Iiqe Paper 1 Pastpaper 20200518

2CEXAM Mock Question
IIQE Paper 1
18-May-20
15:05:10
1 Which of the following is/are the responsibility(ies) of an approved body of insurance brokers in Hong Topic 6
Kong?
A Submit to the IA an auditor's report Chapter 2
B Required reports must be submitted within six months after the close of the relevant period Section 3
C Its membership rules and regulations must require members to submit appropriate reports to it QID 2110
D All of the above Ans D Hot
Exp All the options are the responsibilities of an approved body of insurance brokers in Hong Kong. The
answer is D.
2 The "capabilities" in the fit and proper criteria for insurance brokers do not include: Topic 6
A Efficiently Chapter 2
B Mentally sound Section 3
C Conduct with utmost good faith， integrity， independence， impartiality and other principles QID 2115
D Will not be convicted of the criminal offence Ans C Hot
Exp The requirements for the capabilities of an insurance broker are: the insurance broker has to be capable of
performing his functions efficiently; he has to be mentally sound; he has not been convicted of any
criminal offence which may affect his fitness, suitability or propriety to act as an insurance broker or
found guilty of misconduct by a professional body to which he belongs or has belonged; and he has to
comply with all statutory obligations. The answer is C.
3 The "capabilities" of an insurance broker under the "fit and proper" requirement include: Topic 6
A Ability to work efficiently Chapter 2
B Ability to process confidential information Section 3
C Due care and diligence QID 2114
D Would be a criminal offense Ans A Hot
comply with all statutory obligations. The answer is A.
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4 To become an insurance broker, he has to meet certain requirements and be regulated by which of the Topic 6
following bodies?
A Insurance Authority Chapter 2
B Hong Kong Federation of Insurers Section 3
C Insurance Brokers Authorisation Committee QID 2113
D Insurance Brokers Registration Board Ans A Hot
Exp To become an insurance broker, he has to meet certain requirements and be regulated by the IA. The
answer is A.
5 An insurance broker has to submit annually an auditor's report stating that: Topic 6
A All contents are correct Chapter 2
B Show a true and fair view of the operation and profit or loss of its business within the period just ended Section 3
C Whether its members have been liquidated QID 2111
D All minimum requirements have been met Ans D Hot
Exp All insurance brokers authorised by the IA have to submit to the IA an auditor's report confirming that in
the auditor's opinion the minimum requirements imposed upon the insurance broker have been met. The
answer is D.
6 An approved body of insurance brokers has to, within 6 months after the close of the relevant financial Topic 6
period, give the IA an auditor's report stating that:
A Whether it has received the financial statements and auditor's reports from its members Chapter 2
B The financial statements submitted show a "true and fair" view of the financial position of the business Section 3
D Whether its members have violated the Code of Practice Ans A Hot
Exp An approved body of insurance brokers has to, within 6 months after the close of the relevant financial
period, give the IA
an auditor's report stating that:
(i) whether it has received the financial statements and auditor's reports from each of its members in
accordance with its
membership rules and regulations;
(ii) that he has reviewed all reports by auditors of members in respect of the financial statements and the
minimum requirements, and none contained any adverse statement or qualification except those listed by
him in his report.
The answer is A.
7 Which of the following is the responsibility of a body of insurance brokers? Topic 6
B Must be submitted within six months after the close of the relevant financial period Section 3
C Specify in the membership rules that each member has to submit financial statements and an auditor's QID 2108
report
D All of the above are the responsibilities Ans D Hot
Exp All the options are the responsibilities of a body of insurance brokers. The answer is D.

8 The capabilities of an insurance broker are: Topic 6
A Should include efficiency and mentally sound Chapter 2
B Has not been convicted of any criminal offence Section 3
C Must be an incorporated broker QID 2101
D Only (A) and (B) Ans D Hot
comply with all statutory obligations. The answer is D.
9 Which of the following bodies issued the guidelines on fit and proper criteria for insurance brokers? Topic 6
B Hong Kong Insurance Association Section 3
C Hong Kong Confederation of Insurance Brokers QID 2112
D Hong Kong Association of Professional Insurance Brokers LTD Ans A Hot
Exp The IA issued the guidelines on fit and proper criteria for insurance brokers. The answer is A.
10 An insurance broker has to meet which of the following capability requirements? Topic 6
A Utmost good faith and integrity Chapter 2
B Due care Section 3
C Priority of client's interests QID 2100
Exp All the options are the capability requirements for insurance brokers. The answer is D.
11 A body of insurance brokers has to submit to the IA an auditor's report annually: Topic 6
A Stating the operation and profit or loss of the business within the period just ended Chapter 2
B Stating whether it has properly received the financial statements and auditor's Section 3
reports from its members
C Stating whether its members have violated the Code QID 2107
D Stating whether its members have been liquidated Ans B Hot
period, give the IA
accordance with its
him in his report.
The answer is B.

12 According to the Minimum Requirements set out in Part X of the Insurance Ordinance, which of the Topic 6
following requirements must an auditor's report submitted by an insurance broker meet?
A Must be kept and sufficient to explain the transactions and the true financial position Chapter 2
B Records must be kept electronically Section 3
C Must be submitted within 6 months after the close of the financial year QID 2102
D Sufficient to reflect the profit or loss of the business Ans C Hot
Exp The auditor's report has to be submitted to the IA within 6 months after the close of the relevant financial
period. The answer is C.
13 An approved body of insurance brokers has to, within 6 months after the close of the relevant financial Topic 6
period, give the IA an auditor's report stating that:
A A true and fair view of its operation and profit or loss position Chapter 2
B Receive financial statements and auditor's reports properly from its members Section 3
D Whether its members have violated the Code Ans B Hot
period, give the IA
accordance with its
him in his report.
The answer is B.
14 Which of the following is an authorised insurance broker required to submit to the financial statements Topic 6
and auditor's report?
A The IA and the approved body of insurance brokers to which the broker belongs Chapter 2
B Only the Insurance Authority Section 3
C Association of Insurance Advisers QID 2104
D Hong Kong Federation of Professional Insurance Brokers LTD Ans A Hot
Exp Under Section 73(1) of the Insurance Ordinance, an insurance broker authorised by the IA has to submit to
the IA annual audited financial statements and auditor's report.
According to the Minimum Requirements, an approved body of insurance brokers has to include in its
membership rules and regulations a requirement that each member has to submit to it, within 6 months
following the end of each financial year of the member, audited financial statements and an auditor's
report.
The answer is A.

15 Which of the following statements relating to the annual financial statements and auditor's report of a Topic 6
body of insurance brokers is correct?
B Must be submitted within six months after the close of the relevant financial period Section 3
C Has properly received the financial statements and auditor's reports from its members in accordance with QID 2105
its membership rules and regulations
Exp All the statements are true. The answer is D.

16 Which of the following is not the insurance intermediaries' duty to policyholders? Topic 7
A Absence of fraud Chapter 1
B Take no unfair advantage Section a-f
C Exert no unnecessary influence QID 2124
D Guarantee the products purchased are often the cheapest Ans D Hot
Exp Depending on the category involved, insurance agents and insurance brokers'
duties towards policyholders may be different. Of course, there are areas which are common ground.
These will include: absence of fraud; fair and reasonable behaviour; take no unfair advantage of clients;
exert no undue influence; all actions must be legal; where the duties are governed or required by
legislation, it is important to know that a breach could involve criminal proceedings, with severe penalties.
The answer is D.
17 Insurance agents and insurance brokers have different types of business, but they also have something in Topic 7
common:
i. Absence of fraud to policyholders
ii. Fair and reasonable behaviour to policyholders
iii. Take no unfair advantage of clients
iv. A final decision on the purchase is possible
A i， ii， iii Chapter 1
B ii， iii， iv Section a-f
C i， iii， iv QID 2116
D i， ii， iii， iv Ans A Hot
The answer is A.

