CMFAS M9 Life Insurance Products & Riders question: life insurer keep separate statutory insurance funds

CMFAS M9Life Insurance Products & Riders

Under which legal provision must a life insurer keep separate statutory insurance funds, with a separate fund maintained specifically for investment-linked policies?

A Section 16 of the Insurance Act 1966
B Section 25 of the Financial Advisers Act
C MAS Notice 307 on product disclosure
D The Central Provident Fund Act

Show the answer and explanation

Answer: A. Section 16 of the Insurance Act 1966

Under Section 16 of the Insurance Act 1966 insurers must maintain separate insurance funds, and a separate fund must be maintained for investment-linked policies; par and non-par business may share a fund.

Common mistake

The requirement sits in the Insurance Act 1966 (s16), not the Financial Advisers Act, an MAS product-disclosure notice, or the CPF Act.

Practise more M9 Life Insurance Products & Riders questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Life Insurance Products & Riders CMFAS M9practice questions & mock exams

Related CMFAS M9 questions

Priya has a S$150,000 Whole Life policy. She wants a lump sum if she is diagnosed with a covered critical illness, but she insists that the full S$150,000 death benefit must still be paid to her family afterwards. Which arrangement meets both requirements?Under the extended term insurance non-forfeiture option on a Whole Life policy, when premiums are defaulted and the owner does not choose another option, the policy The survival period (usually 30 days from the occurrence of a covered critical illness) applies to which type of Critical Illness Rider?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

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.