Professional Documents
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Pce Sample Questions 2016 - Eng PDF
Pce Sample Questions 2016 - Eng PDF
1) Upon diagnoses of one of the 36 critical illnesses, critical illness insurance will provide
________ of the sum assured.
2) A situation where more sub-standard risks are accepted for insurance resulting in a less
favourable underwriting result is known as
a. Anti reaction
b. Contradiction
c. Anti rejection
d. Anti selection
3) The relative frequency of deaths in a specific population is ‘rate of death’ which is also
termed as:
a. Numbers of death
b. Mortality rate
c. Level of fatality
d. Term of life
a. Endowment
b. Traditional
c. Investment-Linked
d. Whole Life
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6) Jack is a shareholder and policy holder in ABC Corporation. Last year he paid $10,000 in
premiums for his life insurance policy. In November of that year he received a $500 check in
return for extra premiums not used by the company. What type of policy is this considered?
a. Participating
b. Nonparticipating
c. Return of Principal policy
d. Variable-Dividend policy
7) Mr. A received a hospital bill worth RM3000 on the 20th of November. At the same time he is
insured with a policy that provides a deductible of RM1000 and 20% co-payment. How much
does he need to pay in total?
a. 1600
b. 1800
c. 1400
d. 2400
a. A specified amount of money that the insured must pay before an insurance company will
pay a claim.
b. A specified amount of money that the insured must pay after an insurance company pays a
claim.
c. An amount of money payable to insurer after an insurance company pays a claim.
d. An amount of money payable to insured after an insurance company pays a claim.
11) In a regular premium policy, how many years do the policyholders has to pay continuously to
acquire surrender value?
a. 2
b. 3
c. 1
d. 0
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12) A printed policy document includes the following main sections, EXCEPT:
a. Recital Clause
b. Operative Clause
c. Attestation
d. Law of contract
a. Employer
b. Employee
c. Employer and employee
d. Company Fund
14) In the concept of contribution, if an individual bought more than one policy and met into an
accident, he/she will be payable through?
15) The insurer will not be able to contest the validity (non-contestability) of the policy if life
insurance policy has been in force for:
17) When insurer reduce the premium and refund overpayments due to misstatement of age, this
means:
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18) Insured are able to withdraw their policy from insurer __ days after delivery of life policy?
a. 20
b. 30
c. 15
d. 10
19) Which of the minimum paid-up capital prescribed by the Act below is correct?
a. RM 50 million for local/foreign direct insurers and local professional general reinsurers
b. RM 20 million for local professional life reinsurers
c. RM 100 million for local/foreign direct insurers
d. RM 30 million for foreign professional life and general reinsurers
20) Which are some of the ways insurers handle adverse risks?
i. Exclude a particular condition or impairment
ii. Recommend an alternative insurance plan
iii. Charge extra premiums or loading
iv. Reduce the death benefit or sum assured
a. i & ii
b. ii & iv
c. iii & iv
d. All of the above
a. i & ii
b. i, iii, & v
c. i, ii, iv, & v
d. All of the above
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23) Policy owner can renew their policy as of the following, except:
a. Annually
b. Semi-annually
c. Weekly
d. Quarterly
24) Which are the five essential factors for the formation of a valid contract?
a. i & ii
b. ii & iii
c. i, ii, iii, & iv
d. All of the above
25) What are the key regulatory objectives of Bank Negara Malaysia?
a. i & ii
b. i, ii, & iii
c. i, ii, iii, & iv
d. All of the above
a. Help settle disputes between financial consumers and financial service providers who are
its members
b. Administer the national deposit insurance system aimed at protecting depositors in
commercial and Islamic banks
c. Regulate the processing of personal data in a commercial transaction
d. Keep a close watch on solvency and market conduct to enhance professional standards
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28) After the premium paid by policy owner has been divided to management, commission
then the rest of the money goes to?