18 What are the insurance intermediaries' duties to policyholders? Topic 7
A Absence of fraud Chapter 1
B Take no unfair advantage Section a-f
C Exert no unnecessary influence QID 2129
The answer is D.
19 Which three of the following can be described as the common duties of insurance agents and insurance Topic 7
brokers to policyholders?
i. Take no unfair advantage of clients
ii. The final purchase decision is made by the intermediary
iii. Understand the possible penalties for breaching certain regulations
iv. Exert no unnecessary influence
B i， ii， iv Section a-f
D ii， iii， iv Ans C Hot
The answer is C.

i. Absence of fraud
ii. Exert no unnecessary influence
iii. Understand that a breach of certain duties or regulations could involve criminal proceedings
iv. Insurance intermediaries make the most appropriate decisions for clients
D ii， iii， iv Ans A Hot
The answer is A.

21 Which three of the following are the duties of insurance agents and insurance brokers to policyholders? Topic 7
ii. Exert no unnecessary influence to clients
iii. All actions are in accordance with the spirit and provisions of the law
iv. What is the best decision for the client to be made by the insurance intermediary
The answer is A.
22 Which three of the following can be described as the common duties of insurance agents and insurance Topic 7
brokers to policyholders?
i. No fraud
ii. Be fair and reasonable
iii. All actions are in accordance with the spirit and provisions of the law
iv. What is the best decision for the client to be made by the intermediary
The answer is A.

i. Absence of fraud
ii. Exert no unnecessary influence
iii. Understand that a breach of certain duties or regulations could involve criminal proceedings
iv. Make a final purchase decision whenever possible
The answer is A.
24 Which of the following is the common duty of insurance agents and insurance brokers to policyholders? Topic 7
ii. Fair and reasonable behaviour
iii. Absence of fraud
iv. It is up to the insurance intermediary to decide which option best suits the client
A i， ii and iii Chapter 1
B i， ii and iv Section a-f
C i， ii and iv QID 2123
D ii， iii and iv Ans A Hot
The answer is A.

i. It is up to the insurance intermediary to decide which option best suits the client
ii. Take no unfair advantage of clients
iii. Fair and reasonable behaviour
Iv. Absence of fraud
C i， iii and iv QID 2122
D ii， iii and iv Ans D Hot
The answer is D.
C i， iii and iv QID 2121
D ii， iii and iv Ans A Hot
The answer is A.
27 Although the roles of insurance agents and insurance brokers are different, which of the following is not Topic 7
the common duty of insurance agents and insurance brokers to policyholders?
A Take no unfair advantage of clients Chapter 1
B Exert no unnecessary influence Section a-f
C Understand that a breach of the regulations will result in legal penalties QID 2120
D It is up to the insurance intermediary to decide which option best suits the client Ans D Hot
The answer is D.

28 Which of the following is not the insurance intermediaries' duty to policyholders? Topic 7
A Take no unfair advantage of clients Chapter 1
B Exert no unnecessary influence Section a-f
C Understand that a breach of the regulations will result in legal penalties QID 2119
D It is up to the insurance intermediary to decide which option best suits the client Ans D Hot
The answer is D.
The answer is A.
30 Which three of the following are the common duties of insurance agents and insurance brokers? Topic 7
i. Fair and reasonable behaviour
ii. Take no unfair advantage of clients
iii. Be familiar with legislations or requirements, a breach could involve certain proceedings
iv. Insurance decisions are made by insurance intermediaries on behalf of clients
A i， ii ， iii Chapter 1
B i， ii ， iv Section a-f
D ii ， iii， iv Ans A Hot
The answer is A.

31 Which of the following statements about the general responsibilities of an insurance broker is true? Topic 7
A The insurance broker is seen to be an expert in insurance Chapter 1
B The insurance broker must be independent of any one insurer Section 1
C The insurance broker has to offer impartial advice QID 2134

32 Which of the following statements relating to brokers' errors and omissions is/are true? Topic 7
A Brokers could be guilty of professionally negligent Chapter 1
B Brokers may be liable for errors and omissions simply because they are authorised insurance brokers Section 1
C Principals of the brokers， that is， the insureds， may have the right to sue the brokers QID 2133
D a and c Ans D Hot
Exp If, as a deemed expert, the insurance broker fails to take reasonable care in his client's interests, he could
well be guilty of professional negligence. This would give the policyholder the right to sue the insurance
broker. The answer is D.
33 When comparing the responsibilities of insurance agents and insurance brokers, which of the following is Topic 7
not true?
A The opportunity for insurance agents to be held liable is relatively low Chapter 1
B Insurance agents are responsible for their own imprudence Section 1
C Insurance agents must be appointed in writing QID 2137
D Insurance agents are required to arrange professional liability insurance Ans D Hot
Exp Unlike insurance brokers, insurance agents are not statutorily required to buy and maintain professional
indemnity insurance. The answer is D.
34 Which of the following is true about the error and omission liability of insurance brokers? Topic 7
A Insurance brokers are not liable for professional negligence Chapter 1
B Insurance brokers can be sued in court because they are authorised Section 1
C Policyholders have the right to sue insurance brokers QID 2136
D (A) and (C) are both true Ans C Hot
Exp If, as a deemed expert, the insurance broker fails to take reasonable care in his client's interests, he could
well be guilty of professional negligence. This would give the policyholder the right to sue the insurance
broker. The answer is C.
35 Which of the following is the difference between an insurance agent and an insurance broker? Topic 7
A May be liable for professional negligence Chapter 1
B There is no liability for professional negligence Section 1
C In-depth expertise is not required QID 2135
D Must purchase professional indemnity insurance Ans B Hot
Exp An insurance broker's duty of care to the client can be said to be onerous. By contrast, if an insurance
agent has not professed to his clients special skills for undertaking an activity for them, he should be at a
much lower risk of being held liable to them for incompetent performance of such activity. The answer is B.

36 Which of the following statements about insurance brokers is true? Topic 7
A Regarded as experts in insurance Chapter 1
B Independent of any one insurer Section 1
C Policyholders expect impartial advice from insurance brokers QID 2132

37 The insurance broker is seen to be an expert in insurance. Therefore: Topic 7
A He must be independent of any one insurer Chapter 1
B His client is the insurer Section 1
C No need to be covered by professional indemnity insurance QID 2131
D All of the above are correct Ans A Hot
Exp The insurance broker is seen to be an expert in insurance. He must also be independent of any one
insurer.
His client is the policyholder.
He is required to be covered by professional indemnity insurance.
The answer is A.
38 Insurance agents: Topic 7
A May be liable for professional negligence Chapter 1
B There is no liability for professional negligence Section 2
C In-depth expertise is not required QID 2138
D To maintain professional indemnity insurance Ans B Hot
Exp An insurance broker's duty of care to the client can be said to be onerous. By contrast, if an insurance
agent has not professed to his clients special skills for undertaking an activity for them, he should be at a
much lower risk of being held liable to them for incompetent performance of such activity.
Unlike insurance brokers, insurance agents are not statutorily required to buy and maintain professional
indemnity insurance.
The answer is B.
39 Which of the following statements about the agents is incorrect? Topic 7
A Unlike insurance brokers， agents have a low risk of liability to their clients Chapter 1
B Agents are liable for their negligence Section 2
C Agents shall take appropriate prudential measures QID 2139
D Agents are required to purchase professional indemnity insurance Ans D Hot
Exp Unlike insurance brokers, insurance agents are not statutorily required to buy and maintain professional
indemnity insurance. The answer is D.

