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Last updated on:
24-May-230 of 30 questions completed
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IIQE Paper 6 Free Trial English
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What is the penalty of committing an offence?
The maximum penalty for either offence is a fine of $1,000,000 and imprisonment for 5 years.
The maximum penalty for either offence is a fine of $1,000,000 and imprisonment for 5 years.
Which of the following are the exemptions from the ordinance?
I. Exemption for personal data held for recreational purpose.
II. Exemption on access by data subject for certain unemployment related personal data.
III. Exemptions from the subject access.
IV. Exemption for personal data held for domestic purpose.
Exemptions from the Ordinance include:
(i) a broad exemption for personal data held for domestic or recreational purposes;
(ii) exemptions on access by data subject for certain employment related personal data held by their employers;
(iii) exemptions from the subject access and use limitation requirements where their application is likely to prejudice certain competing public or social interests, i.e. security, defence and international relations; prevention or detection of crime; apprehension, prosecution or detention of offenders; assessment or collection of any tax or duty; health; legal professional privilege; news activities; statistics and research; and human embryos, etc.
Exemptions from the Ordinance include:
(i) a broad exemption for personal data held for domestic or recreational purposes;
(ii) exemptions on access by data subject for certain employment related personal data held by their employers;
(iii) exemptions from the subject access and use limitation requirements where their application is likely to prejudice certain competing public or social interests, i.e. security, defence and international relations; prevention or detection of crime; apprehension, prosecution or detention of offenders; assessment or collection of any tax or duty; health; legal professional privilege; news activities; statistics and research; and human embryos, etc.
What action is taken by the regulators to protect the interest in policyholders when there is cause for concern on a particular’s ability to meet liabilities?
Special actuarial investigation: probably when there is cause for concern on a particular insurer’s ability to meet liabilities.
Special actuarial investigation: probably when there is cause for concern on a particular insurer’s ability to meet liabilities.
Who has issued the Guidelines on Complaint Handling?
The HKFI has issued the ‘Guidelines on Complaint Handling’ to supplement the requirements stipulated in the Code of Conduct for Insurers on the handling of inquiries, complaints and disputes.
The HKFI has issued the ‘Guidelines on Complaint Handling’ to supplement the requirements stipulated in the Code of Conduct for Insurers on the handling of inquiries, complaints and disputes.
In which of the following cases does the ICCB deal?
I. The claim amount does not exceed HK$500,000.
II. The complaint is claim-related.
III. The complaint is filed by an assignee.
IV. The claim is not subject to legal proceedings or arbitration.
To summarise, the ICCB can only deal with a particular case if:
(a) the complaint is claim-related;
(b) the claim amount does not exceed HK$800,000;
(c) the insurer concerned is an ICCB member;
(d) the policy concerned is a personal insurance policy;
(e) the complaint is filed by a policyholder/beneficiary/rightful claimant (e.g. an assignee);
(f) the insurer concerned has made its final decision on the claim;
(g) the complaint is filed within 6 months from the date of notification of the insurer’s final decision on the claim;
(h) the dispute in question does not arise from commercial, industrial or third party insurance; and
(i) the claim is not subject to legal proceedings or arbitration.
To summarise, the ICCB can only deal with a particular case if:
(a) the complaint is claim-related;
(b) the claim amount does not exceed HK$800,000;
(c) the insurer concerned is an ICCB member;
(d) the policy concerned is a personal insurance policy;
(e) the complaint is filed by a policyholder/beneficiary/rightful claimant (e.g. an assignee);
(f) the insurer concerned has made its final decision on the claim;
(g) the complaint is filed within 6 months from the date of notification of the insurer’s final decision on the claim;
(h) the dispute in question does not arise from commercial, industrial or third party insurance; and
(i) the claim is not subject to legal proceedings or arbitration.
What is indemnity?
Indemnity means an exact financial compensation for an insured loss, no more no less.
Indemnity means an exact financial compensation for an insured loss, no more no less.
Travel insurance policy is a type of which limit?
Section Limit: A policy may contain two or more sections, which take effect in relation to different subject matter of insurance (as
in the case of a travel insurance policy, which normally covers property damage, legal liability and others), different insured perils, etc.
