Certificate in Health Insurance

Practice Questions (6th Edition 2016)

Set 2

Chapter 1 ( Overview of Healthcare Environment in Singapore)

(s2.3)
1. Government enhancement of support for Singaporeans to ensure affordable
healthcare includes

A. increasing subsidies in Specialist Outpatient Clinics.

B. allowing Medisave to be used for more types of outpatient treatments.
C. having the population to be collectively responsible in sharing their risks.
D. all of the above.

(s3)
2. Which initiative was set up to provide a more patient-centric approach to care for
patients?

A. Community Health Assist Scheme (CHAS).

B. Agency for Integrated Care (AIC).
C. Interim Disability Assistance Programme for the Elderly (IDAPE).
D. None of the above.

(s3.2)
3. Which of the following about Government restructured hospitals is FALSE?

A. They have more management autonomy.

B. Commercial accounting systems are introduced to instill financial
accountability.
C. They are required to be profitable for sustainability.
D. All of the above.

(s 4)
4. Which is NOT a risk-pooling insurance scheme?

A. Medifund
B. Medishield Life
C. Eldershield Supplements
D. Medisave-approved Integrated Shield Plans

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Chapter 2 ( Medical Expense Insurance)

(s2)
5. Health Insurance can provide for

A. a fixed amount payable in the event of major illnesses.

B. a regular income upon disability.
C. a regular income upon hospitalization.
D. all of the above.

(s2.1.1)
6. Catastrophic Outpatient Expenses in a Medical Expense Insurance policy
EXCLUDES

A. outpatient cancer treatment.

B. stroke.
C. outpatient kidney treatment..
D. all of the above.

(s2.1.1)
7. Which of the following expenses comes under Hospital Miscellaneous Expenses?

A. X-ray examinations.
B. General nursing services.
C. Meals.
D. None of the above.

(s3.2)
8. Insurers offer variations in the plans offered to policy owners in order to meet their
specific needs and budget. Which is NOT one of the features for this purpose?

A. ‘As charged’ claimable expenses.

B. Amount of deductible.
C. Amount of lifetime limit.
D. Amount of co-insurance.

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(s3.5.1)
9.. Mary bought a medical expense policy that has a per disability deductible of
S$ 1500. She was hospitalized 3 times within one policy year as follows:

February (fever) S$ 500

August (dengue fever) S$ 3700
November (acute gastritis) S$ 1200

What is the amount claimable amount?

A. S$ 200
B. S$ 800
C. S$ 2200
D. S$ 3400

(s3.13)
10. A common exclusion of MEI include

A. participation in hazardous sports.

B. emergency accidental treatments.
C. emergency overseas medical treatment.
D. private nursing home care.

(3.11)
11. Which of the following statements about the premiums of MEI is/are FALSE?

A. Premiums can be paid on a semi-annual basis.

B. Insurers can increase the premium on the premium due date, with prior notice
given.
C. Both males and females pay a level premium up to a certain age, thereafter
females pay more.
D. All of the above.

Chapter 3 (Group Medical Expense Insurance)

(s2)
12. Minimal underwriting requirements for Group Medical Insurance, may take the form
of

A. excluding all pre-existing conditions of all insured employees.

B. subjecting employees to medical examination.
C. premium rating for high-risk employees.
D. none of the above.

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(s3.1)
13. Compulsory plans have advantages that include

A. requiring employees to help defray the cost of providing group insurance as a

benefit.
B. allowing employers to retain control of the benefit structures and provisions.
C. allowing employees to choose their benefits since they are paying part of the
premiums.
D. enabling employees to obtain insurance coverage at a lower rate which they
can’t if they were to buy it individually.

(s4)
14. Employers who provide their employees with Medisave-approved Integrated Shield
Plans will get an extra tax deduction claim of up to

A. 1%
B. 2%
C. 10%
D. 20%

(s4.2.2)
15. One of the features of Transferability of Benefits is that

A. the employee is guaranteed of insurance coverage with his new employer even
when he leaves his previous employer while under probation.
B. the employer is assured of a large pool of insured employees, thereby lowering
the premiums.
C. it saves on administrative costs associated with new policies.
D. the employee gets automatic coverage under his new employer’s Group MEI
without evidence of insurability.

