PCE Tutorial

What is the correct definition of a pure risk?

• A risk where there is only the possibility of a loss or break

  even outcome

• A risk that only affects individuals as opposed to society as a

  whole

• A risk that cannot be measured in financial terms

• A risk where there is a possibility of financial gain

Which of the following is NOT a benefit of insurance?

• Peace of mind

• Means of saving

• Speculative investment

• Investment of funds

Which of the following is the least effective approach to

handling risks?

• Avoiding the risk

• Transferring the risk

• Retaining the risk

• Ignoring the risk

The proximate cause of a loss is always

• the dominant cause.

• the cause nearest the loss in time.

• the cause nearest the loss in distance.

• an insured peril.

Which remedy is not available to the insurer if

there was fraudulent breach of good faith by the

insured?

• Avoid the policy as a whole

• Avoid the policy and keep the premium

• Ignore the breach and allow the policy to stand

• Refuse a particular claim but allow the policy to

  stand

Which one of the following has no insurable

interest in the life of another?

• Child dependent on a parent

• Employer on an employee’s life

• Principal on an agent’s life

• Legal guardian on a minor’s life

Which of the following is NOT a function of Bank Negara

Malaysia?

• Enhance professional standards and business conduct of the

  agency force

• Foster fair, responsible and professional business conduct of

  insurance companies

• Strive to protect the rights and interests of financial

  consumers

• Keep a close watch on solvency and market conduct of the

  insurance industry

Which of the following is NOT considered ‘personal data’

by the Personal Data Protection Act 2010?

• Any personal information in respect of commercial

  transactions

• Personal information posted on social media

• Sensitive personal data e.g. physical or mental health,

  political opinions, religious beliefs, offences or any other

  data as the Minister may determine

• Expression of opinion about the data subject

Which of the following does NOT make an insurance contract

void?

• No insurable interest at the time of effecting the policy

• No consensus or a fundamental mistake or disagreement from

  the start

• Fraudulent misrepresentation or concealment at the precontractual

  stage

• Innocent misrepresentation at the time of filling up the

  proposal form

A whole life policy differs from a term policy in that

• premium on a whole life policy increases each year.

• no premiums are required when the insured turns 65.

• the rate on a whole life policy is always lower than that

  charged on a term policy.

• a whole life policy accumulates cash value, whereas a term

  policy does not.