HI (6th Edition) Health Insurance (Mock Paper Version 1.

1)

1. _________ ward of a public hospital does NOT receive subsidy from the Singapore
Government.

A. Class A
B. Class B1
C. Class B2
D. Class C

2. Which one of the following is NOT a strategic objective of the “Healthcare 2020” Masterplan put
together by the Ministry of Health?

A. It is to ensure affordability of healthcare.

B. It is to enhance the quality of healthcare.
C. It is to transfer the healthcare cost to the insurers.
D. It is to enhance accessibility to healthcare services.

3. Medical Expense Insurance is also known as __________ Insurance.

A. Critical Illness
B. Disability Income
C. Hospital and Surgical
D. Hospital Cash (Income)

4. Under a typical Medical Expense Insurance policy, hospital miscellaneous expenses which
refer to services and supplies (other than room and board and general nursing care) provided
during a hospital stay will usually include charges for:

A. short-stay ward
B. operating room
C. intensive care unit
D. surgical implant and prosthesis

5. Which one of the following regarding Medical Expense Insurance is TRUE?

A. The coverage and limits are standardised across insurers.

B. It is usually attached as a rider to a Term Insurance policy.
C. It can be extended to cover the immediate family members of the insured.
D. The insured has limited choice of the hospital and ward type when he is hospitalised.

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6. __________ limit is the maximum amount payable for any one disability as specified in a typical
Medical Expense Insurance policy.

A. Event
B. Period
C. Annual
D. Lifetime

7. Mr Goh bought a family coverage plan of his Medical Expense Insurance policy. The
application was submitted at the same time. A family discount of 5% was given by the insurer.

The premiums payable were as follows:

(i) Mr Goh: S$150
(ii) Mr Goh’s spouse: S$170
(iii) Mr Goh’s son: S$120
(iv) Mr Goh’s daughter: S$140

Calculate the total premium payable by Mr Goh.

A. S$150
B. S$304
C. S$551
D. S$580

8. Which one of the following is NOT a characteristic of Group Insurance?

A. It is cost effective.
B. It is experience rated.
C. A master contract is issued.
D. It requires full underwriting.

9. One advantage of a contributory Group Insurance plan is that the employer:

A. has greater control over the benefit structure

B. has lower cost of administrative work involved
C. pays only part of the costs to provide the benefits
D. does not need to monitor regular payroll deduction

10. Under a typical Disability Income Insurance policy, where Total Disability is defined as “the
insured’s inability to perform any gainful occupation or a similar occupation for which the
insured is reasonably suited by reason of education, training or experience”, this refers to
__________ disability.

A. severity
B. any occupation
C. own occupation
D. modified own occupation

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11. Which one of the following is NOT a factor for underwriting consideration by an insurer of
Disability Income Insurance?

A. Benefit amount.
B. Insured’s occupation.
C. Deferred/elimination period.
D. Limitation of disability benefit.

12. A type of Long-Term Care Insurance that pays a benefit when the insured incurs costs for
home care and satisfies the benefit trigger is the __________ policy.

A. fee-based
B. service-based
C. benefit-based
D. disability-based

13. Which one of the following statements regarding Long-Term Care Insurance is FALSE?

A. There is cash value or paid-up value at any time.

B. It can be issued as a rider or a stand-alone basis.
C. Its premiums are level throughout the policy term.
D. It is usually issued on a guaranteed renewable basis.

14. Before the policy owner of a typical Critical Illness (CI) Insurance policy can be eligible to claim
the benefit amount, certain eligible criteria must be met. Which one of the following is NOT an
eligible criterion?

A. The policy must be in force.

B. The life insured must be above a certain age.
C. The critical illness must be one that is covered.
D. The critical illness must meet its specified definition.

15. In a typical Critical Illness Insurance policy, the term, malignant tumour, under the standard
definition of “Major Cancers” will include:

A. sarcoma
B. carcinoma-in-situ
C. non-invasive tumour
D. pre-malignant tumour

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16. A common feature of a Critical Illness (CI) Insurance is that:

A. it acquires a cash value immediately

B. its guaranteed premium is fixed at entry age
C. it pays a lump sum upon diagnosis of an insured critical illness
D. there is restriction on the usage of the CI Insurance benefit payable

17. Which one of the following circumstances will allow Mr Lim, the policy owner of a Travel
Insurance policy, to claim for medical expense benefits while he is overseas?