Section Limit: A policy may contain two or more sections, which take effect in relation to different subject matter of insurance (as
in the case of a travel insurance policy, which normally covers property damage, legal liability and others), different insured perils, etc.
On the basis o financial results, identify the types of risks:
I. Particular risk
II. Pure risk
III. Fundamental risk
IV. Speculative risk
Financial Results
Risks may be considered as being either Pure or Speculative:
(i) Pure Risks offer the potential of loss only (no gain), or, at best, no
change. Such risks include fire, accident and other undesirable
happenings.
(ii) Speculative Risks offer the potential of gain or loss. Such risks
include gambling, business ventures and entrepreneurial activities.
Which of the following are considered as agents within the law of agency?
I. Insurance agents
II. Insurance brokers
III. Bancassurance
IV. Micro insurance agents
An agent in this context is a person who represents a principal. In insurance, the position is made a little complex because insurance intermediaries may be described as Insurance Agents (usually representing the insurer) or as Insurance Brokers (usually representing the insured/proposer), as the case may be. Within the law of agency, they are both agents.
An agent in this context is a person who represents a principal. In insurance, the position is made a little complex because insurance intermediaries may be described as Insurance Agents (usually representing the insurer) or as Insurance Brokers (usually representing the insured/proposer), as the case may be. Within the law of agency, they are both agents.
Which of the following are the criteria for insurable interest to exist?
I. There must be some person, property or liability.
II. A financial relationship.
III. The person must be the subject matter of the insurance.
IV. The proposer must have the legally recognised relationship to the subject matter of insurance.
Its Essential Criteria
For insurable interest to exist, the following criteria must be satisfied:
(a) there must be some person (i.e. life, limbs, etc.), property, liability or
legal right (e.g. the right to repayment by a debtor) capable of being
insured;
(b) that person, etc. must be the subject matter of the insurance (that is to
say, claim payment is made contingent on a mishap to such person, etc.);
(c) the proposer must have the legally recognised relationship to the subject
matter of insurance,
Its Essential Criteria
For insurable interest to exist, the following criteria must be satisfied:
(a) there must be some person (i.e. life, limbs, etc.), property, liability or
legal right (e.g. the right to repayment by a debtor) capable of being
insured;
(b) that person, etc. must be the subject matter of the insurance (that is to
say, claim payment is made contingent on a mishap to such person, etc.);
(c) the proposer must have the legally recognised relationship to the subject
matter of insurance,
Who all can sell and actively promote travel insurance to their clients and be subject to regulation?
I. Technical representatives
II. Any individual
III. Responsible officers
IV. Insurance intermediaries
A new category of insurance agents, “travel insurance agents”, has been introduced in 2006 to the Insurance Intermediaries Quality Assurance Scheme in order to enable travel agents’ registrations as travel insurance agents and their staff members’ registrations as responsible officers or technical representatives, so that they can sell and actively promote travel insurance to their clients and be subject to regulation.
A new category of insurance agents, “travel insurance agents”, has been introduced in 2006 to the Insurance Intermediaries Quality Assurance Scheme in order to enable travel agents’ registrations as travel insurance agents and their staff members’ registrations as responsible officers or technical representatives, so that they can sell and actively promote travel insurance to their clients and be subject to regulation.
Why the travel insurance policy is said to be a package policy?
I. It is a single policy document representing more than one type of insurance.
II. It has pre-determined restrictions in cover, limits of liability, etc
III. The insurer quotes premium for the whole policy, rather than for individual sections.
IV. The insurer can modify a travel insurance plan so as to suit the specific needs of a particular proposer.
Package policy: a travel insurance policy can be said to be a package policy because of its features that are described below.
(i) It is a single policy document representing more than one type of insurance. At any rate, a travel insurance policy covers all four types of subject matter of insurance, namely property, the person, liability and pecuniary interests.
(ii) It has pre-determined restrictions in cover, limits of liability, etc.
(iii) Whilst a travel insurance policy is divided into sections, with each section providing specifically defined cover, they are not rated separately. In other words, the insurer quotes premium for the whole policy, rather than for individual sections.
(iv) The insurer is not keen to modify a travel insurance plan so as to suit the specific needs of a particular proposer, exceptions not being unknown.
Package policy: a travel insurance policy can be said to be a package policy because of its features that are described below.