a. Investment
b. Insurer
c. Public trust fund
d. Intermediary
29) Which of the following is not one of the three main ways through which the relationship
between principal and agent may come about?
a. Consent
b. Authority
c. Ratification
d. Necessity
30) When making an offer or proposal to enter into a contract of insurance, it is not necessary for
agents to disclose one of the following below:
a. Moral hazard
b. Physical hazard
c. Financial hazard
d. Accidental hazard
i. Standard risks
ii. Sub-standard risks
iii. Below average risks
iv. Uninsurable risks
v. Above average risks
a. ii & iii
b. iii & v
c. i, ii, iii, iv
d. All of the above
a. Agent perform acts which are usually performed by persons in the agent’s position
b. Unknown to the third party, the authority of the agent has been terminated
c. Apparent agent has never been appointed at all
d. Principal has restricted the authority of a validly appointed agent
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34) Which of the following about Life-Annuity Plan is correct?
a. Provide payment of the sum assured on death
b. It provides pension for the lifetime of the annuitant
c. Can be purchased for the right to a series of periodic payments at intervals of 2 years
under a contract with a life insurer
d. It covers retirement and critical illness as well
36) Which of the following is the condition which increases chance of a loss?
a. Peril
b. Hazard
c. Loss
d. Risk
37) Which of the following is not one of the risk handling methods?
a. Retain
b. Prevent
c. Transfer
d. Escape
a. Pure risk
b. Speculative risk
c. Fundamental risk
d. Hazard risk
i. Insurable interest
ii. Homogeneous exposures
iii. Pure risk
iv. Particular risk
v. Fortuitous
a. i & ii
b. i, iii, & iv
c. iii, iv, & v
d. All of the above
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40) A ‘prudent underwriter’ is to decide whether to accept or reject a risk, based on:
a. Agent’s report
b. Material fact
c. Address of policy owner
d. Policy owner monthly income
41) A policy owner who has attained the age of sixteen (16) years may nominate a person to
receive the policy monies upon his/her death and such nomination shall be witnessed by:
a. a person of sound mind; a person who has attained the age of 21 years
b. a person of sound mind; a person who has attained the age of 18 years
c. a person who is not a nominee named under the policy; a person who has attained the age
of 21 years
d. a person who is a nominee named under the policy; a person who has attained the age of
18 years
43) In what ways insurer would do to make good property lost or damaged?
i. Cost of repair
ii. Replacement
iii. Reinstatement
iv. Pay the total value of property
a. i & ii only
b. i & iv only
c. i, ii, iii only
d. All of the above
44) For local/foreign direct insurers and local professional general reinsurers, the minimum paid-up
capital or surplus of assets over liabilities should not be less than
a. RM 20 million
b. RM 50 million
c. RM 100 million
d. RM 150 million
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45) What is the role of risk-based capital?
46) Insurance brokers, financial advisers and registered adjusters are incorporated as:
a. Public companies
b. Private companies
c. Individual company
d. International companies
i. Schedule
ii. Attestation
iii. Operative clause
iv. Proposal form
v. Exclusions and conditions
a. ii & v
b. i, ii, & iii
c. iv
d. ii & iii
a. Sum insured
b. Date of birth/age
c. Service tax amount
d. Conditions
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51) What will happen when the insured commit suicide within a stated period of time from the
date of inception or reinstatement of the policy?
a. Risk
b. Hazard
c. Peril
d. Subrogation
a. The insured
b. The insurer
c. Both the insurer and the insured
d. The pro po ser
56) Which of the followings are the code of ethics and conduct that an intermediary shall maintain?
i. Ensure the policy proposed is suitable to the needs of the prospective policy owner.
ii. Give advice only on those matters in which he is competent to deal with.
iii. Share information supplied by the prospective policy owner to other agents for clarification.
iv. Attempt to persuade a prospective policy owner to cancel any existing policies that are
clearly unsuited for the policy owner’s needs.
a. i o nly
b. i and ii
c. ii and iii
d. iii and iv
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57) Which of the followings are the functions of Bank Negara Malaysia?
