CMFAS PGI – Personal General Insurance Exam

Correct: Statement I is correct because General Condition 3 (Basis of Settlement) stipulates that if repair or restoring is not completed within twelve months, the Company will settle claims on an indemnity basis rather than a reinstatement basis. Statement III is correct because General Condition 12 (Cancellation) explicitly allows the Company to cancel the policy by giving seven days’ notice in writing to the Insured.

Incorrect: Statement II is incorrect because while immediate notice of the event must be given within 14 days, the Insured has up to 30 days after the occurrence to supply full particulars in writing for claims under Sections 1, 2, 7, and 8. Statement IV is incorrect because General Condition 13 (Arbitration) only applies to differences regarding the amount to be paid where liability is otherwise admitted; it does not apply to disputes over whether the insurer is liable.

Takeaway: Personal general insurance policies contain strict procedural conditions regarding the basis of claim settlements, notification timelines, and the specific scope of arbitration clauses. Therefore, statements I and III are correct.

Correct: The benefit is paid as a fixed daily amount in addition to any reimbursements received from the Integrated Shield Plan. According to the features of Hospital Cash Insurance, the benefit payment is not affected by payments from other health insurance policies, plans, or schemes, including MediShield Life and Integrated Shield Plans, and is paid on top of those benefits.

Incorrect: The statement that the benefit only covers unpaid portions of the bill is incorrect because Hospital Cash is a fixed-sum benefit, not an indemnity-based excess cover. The suggestion that the benefit is reduced by co-payments or deductibles is wrong because the daily cash amount is fixed at the inception of the policy and does not vary based on the hospital’s specific billing components. The claim that benefits are withheld if they exceed actual costs is incorrect as this policy type is designed to provide additional cash flow rather than strictly indemnifying for actual medical expenses incurred.

Takeaway: Hospital Cash Insurance provides a fixed daily sum for each day of hospitalization that is payable regardless of other medical insurance reimbursements.

Correct: The insurer issues a cover note using the engine and chassis numbers to facilitate registration before the vehicle number is assigned. This is the standard practice to resolve the conflict where the LTA requires proof of insurance for registration, but the insurer requires the registration number to issue a formal Certificate of Insurance.

Incorrect: The suggestion that an insurer issues a temporary Certificate of Insurance for fourteen days is incorrect because the source text specifically identifies the cover note as the interim document used for this purpose. The claim that LTA provides a provisional registration number to the owner for insurance purposes is false; the insurance must exist before the registration can be completed. The idea that an insurer waives the registration number requirement to issue a final policy document is inaccurate, as the insurer typically replaces the cover note with a Certificate only after the registration number is assigned.

Takeaway: A cover note acts as an interim document with the same legal force as a Certificate of Insurance, allowing for vehicle registration using engine and chassis numbers.

Correct: Statement I is correct because Section 7 specifies that territorial limits include worldwide travel provided it does not exceed 90 consecutive days in any one period of insurance. Statement II is correct because the policy applies a S$100 excess to each and every claim, with the only exception being losses caused by an Insured Peril at the Insured Dwelling.

Incorrect: Statement III is incorrect because Exclusion (e) of Section 7 specifically excludes photographic equipment, sporting equipment, and musical instruments when they are used for business or professional purposes. Statement IV is incorrect because the limit for any one unspecified article is S$1,000, not S$2,000, according to the Unspecified Articles provision in Section 7(A).

Takeaway: Section 7 provides worldwide coverage for personal effects with specific time limits for travel and monetary caps on unspecified items, while excluding items used for professional purposes. Therefore, statements I and II are correct.

Correct: Statement I is correct because Critical Illness insurance can be offered as an independent policy or as an additional rider to various life insurance products, including Investment-Linked Policies. Statement III is correct because the regulatory deadline for transitioning to new definitions was 15 February 2015, meaning the previous day was the final date for selling old products. Statement IV is correct because being ‘in force’ is a fundamental requirement for any insurance claim eligibility.

Incorrect: Statement II is incorrect because the 2014 regulatory update specifically allowed insurers the flexibility to cover medical conditions beyond the 37 standardized severe critical illnesses, including the introduction of single-illness plans.

