SELF ASSESMENT QUESTIONS

1. Which of the following is NOT a characteristic of an insurable risk?

a. It should not be against public policy
b. It must be fortuitous or accidental in nature
c. It must be a speculative risk
d. Homogenous exposures with the same expectation of loss

2. For insurance purposes, fire damage is classified as

a. A speculative risk
b. A fundamental risk
c. A pure risk
d. A physical hazard

3. Which of the following is NOT a risk covered by insurance?

a. Death due to sickness or illness
b. Liability to consumers arising from the sale of products
c. Financial loss due to a drop in the share price
d. Damage to vehicle as a result of a chain collision

4. What is meant by a ‘composite insurance company’?

a. A company consisting of a head office and regional branches
b. A company formed under the Companies Act
c. A company writing both life and general insurance business
d. A company that specializes in writing a single class of business
5. The proximate cause of a loss is always
a. The dominant cause
b. The cause nearest the loss in time
c. The cause nearest the loss in distance
d. An insured peril

6 How is indemnity measured under property insurance policies?

a. According to a formula
b. On agreed value basis
c. On a reinstatement basis
d. On a first loss basis

7. What distinguishes an uninsured peril from an excluded peril?

a. Am excluded peril is uninsurable
b. An uninsured peril can be covered with additional premium but an excluded peril
is more appropriately covered by some other policy
c. An uninsured peril can be included by removing the exclusion clause
d. An uninsured peril is lower risk compared to an excluded peril

8. Which one of the following has no insurable interest in the life of another?
a. Child dependent on a parent
b. Employer on an employee’s life
c. Principal on an agent’s life
d. Legal guardian on a minor’s life
9. Which of the following is NOT a function of BNM?
a. Enhance professional standards and business conduct of the agency force
b. Foster fair, responsible and professional business conduct of insurance companies
c. Strive to protect the rights and interests of financial consumers
d. Keep a close watch on solvency and market conduct of the insurance industry

10. Which new legislation replaced the Insurance Act of 1996?

a. Islamic Financial Services Act 2013
b. Financial Services Act 2013
c. Insurance Act 2013
d. Financial Services Authority 2013

11. Which of the following is NOT considered ‘personal data’ by the PDPA
2010?
a. Any personal information in respect of commercial transactions
b. Personal information posted on social media
c. Sensitive personal data e.g. physical or mental health, political opinions, religious
beliefs, offences or any other data as the Minister may determine
d. Expression of opinion about the data subject

12. Under the FSA 2013 ‘authorized’ business licensed by the Minister include
the
following EXCEPT
a. Insurance business
b. Insurance broking
c. Insurance loss adjuster
d. Financial advisory business