CMFAS HI Regulations & Financial Needs Analysis question: enforceable offence under Notice

CMFAS HIRegulations & Financial Needs Analysis

An enforceable offence under Notice 120 can arise from a breach of:

A Part II (best-practice standards)
B Part I (mandatory requirements)
C Either Part I or Part II equally
D Neither Part — the Notice is purely advisory

Show the answer and explanation

Answer: B. Part I (mandatory requirements)

Failure to comply with any requirement under Part I (the mandatory requirements) is an offence punishable under section 142(3) of the Insurance Act 1966. Part II sets non-mandatory best-practice standards.

Common mistake

Only Part I carries offences — Part II is best practice and is not itself enforceable as an offence.

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Related CMFAS HI questions

When helping a client select the deferred (elimination) period for a Disability Income Insurance policy, which guidance is correct?Within the client's 'objectives' captured for Know-Your-Client, Notice 120 specifically expects the intermediary to record Mrs. Devi, a homemaker, would need family maintenance income of S$2,500 per month for 18 years if her husband became totally and permanently disabled. Funds are expected to earn 5% while inflation runs at 2%. The Present Value of Annuity Due factor for 18 years is 14.9920 at 3% and 13.7535 at 4%. Her husband has existing TPD-benefit cover of S$120,000 and available savings of S$30,000. What additional TPD benefit is required?

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Original study material mapped to the public CMFAS HI syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.