a. i only
b. i, ii and iii
c. i, iii and iv
d. All of the above
a. Expressed
b. Implied
c. Apparent
d. All of the above
a. i and ii
b. i, ii and iv
c. i, ii and iii
d. All of the above
a. Notice of revocation
b. Lapse of time
c. Mutual agreement
d. Ratification
a. Product knowledge
b. Market knowledge
c. Selling techniques
d. All of the above
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62) ______________ is an admission to a panel hospital by the issuance of a letter of guarantee
t hat eliminat es t he ho spit al depo sit .
63) ______________ pays a pre-agreed amount to the insured for each day the insured is
hospitalized.
a. More sub-standard risks are accepted for insurance resulting in a less favourable
underwriting result.
b. More sub-standard risks are accepted for insurance resulting in a more favourable
underwriting result.
c. More standard risks are accepted for insurance resulting in a less favourable underwriting
result.
d. More standard risks are accepted for insurance resulting in a more favourable underwriting
result.
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68) A joint life annuity is:
a. A contract that provides a specific amount of income for two or more persons named in the
contract with the annuity ceasing on first death among covered lives.
b. A contract that provides a specific amount of income for two or more persons named in the
contract with the annuity ceasing of last death among covered lives.
c. A contract provides that the annuity payments continue as long as either of two or more
person lives.
d. A contract that provides guaranteed payments over a fixed period and thereafter until
death.
69) An annuity contract that continues to provide payment until the last death of a joint life is:
i. Interest
ii. Mortality
iii. Expense
iv. Miscellaneous sources
a. iv only
b. i, ii and iii
c. ii, iii and iv
d. All of the above
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73) Surplus is distributed through:
74) The policyholders’ share of surplus can be distributed in the following ways, EXCEPT:
a. Cash bonus
b. Maturity/Terminal bonus
c. Dividend bonus
d. Interim bonus
75) Name, age, sex, occupation and address of the life assured are contained in:
a. The preamble
b. The schedule
c. The heading
d. Attestation
76) Which of the following is the principles underlying the guidelines on the code of ethics and
conduct?
a. i, ii and iii
b. ii, iii and iv
c. i, iii and iv
d. All of the above
77) To discontinue a policy or to have a policy made paid-up and then to affect a new one in
another company or the same company is known as:
a. Changing
b. Twisting
c. Replacing
d. Substitute
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79) Which of the following is true about gross premium for participating policies?
a. Net premium plus loading for expenses plus loading for profits and contingencies.
b. Net premium plus loading for expenses.
c. Present value of benefit payable plus present value of expenses less present value of
future premium receivable.
d. None of the above
81) The present value of benefits payable plus the present value of expenses less the present value
of the future premium receivable is valuation of: -
a. Asset
b. Liabilities
c. Expenses
d. Future value
82) John at the date of submission of proposal is 30 years and 7 months and he is non-smoker. The
premium rate would be based on:
a. 29 years
b. 29 years and non-smoker discount
c. 31 years
d. 31 years and non-smoker discount
83) For an insurance agent, how many general insurance companies can he/she represent?
84) The principal and agent relationship may be terminated by act of parties or act of law as
follows, EXCEPT:
a. Written notice
b. Notice of revocation
c. Notice of renunciation
d. Lunacy
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85) Which of the following statement is NOT TRUE about the duties of an insurance agent?
86) John and his twin sister purchase a whole life insurance plan. The premium varies for both of
them, why?
a. Morbidity rate
b. Mortality rate
c. Gender rate
d. All of the above
a. i, ii and iv
b. ii and iv
c. ii, iii and iv
d. ii and iii
89) The policy is issued on the life of one of the parents. The child is designated as the beneficiary
and the policy moneys are payable on the child attaining a specified age mentioned in the
policy. This policy refers to:
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90) The selling process in personal selling involves five basic steps, what is the missing step?