(s4.2.4)
16. Under the Retirement and Re-employment Act (Cap 274A), employers must

A. re-employ employees for as long as they are able to work.

B. must provide group MEI coverage to all their employees.
C. re-employ eligible employees up to age 65.
D. None of the above.

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Chapter 4 (Disability Income Insurance – DII )

(s3)
17. Disability Income Insurance provides for

A. hospitalization benefits.
B. acceleration of the death benefit under the policy on the insured being totally
and permanently disabled.
C. income replacement if the insured is totally and permanently disabled.
D. severe disability due to illness.

(s4)
18. Rick has a DII policy with an escalation benefit of 3% per annum. If he is currently
receiving a monthly disability benefit of $4500, how much would he have received in
total benefits after 20 years?

A. S$ 360 000
B. S$ 891 005
C. S$1 125 100
D. S$1 451 002

(s5)
19. A DII policy was issued on July 16, 2012. The deferred period is 6 months. The
contract definition of total disability reads as when ‘the insured is unable to perform
the material duties of his own occupation.”
Who would NOT have been able to make a claim?

A. Koon, an accountant, suffered a stroke on 21 October 2012. After months of

physiotherapy, his condition didn’t improve and he was not capable of going
back to work at all.
B. Kim, a private tuition teacher who was totally disabled in a road accident 7
months ago. She is now confined to a wheelchair but continues to give tuition at
her home.
C. Lynn, an office administrator, suffered from a rare disease that caused her
muscles to degenerate. She has difficulties walking and lifting her right arm. She
has stopped working and stays at home.
D. All of the above.

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(s5.4 & 5.5)
20. Which of the following DII policies would have the lowest premium?

A. A deferred period of 6 months with a monthly benefit of S$ 400.

B. A deferred period of 6 months with a monthly benefit of S$ 500.
C. A deferred period of 3 months with a monthly benefit of S$ 500.
D. A deferred period of 1 month with a monthly benefit of S$400.

(s6.2c)
21. Rehabilitation expense benefit under a Disability Income (DI) plan includes

A. emergency expenses.
B. workplace modifications.
C. monthly utility expenses.
D. day surgery.

Chapter 5 (Long-Term Care Insurance – LTC Insurance)

(s3.2.1)
22. Which of the following is NOT included in the definition of dressing?

A. Ability to take off and fasten garments.

B. Ability to comb one’s hair.
C. Ability to put on artificial limbs.
D. Ability to put on braces.

(s4)
23. “A reduced benefit is paid when the insured makes partial recovery, eg he can once
again do one of the ADLs he was suffering from.”
Which of the following benefits in the policy contracts provides for this?

A. Financial assistance with adaption.

B. Surgical procedure.
C. Extended care.
D. Rehabilitation.

(s2 & 4)
24. Which of the following statements about LTC is TRUE?

A. It is an income protection plan for high income earners.

B. It is a medical expenses plan for the self-employed.
C. It pays for the cost of care to one who is not able to function independently.
D. It provides a lump sum when immediate treatment is needed for one with a
critical illness.

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(s9)
25. Which is NOT an exclusion under Long-Term Care Insurance?

A. AIDS.
B. Participation in a felony.
C. Mental disorders without demonstrable organic disease.
D. Disability arising from to an illness.

(s11)
26. What documents need to be submitted for a LTC claim?

A. Claim form.
B. Proof of inability to perform the ADLs.
C. Proof of medical examination.
D. All of the above.

Chapter 6 ( Other Types of Health Insurance)

(s2)
27. From August 1, 2015 the changes to critical illnesses include

A. shrinking from the current maximum of 30 critical illnesses to 25.

B. changing all the definitions of the 30 existing critical illnesses.
C. extending the list of critical illnesses that can be included.
D. all of the above.

(s2.1e)
28. Conditions for the diagnosis of a critical illnesses set down by the insurer include all
EXCEPT

A. those made by registered medical practitioners.

B. those made by TCM practitioners.
C. supporting clinical reports.
D. supporting histology reports.

(s2.1a-g)
29. Which of the following statements of a CI policy is FALSE?

A. It pays a lump sum upon the diagnosis of a listed CI in the contract.

B. There is a minimum and maximum sum assured that is purchasable.
C. A lien can be imposed if the insured is a child.
D. The benefit payable must be used to seek treatment.

