CMFAS PGI – Personal General Insurance Exam

Explanation: An Investment-Linked Policy (ILP) distinguishes itself from traditional life insurance policies by combining life insurance coverage with investment components, allowing policyholders to allocate funds to investment-linked sub-funds.

Explanation: The primary purpose of the investment component in an Investment-Linked Policy (ILP) is to offer investment growth and the potential for higher returns, allowing policyholders to participate in the performance of the underlying investment-linked sub-funds.

Explanation: In the context of Investment-Linked Policies (ILPs), “units” denote the allocation of funds to specific investment-linked sub-funds, reflecting the policyholder’s investment choices within the ILP.

Explanation: The role of the fund manager in the management of Investment-Linked Policies (ILPs) involves selecting and managing the investment-linked sub-funds offered within the ILPs, aiming to optimize the performance of the funds.

Explanation: The primary purpose of the “switching” feature in Investment-Linked Policies (ILPs) is to enable policyholders to reallocate funds among different investment-linked sub-funds, allowing flexibility in investment choices.

Explanation: The primary purpose of Foreign Domestic Worker Insurance (FDWI) in Singapore is to offer financial protection to employers against medical expenses incurred by their foreign domestic workers, in compliance with the Work Injury Compensation Act.

Explanation: Foreign Domestic Worker Insurance (FDWI) in Singapore typically covers key components such as hospitalization and surgical expenses, outpatient medical treatment, and personal accident benefits to ensure the well-being of foreign domestic workers.

Explanation: In Singapore, employers are responsible for purchasing and maintaining Foreign Domestic Worker Insurance (FDWI) for their foreign domestic workers, ensuring that the workers are covered for medical expenses and personal accident benefits.

Explanation: In the context of Foreign Domestic Worker Insurance (FDWI) in Singapore, the Security Bond serves as a financial guarantee by employers to ensure the proper conduct of their foreign domestic workers, while Personal Accident Insurance (PAI) provides coverage for accidental injuries of the workers.

Explanation: The Work Injury Compensation Act (WICA) in Singapore regulates the insurance coverage and compensation for work-related injuries or illnesses of foreign domestic workers, ensuring that employers provide adequate protection for their workers.

Explanation: The primary purpose of a health insurance policy’s “co-payment” provision is to establish the minimum amount the insured individual must pay for covered medical expenses, representing a cost-sharing arrangement between the insured individual and the insurer.

Explanation: The role of a health insurance underwriter in the insurance industry involves evaluating and selecting risks to be insured and determining the appropriate premium rates for health insurance policies based on the assessed risk.

Explanation: In the context of health insurance, a “pre-existing condition” signifies a medical condition that existed before the individual obtained the health insurance policy, which may have implications for coverage and exclusions.

Explanation: The purpose of a health insurance policy’s “network provider” feature is to provide coverage for medical services obtained from a specified group of healthcare providers, offering benefits for seeking care within the designated network.

Explanation: A claims adjuster’s primary role in the health insurance claims process is to assess the extent of medical expenses and determine claim amounts to be paid to policyholders, facilitating fair and accurate claims settlement.

Explanation: The primary purpose of third-party liability coverage in motor insurance is to provide financial protection against claims from third parties for bodily injury or property damage arising from an accident involving the insured vehicle.

Explanation: The “No-Claim Discount” (NCD) feature in motor insurance provides a discount on the insurance premium for each claim-free year, encouraging safe driving and responsible claims behavior.

Explanation: The Motor Claims Framework (MCF) plays a role in facilitating the settlement of motor insurance claims between insurers and claimants, providing a structured process for resolving claims disputes.

Explanation: The purpose of a Certificate of Insurance in the context of motor insurance is to demonstrate that the vehicle is covered by a valid motor insurance policy, serving as proof of insurance coverage.

Explanation: A loss adjuster’s primary role in the motor insurance claims process is to assess the extent of vehicle damage and determine claim amounts to be paid to policyholders, facilitating fair and accurate claims settlement.

Explanation: The primary purpose of a general insurance policy’s “excess” feature is to establish the minimum amount the insured individual must bear for each claim, representing a cost-sharing arrangement between the insured and the insurer.

Explanation: In the context of general insurance, “indemnity” signifies a legal obligation to compensate for losses or damages suffered by the insured, aiming to restore the insured to the same financial position as before the loss occurred.

Explanation: The purpose of a general insurance policy’s “renewal notice” provision is to remind the insured of the upcoming policy renewal and present the terms of the renewal, ensuring continued coverage and awareness of policy details.

Explanation: The role of a general insurance broker in the insurance industry involves facilitating the sale and purchase of insurance products between insurers and policyholders, acting as an intermediary in the insurance transaction.

Explanation: The primary purpose of the “endorsement” feature in general insurance policies is to provide additional benefits or coverage beyond the standard policy terms, allowing policyholders to customize their insurance coverage.

Explanation: The primary purpose of travel insurance coverage for trip cancellation and interruption is to offer financial protection against unforeseen events, such as illness, accidents, or natural disasters, leading to trip cancellation or interruption.

Explanation: In the context of travel insurance, “repatriation” signifies the provision of emergency medical evacuation to the insured’s home country in the event of a serious illness or injury during the trip.

Explanation: The purpose of a travel insurance policy’s “personal liability” coverage is to offer financial protection against legal liability for bodily injury or property damage to others, providing peace of mind during travel.

Explanation: The role of the travel insurance underwriter in the insurance industry involves evaluating and selecting risks to be insured and determining the appropriate premium rates for travel insurance policies based on the assessed risk.

Explanation: The primary purpose of the “24-hour emergency assistance” feature in travel insurance policies is to provide round-the-clock support for emergency medical and travel assistance during the trip, offering peace of mind to travelers.