91) Gross premium for participating policies are computed based on the corresponding element,
they are:
i. Bonus loading
ii. Mortality
iii. Interest
iv. Expenses
a. II and III
b. II, III and IV
c. I, II and III
d. All of the above
92) Which of the following department evaluates the risk and determine the premium for new
business and renewal?
a. Actuarial department
b. Underwriting department
c. Agency department
d. Product development department
93) The principle of subrogation has been developed to prevent the insured from getting more
___________, when he has two or more avenues to recover his loss.
a. Indemnity
b. Contribution
c. Indemnity and contribution
d. None of the above
94) The department that handle & processes claims on policies is:
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95) Endowment insurance is use as a:
a. i and iii
b. i, iii and iv
c. ii, iii and iv
d. All of the above
96) For non-participating policies, the premium charged is computed after taking into account
the elements of mortality, interest, and expenses is called:
a. Net premium
b. True premium
c. Gross premium
d. Loading for expenses
97) “The premium payments cease on death and no deduction is made from the claim amount as
with instalment premiums.” The above statement refers to:
a. Level premium
b. Annual premium
c. Instalment premium
d. True premium
98) ____________________ is a policy that requires the policyholder to pay a pre-agreed amount
first before the eligible expenses are reimbursed.
a. Co-payment
b. Co-sharing
c. Claim-expense policy
d. Deductibles
a. Co-payment
b. Co-sharing
c. Co-payable
d. Co -insurance
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100) Which of the following statement is true about insurable interest?
a. 1 Million
b. 2 Million
c. 3 Million
d. 4 Million
a. Insured fails to disclose material fact and the breach of utmost good faith.
b. Insurer has waived any requirement for disclosure.
c. Insurer knows or in the ordinary course of his business ought to know.
d. A material fact that will influence a prudent underwriter in deciding the acceptance of
the risk.
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105) What is/are the secondary function of insurance?
a. i only
b. ii, iii and iv
c. ii, iii and iv
d. All of the above
a. Slow service
b. Uniformity in practice
c. Economic in administration
d. Prompt service
107) Which of the following statement is TRUE about the responsibility of the company secretary?
a. Ensure the insurer complies with the company and insurance company law.
b. Ensure to take minutes for each meeting or event that have occurred.
c. Ensure correct filing has been done and maintain the filing system.
d. Ensure to report to the CEO or COO on any events happened in the industry and do a
proper follow-up on every event.
108) Features of life insurance contract being long term and implications of surrender value being
less than total premiums paid are usually part of information found in
a. Agent’s report
b. Endorsements
c. Sales Literature
d. Proposal forms
109) A health insurance policy is automatically terminated upon the earliest happening of the
following events EXCEPT
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110) The process by which the proceeds of a policy are paid other than as a lump sum cash
payment is called
a. Dividend.
b. Reinstatement.
c. Settlement option.
d. Non-forfeiture option.
111) Which one of the following is NOT settlement option of a maturity claims?
112) Which of the following particulars are usually found in the schedule of a policy?
i. Sum assured
ii. Date of maturity
iii. Name and address of the insurer
iv. Name and address of the assured
a. i, ii and iii
b. i, ii and iv
c. i, iii and iv
d. i, ii, iii and iv
113) Information relating to financial position and sources of income of the life proposed is
generally obtained from the
a. Agent's report.
b. Proposal form.
c. Health declaration.
d. Employer's certificate.
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115) Life insurance companies usually give certain discounts on premium chargeable to female
lives because
117) The particulars asked for in the proposal form which will help to calculate the premium rates
are
a. i, ii and iii
b. i, iii and iv
c. ii, iii and iv
d. i, ii, iii and iv
118) A situation where more sub-standard risks are accepted for insurance resulting in a less
favourable underwriting result is known as
a. Anti reaction.
b. Contradiction.
c. Anti rejection.
d. Anti selection.