40 Hong Kong has passed legislation to protect personal data. What is the Ordinance? Topic 7
A Personal (Privacy) Ordinance Chapter 2
B Personal Data (Privacy) Ordinance Section
C Privacy (Office of the Commissioner) Ordinance QID 2140
D Privacy Ordinance Ans B Hot
Exp The particular statute for Hong Kong is the Personal Data (Privacy) Ordinance. The answer is B.
41 A new Part VIA of the Ordinance comprising Topic 7
provisions relating to use of personal data in direct marketing and provision of personal data for use in
direct marketing has been introduced, with effect from：
A 1 January 2013 Chapter 2
B 4 January 2013 Section 1
C 1 April 2013 QID 2165
D 1 May 2013 Ans C Hot
Exp A new Part VIA of the Ordinance comprising

provisions relating to use of personal data in direct marketing and provision of personal data for use in
direct marketing has been introduced, with effect from 1 April 2013. The answer is C.
42 Data protection principles in the Personal Data (Privacy) Ordinance include: Topic 7
A Fair collection of data Chapter 2
B Lawful collection of data Section 1
C Data subjects have the rights of access to， and of correction of， their personal data QID 2156
Exp All the options are the data protection principles. The answer is D.
43 There are also exemptions under the Personal Data (Privacy) Ordinance including: Topic 7
A Personal data held for domestic or recreational purposes Chapter 2
B Employment-related personal data held by the employers Section 1
C May prejudice public or social interests QID 2157
Exp All are the exemptions. The answer is D.

44 Under the Personal Data (Privacy) Ordinance, the use of data: Topic 7
A Has no restrictions Chapter 2
B For collection purposes only Section 1
C The purpose of getting the consent of the data subject QID 2158
D The purpose of the collection purpose Ans C Hot
Exp Unless the data subject gives consent, the personal data should only be used for the purposes for which
they were collected, or a directly related purpose. The answer is C.

45 Under the provisions of the Personal Data (Privacy) Ordinance, personal data collected can only be used Topic 7
for the purposes for which they were collected or for a directly related purpose, unless the data subject:
A Gives consent Chapter 2
B Is a non-HK resident Section 1
C Has some kind of criminal record QID 2159
D Has permanently left Hong Kong Ans A Hot
they were collected, or a directly related purpose. The answer is A.
46 Under the Personal Data (Privacy) Ordinance, the purpose and manner of collection of personal data do Topic 7
not include:
A Lawful personal data Chapter 2
B Fair personal data Section 1
C Personal data of deceased persons QID 2160
D All of the above Ans C Hot
Exp The lawful and fair collection of personal data is outlined in the first principle of data protection, that is the
purpose and manner of collection of personal data. The answer is C.
47 Under the Personal Data (Privacy) Ordinance, the use of data: Topic 7
A Data may be used for other purposes only with the consent of the data subject Chapter 2
B Has no restrictions Section 1
C There has to be a court ruling QID 2162
D Should only be used for the purposes for Ans A Hot

which they were collected
they were collected, or a directly related purpose. The answer is A.
48 The "personal data" referred to in the Personal Data (Privacy) Ordinance on the protection of personal Topic 7
data in Hong Kong are:
A Relating directly or indirectly to a living individual Chapter 2
B Any representation of information Section 1
C Information includes the expression of opinions QID 2155
Exp The personal data means any data relating directly or indirectly to a living individual; from which it is
practicable for the identity of the individual to be directly or indirectly ascertained; and in a form in which
access to or processing of the data is practicable.
The "data" means that any representation of information (including an expression of opinion) in any
document and includes a personal identifier.
The answer is D.

49 Direct Marketing Means means: Topic 7
A Mail Chapter 2
B Fax Section 1
C Electronic mail QID 2164
Exp Direct Marketing Means means sending information or goods, addressed to specific persons by name, by
mail, fax, electronic mail or other means of communication; or making telephone calls to specific persons.
The answer is D.
50 In Hong Kong, the statutory body for the full implementation of the Personal Data (Privacy) Ordinance is: Topic 7
B Private Commissioner for Personal Data Section 1
C Personal Commissioner for Private Data QID 2150
D Privacy Commissioner for Personal Data Ans D Hot
Exp A body has been established under the Personal Data (Privacy) Ordinance to oversee its application,
namely the Office of the Privacy Commissioner for Personal Data. The answer is D.
51 According to the Personal Data (Privacy) Ordinance, the right to privacy is not absolute. Which of the Topic 7
following is/are the exemptions from the Ordinance?
A For domestic or recreational purposes Chapter 2
B Employers hold employees' personal data Section 1
Exp All the options are the exemptions from the Ordinance. The answer is D.
52 Personal data referred to in the Personal Data (Privacy) Ordinance do not mean: Topic 7
B Relating directly or indirectly to a living group Section 1
C In a form in which access to or processing of the data is practicable QID 2167
D From which it is practicable for the identity of the individual to be directly or indirectly ascertained Ans B Hot
access to or processing of the data is practicable. The answer is B.

54 Under the Personal Data (Privacy) Ordinance, the use of personal data: Topic 7
A Anytime Chapter 2
B Only for the court to decide Section 1
C For the purpose of data collection QID 2163
D May be used for other purposes with the consent of the data subject Ans D Hot
they were collected, or a directly related purpose. The answer is D.
55 Which one or more of the following is/are not relevant to the Personal Data (Privacy) Ordinance? Topic 7
A Relating to any living individual Chapter 2
B Relating to any corporation Section 1
C From which it is practicable for the identity of the individual to be directly or indirectly ascertained QID 2154
D In a form in which access to or processing of the data is practicable Ans B Hot
Exp The definition of personal data in the Ordinance is that any data relating directly or indirectly to a living
individual; from which it is practicable for the identity of the individual to be directly or indirectly
ascertained; and in a form in which access to or processing of the data is practicable. The answer is B.
56 Under the Personal Data (Privacy) Ordinance, personal data are not defined as: Topic 7
B Information directly or indirectly related to the bodies Section 1
C From which it is practicable for the identity of the individual to be directly or indirectly ascertained QID 2153
D In a form in which access to or processing of the data is practicable Ans B Hot
57 The "personal data" referred to in the Personal Data (Privacy) Ordinance on the protection of personal Topic 7
data in Hong Kong are:
B From which it is practicable for the identity of the individual to be directly or indirectly ascertained Section 1
access to or processing of the data is practicable. The answer is D.