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(s2.3.1)
30. Under the Acceleration Benefit CI cover

A. a CI waiver of premium rider is not necessary if it is 100% acceleration.

B. the CI benefit can be up to 50% more than the sum assured under the basic
policy.
C. the CI benefit will be terminated when the insured reaches a certain age.
D. the CI benefit will always build up cash value together with the basic policy.

(s2.3.2)
31. Rajoo, age 35, bought a CI rider of S$ 100 000 attached to a 15-year Endowment
policy with sum assured of S$ 150 000. The rider expires at age 65. Which of the
following statements is TRUE?

A. The total benefit paid out at maturity of the Endowment policy is S$ 250 000.
B. After having made an earlier claim on the rider, the amount payable on maturity
of the Endowment policy is S$ 150 000.
C. If Rajoo terminates the rider 5 years after the purchase of both plans, the
Endowment policy will also be terminated.
D. If Rajoo were to die at age 38, the total payout is S$ 250 000.

(s2.3.2)
32. One consideration of the Acceleration Benefit compared to the Additional Benefit is
that

A. it gives a lower coverage for the same total premium outlay.

B. it covers the insured for a longer period.
C. the rider sum assured can exceed that of the basic policy.
D. all of the above.

(s2.9)
33. Which statements describe a Group CI policy?

A. It can be either Acceleration or Additional Benefit type of cover.

B. It can be issued as a packaged policy or as a rider.
C. There is an expiry age regardless of whether it is Acceleration or Additional
Benefit type of cover.
D. All of the above.

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(s3)
34. Fred bought a Hospital Cash Income policy in 2001. It pays S$ 100 a day if Fred
were to be hospitalized. It has a per hospitalization limit of 120 days and a lifetime
limit of 1000 days. By 2010, he has used up 980 days. In March 2015, he was
hospitalized for 70 days due to a car accident. Which of the following statements is
TRUE?

A. Fred will be paid S$ 7000.

B. Fred will be paid S$ 2000.
C. Fred can pay extra premiums to increase the limit.
D. Fred can use the balance of the total daily income to offset his medical
expenses.

(s3.1)
35. If the insured had an accident during the waiting period of a Hospital Cash Income
policy, a claim can be admitted. The definition of ‘accident’ is any event that is
caused by

A. Violent, accidental and external means.

B. Violent, accidental and visible means.
C. Violent, accidental, visible and external means.
D. Violent, accidental, external and fatal means.

(s3.3.1)
36. Benefits under a standalone Hospital Cash Income policy is payable if the insured
has

A. involuntary loss of employment in excess of 30 days.

B. nervous disorder.
C. bulimia.
D. a miscarriage.

(s4.1)
37. Which of the following statements is FALSE regarding medical expenses under
travel insurance?

A. The limits on expenses to be indemnified is usually lower for individuals above

70.
B. Expenses incurred for treatment by a TCM physician is claimable.
C. Follow-up medical expenses in Singapore is claimable, if within the specified
period.
D. It pays for 2 family members to be with the insured who is hospitalized for
more than a certain number of days overseas.

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(s4.5)
38. Travel insurance usually does not pay any claim arising from .

A. aesthetic surgery.
B. participation in civil defence.
C. seeking medical treatment abroad.
D. all of the above.

(s5.1)
39. Under Group Dental Care insurance, if an employee visits his own dentist

A. he will not get any reimbursement.

B. he will be reimbursed up to the maximum limit stated in the Schedule of
Allowances.
C. he does not need to pay anything as the insurer will settle the payments with
the dentist.
D. a pro-ration rate will apply.

(s5.5)
40. Coverage for each employee under the Group Dental Care insurance will terminate
when

A. the employee reaches the specified maximum age.

B. the employee goes into full time military training.
C. the policy terminates.
D. all of the above.

Chapter 7 (Managed Healthcare)

(s2)
41. Managed Healthcare is about containing the cost of medical care and

A. extending a wide range of benefits.

B. avoiding abuse of treatments offered.
C. providing appropriate medical care.
D. providing specialist consultation and treatment.

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(s3.2)
42. Which is NOT a payment method under Managed Healthcare?