(i) It is a single policy document representing more than one type of insurance. At any rate, a travel insurance policy covers all four types of subject matter of insurance, namely property, the person, liability and pecuniary interests.
(ii) It has pre-determined restrictions in cover, limits of liability, etc.
(iii) Whilst a travel insurance policy is divided into sections, with each section providing specifically defined cover, they are not rated separately. In other words, the insurer quotes premium for the whole policy, rather than for individual sections.
(iv) The insurer is not keen to modify a travel insurance plan so as to suit the specific needs of a particular proposer, exceptions not being unknown.
Which of the following are the procedures that should be covered while handling an internal complaint?
I. Response to complaint
II. Receipts of complaint
III. Time of complaint
IV. Provision of redress
Policies and Procedures: Insurers should have in place appropriate and effective internal procedures for handling customer complaints, subjected to management controls. The procedures should be in writing, and should at least cover:
‧ receipt of complaints;
‧ response to complaints;
‧ investigation of complaints; and
‧ provision of redress.
Policies and Procedures: Insurers should have in place appropriate and effective internal procedures for handling customer complaints, subjected to management controls. The procedures should be in writing, and should at least cover:
‧ receipt of complaints;
‧ response to complaints;
‧ investigation of complaints; and
‧ provision of redress.
Which of the following cases can be dealt by ICCB?
I. If the complaint is claim related
II. If the policy concerned is a travel insurance policy
III. If the insurer concerned is an ICCB member
IV. If the claim amount does not exceed HK$800,000
To summarise, the ICCB can only deal with a particular case if:
(a) the complaint is claim-related;
(b) the claim amount does not exceed HK$800,000;
(c) the insurer concerned is an ICCB member;
(d) the policy concerned is a personal insurance policy;
(e) the complaint is filed by a policyholder/beneficiary/rightful claimant (e.g. an assignee);
(f) the insurer concerned has made its final decision on the claim;
(g) the complaint is filed within 6 months from the date of notification of the insurer’s final decision on the claim;
(h) the dispute in question does not arise from commercial, industrial or third party insurance; and
(i) the claim is not subject to legal proceedings or arbitration.
To summarise, the ICCB can only deal with a particular case if:
(a) the complaint is claim-related;
(b) the claim amount does not exceed HK$800,000;
(c) the insurer concerned is an ICCB member;
(d) the policy concerned is a personal insurance policy;
(e) the complaint is filed by a policyholder/beneficiary/rightful claimant (e.g. an assignee);
(f) the insurer concerned has made its final decision on the claim;
(g) the complaint is filed within 6 months from the date of notification of the insurer’s final decision on the claim;
(h) the dispute in question does not arise from commercial, industrial or third party insurance; and
(i) the claim is not subject to legal proceedings or arbitration.
When can an insurance agent re-register himself after the expiration of his registration?
Each registration will be for a specified period, not exceeding three years. A Principal may apply for reregistration of an Insurance Agent, and an Insurance Agent may apply for re-registration of his Responsible Officer/Technical Representative, not earlier than 3 months before the current registration expires.
Each registration will be for a specified period, not exceeding three years. A Principal may apply for reregistration of an Insurance Agent, and an Insurance Agent may apply for re-registration of his Responsible Officer/Technical Representative, not earlier than 3 months before the current registration expires.
What is a personal data?
I. Any representation of information in any document and includes a personal identifier.
II. Any information relating directly or indirectly to a living individual.
III. Any information from which it is practicable for the identity of the individual to be directly or indirectly ascertained.
IV. Any information in a form in which access to or processing of the data is practicable.
Personal data is any data (including expressions of opinions):
(1) relating directly or indirectly to a living individual (data subject);
(2) from which it is practicable for the identity of the individual to be directly or indirectly ascertained; and
(3) in a form in which access to or processing of the data is practicable.
Personal data is any data (including expressions of opinions):
(1) relating directly or indirectly to a living individual (data subject);
(2) from which it is practicable for the identity of the individual to be directly or indirectly ascertained; and
(3) in a form in which access to or processing of the data is practicable.
which of the following is a type of Long Term Business, where the policy benefit is payable to the last survivor of a specified insured group of persons?