A. Aesthetic surgery performed in Seoul.

B. Routine health check-up conducted in New York.
C. Emergency accidental dental treatment in London.
D. Death resulting from a civil commotion in Bangkok.

18. Which one of the following statements BEST describes a Group Dental Care Insurance policy?

A. It usually includes a Limitation Clause.

B. It is usually issued on a contributory basis.
C. It usually excludes pre-existing dental conditions.
D. It usually covers replacement of broken dentures.

19. Mrs Ang bought a Whole Life insurance policy for a sum assured of S$300,000 when she was
28 years old. She added on a 30% accelerated critical illness rider to the insurance policy.

10 years later, she successfully claimed for the critical illness benefit. Owing to the illness, she
passed away 15 years later.

Assuming that there are no bonuses in the insurance policy, calculate the amount payable
upon Mrs Ang’s demise.

A. S$90,000
B. S$150,000
C. S$210,000
D. S$300,000

20. ____________ Model Health Maintenance Organisation (HMO) is NOT a traditional HMO, but
being common nowadays.

A. Staff
B. Mixed
C. Group
D. Network

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21. A / An __________ Model Health Maintenance Organisation has the greatest cost control, but
its members have the lowest degree of choice of providers.

A. Staff
B. Group
C. Network
D. Independent Practitioners Association

22. The healthcare financing philosophy of Singapore is NOT based on the:

A. co-payment by individuals
B. individual medical savings accounts
C. risk-pooling for catastrophic illnesses
D. Government’s full subsidies of services

23. Being a CPF member, Mr Boo can use his Medisave savings to pay for the medical expenses
incurred by his __________ who is a Singapore Citizen.

A. godparent
B. grandparent
C. parent-in-law
D. foster parent

24. Which one of the following statements BEST describes the Basic Healthcare Sum (BHS) of a
CPF member?

A. The BHS is formerly known as the Medisave Minimum Sum.

B. Any amount above the BHS will always flow to the CPF member’s Ordinary Account.

C. The yearly BHS adjustment will apply only to a CPF member who is below the age of 65
years.

D. The amount in the Medisave Account up to the BHS can be withdrawn as cash from the
age of 55 years.

25. A CPF member aged of ________ years CANNOT use his Medisave savings for colonoscopy
screening.

A. 45
B. 50
C. 55
D. 60

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26. Subject to the specified withdrawal limits, a CPF member can use his Medisave savings to pay
for the premiums of:

A. Hospital Cash Insurance

B. Critical Illness Insurance
C. ElderShield Supplement
D. Integrated Shield Plan Rider

27. Which one of the following statements regarding MediShield Life is FALSE?

A. It is sized for all treatments in private hospitals.

B. It has replaced MediShield scheme since 1 November 2015.

C. It automatically covers all Citizens and Permanent Residents of Singapore.

D. It is a basic healthcare insurance scheme in line with the principle of universal coverage.

28. Mr Lee, aged 45 years, purchased a Medical Insurance policy with the following breakdown in
the policy premium:

(i) MediShield Life component = S$1,000

(ii) Integrated Shield Plan by private insurer = S$700

Calculate the amount of premium payable by cash.

A. S$100
B. S$700
C. S$1,000
D. S$1,700

29. Mr Yeo is a Central Provident Fund (CPF) member and is 65 years old as of 1 January 2017.
Which of the following advice to be given to Mr Yeo on the Basic Healthcare Sum (BHS) is
TRUE?

A. Amounts above the BHS will flow to Mr Yeo’s Medisave Account.

B. The amount required for Mr Yeo’s BHS will not change for the rest of his life.

C. Amounts up to the BHS can be withdrawn as cash by Mr Yeo as he has reached 65

years old.