Takeaway: Singapore’s CI insurance framework standardizes 37 severe illnesses for consistency while allowing insurers flexibility to cover additional conditions and requiring adherence to specific transition deadlines. Therefore, statements I, III and IV are correct.

Correct: A maximum of $500 for the single item is the right answer because the policy terms for “Contents Temporarily Removed” explicitly state that coverage for items moved to a hotel after a loss is subject to a limit of $500 for any one item.

Incorrect: The $1,000 limit is wrong because this figure applies to other specific benefits like “Loss of Money” or “Accidental Death of Domestic Pet” rather than the per-item limit for removed contents. The full replacement value of $1,500 is incorrect as it exceeds the specific sub-limit defined in the policy for items outside the home. The suggestion that nothing is paid is incorrect because the policy provides coverage for contents moved to a hotel in Singapore for up to 14 days following a loss.

Takeaway: When contents are temporarily removed from the insured premises to a hotel in Singapore following a loss, coverage is restricted by both a 14-day time limit and a $500 per-item monetary cap.

Correct: Statement I is correct because the Premium Payment Warranty (1 May 2005) specifies that for corporate policies with premiums below $100,000 and a period of 60 days or more, the premium must be received within 60 days of the inception date. Statement III is correct because the Clarification Clause explicitly states that damage to data or software is excluded unless it is the direct consequence of insured physical damage to the substance of the property. Statement IV is correct because the Payment Before Cover Warranty for individuals requires the premium to be paid on or before the inception or renewal date for cover to attach.

Incorrect: Statement II is incorrect because if a corporate premium is not paid within the 60-day window, the cover is terminated immediately after the expiry of that 60-day period, not retroactively from the inception date; the insurer remains liable for any claims that occurred during the 60-day credit period.

Takeaway: Individual policyholders must pay premiums by the inception date to trigger coverage, whereas eligible corporate entities are granted a 60-day window, with coverage terminating only after that period expires if payment is not received. Therefore, statements I, III and IV are correct.

Correct: Statement I is correct because the policy requires a registered medical practitioner and specifically excludes the insured’s spouse or lineal relatives from providing the diagnosis. Statement II is correct because the standard definition of Major Cancers explicitly excludes non-invasive conditions such as carcinoma-in-situ and tumours with borderline malignancy. Statement III is correct because the insurer has the right to refer diagnostic disputes to an independent expert whose decision is binding on both the insurer and the insured.

Incorrect: Statement IV is incorrect because the definition of Major Cancers requires histological confirmation and evidence of malignancy confirmed by an oncologist or pathologist; a diagnosis based solely on clinical symptoms without such evidence would not meet the policy requirements.

Takeaway: Critical illness claims depend on meeting precise technical definitions and diagnostic standards, including histological confirmation and the use of independent medical practitioners. Therefore, statements I, II and III are correct.

Correct: The insurer pays $100,000 plus bonuses, and future premiums may be reduced in proportion to the remaining sum assured is correct because an acceleration benefit provides for the pre-payment of a portion of the basic policy’s sum assured. According to the regulations, when the sum assured is reduced following a claim, the future premiums are typically reduced in the same proportion to reflect the lower remaining coverage.

Incorrect: The option stating the insurer pays $200,000 and the policy terminates is wrong because it describes a 100% acceleration benefit, whereas the scenario specifies a 50% acceleration. The option suggesting the policy owner must pay the original premium amount is incorrect because the premium is adjusted downward when the sum assured is reduced. The option claiming the remaining balance is reserved for a second critical illness claim is wrong because standard acceleration policies generally allow for only one critical illness claim; the remaining balance is for death or total and permanent disability.

Takeaway: An acceleration benefit CI policy pre-pays a portion of the death benefit upon diagnosis, which proportionally reduces both the remaining sum assured and the future premium obligations.

Correct: Refunding premiums and voiding the policy is the right answer because the diagnosis happened within the 90-day waiting period. According to the regulations, if a person is found to be suffering from a critical illness during this period, the insurer voids the policy to prevent anti-selection.