A. Fee Schedule
B. Discounted Capitation
C. Salary
D. Discounted Fee for services

(s4.1.1)
43. Under the Staff Model HMO

A. PCPs treat only members of the HMO.

B. PCPs can treat members of the HMO as well as their walk-in patients.
C. the HMO will refer the member to contracted specialists, if necessary.
D. cost management is not as effective.

(s4.1.2)
44. Under the Group Model HMO, the group practice is NOT responsible for

A. providing the physicians for the contracted service.

B. compensating the physicians.
C. arranging for hospital services.
D. running the day-to-day operations of the healthcare business.

(s4.1.3)
45. Utilisation Management is a programme designed to

A. treat as many patients as possible.

B. use the highest quality drugs to treat patients for quick recovery.
C. manage cost effectively in the use of medical services to provide
necessary, appropriate and high-quality care to patients.
D. contract only high-quality physicians and specialists for treating patients.

(s4.2)
46. Which statement about Preferred Provider Organisations (PPO) is FALSE?

A. The member does not need a referral from the PCP to see a specialist.
B. The member makes a very low ‘out-of-pocket’ payment for the medical
services.
C. The member can consult non-network providers.
D. PPOs are less restrictive than HMOs in the choice of healthcare providers.

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(s5)
47. Which of the following plans is the highest in degree of choice of healthcare
providers?

A. Independent Practitioners Association (IPA) Model HMO.

B. Group Model HMO.
C. POS.
D. Staff Model HMO.

(s6.1).
48. The Hospital Care benefit offered under Managed Healthcare Insurance

A. provides for confinement in nursing homes.

B. provides for confinement in restructured hospitals.
C. pays a daily fixed amount for every day of hospitalization.
D. pays for consultations with GPs.

(s6.3)
49. Which is NOT an exclusion under a Managed Healthcare plan?

A. Cosmetic surgery after a serious accident.

B. Private nursing charges.
C. Personality disorder.
D. Injuries arising from civil commotion.

(s6.4)
50. Underwriting for Managed Healthcare insurance takes into consideration

A. gender.
B. medical history.
C. age
D. all of the above.

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Chapter 8 (Healthcare Financing)

(s1)
51. The financing system of Singapore’s healthcare system is anchored on

A. government and individual responsibility.

B. individual and collective responsibility.
C. individual and collective responsibility; affordable and assessable basic
healthcare.
D. Government and collective responsibility; affordable and assessable basic
healthcare.

(s2)
52. To give more help to needy patients, __________________ is applied to ensure that
Government subsidies are sustainable.

A. means testing.
B. casemix.
C. funding.
D. all of the above.

(s2.1.2)
53. Eligibility for subsidies at the Specialist Outpatient Clinics can be based on factors
like

A. gross annual income

B. household monthly income per person.
C. net worth.
D. number of dependants.

(s2.1.2)
54. Where is means testing applied?

A. Community Health Assist Scheme (CHAS).

B. Accident and Emergency Services at public hospitals.
C. Day surgery.
D. Polyclinics.

(s3)
55. The Medisave Account currently earns an annual interest rate of

A. 2.0%
B. 2.5%
C. 4.0%
D. 6.0%

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(s3)
56. Which statement about Medisave is FALSE?

A. It’s a compulsory savings scheme.

B. Contributions from the CPF member and his employer goes into the
Medisave Account (MA).
C. The Government provides Medisave top-ups to Singaporeans and Singapore
PRs.
D. None of the above.

(s3.2.1a,d & f)
57. Which of the following can the expenses incurred be paid with Medisave?

A. Inpatient expenses at private hospitals.

B. Renal dialysis
C. Day rehabilitation centres.
D. All of the above.

(s3.2.5)
58. If a CPF member was hospitalized just before he died, how will his Medisave be
managed?

A. No deductions from his MA can be made.

B. His Medisave balance can be used to settle the entire medical bill, if he had
authorized its use.
C. Any remaining Medisave balance at the time of his death must be paid to the
named CPF nominee.
D. None of the above.