59 Which of the following statements about the scope of regulation under the Personal Data (Privacy) Topic 7
Ordinance is incorrect?
A It involves automatic and manual data Chapter 2
B It involves public and private sector information Section 1
C A statutory body is responsible for overseeing its application QID 2149
D It deals only with the private sector but not with the application of public sector information Ans D Hot
Exp The Personal Data (Privacy) Ordinance is thorough, relating to personal data without distinguishing
between automatic and manual
personal data, and binding all persons and the government as well. A body has been established under
the Ordinance to oversee its application, namely the Office of the Privacy Commissioner for Personal Data.
The answer is D.
60 Personal data referred to in the Personal Data (Privacy) Ordinance are: Topic 7
B From which it is practicable for the identity of the individual to be directly or indirectly ascertained Section 1
access to or processing of the data is practicable. The answer is D.
61 The six data protection principles laid down in the Personal Data (Privacy) Ordinance include: Topic 7
A Purpose and manner of collection Chapter 2
B Use of personal data Section 1
C Security of personal data QID 2147
Exp All the options are the data protection principles laid down in the Ordinance. The answer is D.
62 Personal data referred to in the Personal Data (Privacy) Ordinance are: Topic 7
A Manual data Chapter 2
B Automatic data Section 1
C Public and private sector information QID 2146
personal data, and binding all persons and the government as well. The answer is D.

63 According to the Personal Data (Privacy) Ordinance, personal data means: Topic 7
i. In a form in which access to or processing of the data is practicable
ii. The identity of the individual to be directly or indirectly ascertained
iii. Private data, whether they are alive or not
iv. Relating directly or indirectly to a living individual
A i，ii and iii Chapter 2
B i，ii and iv Section 1
C i，iii and iv QID 2145
D ii， iii and iv Ans B Hot
64 The data protection principles referred to in the Personal Data (Privacy) Ordinance are: Topic 7
A Use of personal data Chapter 2
B Security of personal data Section 1
C Information to be generally available QID 2144
Exp All the options are the data protection principles laid down in the Ordinance. The answer is D.
65 Which of the following statements regarding the protection of personal data is incorrect? Topic 7
A Involving automatic and manual personal data Chapter 2
B Involving the private sector but not the public sector Section 1
D All of the above are true Ans B Hot
personal data, and binding all persons and the government as well. A body has been established under
The answer is B.
66 Who implements the Personal Data (Privacy) Ordinance? Topic 7
A Privacy commissioner Chapter 2
B Personal data privacy commissioner Section 1
C Commissioner for the privacy of personal data QID 2142
D Privacy commissioner for personal data Ans D Hot
Exp A body has been established under the Ordinance to oversee its application, namely the Office of the
Privacy Commissioner for Personal Data. The answer is D.

67 Which of the following statements regarding the protection of personal data is incorrect? Topic 7
A Involving automatic and manual personal data Chapter 2
B Involving the private sector but not the public sector Section 1
personal data, and binding all persons and the Government as well. A body has been established under
The answer is B.
68 Under the Personal Data (Privacy) Ordinance, which of the following descriptions about privacy Topic 7
exemptions are correct?
i. Public interests
ii. International relations
iii. Employment relations
iv. Involving risk assessments
A i， ii Chapter 2
B iii， iv Section 1
C i， ii， iii QID 2176
D i， ii， iii， iv Ans C Hot
Exp Exemptions from the Ordinance do not involve risk assessments. The answer is C.
69 Under the Personal Data (Privacy) Ordinance, "data" means: Topic 7
A A personal identifier Chapter 2
B Any representation of information in any document Section 1
C Any information (including an expression of opinion) QID 2152
Exp The "data" means that any representation of information (including an expression of opinion) in any
document and includes a personal identifier. The answer is D.
70 Which of the following is not a breach of the Personal Data (Privacy) Ordinance? Topic 7
A Provide the client's relatives with the client's health information Chapter 2
B Issue renewal notices to policyholders Section 2
C Sell the client's policy information to a reputable bank QID 2170
D All of the above breach the Personal Data (Privacy) Ordinance Ans B Hot
Exp There is no breach of the Personal Data (Privacy) Ordinance in giving a notice of renewal to a
policyholder. The answer is B.

71 The data protection principles set out in the Personal Data (Privacy) Ordinance include: Topic 7
A Fair personal data policy Chapter 2
B Lawful personal data policy Section 2
C Data subjects have the rights of access to， and of correction of， their personal data QID 2161
Exp All the options are the data protection principles. The answer is D.
72 Within the scope of the Personal Data (Privacy) Ordinance, which of the following may be legal in relation Topic 7
to the use of policyholders' data owned by insurers?
A Provide details of the policyowners' life policy to a person who knows the policyowner Chapter 2
B Notices of renewal to policyowners Section 2
C Provide personal details of the insured to reputable persons QID 2175
D All of the above Ans B Hot
Exp It is legal to send a renewal notice to the policyowner. The answer is B.

73 Which of the following is/are the insurance principles relating to the Personal Data (Privacy) Ordinance? Topic 7
A Issues regarding the claims investigation Chapter 2
B Policyholders' financial data Section 2
C Policyholders' medical data QID 2174
Exp All the options are the insurance principles relating to the Personal Data (Privacy) Ordinance. The answer
is D.
74 Applications of personal data protection in insurance include: Topic 7
A Investigation of claims Chapter 2
D All of the above are included Ans D Hot
Exp All the options are included. The answer is D.

75 Under the Personal Data (Privacy) Ordinance, which of the following is an insurance application? Topic 7
A Matters relating to filing a claim Chapter 2
B Financial data relating to the proposer Section 2
C Medical data relating to the proposer QID 2172
Exp All the options are insurance applications. The answer is D.

76 Applications of personal data protection in insurance include: Topic 7
A Investigation of claims Chapter 2
D All of the above are included Ans D Hot
Exp All the options are included. The answer is D.

77 Which of the following three Ordinances has been established by the Equal Opportunities Commission to Topic 7
eliminate discrimination, but which of the following is not included?
A Sex Chapter 3
B Religion Section 1
C Disability QID 2192
D Family Status Ans B Hot
Exp An Equal Opportunities Commission exists to implement four Ordinances, whose objectives are to
eliminate discrimination on grounds of: sex, marital status or pregnancy (the Sex Discrimination
Ordinance); disability (the Disability Discrimination Ordinance); family status (the Family Status
Discrimination Ordinance); and race (the Race Discrimination Ordinance). The answer is B.
78 The mission of the Equal Opportunities Commission(EOC) is to eliminate discrimination and promote Topic 7
equal opportunity. It aims to help the public understand the rights and responsibilities of citizens under
Hong Kong's anti-discrimination legislation and provide a channel for complaints on discriminatory
practices. Which of the following is the scope of discrimination enforced by the EOC?
i. Sex
ii. Age
iii. Physical Disability
iv. Family Status
A i， ii Chapter 3
B ii， iii Section 1
D ii， iii， iv Ans C Hot
Discrimination Ordinance); and race (the Race Discrimination Ordinance). The answer is C.
79 Which of the following statements about the responsibilities of Equal Opportunities Commission is true? Topic 7
A Just disability discrimination Chapter 3
B Just unmarried status discrimination Section 1
C Just sex discrimination QID 2194
D Including but not limited to the above Ans D Hot
Discrimination Ordinance); and race (the Race Discrimination Ordinance). The answer is D.