D. The BHS is designed for Mr Yeo to pay off any outstanding housing loan he still has at
age 65 years old.

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HI (6th Edition) Health Insurance (Mock Paper Version 1.1)

30. Mr Law and Mrs Law are a young Singaporean married couple. They have been experiencing
difficulties in conceiving their first baby and wish to explore the possibility of using their
Medisave to pay for the Assisted Conception Procedure (ACP) treatments. They consulted a
specialist who will perform the procedure locally, and the expected cost of such ACP treatment
is S$25,000. Which one of the following options is TRUE?

They may use their Medisave:

A. to pay for the expected cost of S$25,000 for the ACP treatments
B. up to a lifetime limit of S$15,000 per patient to pay for the ACP treatments
C. up to a lifetime limit of S$10,000 per patient to pay for the ACP treatments
D. up to a lifetime limit of S$12,500 per patient to pay for the ACP treatments

31. Mr Tan has heard of the Medishield Life Scheme which came into effect in November 2015. He
is also covered under an Integrated Shield Plan (IP). Mr Tan has some concerns about both
covers as he is suffering from some pre-existing conditions. Which one of the following
statements is CORRECT?

A. IP covers all pre-existing conditions, while Medishield Life does not cover such conditions.

B. Medishield Life covers all pre-existing conditions, while IP may not cover such conditions.

C. Both Medishield Life and IP cover all pre-existing Conditions, but the premium for
Medishield Life is higher.

D. Both Medishield Life and IP covers all pre-existing conditions, but there are sub-limits
applicable in Medishield Life.

32. Mr Ng is a 40-year-old working Singaporean adult. He joined the Eldershield scheme on 1

October 2008. Should Mr Ng require long-term care during his old age resulting from a disability,
he will receive a cash payout of _______ under the Eldershield scheme.

A. S$300 per month for a maximum of 60 months

B. S$300 per month for a maximum of 72 months
C. S$400 per month for a maximum of 60 months
D. S$400 per month for a maximum of 72 months

33. Mr Ong is a 65-year-old Singaporean concerned about paying his medical expenses in the
event of suffering from any severe disability. However, he was not eligible to join the
Eldershield scheme when it was launched in September 2002 because he had pre-existing
disability. If Mr Ong suffers a severe disability and assuming that his per capita household
income is S$2,000, he will qualify to receive a payout of _____________ under the Interim
Disability Assistance Programme for the Elderly.

A. S$150 per month for up to 72 months

B. S$150 per month for up to 60 months
C. S$250 per month for up to 72 months
D. S$250 per month for up to 60 months

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34. Set up by the Government in April 1993, ____________ is an endowment fund to assist needy
Singaporeans who face financial difficulties with their healthcare bills.

A. Medifund
B. MediShield Life Fund
C. Community Health Assist Scheme
D. Pioneer Generation Disability Assistance Scheme

35. Mr Osman is a 35-year-old Singaporean. He was admitted to a public hospital on 1 December

2015 for a duration of 3 days during which he underwent an appendix surgery. The total
claimable amount under Medishield Life for Mr Osman’s surgery was S$3,000, with a deductible
of S$1,500.

The co-insurance payable by Mr Osman under Medishield Life is:

A. 3%
B. 5%
C. 10%
D. 15%

36. Ms Ang is a 40-year-old Singaporean who joined the ElderShield scheme and became disabled
resulting solely from an accident in the first 60 days of coverage.

Which one of the following statements regarding the payment of Ms Ang's ElderShield benefits
is TRUE?

A. The insurer will pay the benefits, as there is no waiting period.

B. The insurer will pay the benefits, as the waiting period does not apply.

C. The insurer will pay the benefits, as the disability occurred after the waiting period of 30
days.

D. The insurer will terminate the policy and refund all premiums paid, as the disability
occurred within the waiting period of 90 days.

37. One of the purposes of the Insuring Clause in a typical Health Insurance policy serves to:

A. restrict the coverage to the country where the policy is issued

B. set forth the conditions under which the benefits are payable
C. determine the rights of both the insured and the insurer in the contract
D. state that the policy shall not be in force, unless the premium is paid

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38. A type of Health Insurance contract that gives the insurer the right to refuse to renew is the
_________ policy.