(s4.2)
59. The maximum annual claim limit for Medishield Life is

A. S$ 50 000
B. S$ 70 000
C. S$ 100 000
D. No limit

(s4.2)
60. Medishield Life claim payouts are computed based on a reimbursement basis,
subject to the following EXCEPT

A. deductible
B. limits imposed on respective item covered.
C. age of the CPF member.
D. co-insurance.

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(s4.5)
61 Based on the information below, calculate the Medishield Life claimable amount for
stay in a Class A ward of a restructured hospital. The pro-ration factor is 35%

Hospital Bill Medishield Life Medishield Life

(S$) Limits (S$) Claim (S$)
Room & Board
(17days) 6 000 700 per day ?

A. S$ 2 100
B. S$ 4 200
C. S$ 6 000
D. 0

(s4.6)
62. Under Section 10 of the Medishield Life Scheme Act 2015

A. the benefits and rights of the insured person under the Scheme cannot be
assigned.
B. the insurance policy issued under the Scheme does not create any legal
or equitable trust.
C. the Insurance Act does not apply to the Scheme.
D. all of the above.

(s5)
63. Medisave-approved Integrated Shield Plans (IP) are appropriate for

A. those who wish to stay in Class A and B1 wards in public hospitals.

B. those who wish to stay in private hospitals.
C. those who may have their own doctors they would consult during
hospitalization.
D. all of the above.

(s5.1)
64. One difference between Medishield Life and IPs is that

A. Medishield Life is administered by the CPF Board but IPs are administered
by private insurers approved by MOH.
B. Medishield Life excludes pre-existing conditions but IPs may decline or
impose restrictions arising from pre-existing conditions.
C. There is a maximum entry age limit but IPs do not.
D. There is a maximum that premiums for Medishield Life can be paid by
Medisave but the premiums for IPs are fully payable by Medisave.

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(s5.4)
65. If an IP policyholder wishes to downgrade his plan to Medishield Life later with the
same insurer,

A. he is not allowed to.

B. there will be additional underwriting.
C. no exclusions will be imposed.
D. there will be fee payable.

(s6.5)
66. The pre-funded concept applied to Eldershield premiums

A. allows for cash surrender of the policy.

B. enables the policyholder to get a reduced benefit should he decides to stop
paying premiums after a number of years.
C. allows the policyholder to take a loan on the reserve.
D. provides for higher coverage.

(s6.6)
67. Which of the following statements about Eldershield is FALSE?

A. It is guaranteed renewable annually.

B. The maximum entry age is 64.
C. If the insured resides overseas, the policy will terminate.
D. Restatement of the policy is within 180 days from the expiry of the
grace period.

(s6.8)
68. Coverage for Eldershield terminates when

A. the insured has reached 80 years old.

B. the insured has received the last benefit payment.
C. the insured buys an Eldershield Supplement policy.
D. the insured’s condition deteriorates.

(s7.1.1)
69. The benefits enjoyed by the Pioneer Generation package include

A. additional 50% of subsidized services at polyclinics.

B. free consultation at participating GPs under CHAS.
C. one-time Medisave top-ups.
D. lifelong cash assistance of S$ 1000 annually to help those who
cannot perform at least 3 ADLs.

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(s7.3)
70. Medifund is

A. a compulsory plan under the CPF Board.

B. an insurance protection plan for needy Singaporeans.
C. a government endowment fund set up to help the needy pay for
their medical bills.
D. an opt-out scheme for minors of families who are under CHAS.

Chapter 9 (Common Policy Provisions)

(s1)
71. The policy is a written evidence of a contract between

A. the policy owner (insured) and the insurer.

B. the insurer and the beneficiary.
C. the policy owner (insured) and the beneficiary.
D. the insurer, policy owner (insured) and the beneficiary.

(s4.1)
72. The operative clause serves to

A. highlight the key features in the policy.

B. describes the general scope of the coverage.
C. identify the policy owner.
D. emphasize the effective date of coverage.

(s4.2b)
73. The insured person under the policy can be the

A. policy owner.
B. spouse.
C. children.
D. all of the above.

(s4.2j)
74. George was discharged after being hospitalized for 20 days. He had a fall
and fractured his leg. 10 days after returning home, he fell again and was
admitted to the hospital. Both hospitalization periods were considered to
determine the claim. This is set out in the clause

A. Medically Necessary Service, Supply or Day of Confinement.

B. Day of Confinement.
C. Period of Hospital Confinement.
D. Pre-existing Condition.

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(s5.4)
75. The policy document is deemed to be received by the policy owner _____ days
after the insurer has dispatched it.