119) On August 1, Mr. Chong submitted a proposal form to an insurer. A letter of acceptance was
issued on August 8, and was delivered to Mr. Chong on August 10. Mr. Chong paid the initial
premium on August 17. A life insurance policy was issued and delivered to Mr. Chong on
September 4. Mr. Chong's life insurance policy was effective on
a. August 8.
b. August 10.
c. August 17.
d. September 4.
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120) Under the 'cooling-off ' period, a new life policyholder may, within ________ of the delivery
of the policy to him, return the policy to the insurer for cancellation due to objections to
certain terms in the policy.
a. One week
b. One month
c. 15 days
d. 21 day s
121) Special conditions that need to be endorsed at the time of issuing the policy are those
a. I and II
b. II and III
c. III and IV
d. I, II, III and IV
122) A provision in a life insurance policy which states that any premium not paid by the end of the
grace period is automatically paid by a policy loan if there is sufficient cash value is called
123) When an applicant for insurance is classified as substandard risk, it means the applicant
a. Taxable.
b. Deductible.
c. Chargeable.
d. Not taxable.
125) This is the value which attaches to a policy of life insurance after a period of at least three
years of being in force.
a. Paid up value
b. Residual value
c. Cash value
d. Forced sale value
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126) The conditions in a life insurance policy can be categorized into three groups, namely,
a. ii only
b. iii only
c. i and ii
d. i and iii
129) Which one of the following statements is true about the incontestability clause?
130) Normally, the life insurance company requires when reinstating a lapsed policy.
a. A health declaration
b. A formal letter from the insured
c. A new application to be submitted
d. The consent of the life insurance agent
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131) Which one of the following statements is NOT true?
a. An assignment effectively transfers the ownership or legal rights under the policy.
b. An assignment is the transfer of rights and obligations under a contract from one person
to another.
c. The person who transfers the rights is called an assignor and the person to whom the
rights are transferred is called an assignee.
d. The person who transfers the rights is called an assignee and the person to whom the
right s are t ransf erred is called an assigno r.
132) A is the evidence of a contract between the insurer and the insured.
a. Letter of acceptance
b. Life insurance policy
c. Life insurance proposal form
d. Written presentation by an agent
133) This type of insurance provides for installment cash payments to policy holders with the sum
assured being payable in the event of death anytime during the term of this policy.
a. Annuity scheme.
b. Whole life insurance.
c. Level term insurance.
d. Endowment insurance.
135) One of the following policies does NOT accrue any cash or surrender value.
a. Term insurance
b. Whole life insurance
c. Endowment insurance
d. Limited payment whole life insurance
a. Bonus.
b. Basic benefit.
c. Permanent benefit.
d. Supplementary benefit.
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137) Identify the major difference between an ordinary whole life policy and a limited payment
whole life policy.
a. An ordinary whole life policy accumulates cash value faster than a limited payment
whole life policy.
b. An ordinary whole life policy is non-participating whereas a limited payment whole life
policy is participating.
c. An ordinary whole life policy gives protection for a lifetime while a limited payment
policy provides protection for a limited period.
d. Premiums on an ordinary whole life policy are payable for the lifetime of the insured
whilst premiums on a limited payment whole life policy are payable for a limited
perio d.
a. i, ii and iii
b. i, ii and iv
c. ii, iii and iv
d. i, ii, iii and iv
139) In this policy, payment of the sum insured is made only in the event of the death of the life
assured within the stipulated term of the policy and nothing is payable if the life assured
survives the term:
a. Children policies.
b. Group insurance.
c. Term assurance.
d. Whole life assurance.
141) The policyholder of a life insurance policy can transfer all the rights under the policy to
another person by
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142) Which one of the following is NOT a feature of an endowment policy?
143) Mr. and Mrs. Lee, aged 65 and 60 respectively, are receiving income payment from a life
insurance company. The income will be paid as long as either annuitant is alive. The income
payment will stop upon the death of the last annuitant. What type of annuity contract has been
acquired by the couple?