80 The Equal Opportunities Commission was established to eliminate discrimination from many different Topic 7
backgrounds. Which of the following is/are temporarily not of the Committee's concern?
A Sex discrimination Chapter 3
B Age discrimination Section 1
C Marital status QID 2195
81 Which of the following is not related to Hong Kong unfair discrimination ordinances? Topic 7
B Disability discrimination Section 1
C Age discrimination QID 2196
D Family status discrimination Ans C Hot
82 Which of the following is not an Ordinance administered by the Equal Opportunities Commission? Topic 7
A Sex Discrimination Ordinance Chapter 3
B Age Discrimination Ordinance Section 1
C Family Status Discrimination Ordinance QID 2197
D Disability Discrimination Ordinance Ans B Hot
83 What discrimination was the Equal Opportunities Commission established to eliminate? Topic 7
A Sex discrimination only Chapter 3
B Unmarried discrimination only Section 1
C Disability discrimination only QID 2190
D All of the above but not limited to the above discriminations Ans D Hot

84 The Equal Opportunities Commission was established to eliminate discrimination from many different Topic 7
backgrounds. In addition to family status and disability, which of the following is/are also included?
C Religion discrimination QID 2200
D Financial situation Ans A Hot
Discrimination Ordinance); and race (the Race Discrimination Ordinance). The answer is A.
85 There are three Ordinances for discrimination in Hong Kong. Which of the following is not included in the Topic 7
Ordinances?
A Sex Chapter 3
B Religion Section 1
C Family Status QID 2189
D Disability Ans B Hot
86 There are currently three types of unfair discrimination ordinances in Hong Kong, including sex, disability Topic 7
and which of the following?
A Religion discrimination Chapter 3
C Family status discrimination QID 2201
D Height and weight discrimination Ans C Hot
87 Which three of the following Ordinances have been established by the Equal Opportunities Commission to Topic 7
eliminate discrimination, except for which of the following?
A Sex Chapter 3
B Age Section 1
D None of the above Ans B Hot

88 The purpose of establishing the Equal Opportunities Commission relates to which of the following? Topic 7
B Race discrimination Section 1
D Including but not limited to the above Ans D Hot
89 What does the specific ordinances on equal opportunities not cover? Topic 7
A Disability Chapter 3
B Family status Section 1
C Age QID 2183
D Sex Ans C Hot
eliminate discrimination. The four Ordinances are Sex Discrimination Ordinance, Disability Discrimination
Ordinance, Family Status Discrimination Ordinance, and Race Discrimination Ordinance. The answer is C.
90 Hong Kong has three legislations that specifically address unfair discrimination. Which of the following is Topic 7
not included?
A Family status Chapter 3
B Sex Section 1
D Marital status Ans D Hot
Exp Marital status is not included. The answer is D.

B Age discrimination only Section 1
D All of the above but not limited to the above discriminations Ans B Hot

92 Which is not the case that Hong Kong has three Ordinances for the elimination of? Topic 7
A Sex Discrimination Chapter 3
B Religion Discrimination Section 1
C Disability Discrimination QID 2188
D Family Status Discrimination Ans B Hot
93 What legislation does Hong Kong have against discrimination? Topic 7
I Sex Discrimination Ordinance
ii. Disability Discrimination Ordinance
iii. Age Discrimination Ordinance
iv. Family Status Discrimination Ordinance
B i， ii， iv Section 1
D ii， iii， iv Ans B Hot
Ordinance, Family Status Discrimination Ordinance, and Race Discrimination Ordinance. The answer is B.
94 What does the specific ordinances on equal opportunities not cover? Topic 7
A Sex Chapter 3
B Age Section 1
C Marital status QID 2184
95 Specific ordinances relating to equal opportunities matters include family status, physical disability and: Topic 7
A Age Chapter 3
B Skin colour Section 1
C Sex QID 2185
D Financial situation Ans C Hot

96 Ordinances to eliminate discrimination in Hong Kong, including disability, family status and: Topic 7
A Skin colour Chapter 3
B Age Section 1
C Sex QID 2186
D Financial situation Ans C Hot
B Unmarried discrimination only Section 1
D All of the above but not limited to the above discriminations Ans D Hot
98 Which of the following is not an Ordinance for the elimination of discrimination in Hong Kong? Topic 7
A Sex Discrimination Ordinance Chapter 3
B Age Discrimination Ordinance Section 1
C Disability Discrimination Ordinance QID 2181
D Family Status Discrimination Ordinance Ans B Hot
Ordinance, Family Status Discrimination Ordinance, and Race Discrimination Ordinance. The answer is B.
99 Which of the following may be considered "fair" discrimination in insurance undertakings? Topic 7
A Charging lower life insurance premiums on women Chapter 3
B Imposing special terms on people with disabilities in personal accident insurance Section 2
C Offering higher annuity benefit payments to men than to women of the same age QID 2215
Exp All the options are considered "fair" discriminations. The answer is D.
100 Which of the following is an example of discrimination considered "fair" (that is, legal) in insurance? Topic 7
A Charging cheaper life insurance premiums on women Chapter 3
B Offering higher annuity benefit payments to men Section 2
C Imposing policy limitations on people with physical disabilities QID 2204
Exp All are examples of discrimination generally considered to be legitimate in insurance. The answer is D.

101 For the insurance industry, which of the following is a case of fair discrimination (i.e. legal)? Topic 7
A Refusing to grant household insurance to a woman on the grounds that she is divorced Chapter 3
B Charging higher motor insurance premiums on female drivers Section 2
C Offering higher annuity benefit payments to men QID 2207
Exp Motor insurance and fire insurance are two examples of unfair discrimination with insurance.
It is a biological fact that women, on average, live longer than men. From this, insurers may offer higher
annuity benefit payments to men than to women of the same age, health condition, etc., because on
average fewer payments will be made to men, which is generally considered to be legitimate.
The answer is C.
102 Which of the following is true about "fair" discrimination in insurance? Topic 7
A Charging higher motor insurance premiums on women Chapter 3
B Adding special terms to women's motor insurance Section 2
C Refusing to grant household insurance to a woman on the grounds that she is divorced QID 2206
D Charging higher premiums for life insurances on men than for women of the same age and health Ans D Hot
condition
It is a biological fact that women, on average, live longer than men. From this, insurers may charge a lower
premium rate for life insurances on women than for men of the same age, health condition, etc, which is
generally considered to be legitimate.
The answer is D.
103 Which of the following is/are considered "fair discrimination(s)" by the insurer? Topic 7
i. Offering lower annuity benefit payments to women
ii. Charging higher life insurance premiums on men
iii. Charging higher motor insurance premiums on women
iv. Charging higher personal accident insurance premiums on people with disabilities
B ii， iii， iv Section 2
C i， ii， iv QID 2208
D i， ii， iii， iv Ans C Hot
The answer is C.

104 Which of the following is "fair" discrimination in insurance? Topic 7
A Charging higher premiums for motor insurance on all women than for men Chapter 3
B Imposing stricter terms on the motor insurance purchased by all women than men Section 2
C Refusing to grant household insurance to a divorced woman when buying fire insurance QID 2205
D Charging a lower premium rate for life insurances on women than for men of the same age， health Ans D Hot
condition， etc.
The answer is D.
105 Which of the following is true about "fair" discrimination in insurance? Topic 7
A Charging higher motor insurance premiums on women Chapter 3
B Adding special terms to women's motor insurance Section 2
D Charging higher premiums for life insurances on men than for women of the same age and health Ans D Hot
condition
The answer is D.
106 Which of the following is "fair" in relation to discrimination legislation? Topic 7
A Charging higher premiums for life insurances on men than for women Chapter 3
B Charging higher premiums on women who buy motor insurance because they are more accident-prone Section 2
C Imposing stricter terms on the motor insurance purchased by women QID 2177
D Refusing to grant household insurance to a woman on the grounds that she is divorced or a single parent Ans A Hot
The answer is A.