A. 3
B. 5
C. 7
D. 14

(s5.7)
76. The purpose of the clause, ‘Cover Abroad’, is to

A. expand the scope of the Health Insurance coverage.

B. restrict the Health Insurance coverage to the country where the policy was
issued.
C. encourage the insured to get the best medical advice.
D. none of the above.

(s5.8.2)
77. In a ‘Conditionally Renewable’ contract, the insurer has the right

A. to raise the premium rate on renewal.

B. not to renew the policy if the insured reaches a specified age.
C. not to renew the policy if the insured’s employment status has changed.
D. all the above.

(s6)
78. The ‘Benefit Provisions’ in the contract serves to

A. explain in detail what will be paid.

B. indicate the conditions under which the insurer will be liable to make
payment.
C. indicate the benefit limitations that apply.
D. all of the above.

(s9.)
79. Endorsements are made in the following circumstances EXCEPT

A. when a rider is added to the basic policy at a later date.

B. on the renewal date of the policy.
C. when amendments are made to the policy.
D. additional terms and conditions are added to the policy

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Chapters 10 ( Health Insurance Pricing)

(S2.1-2.6)
80. Operating expenses include

A. taxes
B. commissions
C. computer systems
D. all of the above

(s2.7)
81. Insurers usually calculate premiums on a/an

A. monthly basis.
B. quarterly basis.
C. semi-annual basis.
D. annual basis.

(s3.5)
82. Which statement about Persistency is TRUE?

A. It improves as the policy continues to be renewed.

B. Policies of older insureds tend to have a lower persistency.
C. Policies of insureds who are of a younger age group tend to have a higher
persistency.
D. An expected higher persistency, will attract a higher premium.

(s3.8)
83. The most important lifestyle factor in determining the premium rate is

A. the insured’s participation in hazardous sport.

B. the insured’s health status.
C. whether the insured smokes.
D. The insured’s age.

Chapters 11 ( Underwriting)

(s2)
84. Health Insurance underwriting is concerned primarily with

A. the incidence of death within a population.

B. the incidence of injury and sickness within a population.
C. medical utilization of a given group of insureds.
D. the persistency of the policies.

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(s3.1.1)
85. Who is likely to have an exclusion on his Medical Expense Insurance policy?

A. Ben, age 28, who exercises regularly and has no existing medical condition.
B. Peter, age 30, who had a simple bone fracture 2 years ago and which has
healed completely.
C. Paul, age 56, who has elevated high blood pressure.
D. Adam, age 50, who lost 4 kg within the past 12 months by watching his diet.

(s3.3.2)
86. Which underwriting factor is specific to Disability Income Insurance?

A. health status
B. occupational class.
C. signs of early cognitive impairments.
D. family history

(s3.5.5)
87. A company that has 70% of its employees who are highly paid will have

A. a higher-than-average medical claims.

B. a lower-than-average medical claims.
C. a lower persistency.
D. a higher turnover rate.

(s4.1.1)
88. Ray was assisting his client to fill out the proposal form. Which of the following
statements is FALSE?

A. If Ray makes any change in the form, it must be counter-signed by the

proposer and /or proposed life insured.
B. Upon completion of the form, only Ray needs to sign as he was the one who
had completed it.
C. Only the proposed life insured and proposer must sign the form.
D. The responsibility of proper disclosure of material facts lie with the
proposer and proposed life insured.

(s4.5)
89. To find out more about the net worth and unearned income of the proposed life
insured, a __________ questionnaire is used.

A. medical
B. lifestyle
C. financial
D. occupation

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(s6.2.1iii)
90. Modifications of benefits offered include

A. premium rating.
B. reduction in the original amount applied for.
C. reduction in the benefit period.
D. all of the above.

Chapter 12 ( MAS 120 – Disclosure & Advisory Process Requirements for

A & H Insurance Products)

(s35-36)
91. During the ‘Know-Your-Client’ stage of the advisory process, an A & H intermediary
is required to collect and document the information like

A. the claims history of the group.

B. existing health policy of the insured.
C. the income of the insured.
D. all of the above.

(s41)
92. An insured has accepted the advice given by Roy, an A & H intermediary, but chose
to buy a health policy from another intermediary. In this case

A. the decision of the insured must be documented and the insured must be
informed to take responsibility for the suitability of that product chosen.
B. Roy must try harder to convince the insured as to why the product he had
recommended is better that the other one.
C. Roy may suggest that the insured considers both products.
D. Roy can assist the insured in going through the product summary of the other
product not advised by him.