Incorrect: The suggestion that the full sum assured is paid after a 30-day survival period is wrong because the waiting period requirement must be satisfied before any benefit is considered. The option regarding a 25% partial payment is incorrect as this describes a lien typically used for juvenile policies, not a standard waiting period outcome. The idea that the claim is processed with a higher premium rate is wrong because a diagnosis during the waiting period results in policy termination rather than a claim payout or premium adjustment.

Takeaway: The waiting period in CI insurance is designed to prevent anti-selection by requiring a specific duration to pass before a diagnosis becomes eligible for a benefit payout.

Correct: Statement II is correct because the claim form explicitly states that all medical reports required for the claim must be submitted at the claimant’s expense. Statement III is correct because the declaration section of the form warns that the claim may be refused if the policyholder makes false statements or suppresses material facts.

Incorrect: Statement I is incorrect because the form clearly specifies that the acceptance of the document by the insurance company does not constitute an admission of liability. Statement IV is incorrect because the instructions require that all documents provided to substantiate the claim must be original documents, rather than photocopies.

Takeaway: When filing a household insurance claim, policyholders must provide original documentation and bear medical costs, while understanding that form submission does not guarantee the insurer’s liability. Therefore, statements II and III are correct.

Correct: Statement II is correct because Condition (iii) of the policy specifies that for partial losses, the insurer’s liability is limited to the proportion that the sum insured bears to the market value. Statement III is correct because Exclusion (A)(vii) explicitly includes damage done by broken glass to the insured property even though the glass itself is excluded. Statement IV is correct because Condition (ii) limits settlement to the lesser of the market value immediately prior to the loss or the sum insured.

Incorrect: Statement I is incorrect because Condition (i) states that for pairs and sets, the insurance does not account for special or increased value and only pays a proportionate part of the insured value of the pair or set.

Takeaway: Valuable Articles Insurance uses a pro-rata approach for partial losses and limits payouts for pairs/sets to their proportionate value rather than the loss of the set’s collective premium value. Therefore, statements II, III and IV are correct.

Correct: Statement I is correct because the source explicitly states that the payment of an Additional Benefit CI Insurance rider does not affect the sum assured of the basic policy. Statement III is correct because, unlike acceleration-type covers, the basic policy continues to be in force after an Additional Benefit CI claim is paid.

Incorrect: Statement II is incorrect because the term of a CI Insurance rider can be shorter than, but must not be longer than, the term of the basic policy to which it is attached. Statement IV is incorrect because the sum assured of an Additional Benefit rider can be higher than the basic sum assured, potentially reaching up to five times that amount.

Takeaway: Additional Benefit CI riders provide a payout that is independent of the basic policy’s sum assured, ensuring the primary life coverage remains intact after a critical illness diagnosis. Therefore, statements I and III are correct.

Correct: Statement I is correct because the Payment Before Cover Warranty explicitly states that payment is deemed effected when a credit or debit card transaction is approved by the issuing bank. Statement II is correct because the clause stipulates that if the total premium is not received in full by the insurer or intermediary on or before the inception date, the insurance shall not attach. Statement IV is correct because handing over cash to the intermediary through whom the policy was effected on the renewal date is a recognized method of effecting payment under the warranty.

Incorrect: Statement III is incorrect because the “Free Look” provision allows for a full refund of the premium only on the condition that no claim has been made under the insurance policy during that period.

Takeaway: Under the Payment Before Cover Warranty, insurance coverage only attaches if the full premium is received by the inception or renewal date, and any “Free Look” refund rights are forfeited if a claim is filed. Therefore, statements I, II and IV are correct.

Correct: Statement I is correct because severity-based CI plans are specifically designed to pay claims at various stages of an illness, including early, intermediate, and advanced stages. Statement III is correct because Multiple Pay CI plans allow for more than one claim, with total payouts potentially reaching up to 200% of the original sum assured.

Incorrect: Statement II is incorrect because the non-medical limit for CI insurance is actually lower than that for Life Insurance, meaning applicants may require medical tests at lower coverage amounts. Statement IV is incorrect because congenital anomalies and inherited disorders are standard exclusions in most CI insurance policies according to regulatory guidelines.