107 Which of the following is "fair" in relation to discrimination legislation? Topic 7
B Charging higher premiums on women who buy motor insurance because they are more accident-prone Section 2
The answer is A.
108 Under the legislation addressing discrimination, which of the following is an example of "fair" Topic 7
discrimination in insurance?
B Charging higher premiums on women who buy motor insurance Section 2
The answer is A.
109 For the insurance industry, which of the following is a case of fair discrimination (i.e. legal)? Topic 7
A Charging higher life insurance premiums on women Chapter 3
B Charging higher motor insurance premiums on female drivers Section 2
C Offering higher annuity benefit payments to men QID 2214
Exp It is a biological fact that women, on average, live longer than men. From this, insurers may offer higher
annuity benefit payments to men than to women of the same age, health condition, etc., or charge cheaper
life insurance premiums on women, which is generally considered to be legitimate.
Motor insurance and fire insurance are two examples of unfair discrimination with insurance.
The answer is C.

110 Which of the following is "fair" discrimination in the insurance industry? Topic 7
A Refusing to grant motor insurance to female drivers Chapter 3
B Imposing a surcharge on women in motor insurance Section 2
D Charging higher premiums for life insurances on men than for women Ans D Hot
Exp It is a biological fact that women, on average, live longer than men. From this, insurers may offer higher
Motor insurance and fire insurance are two examples of unfair discrimination with insurance.
The answer is D.
111 In general, which of the following is more likely to be considered as unfair discrimination by the insurer? Topic 7
A Paying men a higher annuity Chapter 3
B Charging lower life insurance premiums on women Section 3
C Charging higher motor insurance premiums on women QID 2212
The answer is C.
112 Which of the following is "unfair" in relation to discrimination legislation? Topic 7
A Charging higher premiums and imposing stricter terms on women who buy motor insurance Chapter 3
B Charging higher premiums for life insurances on men than for women of the same age and health Section 3
condition
C Charging lower premiums for life insurances on women than for men of the same age and health condition QID 2210
D None of the above is "fair" Ans A Hot
It is a biological fact that women, on average, live longer than men. From this, insurers may charge
cheaper life insurance premiums on women, which is generally considered to be legitimate.
The answer is A.

113 Which of the following is unfair discrimination in insurance? Topic 7
A Offering higher annuity benefit payments to men Chapter 3
B Charging lower life insurance premiums on women Section 3
The answer is C.
114 Which of the following is "unfair" discrimination in insurance? Topic 7
A Offering higher annuity benefit payments to men Chapter 3
B Charging higher motor insurance premiums on women Section 3
C Charging cheaper life insurance premiums on women QID 2213
The answer is B.
115 Which of the following is "unfair" discrimination in insurance? Topic 7
A Charging cheaper life insurance premiums on women Chapter 3
B Offering higher annuity benefit payments to men Section 3
The answer is C.

116 Which of the following statements about money laundering is true? Topic 7
i. Money laundering is a criminal offence
ii. In the insurance industry, a single premium life insurance policy is an example of the above
iii. One of the money-laundering procedures is to disguise the source of money
iv. Citizens have a statutory duty to report money laundering activities
A I Chapter 4
B i， ii， iii Section 1
C ii， iv QID 2217
D i， ii， iii， iv Ans D Hot

117 The most common form of money laundering in insurance is: Topic 7
A Fire insurance Chapter 4
B Motor insurance Section 3
C Single premium insurance QID 2223
D Household insurance with monthly premium payment Ans C Hot
Exp Examples of those long term insurance contracts that are vulnerable as a vehicle for laundering money
include: unit-linked or with profit single premium contracts; single premium life insurance policies that
store cash value; fixed and variable annuities; and (second hand) endowment policies. The answer is C.
118 The most common form of money laundering in insurance is: Topic 7
A Fire insurance Chapter 4
C Household insurance with monthly premium payment QID 2222
D A single premium insurance contract Ans D Hot
Exp Examples of those long term insurance contracts that are vulnerable as a vehicle for laundering money
include: unit-linked or with profit single premium contracts; single premium life insurance policies that
store cash value; fixed and variable annuities; and (second hand) endowment policies. The answer is D.
119 Which of the following is the most frequently covered by money laundering crimes? Topic 7
A Life insurance Chapter 4
C Public liability insurance QID 2221
D Employees' compensation insurance Ans A Hot
Exp Life insurance is the most frequently covered by money laundering crimes. The answer is A.
120 Which of the following is the stage at which insurers should be alerted that money laundering may be Topic 7
taking place?
A The physical disposal of money proceeds derived from illegal activities Chapter 4
B Use complex procedures to "disguise" the sources Section 4
C Return the laundered money back into economic activities QID 2224
Exp There are three common stages in the laundering of money. These stages are placement, layering and
integration. The answer is D.

121 Which of the following is/are the different stage(s) of money laundering? Topic 7
A The physical disposal of money proceeds derived from illegal activities Chapter 4
B Use complex procedures to "disguise" the source of money Section 4
C Return the laundered money back into economic activities QID 2219
122 The different stages of money laundering are: Topic 7
i. Placement
ii. Categorization
iii. Layering
iv. Integration
B i， iii， iv Section 4
C ii， iii， iv QID 2225
D i， ii， iii， iv Ans B Hot
integration. The answer is B.
123 The different stages of money laundering are: Topic 7
i. Placement
ii. Disguise
iii. Layering
iv. Integration
B i， iii， iv Section 4
C ii， iii， iv QID 2226
D i， ii， iii， iv Ans B Hot
integration. The answer is B.
124 Which of the following is/are the different stage(s) of money laundering? Topic 7
A Return the laundered money back into economic activities Chapter 4
B Use complex procedures to "disguise" the source of money Section 4
C The physical disposal of money proceeds derived from illegal activities QID 2220

125 Hong Kong's money laundering legislations include: Topic 7
i. Drug Trafficking (Recovery of Proceeds) Ordinance
ii. Organized and Serious Crimes
Ordinance
iii. Recovery of Proceeds (Money Laundering) Ordinance
iv. Organised and Serious Crimes (Amendment) Ordinance, 2000
B i， ii， iv Section 5
D ii， iii， iv Ans B Hot
Exp The four main pieces of legislation in Hong Kong that are concerned with ML/TF are the Anti-Money
Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (AMLO), the Drug
Trafficking (Recovery of Proceeds) Ordinance (DTROP), the Organized and Serious Crimes
Ordinance (OSCO) and the United Nations (Anti-Terrorism Measures) Ordinance (UNATMO). The answer is
B.
126 Measures taken by the Hong Kong SAR government to counter terrorist activities include: Topic 7
A United Nations (Anti-Terrorism Measures) Chapter 4

Ordinance
B Hong Kong (Anti-Terrorism Measures) Section 5
Ordinance
C Global (Anti-Terrorism Measures) QID 2199
Ordinance
D All of the above are true Ans A Hot
A.
127 To counter terrorist financing, agents comply with: Topic 7
i. Hong Kong (Anti-Terrorism Measures) Ordinance
ii. United Nations (Anti-Terrorism Measures) Ordinance
iii. Guideline on Anti-Money Laundering and Counter-Terrorist Financing
iv. All of the above
A i， ii Chapter 4
B i， iii Section 5-6
C ii， iii QID 2231
D iv Ans C Hot
C.

