Basic Insurance Concepts & Principles (Fourth Edition - 2013) from SCI website

________ are set up primarily to insure the risks of their parent and related companies.

Insurers are using alternative distribution channels to market their insurance products. Which one of the following is NOT an alternative distribution channel?

A vehicle collision that causes a driver to suffer personal injury and physical damage to his vehicle is an example of a:

________ is NOT a speculative risk.

________ are uninsurable.

The potential loss of an insurable risk must be:

The lightning that caused the factory owned by Adrian to be burnt down is referred to as the:

Betsy has a fear of drowning, so she chooses not to swim. This is an example of risk:

Strict enforcement of safety rules in construction sites is an example of loss:

As specified in Session 57(1)(b) of the Insurance Act (Cap. 142), insurable interest is NOT present when the:

Which one of the following insurance policies does NOT require proof of insurable interest in the event of a claim?

Under the doctrine of utmost good faith, the parties to an insurance contract have the duty to disclose all:

In his proposal form for Fire Insurance, Donald states that his warehouse is installed with fire extinguishers when it is not. This is an example of ________ misrepresentation.

Under the principle of indemnity, there are a number of methods by which an insurer can provide the necessary indemnity to the insured in the event of a loss. Which one of the following is NOT a method of providing indemnity?

The principle of indemnity applies to ________ Insurance policies.

Max Hardware Storage, a warehouse, caught fire recently. Its owner claimed a loss of S$80,000 (hardware stock) against its Fire Insurance policy that included an Average Clause. The loss adjuster appointed by the insurer was satisfied that the quantum of loss claimed was correct. However, the lost adjuster was of the opinion that there was at least S$160,000 in stock, but only S$120,000 was insured. As such, on application of average, the insurer's liability for loss under the policy amounts to

An explosion at his neighbour's factory caused a fire which spread to Calvin's factory and caused extensive damage. The insurer having paid the claim to Calvin under his Fire Insurance policy assumes his rights to recover the loss from his neighbour, who was responsible for the fire. This legal doctrine is known as:

The principle of contribution arises when there is a loss that involves two or more insurance policies covering:

Which one of the following statements about a general insurance agent is NOT correct?

________ authority is the power that is granted to an agent by the principal in specific terms in the agency agreement.

The situation where the principal accepts its agent's actions that are made outside the scope of the agency agreement is known as:

Which of the following statements relating to the Law of Contract is CORRECT?

Which one of the following insurance policies is an example of a "master contract" that is effected by a company to offer optional employee benefits?

Which one of the following documents does NOT form part of an insurance contract?

In the proposal form for Fire Insurance, the information that has a material bearing on the potential hazards of the risk is the:

Which one of the following statements BEST describes a cover note?

A Certificate of Insurance is typically NOT required for ________ Insurance.

An implied condition is one that must be complied with, but does not appear in the policy document. Which one of the following is an example of an implied condition?

Which one of the following question is NOT usually included in a check list used to perform a preliminary validation of a Property Insurance claim by an insurance company?

In the event of a loss or damage, the onus of proving that the loss has occurred rests solely with the:

A "Sue and Labour" clause enables the insured to recover expenses incurred in averting or minimising a loss under a policy. This clause is commonly found in a/an ________ Insurance policy.

________ are independent intermediaries who can help policyholders to ensure that the eventual claim settlement recommended to the insurers is fair to both parties within the terms of the policy.

In Singapore, Section 24A of the Limitation Act (Cap. 163) provides for legal actions pertaining to damages for negligence, nuisance or breach of duty in respect of personal injuries to commence before the expiration of a certain limitation period from the date on which the course of action accrued. The limitation period in Singapore is ________ years.

The common method of settlement of the loss of a jewellery under a Theft Insurance policy is by:

________ is a risk transfer mechanism whereby the reinsurer transfers part of a risk to another reinsurer.

Which one of the following regarding treaty reinsurance is FALSE?

A contract of reinsurance is strictly between the ________ and the reinsurer.

After retaining S$3,000,000 on a risk with an original sum insured of S$5,000,000, Gold Insurer reinsured the balance with Silver Reinsurer on a Proportional Facultative Reinsurance basis. If there is a loss of S$2,000,000 on the risk, Silver Reinsurer will be liable to pay its share of loss amounting to:

The Monetary Authority of Singapore (MAS) Guideline No: FSG-G01 sets out fit and proper criteria applicable to all relevant persons in relation to the carrying out of any activity regulated by MAS. Examples of relevant persons are:

Which of the following statements relating to the Singapore General Insurance Code of Practice ("The Code") is FALSE?