CMFAS M9 Participating Policies & ILPs question: an insurer's Internal Governance Policy on participating fund management

CMFAS M9Participating Policies & ILPs

Which statement about an insurer's Internal Governance Policy on participating fund management is correct?

A It must be disclosed to every consumer at the point of sale, together with the Product Summary
B It is approved by the Board once at product launch and needs no further review after that
C It is approved and reviewed annually by the Board, and need not currently be disclosed to consumers
D It is drafted by MAS and applies in identical form to every insurer in Singapore

Show the answer and explanation

Answer: C. It is approved and reviewed annually by the Board, and need not currently be disclosed to consumers

Each insurer must maintain an Internal Governance Policy on par fund management, approved and reviewed annually by its Board; insurers are not currently required to disclose it to consumers, though they may do so on request.

Common mistake

The policy is board-owned and reviewed each year, and consumer disclosure is not currently compulsory — it can be provided on request.

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Related CMFAS M9 questions

In a given year an insurer allocates S$108 million to its participating policy owners as bonus. Under the 90:10 rule, what is the maximum profit the insurer may take from the participating fund for that year?Under a DB4 (higher of units or sum assured) ILP, the sum assured is S$100,000, the value of units is S$40,000, and the annual cost of life cover is S$3.00 per S$1,000. What is the monthly mortality charge?A DB4 (higher of value of units or sum assured) ILP has a sum assured of S$50,000 while the value of the units has grown to S$62,000. The annual cost of life cover is S$4.00 per S$1,000. What is the monthly mortality charge?

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Original study material mapped to the public CMFAS M9 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.