144) Mr. Lim purchased a ten years duration convertible term policy at the age of 30. If he elects to
convert the term to a whole life policy at the age of 35 on an attained age basis, then the
premium for the whole life policy will be
145) Life insurance is the most practical means of meeting one's financial obligations arising from
premature death because it
146) The life insurance contract requires the proposer to disclose to the life office all material facts.
For how long must this duty of disclosure continue?
147) If no insurable interest existed at the time a life policy was effected, the policy would
a. Remain valid.
b. Become voidable depending on the judgement of the high court.
c. Become void; the company is not obliged to pay a claim under the policy.
d. Become voidable; the company may or may not be obliged to pay a claim under the
policy depending on the discretion of management.
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148) In life insurance, the law requires the applicant for a life policy to have insurable interest
at the time the
a. Claim is paid.
b. Policy is issued.
c. Insured person dies.
d. Application for life insurance is made.
149) Under the guidelines on the code of conduct, cases of fraud must be reported immediately to
the
a. Police only.
b. Police and to the board of directors.
c. Police and to Bank Negara Malaysia (BNM).
d. Po lice and t o t he audit / disciplinary co mmitt ee.
150) Perils that have been expressly excluded from the policy are known as:
a. Insured perils
b. Excluded perils
c. Uninsured perils
d. Exception perils
a. Moral
b. Physical
c. Legal
d. Peril
a. Avoid
b. Identify
c. Transfer
d. Retain
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155) Why ‘Material Facts’ is very important?
156) Transfer of rights and liabilities from one person to another is defined as
a. Assignment
b. Indemnity
c. Subrogation
d. Contribution
a. Unlimited company
b. Public company
c. Private company
d. None of the above
a. i, ii
b. i, ii, iii
c. i, ii, iv
d. i, ii, iii and iv
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161) Which of the following is true?
a. i, ii, iii
b. i, iii, iv
c. ii, iii, iv
d. i, ii, ii and iv
162) In how many days, a policy owner may return the policy to the insurer?
a. 10 days
b. 15 days
c. 30 days
d. 60 days
163) What do policyholders stand to lose when they surrender the policy?
a. i, ii, iii
b. i, ii, iv
c. ii, iii, iv
d. all t he abo v e
a. A life insurer is not allowed to contest the validity of the contract on the ground of fraud
b. A life insurer is not allowed to contest the validity of the contract for misrepresentation
after the policy has been in force for more than 2 years
c. A life insured is not allowed to contest the decision of the life insurer not to accept his
proposal
d. A life insurer is not allowed to void the contract when false statements were made by the
insured.
a. Term
b. Whole life
c. Endowment
d. None of the above
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166) Gross Premium is made up of _________________________
a. Office workers
b. Bike Racers
c. Ship-breaking
d. Structural iron and steel workers
168) Which of the following documents are relevant sources of information for the underwriting of
life insurance?
i. Proposal form
ii. Medical examiner’s report
iii. Police report
iv. Agent’s report
a. i, ii, iii
b. i, ii, iv
c. ii, iii, iv
d. i, ii, iii and iv
a. Factory fire
b. Death
c. Investments in the share market
d. Natural disaster
170) What is the purpose of introduction of Risk-Based Capital (RBC) by Bank Negara Malaysia?
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171) The Financial Mediation Bureau (FMB) is ____________________________
a. A statutory body established under the Malaysia Deposit Insurance Corporation Act 2005
b. A corporate registry and regulatory authority that meets business needs through
registration, information, regulation and advice.
c. An independent body set up to help settle disputes between financial consumers and
financial service providers who are its members.
d. A centralised point of contact to facilitate a rapid and effective response for member of
the public and small and medium enterprises (SMEs)
172) Which of following factors needed for the formation of a valid contract?
a. i, ii
b. i, ii, iii
c. ii, iii, iv
d. i, ii, iii and iv
174) What remedy is available for policy owner who is not agreeable to the policy terms after taking
delivery of the policy?
