Free Sample Question
Insurable Risk

If the underwriter of the insurer requests to have an examination of insurable risk, this risk can include:

  1. the risk of insured properties
  2. the insured risk or potential loss
  3. the insurer
  4. the person at risk that the insurer is considering insuring
A
i, ii and iii only
B
i, ii and iv only
C
ii, iii and iv only
D
i, ii, iii and iv
Hong Kong Financial Services

Insurance services have increasingly become a major element of Hong Kong’s financial services sector.  How is this referred to by commentators?

A
A major benefit of having an insurance industry
B
A primary function of the insurance industry
C
A secondary function of the insurance industry
D
A drag on the Hong Kong economy
Insurance Policy

Which one of the following descriptions about insurance policy is correct?

A
It is an important document issued by seal
B
It is a contract between the agent and the insured
C
It is evidence of the insurance contract
D
If the insurance policy is damaged, the insurance contract will be void
Simple Contracts

Which one of the following statements is incorrect regarding simple contracts?

A
Simple contracts are simple or easy to form
B
A simple contract can be created verbally
C
The validity of a simple contract depends on special formalities
D
A simple contract can be inferred from conduct
Proximate Cause

Which one of the following is correct regarding Proximate Cause?

A
It refers to the approximate cause of a loss
B
It cannot be applied to all types of insurance
C
It refers to the dominant cause of a loss
D
It can be applied when arranging a policy
Abandonment

Which type of insurance involves the abandonment of insured assets?

A
Life
B
Fire
C
Marine
D
Personal accident
Underwriting

What is the definition of underwriting?

A
Insurance used to transfer risk to another insurance company
B
Offering a premium below market price
C
The selection of risks to be insured and determining terms under which the insurance is given
D
None of the above
Insurance Intermediaries

Which of the following are defined as insurance intermediaries in the Insurance Ordinance?

  1. Insurer
  2. Insured
  3. Insurance agent
  4. Insurance broker
A
i and ii only
B
iii and iv only
C
i, iii and iv only
D
i, ii, iii and iv
SROs

Under the self-regulatory system, insurance intermediaries are required to be registered with, and regulated by, one of three self-regulatory organisations (SROs).  Which one of the following is not an SRO?

A
Insurance Agents Registration Board (IARB)
B
Insurance Agents Professional Association (IAPA)
C
Hong Kong Confederation of Insurance Brokers (CIB)
D
Professional Insurance Brokers Association (PIBA)
Personal Data Ordinance

Who is tasked with enforcing and promoting compliance with the Personal Data (Privacy) Ordinance?

A
Privacy Commissioner for Personal Data
B
Executive Director of the Insurance Authority
C
Registrar of Companies
D
Financial Secretary