( BSC - 5 CPD Hours Training for Agents )

(
BSC - 5 CPD Hours Training for Agents )

SESSION 4:

REVIEW &
LEARNING ASSESSMENT
 (
BSC - 5 CPD Hours Training for Agents )

SESSION 4: REVIEW & LEARNING ASSESSMENT

 Self Evaluation II: Professional Knowledge, Skills and Abilities
 20 Assessment Questions

(25 minutes)
 LEARNING OUTCOME III - Mindful of Both the Importance of
Being Professional & Being Productive

BSC 4.3 (c) Continuous Development of Agents & Maintaining Strong

Focus on Ethical & Professional Conduct in the
Sales/Marketing of Life Insurance Products by Agents
Low to High
•Abilities to act in the best interest of clients 1. 2. 3. 4. 5.
•Knowledge of consumer needs that can be met
by insurance products 1. 2. 3. 4. 5.
•Knowledge of methods for identifying prospects 1. 2. 3. 4. 5.
•Knowledge of contacting prospects 1. 2. 3. 4. 5.
•Knowledge of how insurance products related to
personal finances 1. 2. 3. 4. 5.
•Knowledge of where to obtain
Please Refer to when
information Workbook,
personal knowledge is limited 1. 2. 3. 4. 5.
Self Evaluation
•Ability to extractIII: Professional
information Knowledge, Skills and Abilities
from acquaintances
and strangers 1. 2. 3. 4. 5.
•Ability to accurately perceive others’ points of
view, needs and interests 1. 2. 3. 4. 5.
•Ability to express technical language in an
understandable manner 1. 2. 3. 4. 5.
•Ability to control the sales process by adapting
the presentation appropriately 1. 2. 3. 4. 5.
•Ability to motivate the consumer to action 1. 2. 3. 4. 5.
 Review & Learning Assessment

Participant, You have 20 minutes to complete the

20 Assessment Questions

Participant must answer correctly at least 15 of the

20 Assessment Questions

Failing which, Participant will re-sit the assessment.

Participant will be awarded the Compulsory 5 CPD Hours only

when he/she has completed the assessment successfully

Begin: ___:___ End: ___:___

 Answers to the Assessment Questions

1. B 11. D
2. D 12. C
3. C 13. D
4. A 14. A
5. B 15. D
6. C 16. C
7. C 17. D
8. B 18. B
9. B 19. A
10. D 20. C
 Review & Learning Assessment
1. Which below is BNM’s Desired Market Penetration Rate by 2020?

A. 80%
B. 75%
C. 70%
D. 65%
 Review & Learning Assessment
2. What affect the penetration rate in Malaysian Life Insurance/Takaful Market?

I.No. of New Policy sold and In-forced

II.No. of Policies matured and are not counted anymore
III.No. of Policies not counted after Death Claims
IV.No. of Policies that were surrendered or came under non-forfeiture provision

A. I, II & III
B. I, III, IV
C. II, III & IV
D. All of the Above
 Review & Learning Assessment
3. Which of these below are officially allowed in the ‘Guidelines on Proper Advice Practices’?

I.Building rapport and immediately proceed to conduct customer fact find even if the ‘intermediary’ is not
licensed to do so
II.Disclosure of the intermediary’s status
III.Explain to the Customer all the available fact find options under the ‘Client’s Choice’
IV.Present recommendation which the intermediary deem suitable without careful consideration of the
material facts the prospective customer has shared

A. I, II & III
B. I, III & IV
C. II & III only
D. All of the Above
 Review & Learning Assessment
4. When was ‘Personal Data Protection Act 2010’ came into force?

A. 15th Nov. 2013

B. 23rd Nov. 2015
C. 23rd Dec. 2016
D. 1st March 2004
 Review & Learning Assessment
5. When an Intermediary makes contact with the prospective policy owner, which of the following practices is
not entailed in the ‘Disclosure of Intermediary’s Status’?

A.Must make it known that he/she is an Intermediary of which insurance company.