a. Return the policy to the insurer within 30 days and request for cancellation of the policy
b. Return the policy to the insurer with the grace period and demand cancellation
c. Return the policy within the 15 days and return any expenses incurred by the insurer for
issuing the policy
d. Return the policy to the insurer within 15 days and expect full refund minus expenses
incurred for medical examination
175) The principal and agent relationship may be terminated by following aspects by,
a. Mutual agreement
b. Death, lunacy or bankruptcy of the principal or the agent
c. Notice of revocation given by the principal to the agent
d. All the above
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176) Which policy provides a lump sum payment of the sum insured upon diagnosis of any of the
dread disease or illnesses specified in the policy?
177) Under a group policy, a/an ________ is liable to the person insured if the ____________ has no
insurable interest in the life of that person insured and if that person has paid the premium to
the policy owner regardless that the insurer has not received the premium from the group
policy owner.
178) Surrender value is granted if a life policy has been in force for ______________
a. 2 years or more
b. 3 years or more
c. 5 years or more
d. 7 years or more
a. Cause of loss
b. Reduction or disappearance of economic value
c. Condition which increase chance of a loss
d. Subject matter of insurance
181) Legal right to insure arising from a legitimate financial interest. This is called as ___________
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182) In the case of a missing person, what is the time lapse before a statutory presumption of death
can be issued by a court?
a. 1 year
b. 3 years
c. 5 years
d. 7 years
183) What type of bonus is only paid in force policies, which result in claims either by maturity or
death?
a. Interim bonus
b. Terminal bonus
c. Cash bonus
d. Guaranteed bonus
184) A claim provides that a claim upon the death of policy owner must be paid within how many
days upon receipt of intimation of the claim?
a. 15 days
b. 30 days
c. 45 days
d. 60 days
185) Which life insurance mode of payment would result in the lowest cost:
a. Annually
b. Monthly
c. Quarterly
d. Semi-annually
186) A provision that keeps a policy from lapsing due to non-payment of premium by borrowing from
cash value is:
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187) Which of the following is true about term insurance?
a. i
b. i, ii
c. i, iv
d. ii, iii
188) Which one of following has no insurable interest in the life of another?
a. The clause that described what the insured must do in the event of a claim
b. The clause that describes or refers to the cover provided by the insurers
c. The clause that describes the risks excluded from the policy cover
d. The operating clause that refers to the proposal, the parties and the premium
190) Which of the following NOT normally found in the Schedule of a policy?
191) Which of the fo llo wing is NOT a Medical and Healt h I nsurance Pro duct ?
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192) When must insurable interest exist for a life insurance contract?
193) What is the method of charging a uniform premium throughout the duration of a life insurance
policy despite the rate of death increasing with age?
194) A life claim can arise under any of the following situations, EXCEPT:
a. Death of insured
b. Death of beneficiary
c. Maturity of the life policy
d. Critical illness
195) A death claim must be paid within _____ days of receipt of notification of the claim;
otherwise, the law requires compound interest to be charged on the amount payable.
a. 15 days
b. 30 days
c. 60 days
d. 90 days
196) The commencement date of a life policy I usually allowed to be backdated to a maximum of
a. 3 months
b. 4 months
c. 6 months
d. 8 months
197) Insurance Act 1996 provides that where a life policy has been in force for 3 years or more, it
shall not lapse by reason of non-payment of premiums but shall have effect subject to such
modification as to the period for which the policy is to be in force, or of the benefit receivable
under it, or both. This statement is referring to:
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198) The role of Life Insurance :
199) Name, age, sex, occupation and address of the life assured are contained in:
a. The preamble
b. The schedule
c. The heading
d. Attestation
200) The policy is issued on the life of one of the parents. The child is designated as the beneficiary
and the policy moneys are payable on the child attaining a specified age mentioned in the
policy. This policy refers to:
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ANSWERS FOR PCE
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101. B 111. B 121. D 131. D 141. A
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