128 Measures taken by the government of the Hong Kong Special Administrative Region to counter terrorist Topic 7
activities include:
A Hong Kong (Anti-Terrorism Measures) Ordinance Chapter 4
B United Nations (Anti-Terrorism Measures) Ordinance Section 5
C United Nations (Anti-Money Laundering) Ordinance QID 2229
Exp Measures taken by the government of the Hong Kong Special Administrative Region to counter terrorist
activities include the United Nations (Anti-Terrorism Measures) Ordinance. The answer is B.
129 To counter terrorists, which of the following ordinances has the Hong Kong SAR government enacted? Topic 7
A United Nations (Anti-Terrorism Measures) Ordinance Chapter 4
B Drug Trafficking (Recovery of Proceeds) Ordinance Section 5
C Organized and Serious Crimes Ordinance QID 2227
D All of the above Ans A Hot
Exp To counter terrorists, the Hong Kong SAR government has enacted the United Nations (Anti-Terrorism
Measures) Ordinance. The answer is A.
130 As a result of the September 11 terrorist attacks, which of the following measures has the HK SAR Topic 7
government taken?
A United Nations (Anti-Terrorism Measures) Ordinance Chapter 4
B Hong Kong (Anti-Terrorism Measures) Ordinance Section 5
C International (Anti-Terrorism Measures) Ordinance QID 2236
D Non-insurance (Anti-Terrorism Measures) Ordinance Ans A Hot
A.
131 Which of the following is/are the Ordinance(s) on money laundering? Topic 7
A Drug Trafficking (Recovery of Proceeds) Ordinance Chapter 4
B Organized and Serious Crimes Ordinance Section 5
C Drug Dealers (Recovery of Proceeds) Ordinance QID 2218
D Only (A) and (B) are correct Ans D Hot
D.

132 The Anti-Money Laundering Ordinance makes it a criminal offence if a financial institution knowingly Topic 7
contravenes a specified provision, subject to a maximum penalty of:
A Imprisonment for 7 years and a fine of HK$2 million Chapter 4
B Imprisonment for 1 year and a fine of HK$2 million Section 5
C Imprisonment for 2 years and a fine of HK$1 million QID 2230
D Imprisonment for 7 years and a fine of HK$1 million Ans C Hot
Exp The AMLO makes it a criminal offence if an FI knowingly contravenes a specified provision, subject to a
maximum penalty of
imprisonment for 2 years and a fine of $1 million. The answer is C.
133 The Drug Trafficking (Recovery Topic 7
of Proceeds) Ordinance, the Organized and Serious Crimes Ordinance and related legislation have a
common application that insurers must also be concerned about. The application is:
A Money laundering activities Chapter 4
B A breach of the utmost good faith by the proposer Section 6
C Use drugs in nightclubs QID 2235
D Violence against insurance claimants Ans A Hot
A.
134 In which of the following processes should the insurer be alert to the possibility of money laundering? Topic 7
A The use of illegally obtained large amounts of cash to buy physical goods Chapter 4
B Create complex financial services to disguise the source of funds Section 6
C Return the laundered proceeds back into QID 2232

financial institutions and make the proceeds appear to be obtained from normal sources
135 The step(s) necessary to prevent money laundering is/are: Topic 7
A Customer identification confirmation Chapter 4
B Record-keeping Section 6
C Response from relevant authorities QID 2233
Exp All the options are the necessary steps to prevent money laundering. The answer is D.

136 Which of the following bodies has/have issued Guideline on Anti-Money Laundering to insurers and Topic 7
insurance intermediaries?
A Hong Kong Federation of Insurers Chapter 4
B Insurance Authority Section 6
C Hong Kong Confederation of Insurance Brokers QID 2234
D The above three bodies jointly conducted Ans B Hot
Exp The Insurance Authority has issued a Guideline on Anti-Money Laundering and Counter-Terrorist
Financing (Guideline) to give guidance on the subjects to authorised insurers, reinsurers, appointed
insurance agents and authorised insurance brokers carrying on or advising on long term business. The
answer is B.
137 Corruption means: Topic 7
A Abuse of power and seek personal gain at the expense of other people Chapter 5
B Seek personal gain at the expense of other people Section
C Abuse of power and seek personal gain at the expense of social interests QID 2248
D Misappropriation of other people's funds Ans A Hot
Exp Corruption is an individual's act of abusing his authority for personal gain at the expense of other people.
The answer is A.
138 Under the Prevention of Bribery Ordinance: Topic 7
A An agent who is not an employee shall not start a business without the consent of his principal when Chapter 5
conducting his principal's business or affairs
B An agent who is not an employee shall not start a business without the consent of his principal when Section
conducting his principal's business or affairs， even if the agency contract has been terminated
C An agent (employee)， when conducting his principal's business or affairs， shall not seek an advantage QID 2243
without the consent of his principal
D An agent who is not an employee shall not appoint a subagent without the consent of his principal when Ans C Hot
conducting his principal's business or affairs
Exp Under Section 9(1) of the Ordinance, an agent (normally an employee), when conducting his principal's
business or affairs, should not seek or accept an advantage without the permission of his principal. The
answer is C.
139 Under the Prevention of Bribery Topic 7
Ordinance:
A An agent < normally an employee >， when conducting his principal's business or affairs， should not Chapter 5
start a business without the permission of his principal
B An agent < normally an employee >， when conducting his principal's business or affairs， should not Section
start a business without the permission of his principal， even if the appointment of the agent has been
terminated
C An agent < normally an employee >， when conducting his principal's business or affairs， should not QID 2246
carry on the sales business without the permission of his principal
D An agent < normally an employee >， when conducting his principal's business or affairs， should not Ans D Hot
seek or accept an advantage without the permission of his principal
answer is D.

140 Which of the following constitutes corruption and should be avoided? Topic 7
A Individuals seek personal gain at the expense of other people without authorisation Chapter 5
B Individuals seek personal gain at the expense of other people Section
C Individuals abuse their power and seek personal gain at the expense of other people QID 2237
D Personal appropriation of another person's property Ans C Hot
The answer is C.
141 Corruption means: Topic 7
A Individuals abuse their power for the benefit of the public at the expense of other people Chapter 5
B Abuse of power for personal gain at the expense of other people Section
C Laundered the money derived from criminal activities QID 2238
D Terrorists commit crimes Ans B Hot
The answer is B.
142 Which of the following shall be observed or avoided by employees under the Prevention of Bribery Topic 7
Ordinance?
A An employee， when conducting his employer's business or affairs， should not start a business without Chapter 5
the permission of his employer
B An employee， when conducting his employer's business or affairs， should not start a business within Section
5 years after the end of the agency relationship without the permission of his employer
C An employee， when conducting his employer's business or affairs， should not seek or accept an QID 2239
advantage without the permission of his employer
D An employee， when conducting his employer's business or affairs， should not appoint any subagent Ans C Hot
without the permission of his employer
Exp Under Section 9(1) of the Ordinance, an
agent (normally an employee), when conducting his principal's business or affairs, should not seek or
accept an advantage without the permission of his principal. The answer is C.
Ordinance, which of the following must an employee observe or avoid?
A An employee， when conducting his employer's business or affairs， should not start a business Chapter 5
B An employee， when conducting his employer's business or affairs， should not start a business within Section
five years of the termination of the relationship with his employer
C An employee， when conducting his employer's business or affairs， should not seek or accept an QID 2240
advantage
D An employee， when conducting his employer's business or affairs， should not appoint any subagent Ans C Hot
Exp Under Section 9(1) of the Ordinance, an

agent (normally an employee), when conducting his principal's business or affairs, should not seek or
accept an advantage without the permission of his principal. The answer is C.