A. non-renewable
B. annually renewable
C. optionally renewable
D. guaranteed renewable

39. A policy owner who has just bought a Critical Illness Insurance policy, with built-in death
benefits payable, wishes to make a nomination of beneficiaries, such that he still retains the
policy ownership and is free to change, add or remove them without their consent. Which one
of the following nominations should he make?

A. Trust Nomination.
B. Revocable Nomination.
C. Irrevocable Nomination.
D. Recoverable Nomination.

40. Which one of the following is NOT a key factor used by the insurer in the premium computation
of a Health Insurance product?

A. Investment income.
B. Mortality experience.
C. Scope of benefits covered.
D. Modes of premium payment.

41. Health Insurance underwriting is concerned primarily with:

A. morality
B. morbidity
C. persistency
D. level of attrition

42. If Mr Tan states in his Critical Illness Insurance proposal form that he is receiving treatment for
high blood pressure, the underwriter will MOST LIKELY require a/an:

A. financial report
B. blood profile analysis
C. attending physician’s statement
D. supplementary lifestyle questionnaire

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43. In underwriting most types of Health Insurance policies, the proposer’s __________ is NOT a
key consideration by an underwriter.

A. age
B. avocation
C. occupation
D. financial situation

44. The size and stability of the proposer’s earnings will be an important factor for the underwriting
of __________ Insurance.

A. Long-Term Care
B. Hospital Income
C. Medical Expense
D. Disability Income

45. Notice No: MAS 120 comprises both mandatory requirements and best practice standards on
the disclosure of information and provision of advice to policy owners for:

A. life policies only

B. accident and health (A&H) policies only
C. A&H policies and life policies that provide A&H benefits
D. A&H policies, Investment-Linked policies and Universal Life policies

46. For the purpose of Notice No: MAS 120, the definition of an accident and health insurance
intermediary includes a:

A. captive insurer
B. direct reinsurer
C. direct insurance broker
D. direct reinsurance broker

47. Under Notice No: MAS 120, Part I of the Mandatory Requirements states that no direct insurer
shall use the word “Shield” in the name, description or title of any accident and health policy
issued by the insurer, unless that policy is a __________ policy.

A. Medisave-approved
B. Medifund-approved
C. MediShield-approved
D. MediShield Life-approved

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48. Under Notice No: MAS 120, if a prospective client refuses to accept an Accident and Health
(A&H) product recommended by his insurance broker, but requests to buy another type of A&H
product instead, the insurance broker should:

A. get the client to sign a disclaimer form, before going ahead with his request

B. ignore the client’s request and file a report with the insurer to whom the insurance broker
is representing

C. go ahead with the client’s request, but document his decision and inform him that he is
responsible to ensure that the product selected is suitable

D. request the client to seek the advice of another insurance broker, to make sure that the
product is most suitable for him

49. Under Notice No: MAS 120, an Accident and Health Insurance intermediary that is involved in
providing advice on Health Insurance policies to policy owners does NOT need to:

A. conduct needs analysis

B. perform criminal due diligence
C. perform “Know-Your-Client” analysis
D. conduct a proper documentation and record keeping exercise

50. As a Financial Adviser Representative (FA Rep), which one of the following situations will be
considered as needs selling?

A. The FA Rep’s relationship with the prospective client depends on how well the client likes
his product.

B. The FA Rep helps the prospective client to uncover his needs and recommend suitable
solutions for him.

C. The FA Rep creates the pressure to buy, and the prospective client does not understand
why he has to buy the product.

D. The FA Rep assumes that the prospective client needs his product, and as such, he
makes a detailed recommendation to the prospective client.

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HI (6th Edition) Health Insurance (Mock Paper Version 1.1)

Answers to Mock Paper

1 A 26 C
2 C 27 A
3 C 28 A
4 B 29 B
5 C 30 B
6 A 31 B
7 C 32 D
8 D 33 A
9 C 34 A
10 D 35 C
11 D 36 B
12 B 37 B
13 A 38 C
14 B 39 B
15 A 40 B
16 C 41 B
17 C 42 C
18 A 43 D
19 C 44 D
20 B 45 C
21 A 46 C
22 D 47 A
23 B 48 C
24 C 49 B
25 A 50 B

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