Insurance Ethics and Consumer Protection 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 Insurance Ethics and Consumer Protection flashcards as text
What anti-money laundering (AML) checks apply to general insurance in Singapore?
Answer: Insurers must conduct customer due diligence, monitor for suspicious transactions, and file suspicious transaction reports as required by MAS regulations
Under MAS regulations, general insurers must implement AML/CFT measures including Know Your Customer (KYC) procedures, transaction monitoring, and reporting suspicious activities to STRO.
What is the insurance intermediary's duty to clients in Singapore?
Answer: To provide honest advice, recommend suitable products based on client needs, disclose all material information, and act in the client's best interest
Insurance intermediaries in Singapore must follow MAS fair dealing guidelines: understand client needs, recommend suitable products, disclose fees and commissions, and prioritise client interests.
What is 'warranty' in general insurance contracts in Singapore?
Answer: A strict condition in the policy that the insured must comply with; breach may void the policy regardless of whether it contributed to the loss
Insurance warranties are strict conditions. For example, a burglar alarm warranty requires the alarm to be operational. Breach of warranty can void the policy even if the breach did not cause the loss.
What does 'utmost good faith' (uberrima fides) mean in Singapore general insurance?
Answer: Both the insurer and the insured must deal with each other honestly, disclosing all relevant information and not misrepresenting facts
Utmost good faith is a fundamental principle requiring both parties to be completely honest. The insured must disclose all material facts; the insurer must be transparent about policy terms and conditions.
What is the MAS Fair Dealing initiative and how does it affect general insurance in Singapore?
Answer: A mandatory framework requiring financial institutions including insurers to treat customers fairly in all business dealings, from product design to claims handling
Fair Dealing is a core MAS expectation requiring insurers to offer products suited to client needs, provide clear information, handle complaints fairly, and ensure staff competency and ethical conduct.
What recourse does a consumer have if their general insurance policy is unfairly cancelled by the insurer in Singapore?
Answer: File a complaint with the insurer's internal complaints unit, escalate to the GIA, seek mediation through FIDReC, or pursue legal action through the courts
Consumers have multiple avenues: internal complaint to the insurer, escalation to the GIA, independent mediation and adjudication through FIDReC (free), and ultimately, legal action through Singapore courts.