Assessment: Policyholder Protection Rules: Long-term Insurance 20_21

Which ONE of the following statements with regard to the long-term insurance policy holder protection rules (PPRs) is correct?

A potential policy holder as defined in the long-term insurance policy holder protection rules includes which of the following?

i.   A person who has applied to an insurer to become a policyholder.
ii.  A person who has approached an intermediary to become a policyholder.
iii. A person who has been solicited by an intermediary to become a policyholder.
iv. A person who has received advertising in relation to any policy of an insurer.

Which one of the following statements correctly define a group scheme in respect of a registered insurer as per the long-term insurance policy holder protection rules?

A review of a premium payable under a policy will not comply with the long-term insurance policy holder protection rules in which of the following circumstances?

i. Allow the insurer to recoup losses on the policy incurred prior to the review date.
ii. Increase profitability margins beyond those assumed at the outset of the policy.
iii. Unfairly target a particular group for an increase in premium.
iv. Allow for the adjustment of a low initial premium consciously based on overly optimistic assumptions about investment performance.

Which of the following statements with regard to the product rules as provided for in the long-term insurance policy holder protection rules are correct?

Complete the sentence.

Under to the long-term insurance policy holder protection rules, a microinsurance policy MAY not-

Complete the sentence.

Under to the long-term insurance policy holder protection rules, a microinsurance policy, in respect of which policy -benefits are payable on the happening of a death, disability or health event resulting from natural causes, may NOT impose a waiting period exceeding the shorter of-

State the period that an insurer is afforded according to the policy holder protection rules after all required documents in respect of a claim under a microinsurance policy or a funeral policy have been received to assess and make a decision whether or not the claim submitted is valid, and authorise payment of the claim; repudiate the claim or dispute the claim and notify the claimant of the dispute?

Jen Min entered into a funeral policy with a waiting period of 3 months. The policy lapsed after the second month due to non-payment. Within 1 month of the policy lapsed, Jen entered into a new policy of the same kind with the same insurer.
What is the maximum waiting period that can be imposed on Jen in terms of the long-term insurance policy holder protection rules?

Which ONE of the following statements with regard to advertising as stipulated in the long-term insurance policy holder protection rules is correct?

An insurer uses a current policy holder to endorse a policy in an advertisement.
Which of the following must the advertisement adhere to according to the long-term insurance policy holder protection rules?

The impact that the no-claim bonus has on the premium is negligible, if the cost of the no-claim bonus comprises less than-

Which of the following statements with regard to the disclosures that must be made to a policyholder after inception of a policy under the long-term insurance policy holder protection rules are correct?

i. The information must be provided to the policyholder in a format which is which is clearly distinguishable from the policy.
v. The information must be provided to the policyholder no later than 31 days after commencement of the policy.
vi. Where such information was previously provided in a quotation, it must be confirmed whether the information remains applicable in relation to the policy.
vii. The information must include the timing and manner in which policy benefits may be made available to the policyholder or a beneficiary.

Please complete the sentence.

Roger changed the level of cover under a policy. The insurer, under the long-term insurance policy holder protection rules, must provide Roger with information on the terms and conditions relating to change no later than-

Please state if the following statement is true or false.

An insurer must at the written request of an intermediary that is authorised in writing by a policyholder or a member, provide that intermediary or the policyholder or member with the information referred to in the authorisation, within a reasonable time after receipt of the request, irrespective of the fact that the intermediary does not have an intermediary agreement with that insurer.

Roger entered into a policy with Bix Insurer on the 1 June 2010. Roger made a claim on the policy on 1 October 2010. The policy terminated on 31 May 2011.
Until when must Bix Insurers keep the records relating to the claim?

With regard to replacement of policies, a material change refers to a change that results in-

Which one of the following statements with regard to the requirement relating to claims management under the long-term insurance policy holder protection rules are correct?

i. A claim received by a representative of the insurer is deemed to have been received by the insurer itself.
ii. An insurer must within 15 days of taking a decision regarding a claim, notify the claimant in writing of the decision.
iii. The claimant must at least have 90 days from receipt of decision regarding a claim, make representation to the insurer in respect of the decision.
iv. An insurer must record a claim by no later than the first business day after the date that the initial claim is received.

Who is responsible for the effective complaints management within an insurer under the long-term insurance policy holder protection rules?

Please state if the following statement is true or false.

If a policyholder terminates or intends to terminate a group scheme policy, the insurer of the policy being terminated must notify the Authority of the termination or intended termination as soon as reasonably possible after becoming aware of the termination or proposed termination.