Takeaway: Critical Illness insurance features specialized payout structures like severity-based or multiple-pay options, but they typically involve stricter underwriting limits and standard exclusions for pre-existing or congenital conditions. Therefore, statements I and III are correct.

Correct: Statement II is correct because PA insurance covers death by accident but not natural causes, meaning it is not classified as life insurance under the Insurance Act, allowing general insurers to transact this business. Statement III is correct because PA premiums only cover the cost of insurance risk and do not include savings, investment benefits, or bonuses common in life insurance.

Incorrect: Statement I is incorrect because PA insurance is a benefit policy, not a contract of indemnity; it does not aim to restore the insured to their exact financial position based on actual loss. Statement IV is incorrect because, as a benefit policy, the insured is paid a specified sum regardless of whether they can prove a specific quantum of financial loss.

Takeaway: Personal Accident insurance is a benefit policy that pays fixed sums upon specific accidental contingencies, distinguishing it from indemnity contracts and life insurance products that offer investment returns. Therefore, statements II and III are correct.

Correct: Statement I is correct because the Security Bond conditions explicitly state that the employer is responsible for the upkeep, maintenance, and medical treatment of the foreign worker. Statement II is correct because the bond requires the employer to bear the costs of burial, cremation, or returning the body to the country of nationality if the worker dies while in Singapore.

Incorrect: Statement III is incorrect because the employer is required to inform the Controller of Work Passes in writing within seven days of the termination or resignation of the worker, not 14 days. Statement IV is incorrect because the Security Bond form specifically states that a partial forfeiture shall not extinguish the Government’s right to forfeit the remainder for the same or a different breach.

Takeaway: The Security Bond for foreign workers mandates that employers assume full responsibility for the worker’s welfare, repatriation, and regulatory compliance, with specific timelines for reporting employment changes. Therefore, statements I and II are correct.

Correct: The claim would be denied because the standard definition of Permanent Total Disablement (PTD) in Personal Accident insurance requires that the injury prevents the insured from engaging in any business or gainful occupation of any kind. Since the surgeon is still capable of working as a university consultant, they do not meet the criteria for being totally disabled from all forms of gainful work.

Incorrect: The suggestion that the claim is approved based on the inability to perform a specific professional role is wrong because the policy wording typically refers to ‘any’ occupation rather than the insured’s specific vocation. The statement that PTD only applies to the loss of sight or limbs is wrong because while those specific injuries qualify, the general definition also encompasses other conditions that prevent all gainful work. The idea that any reduction in earning capacity qualifies is wrong because the disablement must be total and permanent as defined by the specific policy terms.

Takeaway: Under standard Personal Accident insurance, Permanent Total Disablement is defined by the inability to perform any gainful work, rather than just the insured’s specific previous profession.

Correct: Statement I is correct because some PA policies define permanent total disablement as the inability to perform three or more Activities of Daily Living (ADLs), which specifically include washing, dressing, and feeding. Statement III is correct because, according to standard policy conditions, the total aggregate of compensation percentages for all disabilities resulting from a single accident is limited to 100% of the capital sum insured.

Incorrect: Statement II is incorrect because insurers typically restrict monthly income benefits to individuals who are gainfully employed or in a registered business, meaning students and homemakers are usually excluded from this specific benefit. Statement IV is incorrect because the definition of “loss of limb” in PA insurance focuses on the total and permanent functional loss of use rather than requiring actual physical amputation or severance.

Takeaway: Personal Accident insurance uses specific functional criteria for disability definitions and applies an aggregate cap on claims arising from a single event to maintain clear benefit structures. Therefore, statements I and III are correct.

Correct: The policy’s definition of the Period of Insurance explicitly states that coverage ceases from the time the Insured Person leaves Singapore and resumes only upon her return to Singapore or the renewal of her work permit, whichever is later.

Incorrect: The suggestion that coverage remains in force during the holiday is incorrect because the policy specifically excludes any period when the Insured Person returns to her home country. The claim that coverage is automatically cancelled is wrong because the policy terms allow for the resumption of cover once the helper returns to Singapore. The statement that accidental injury remains covered while abroad is false as the policy does not provide any benefits while the worker is in her home country.