B.Can also give advise on other matters to prospective policy owner if it seems appropriate.
C.Produce his/her registered intermediary authorization card to identify himself/herself.
D.Explain that he/she can give advice only on those matters in which he/she is competent to deal with.
 Review & Learning Assessment

6. Which of the following must not be practised during the ‘Disclosure of the Intermediary’s Status’ under the
‘Guidelines on Proper Advice Practices’?

A.The intermediary must disclose that he is remunerated by the insurer operator for providing advice on or
selling/marketing the insurance products.
B.Insurance brokers and financial advisers must disclose any conflicts of interest that may affect the advice
they provide to the customer.
C.The intermediary can also advise the prospective customer to do an act or omit to do an act in relation to
any financial service or product by dishonestly concealing, omitting or providing material facts in a manner
which is ambiguous.
D.The intermediary must inform the prospective customer that there are three options available to the
customer under the 'Client's Choice' in the Customer Fact Find form.
 Review & Learning Assessment
7. In his/her recommendation on the purchase of life insurance products or when providing product
information, an intermediary should not:

A.Provide the customer enough information and assistance so that the customer can make an informed
decision before he makes a final commitment to purchase a life insurance product.
B.Demonstrate that the advice given was suitable and the product was affordable by the customer at the time
it was made (only applicable to options 1 and 2).
C.Make any unfair criticisms about other personalised financial products offered by other insurers/takaful
operators and financial institutions which the intermediary does not represent.
D.Keep all sharing of information simple, minimal and only provide information as inquired by the prospective
customer.
 Review & Learning Assessment
8. An intermediary must take reasonable steps to ensure that he does not recommend any purchase of life
insurance products unless the recommendation is suitable for the customer. Which of the following steps is
not advisable?

A.Having regard to the facts disclosed by the customer, and other relevant facts about the customer which
are made available to the intermediary.
B.Based on the prospect’s financial budget recommend a standard package that is suitable.
C.Identify prospect’s financial goals, priorities & needs.
D.Establish prospect’s risk profile.
 Review & Learning Assessment
9. Which of the following are in-line with ‘LIAM Code of Ethics and Conduct’ ?

I.The intermediary can make criticisms of any insurers even though they may not be accurate or fair
II.The intermediary can attempt to persuade a prospective policy owner to replace any existing policies
especially when they are only partially suited to his/her needs.
III.Ensure as far as possible that the policy proposed is suitable to the needs and not beyond the resources of
the prospective policy owner
IV.Treat all information supplied by the prospective policy owner as completely confidential to himself/herself
and to the life office which he/she represents

A. II & IV
B. III & IV only
C. II, III & IV
D. All of the Above
 Review & Learning Assessment
10. Before a contract of life insurance is entered into, varied or renewed, which of the following statements is
true?

I.A prospective customer shall disclose to the licensed insurer a matter that — He/She knows to be relevant
to the decision of the insurer on whether to accept the risk or not
II.A prospective customer shall disclose to the licensed insurer a matter that — A reasonable person in the
circumstances could be expected to know to be relevant.
III.Where a prospective customer fails to answer or gives an incomplete or irrelevant answer to a question
contained in the proposal form or asked by the licensed insurer and the matter was not pursued further by the
insurer, compliance with the proposer’s duty of disclosure in respect of the matter shall be deemed to have
been waived by the insurer.
IV.A licensed insurer shall, before a contract of insurance is entered into, varied or renewed, clearly inform a
prospective customer in writing of the prospective customer’s pre-contractual duty of disclosure and that this
duty of disclosure shall continue until the time the contract is entered into, varied or renewed.

A. I, II & III
B. I & IV only
C. I, II & IV
D. All of the Above
 Review & Learning Assessment
11. Which of the following action is not permitted by an insurer under the Personal Data Protection Code of
Practice for the Insurance and Takaful Industry (COP) :-
A. Use the personal data to approve an application for insurer
B. Use the personal data to provide customer service
C. Use the personal data to prevent and investigate potential fraud
D. Use the personal data in an open environment without security
 Review & Learning Assessment

12. During the preparation for the ‘Presentation of Recommendation’, which document is not absolutely
necessary?

A.Quotation
B.Product disclosure sheet
C.Covering letter from you
D.Product brochure
 Review & Learning Assessment
13. Policy 15 Days Cool-off Period (Free-look Period) begin on ….