Tontine: An unusual type of Long Term Business, where the policy benefit is payable to the last survivor of a specified insured group of persons.
Tontine: An unusual type of Long Term Business, where the policy benefit is payable to the last survivor of a specified insured group of persons.
What is one of the ways of formal declaration as to the truth and accuracy of information supplied?
Warrant: To make a formal declaration as to the truth and accuracy of information supplied.
Warrant: To make a formal declaration as to the truth and accuracy of information supplied.
What all matters are considered in determining if a person is fit and proper person for being a controller, director and key person in control functions?
I. Education and qualification of a person
II. Character of a person
III. Person’s physical condition
IV. Person’s financial status
In determining whether a person is a fit and proper person for this purpose, the IA will give due regard to the following matters in addition to any other matter that the IA considers relevant:
(a) education, qualification or experience of the person;
(b) the person’s ability to act competently, honestly and fairly;
(c) reputation, character, reliability and integrity of the person;
(d) the person’s financial status or solvency;
(e) disciplinary action taken by any other authority or regulatory organisation against the person;
(f) if the person is a company in a group of companies, any information in the possession of the IA relating to any other company in the group of companies, or to any substantial shareholder or officer of the person or of any other company in the group of companies; and
(g) the state of affairs of any other business which the person carries on or proposes to carry on.
In determining whether a person is a fit and proper person for this purpose, the IA will give due regard to the following matters in addition to any other matter that the IA considers relevant:
(a) education, qualification or experience of the person;
(b) the person’s ability to act competently, honestly and fairly;
(c) reputation, character, reliability and integrity of the person;
(d) the person’s financial status or solvency;
(e) disciplinary action taken by any other authority or regulatory organisation against the person;
(f) if the person is a company in a group of companies, any information in the possession of the IA relating to any other company in the group of companies, or to any substantial shareholder or officer of the person or of any other company in the group of companies; and
(g) the state of affairs of any other business which the person carries on or proposes to carry on.
Who issues the guidelines on the Corporate Governance of Authorised Insurers?
The IA has issued the Guideline on the Corporate Governance of Authorised Insurers (the ‘Guideline on Corporate Governance’), which sets out the minimum standard of corporate governance that is expected of authorised insurers.
The IA has issued the Guideline on the Corporate Governance of Authorised Insurers (the ‘Guideline on Corporate Governance’), which sets out the minimum standard of corporate governance that is expected of authorised insurers.
How many CPD hours should be completed by the travel Insurance agents, responsible officers and technical representatives in a year?
The IA has specified that: ‘From 1 August 2008 onwards, travel insurance agents, their responsible officers and technical representatives are required to earn 3 CPD hours every year.’
The IA has specified that: ‘From 1 August 2008 onwards, travel insurance agents, their responsible officers and technical representatives are required to earn 3 CPD hours every year.’
For how many months the registration should be revoked when RP fails to meet the CPD hours?
In circumstances where an RP fails to meet the CPD requirements, his registration should be revoked for 3 months as a starting point by the IARB. Such RP should be required to complete all outstanding CPD hours at the time of re-registration.
In circumstances where an RP fails to meet the CPD requirements, his registration should be revoked for 3 months as a starting point by the IARB. Such RP should be required to complete all outstanding CPD hours at the time of re-registration.
Which of the following are the breaches of utmost good faith?
I. Fraudulent Misrepresentation.
II. Non-Fraudulent Misrepresentation.
III. Fraudulent Non-Disclosure.
IV. Non-Fraudulent Disclosure.
Both classifications combined produce a four-fold categorisation as follows:
(a) Fraudulent Misrepresentation: an act of fraudulently giving false material facts to the other party;
(b) Non-fraudulent Misrepresentation: an act of giving false material facts to the other party done either innocently or negligently;
(c) Fraudulent Non-disclosure: a fraudulent omission to give material facts to the other party; or
(d) Non-fraudulent Non-disclosure: an omission to give material facts to the other party done either innocently or negligently.
Both classifications combined produce a four-fold categorisation as follows:
(a) Fraudulent Misrepresentation: an act of fraudulently giving false material facts to the other party;
(b) Non-fraudulent Misrepresentation: an act of giving false material facts to the other party done either innocently or negligently;
(c) Fraudulent Non-disclosure: a fraudulent omission to give material facts to the other party; or
(d) Non-fraudulent Non-disclosure: an omission to give material facts to the other party done either innocently or negligently.