Takeaway: Foreign Domestic Worker insurance is geographically limited, and coverage is suspended automatically for the duration of any trip the worker takes back to her home country.

Correct: Statement I is correct because temporary total disablement benefits are typically paid as weekly benefits for a maximum duration of 104 weeks. Statement II is correct because medical expense benefits are paid on a strict reimbursement basis, meaning they form an indemnity payment where contribution applies if multiple policies cover the same loss. Statement IV is correct because insurers usually reward claim-free years with incremental sum insured increases, which are commonly capped at a maximum of 50% of the original sum.

Incorrect: Statement III is incorrect because hospital cash benefits under a Personal Accident policy are only payable if the hospitalisation is a result of an accidental injury; hospitalisation resulting from sickness is specifically excluded from this benefit.

Takeaway: Personal Accident policies combine fixed-sum benefits for disability with indemnity-based medical reimbursements, each subject to specific limits, durations, and qualifying conditions like accidental injury. Therefore, statements I, II and IV are correct.

Correct: Statement I is correct because children are generally eligible for family PA coverage if they are under 21 (or up to 25 if in full-time study), unmarried, and unemployed. Statement III is correct because a “no claim premium refund” is typically offered only after a policy has been in force for a minimum of three consecutive years without any claims during the period under review.

Incorrect: Statement II is incorrect because motorcycling or pillion riding is listed as an extension benefit that requires negotiation and consideration, rather than being a standard automatic inclusion. Statement IV is incorrect because the standard exclusion for armed forces service specifically makes an exception for peacetime reservist training for national servicemen and military personnel.

Takeaway: Personal Accident insurance policies utilize specific eligibility criteria for family members and distinguish between standard exclusions and optional extensions such as motorcycling or hazardous activities. Therefore, statements I and III are correct.

Correct: The remaining balance of $45,000 is the correct amount because Special Provision 4 specifies that if a Permanent Disablement claim is less than the sum insured, a subsequent Death claim pays the balance. Since the loss of a thumb (both phalanges) is 25% of the $60,000 sum insured ($15,000), the remaining amount is $45,000.

Incorrect: The option for the full $60,000 is incorrect because it fails to account for the deduction of the previous disability payment as required by the policy provisions. The option for $30,000 is wrong because it introduces an arbitrary sub-limit not found in the Singapore Personal General Insurance regulations. The option stating no further benefit is payable is incorrect because the discharge of liability only applies once the total sum insured has been exhausted.

Takeaway: The total benefit payable for both permanent disablement and death under a Personal Accident policy is capped at the sum insured, with prior partial payments deducted from subsequent claims.

Correct: The helper accidentally damages a high-end television belonging to the employer while cleaning the living room area is the right answer because Section 7 of the policy specifically excludes indemnity for damage to property belonging to the Insured or the Insured’s family or household.

Incorrect: The scenario involving the neighbor’s child is wrong because the policy covers legal liability for accidental bodily injury to third parties caused by the helper’s negligence during employment. The scenario involving the guest’s vase is wrong because guests are not members of the Insured’s household, making the damage a covered third-party claim. The scenario involving the nearby vehicle is wrong because it describes accidental damage to third-party property, which is a standard covered event under this section.

Takeaway: Domestic Helper’s Liability coverage is designed for third-party legal liabilities and explicitly excludes claims for injuries to the employer’s family or damage to the employer’s own property.

Correct: Class I is the right answer because it specifically includes persons engaged in professional, managerial, administrative, and clerical work in non-hazardous places like offices. This category covers roles such as accountants, dentists, and lawyers.

Incorrect: Class II is wrong because it applies to supervisory work or outdoor roles like chauffeurs and tour guides who are not exposed to special hazards. Class III is wrong because it is reserved for manual workers using tools or machinery, such as electricians or plumbers. The specialized hazardous class is wrong because it applies to high-risk professions like oil riggers or timber loggers, not office-based professionals.

Takeaway: Personal Accident insurance premiums are primarily rated based on occupational risk, with office-based professionals falling into the lowest risk category, Class I.

