their risk profile
The Risk-Based Capital (RBC) framework requires insurers to hold capital proportionate to their risk exposures, ensuring they can meet obligations to policyholders under stressed conditions.
Under MAS Notice 120, what must insurers do regarding their appointed actuaries?
Answer: Appoint a qualified actuary to certify financial condition reports and advise on technical provisions
MAS Notice 120 requires insurers to appoint a qualified actuary who certifies the insurer's financial condition report and provides advice on technical provisions and other actuarial matters.
What does MAS's 'fit and proper' criteria apply to in the insurance industry?
Answer: To directors, CEOs, and key officers of licensed insurers
MAS's 'fit and proper' criteria apply to directors, Chief Executive Officers, and other key management personnel of licensed insurers, ensuring they have the appropriate competence, integrity, and financial soundness.
What is the Singapore Financial Reporting Standards (SFRS) requirement most relevant to insurance companies?
Answer: SFRS 17 on insurance contracts
SFRS 17 (Insurance Contracts) is the key accounting standard for insurance companies in Singapore, governing how insurance contracts are recognized, measured, presented, and disclosed in financial statements.
What is the role of an Insurance Broker under MAS regulations?
Answer: To represent clients and arrange insurance coverage on their behalf from various insurers
An Insurance Broker acts as agent for the client (not the insurer), arranging appropriate insurance coverage from various insurers on the client's behalf and providing advice in the client's best interests.
Under MAS's Individual Accountability and Conduct (IAC) standards, who bears primary responsibility for an insurer's conduct?
Answer: Senior managers and the board of directors
Under MAS's IAC standards, senior managers and the board of directors bear primary responsibility for ensuring their institutions conduct business with integrity and in compliance with regulations.