A.The day the policy contract is issued

B.The day the policy contract is delivered to the branch office
C.The day the policy contract is delivered to the intermediary
D.The day the policy contract is delivered to the policyholder
 Review & Learning Assessment
14. You recommended Plan B with Plan C, but the prospect prefer Plan A with Plan C. What do you do?

A.Record your advise but accept and implement the prospect’s decision
B.Record your advise and insist that the prospect follow your advise
C.Try to persuade the prospect to take Plan A, Plan B and Plan C instead
D.Record the prospect’s decision as your advice and implement the prospect’s decision
 Review & Learning Assessment
15. Which of these is a Best Practice of Client Building ?

I.During the proper advise interview, build credibility and indicate that you care about the prospect’s financial
needs.
II.Take good notes when interviewing prospects to facilitate better analysis
III.Present several different solutions to the prospect. You allow prospect to exercise their need to feel in
control.
IV.Educate the prospects, The better the prospect understand a product the more likely they are to buy.
V.Develop your clients. Start working with your clients when their needs are relatively small.

A.I, III & IV

B.I, II, IV & V
C.I, III, IV & V
D.All of the Above
 Review & Learning Assessment
16. Which of these described below is not ‘Prohibited Business Conducts’?

A.Making a statement, illustration, promise, forecast or comparison which is misleading, false or deceptive.
B.Inducing or attempting to induce a financial consumer to do an act or omit to do an act in relation to any
financial service or product by dishonestly concealing, omitting or providing material facts in a manner which
is ambiguous.
C.Engaging in conducts that are honest or truthful which are unlikely to mislead or deceive in relation to the
nature, features, terms or price of any financial service or product.
D.Exerting undue pressure on, or coercing, a financial consumer to acquire any financial service or product
as a condition for acquiring another financial service or product.
 Review & Learning Assessment
17. An intermediary must explain all the main features of the life insurance products that he/she recommends
or provides product information on, including:

I.All the important details of cover and benefits

II.Any significant or unusual restrictions and exclusions
III.Potential risks associated with any future cash values or savings
IV.Benefit that are not guaranteed.

A.I, II & III

B.I, II & IV
C.I, III, IV
D.All of the Above
 Review & Learning Assessment

18. The Life Insurer is required to provide a product disclosure sheet before the customer purchases a
product or service, and at the point of entering into a contract. Which of the following is not recommended or
required by the ‘Product Transparency Guidelines’?

A.Product disclosure sheet must contain key information for customer to make informed decisions and to
facilitate comparison between products.
B.Information contained in the disclosure sheet should be standard and need not customized to the
customer’s needs.
C.The Life Insurer should also ensure that the product disclosure sheet is made available in Bahasa Malaysia
upon request.
D.At the product renewal stage, the customer should also be given a copy of the product disclosure sheet, if
there is a material change in the information.
 Review & Learning Assessment

19. Which of the following is not conducted by Life Insurer to identify mis-selling practices?

A.Conduct customer surveys with every policyholder within 30 days from the date of dispatch of the policy
contract.
B.Random “Welcome call” to be conducted.
C.Mystery shopping.
D.Random review of customer fact find form.
 Review & Learning Assessment

20. The implementation of the ‘Balance Score Card’ aims to achieve many key outcomes. Which of the
following aims is not one of them?

A.Suitability of advise and recommendations based on consumer’s financial needs and circumstances
B.Continuous servicing of life policies throughout their term
C.To give the opportunity for life insurer to pay less commission to the intermediary
D.Continuous development of agents and maintaining strong focus on ethical and professional conduct in the
sales/marketing of life insurance products by agents