Correct: The liability is limited to the manufacturer’s latest price list plus reasonable costs for overseas shipping and fitting because Section I (b) of the Private Motor Car policy explicitly restricts the insurer’s liability to the price quoted in the manufacturer’s latest catalogue plus the reasonable cost of importing the part and the labor for fitting it.

Incorrect: The option regarding second-hand parts is incorrect because the policy refers to the manufacturer’s price list for new parts, not scrap yard prices. The option excluding shipping costs is wrong because the policy specifically allows for the reasonable cost of bringing the part from overseas if it is not available locally. The option regarding depreciated value is incorrect as the replacement parts clause focuses on the catalogue price and import costs rather than applying a depreciation formula to the specific part.

Takeaway: When motor car parts are not available locally, the insurer’s liability is capped at the manufacturer’s list price plus reasonable import and installation expenses.

Correct: Statement I is correct because Section 10 specifically declares that the company waives its rights to obtain indemnification if the breach of the Immigration Act results from the Insured Person getting married to a Singapore Permanent Resident. Statement II is correct because the disappearance of the Insured Person is one of the three listed events that trigger the waiver of counter indemnity under Section 10.

Incorrect: Statement III is incorrect because the policy excludes any loss or claim occurring within the first thirty (30) days from the effective date of cover if such cover is effected at a later date from the basic insurance coverage, not 15 days. Statement IV is incorrect because Section 10 explicitly excludes any loss, claim, or payment arising out of circumstances caused directly or indirectly by the Insured’s tenants residing with the Insured.

Takeaway: The Waiver of Counter Indemnity applies to specific events like disappearance, pregnancy, or marriage, but is subject to a 30-day waiting period for late-effected cover and excludes acts by the Insured’s household. Therefore, statements I and II are correct.

Correct: Statement I is correct because the standard claim notification period is usually 30 days, as specified in the policy conditions. Statement II is correct because if the insurer decides to arrange a medical examination to verify the injury or disability, they must bear the cost of that examination. Statement III is correct because the insured or their legal representative is responsible for the expense of furnishing the initial certificates and evidence required to support a claim.

Incorrect: Statement IV is incorrect because premium rates for Personal Accident insurance are typically the same for both men and women; the primary underwriting factor is the occupation of the insured, not their gender.

Takeaway: In Personal Accident insurance, while the insured pays for basic claim documentation, the insurer pays for their own requested medical exams, and occupation remains the most critical factor for risk assessment. Therefore, statements I, II and III are correct.

Correct: The Renewal Bonus will be awarded as scheduled because a claim for Medical Expenses is not listed as a disqualifying event. According to the policy’s Renewal Bonus section (3.1), the 10% increase in the Sum Insured for Results A and B is only disqualified if a claim arises under Results A, B, C, D1, D2, F, G, or H. Since Result E (Medical Expenses) is omitted from this specific list, a claim for medical expenses does not prevent the accumulation of the bonus.

Incorrect: The statement that any claim made under the policy disqualifies the insured is incorrect because the policy explicitly identifies which results trigger a forfeiture of the bonus, and Result E is not among them. The suggestion that the bonus is cancelled for the remaining life of the policy is wrong as the bonus is assessed per renewal period for the first three years. The claim that the bonus is only applied to the Death benefit is incorrect because the policy states the 10% increase applies to both Result A (Death) and Result B (Permanent and Total Disablement).

Takeaway: Eligibility for a Renewal Bonus in Personal Accident insurance is determined by the absence of claims for specific results listed in the policy, which may exclude certain benefits like medical expenses.

Correct: Statement I is correct because Clause 3 of the Important Notice states that the company’s liability does not commence until the application is accepted and the premium is paid. Statement II is correct because the form specifies that a local guarantor (Singaporean or PR) with an annual income of at least S$25,000 is required if the applicant is a foreigner.

Incorrect: Statement III is incorrect because the declaration section explicitly states that all pre-existing conditions before the effective date of the policy are not covered, regardless of disclosure. Statement IV is incorrect because for individual policyholders, the premium must be received by the company before the inception date, not after.

Takeaway: Coverage for foreign domestic workers is contingent upon the full payment of premiums before inception and the strict exclusion of all pre-existing medical conditions. Therefore, statements I and II are correct.