144 Corruption prevention is to avoid: Topic 7
A Seek personal gain at the expense of other people Chapter 5
B Abuse of power for personal gain at the expense of other people Section
C Seek personal gain at the expense of other people without authorisation QID 2241
D Appropriation of another person's property Ans B Hot
The answer is B.
145 The Prevention of Bribery Ordinance aims to prevent corruption, that is: Topic 7
A An agent who is not an employee shall not start a business without the consent of his principal Chapter 5
B An agent who is not an employee shall not start a business within five years without the consent of his Section
principal
C An employee (agent) should not seek personal gain without the consent of his principal QID 2242
D An agent who is not an employee shall not change occupation without the consent of his principal Ans C Hot
Exp Administered by the Independent Commission Against Corruption (ICAC), the Prevention of Bribery
Ordinance helps the business sector maintain an environment that is conducive to efficiency and fair
competition. It protects principals against
agents' abuses of authority for personal gain. Under Section 9(1) of the Ordinance, an agent (normally an
employee), when conducting his principal's business or affairs, should not seek or accept an advantage
without the permission of his principal. The answer is C.
146 Corruption in the Prevention of Bribery Topic 7
Ordinance means:
A Individuals abuse their power and seek personal gain at the expense of other people Chapter 5
B Individuals seek personal gain at the expense of social interests Section
C Individuals seek personal gain at the expense of other people without authorisation QID 2245
D Personal appropriation of another person's property Ans A Hot
The answer is A.
147 Corruption is: Topic 7
A Individuals seek personal gain at the expense of social interests Chapter 5
B Individuals abuse their power and seek personal gain at the expense of other people Section
C Individuals seek personal gain at the expense of other people without authorisation QID 2244
D Personal appropriation of another person's property Ans B Hot
The answer is B.

Ordinance:
A An agent < normally an employee >， when conducting his principal's business or affairs， should not Chapter 5
start a business without the permission of his principal
B An agent < normally an employee >， when conducting his principal's business or affairs， should not Section
start a business without the permission of his principal， although the agent has been appointed
C An agent < normally an employee >， when conducting his principal's business or affairs， should not QID 2247
carry on the sales business without the permission of his principal
D An agent < normally an employee >， when conducting his principal's business or affairs， should not Ans D Hot
seek or accept an advantage without the permission of his principal
answer is D.
149 Insurance fraud: Topic 7
A There are several ways available whether or not related to claims Chapter 6
B May only involve insurance claims Section
C Life insurance claims are never involved QID 2251
D May only involve property damage claims Ans A Hot
Exp Fraud, however, may arise at other than the claims level.
The answer is A.
A May not arise in life insurance Chapter 6
B Fraud does not necessarily involve claims Section
C There must be claims involved in the fraud QID 2250
D Fraud generally has nothing to do with insurance Ans B Hot
Exp Fraud is of course dishonesty or cheating. Since insurance is a process involving a high element of trust,
there is ample scope for the dishonest person to take advantage.
Fraud, however, may arise at other than the claims level.
The answer is B.
A May arise in different ways and claims Chapter 6
B May only arise in claims Section
C May not arise in life insurance QID 2249
D May only arise in the process of property insurance claims Ans A Hot
Exp Fraud, however, may arise at other than the claims level. The answer is A.

152 At the time of claims, agents provide doubtful medical or other documentary evidence, which may be Topic 7
referred to as:
A Arranging the insurance Chapter 6
B Fraud Section 2
C Fraudulent claims QID 2255
Exp At the time of claims, agents provide doubtful medical or other documentary evidence, which may be
referred to as fraudulent claims. The answer is C.
153 For an agent, which of the following technically constitutes a fraud? Topic 7
A Induce the insured to delete information with adverse effects Chapter 6
B Attempt to intentionally mislead the insurer Section 2
C Do not disclose important information QID 2254
Exp For an agent, all the options technically constitute frauds. The answer is D.
154 Which of the following is a fraud by an insurance intermediary? Topic 7
A Delete any information which could have Chapter 6

an adverse effect upon an application or proposal for insurance
B Provide inconsistent evidence Section 2
C Misrepresentation of information to mislead the insurer QID 2257
D All of the above are frauds Ans D Hot
Exp All the options are frauds by insurance intermediaries. The answer is D.
155 Which of the following is a fraud? Topic 7
A Tell clients not to disclose material facts Chapter 6
B Helping clients in fraudulent claims Section 2
C Intentionally conceal material facts QID 2256
Exp All the options are frauds. The answer is D.

156 Practical steps to prevent insurance fraud include: Topic 7
A Integrity Chapter 6
B Communication Section 3
C Diligence QID 2253
Exp Practical steps to prevent insurance fraud include vigilance, diligence, communication and integrity. The
answer is D.

157 Among the practical ways to prevent fraud, the most important one worth considering for an insurance Topic 7
salesman is:
A Keep vigilance， it can happen in any situation Chapter 6
B Cast great doubt on any claimant Section 3
C Understand that it will only arise in large claims QID 2252
D Strict proof and confirmation are required for every minute detail Ans A Hot
Exp As with all matters involving illegal activities, perhaps the most important advice in preventing fraud is
firstly to be aware that it can happen. The answer is A.
157


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2CEXAM Mock Question

D All of the above Ans D Hot

B Mentally sound Section 3

D Will not be convicted of the criminal offence Ans C Hot

A Ability to work efficiently Chapter 2

B Ability to process confidential information Section 3

C Due care and diligence QID 2114

D Would be a criminal offense Ans A Hot

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.1

B Hong Kong Federation of Insurers Section 3

C Insurance Brokers Authorisation Committee QID 2113

D Insurance Brokers Registration Board Ans A Hot

A All contents are correct Chapter 2

C Whether its members have been liquidated QID 2111

D All minimum requirements have been met Ans D Hot

C Whether its members have been liquidated QID 2109

A Submit to the IA an auditor's report Chapter 2

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.2

A Should include efficiency and mentally sound Chapter 2

B Has not been convicted of any criminal offence Section 3

C Must be an incorporated broker QID 2101

D Only (A) and (B) Ans D Hot

A Insurance Authority Chapter 2

B Hong Kong Insurance Association Section 3

C Hong Kong Confederation of Insurance Brokers QID 2112

D Hong Kong Association of Professional Insurance Brokers LTD Ans A Hot

A Utmost good faith and integrity Chapter 2

B Due care Section 3

C Priority of client's interests QID 2100

D All of the above Ans D Hot

D Stating whether its members have been liquidated Ans B Hot

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B Records must be kept electronically Section 3

D Sufficient to reflect the profit or loss of the business Ans C Hot

C Whether its members have been liquidated QID 2103

D Whether its members have violated the Code Ans B Hot

B Only the Insurance Authority Section 3

C Association of Insurance Advisers QID 2104

D Hong Kong Federation of Professional Insurance Brokers LTD Ans A Hot

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Exp All the statements are true. The answer is D.

A Absence of fraud Chapter 1

B Take no unfair advantage Section a-f

C Exert no unnecessary influence QID 2124

B ii， iii， iv Section a-f

C i， iii， iv QID 2116

D i， ii， iii， iv Ans A Hot

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A Absence of fraud Chapter 1

B Take no unfair advantage Section a-f

C Exert no unnecessary influence QID 2129

D All of the above Ans D Hot

B i， ii， iv Section a-f

C i， iii， iv QID 2128

D ii， iii， iv Ans C Hot

20 What are the insurance intermediaries' duties to policyholders? Topic 7

B i， ii， iv Section a-f

C i， iii， iv QID 2127

D ii， iii， iv Ans A Hot

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B i， ii， iv Section a-f

C i， iii， iv QID 2126

D ii， iii， iv Ans A Hot

B i， ii， iv Section a-f