What is the proximate cause of a loss?
I. Effective cause
II. Dominant cause
III. Physical cause
IV. Natural cause
Meaning and Importance of the Principle.
The proximate cause of a loss is its effective or dominant cause. Why is it important to find out which of the causes involved in an accident is the proximate cause? A loss might be the combined effect of a number of causes. For the purposes of insurance claim, one dominant cause must be singled out in each case, because not every cause of loss will be covered.
Meaning and Importance of the Principle.
The proximate cause of a loss is its effective or dominant cause. Why is it important to find out which of the causes involved in an accident is the proximate cause? A loss might be the combined effect of a number of causes. For the purposes of insurance claim, one dominant cause must be singled out in each case, because not every cause of loss will be covered.
The point at which assets are just sufficient to meet liabilities is known as:
‘Solvency’ may be thought of as the point at which assets are just sufficient to meet liabilities. A margin of solvency is therefore the degree or amount by which assets exceed liabilities.
‘Solvency’ may be thought of as the point at which assets are just sufficient to meet liabilities. A margin of solvency is therefore the degree or amount by which assets exceed liabilities.
On what basis, the relevant amount for general business is calculated?
I. In accordance with the detailed requirements of the insurance companies.
II. Premium income
III. Claims outstanding
IV. Fixed to HK$10 million
General Business: calculated on two different bases,
(i) ‘Premium Income’ (the higher the volume of premium income, the larger the relevant amount) and
(ii) ‘Claims Outstanding’ (the higher the amount of claims outstanding (see Glossary), the larger the relevant amount)
General Business: calculated on two different bases,
(i) ‘Premium Income’ (the higher the volume of premium income, the larger the relevant amount) and
(ii) ‘Claims Outstanding’ (the higher the amount of claims outstanding (see Glossary), the larger the relevant amount)
The uncertainty concerning a potential loss is called:
We may therefore define it as ‘uncertainty concerning a potential loss’, a situation in which we are not sure whether there will be loss of a certain kind, or how much will be lost.
We may therefore define it as ‘uncertainty concerning a potential loss’, a situation in which we are not sure whether there will be loss of a certain kind, or how much will be lost.
Identify the types of risks:
I. Emotional risk
II. Physical risk
III. Financial risk
IV. Commercial risk
The potential loss that risk presents may be:
(a) financial: i.e. measurable in monetary terms (e.g. loss of a camera by
theft);
(b) physical: death or personal injury (often having financial consequences
for the individual or his family); or
(c) emotional: feelings of grief and sorrow
The potential loss that risk presents may be:
(a) financial: i.e. measurable in monetary terms (e.g. loss of a camera by
theft);
(b) physical: death or personal injury (often having financial consequences
for the individual or his family); or
(c) emotional: feelings of grief and sorrow
Identify the facts that need not be disclosed:
I. Facts which increase the risk.
II. Matters of common knowledge.
III. Facts which diminish the risk.
IV. Facts which are already known or deemed to be known to the insurer.
Facts that need not be disclosed: In the absence of enquiry, certain facts need not be disclosed; they include: (i) matters of common knowledge (e.g. the explosive character of hydrogen); (ii) facts already known, or deemed to be known, to the insurer (e.g. the problem of piracy in Somalia); (iii) facts which diminish the risk.
Which of the following are the features of the proposer’s duty?
I. Duration at common law
II. Renewal
III. Contract alterations
IV. Withdrawl
When to Disclose Material Facts
It may be said that utmost good faith involves a duty of disclosure by the
proposer/insured. Technically, the insurer is under the same duty, but here we
will concentrate on the proposer’s duty. This duty has some features that we
should note:
(a) Duration (at common law)
(b) Duration (under policy terms)
(c) Renewal
(d) Contract alterations
When to Disclose Material Facts
It may be said that utmost good faith involves a duty of disclosure by the
proposer/insured. Technically, the insurer is under the same duty, but here we
will concentrate on the proposer’s duty. This duty has some features that we
should note:
(a) Duration (at common law)
(b) Duration (under policy terms)
(c) Renewal
(d) Contract alterations
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