Loading…
CMFASPrepStudyingRES5
Switch exam
Financial advisory
RES5Financial Advisory Services✓A loss of S$400 occurs. Under Policy X the S$500 provision is an excess; under Policy Y the S$500 provision is a franchise. What is paid under each?
The loss (S$400) is below both thresholds. With an excess of S$500, nothing exceeds the excess so nil is paid. With a franchise of S$500, the loss has not reached the franchise so nil is paid. Both pay nil for a loss below the threshold.
Excess and franchise behave the same below the threshold (nil), but differ above it: excess is deducted, franchise pays in full.
Practise more BCP Claims questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
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 BCP syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.