(s52)
93. The best practice standards for A & H intermediaries include

A. choosing the latest product to recommend to the client.

B. limiting and simplifying the information on the A & H product.recommended.
C. giving information on the A & H product that is objective and unbiased.
D. upselling the customer.

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Chapter 13 (LIA and GIA Guidelines)

(s Appendix 13A)
94. Which is a compulsory document that must be given to the client at the pre-sales
stage?

A. Your Guide to Health Insurance.

B. Policy document.
C. Proposal Form.
D. None of the above.

(s Appendix 13A)
95. The ‘Key Product Provisions’ includes relevant information like

A. Cancellation Clause.
B. Terms of Renewal.
C. Waiting Period.
D. All of the above.

Chapter 14 ( Financial Needs Analysis)

(s4,1,3)
96. People in the retirement stage would have relatively less need for

A. Medical Expense Insurance.

B. Long Term Care Insurance.
C. Critical Illness Insurance.
D. Disability Income Insurance.

(s5.3)
97. When recommending a policy to a client, the factors to consider include

A. choosing one with a shorter period of coverage.

B. providing coverage that is large, if he can afford it.
C. ensuring he has provided sufficient death cover for his dependants.
D. None of the above.

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Chapter 15 ( Case Studies)

(s2.1)
98. Calculate the maintenance cost needed by Mr Lee, given the following information:

Monthly expenses : S$ 3 500

Require income period : 22 years
Inflation rate : 3%
Rate of return from investments : 5.5%
Existing Whole Life policy : S$ 150 000

A. S$ 429 128
B. S$ 571 749
C. S$ 663 190
D. S$ 924 000

(s3)
99. In Group Health Insurance, the completed GIFF form needs to be signed by

A. the insured and the prospective client.

B. the representative and the insured.
C. the representative and the prospective client.
D. the prospective client.

(s3)
100. The sales quotation from the insurer for Group Health Insurance includes
information on

A. the coverage.
B. underwriting guidelines.
C. premium chargeable.
D. all of the above.

END OF PAPER

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 Answers to HI Practice Questions
(5th Edition-Updated Oct
2015) Set 2

1 D 21 B 41 C 61 A 81 D
2 B 22 B 42 B 62 D 82 A
3 C 23 D 43 A 63 D 83 C
4 A 24 C 44 D 64 A 84 B
5 D 25 D 45 C 65 C 85 C
6 B 26 D 46 B 66 B 86 B
7 A 27 C 47 C 67 C 87 A
8 A 28 B 48 B 68 B 88 B
9 C 29 D 49 A 69 A 89 C
10 A 30 A 50 D 70 C 90 D
11 C 31 B 51 C 71 A 91 D
12 A 32 B 52 A 72 B 92 A
13 B 33 D 53 B 73 D 93 C
14 A 34 B 54 A 74 C 94 A
15 D 35 C 55 C 75 A 95 D
16 C 36 A 56 C 76 B 96 D
17 C 37 D 57 D 77 D 97 C
18 D 38 D 58 B 78 D 98 B
19 B 39 B 59 C 79 B 99 C
20 A 40 D 60 C 80 D 100 D

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Working

Q 9.

S$ [3700 – 1500] = S$ 2200

Q 18

Total disability income benefit = S$ 4500 x 12 x 26.8704 = S$

1451001.6

Table A1

Q 61

Pro-rated amount = 35% x S$ 6000 = S$ 2100

Room & Board charges = S$ [700 x 17 ] = S$ 11

900

Amount claimable = S$ 2100 ( lower of the 2)

Q 98

Annual expenses = S$ [ 3500 x 12] = S$

42000 Number of years to provide for = 22

Net rate of investment return = 5.5% - 3% = 2.5%

Maintenance cost = S$ 42000 x 17.1845] = S$ 721 749

less Whole Life policy SA = S$ 150 000

Shortfall = S$ 571 749

Table A2

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