HI Mock Exam 4
HI Mock Exam 4
HI Mock Exam 4
(4th Edition)
Mock Exam 4
(C11 / S3.3.4)
1. Family history is MOST important in which of the following :
(C13 / S2.1.1)
2. Which of the following is TRUE about Fact-Find Form?
A. It must be given to the prospective client at the point of signing the Fact-Find
Form
B. It cannot be reused when the client later decided to buy additional A&H
products
C. It can be reused when the client later decided to buy additional A&H products
D. It can be reused when the client later decided to buy additional A&H products
within 3 or 6 months from the date of signing the Fact-Find Form
(C15 / S2.1)
3. Mr Tan has a monthly income and expenditure of $7,000 and $5,000
respectively. His son is currently 2 years old and he would like to provide
for his son till age 25. Assuming that the interest rate is 5% and inflation is
2%, please calculate his maintenance cost.
A. $ 849,600
B. $ 986,616
C. $1,119,600
D. $1,422,960
(C9 / S5.7.2)
4. An Optionally Renewable Health Insurance Policy gives the insurer the
right to terminate the policy when :
I. Staff Model
II. Group Model
III. Network Model
IV. Independent Practitioners Association (IPA)
A. IV-III-II-I
B. III-II-I-IV
C. IV-I-II-III
D. I-II-III-IV
(C6 / S6.1)
6. Which of the following benefits are offered by insurers offering Managed
Healthcare plans:
A. Dental Care
B. Preventive Care
C. Secondary Care
D. All of the above
(C2 / S3.5.1)
7. Mr Tan has a basic Medical Expense Insurance policy, which has a $500
deductible from 1 January to 31 December 2002. At the beginning of the
year, he was hospitalised and the charges amounted to $200. Recently,
he was warded and the charges amounted to $600. What is the total
benefits payable by the insurer, assuming the per annum deductible is
used?
A. $100
B. $300
C. $500
D. $800
(C9 / S4.1)
8. The Insuring Clause states :
(C11 / S3.3.5)
9. Which one of the following factors is MOST important when underwriting
Managed Healthcare Group Insurance?
(C10 / S2)
10. What are the key factors used in premium computation?
(C9 / S4.2(k))
11. Pre-existing condition is usually defined as a condition:
(C5 / S3.2.1(a)(ii))
12. The definition of Dressing, in one of the Activities of Daily Living, means
the ability to:
A. Brushing teeth
B. Combing hair
C. Put on artificial limbs or medical appliances
D. Putting on make-up
(C4 / S6.2(c))
13. Rehabilitation Expense Benefit refers to payment for:
A. Medical Aids
B. Training Courses
C. Workplace Modifications
D. All of the above
(C5 / S3.2.1(b))
14. Which of the following condition is covered by Long Term Care Insurance?
A. Parkinson’s disease
B. Neurosis
C. Psychiatric illness
D. Dementia arising from organic reason
(C2 / S3.5.1)
15. When one is required to pay a deductible regardless of the no. of claims made in
a year, this type of deductible is known as:
A. No escalating benefits
B. Longer Benefit Period
C. Shorter Deferred Period
D. All of above
(C8 / S2.1.1)
17. If a person is unable to pay for his medical bills, he could
(C8 / S4.1)
18. What is the purpose of Medifund?
(C11 / S5)
19. An adviser can expedite the underwriting process by
(C5 / S3.1)
20. Long Term Care Insurance usually pays benefits on a:
A. monthly basis
B. daily basis
C. disability based basis
D. All of the above
(C5 / S4)
21. When a person requires an assistive device, which of the following benefits
available under a Long Term Care plan could provide it?
A. Rehabilitation Benefit
B. Extended Care Benefit
C. Surgical and Prosthesis Device
D. Financial Assistance with Adaptation
(C6 / S2)
22. Dread Disease Insurance can be added to which of the following type of
policies?
(C8 / S2.1.1)
23. Which of the following outpatient expenses can Medisave be used to pay?
(C7 / S6.1)
24. A Specialist Care Benefit under Managed HealthCare offers:
(C9 / S5.8)
25. What will the insurer do when they discover that the insured has
understated his age?
A. Increase premium
B. Reduce benefit
C. Cancel the policy
D. Call for medical examination and re-underwrite the application
(C2 / S3.6)
26. The benefit for an employee under the Group Medical Expense Insurance
will terminate:
(C8 / S2.2.2)
28. Which of the following is TRUE about MediShield being extended
automatically to eligible Singaporeans and Singapore Permanent
Residents?
I. POS
II. Group Model HMO
III. Network Model HMO
IV. IPA
A. II, III, I, IV
B. I, II, III, IV
C. IV, III, II, I
D. I, IV, III, II
(C8 / S3.1)
30. The purpose of Eldershield is to:
(C2 / S3.5.1)
31. Mrs Lim has bought a Medical Expense Insurance with a deductible of
$10,000 for 1st June 2001 to 31st May 2002. On 1st Sept 2001, she
encountered an accident and the total claimable medical expenses were
$3,000. In March 2002, she went for surgery to remove her womb and the
medical costs were $8,000. How much can Mrs Lim claim, given that a
per-disability/per year deductible applies?
A. $11,000
B. $8,000
C. $1,000
D. $0
(C15 / S2.1)
32. Mr Lim has recently bought Dread Disease Insurance. He is concerned
about Mrs Lim, who is a housewife, his son who is now 2 years old. He
hopes to support the child till age 25. Given that his family’s monthly
expenses amount to $3,000, with existing inflation rate of 2% and
investment return of 5%, how much would Mrs Lim require in the event
that Mr Lim is not around?
A. $1,063,440
B. $ 666,960
C. $591,970
D. $19,440
(C4 / S6.2(b))
33. Mr Tan, who is an accountant, used to earn $4,000 per month before he
was disabled. After partial recovery from his disability, he found a suitable
job as a clerk, which pays him $1,500 per month. What would Mr Tan’s
disability income benefit if the disability benefit is $3,000 per month?
(C2 / S3.5)
34. Which is the most suitable type of expense participation in the Medical
Expense Insurance to recommend to a client who has financial constraint?
A. with deductible
B. with co-insurance
C. both deductible and co-insurance
D. no deductible and co-insurance
(C7 / S3.2)
35. Which of the following is NOT a cost-control measure for Health Managed
Organisations?
A. Risk-sharing management
B. Utilization management
C. Fee-for-provider
D. Nurturing and promoting a healthy nation
(C4 / S8.2.1)
36. An insured is covered under a Disability Income policy. Three years later,
he decides to change to a more risky occupation and informs the
insurance company. The underwriter is likely to:
(C2 / S2.2.4)
37. John suffered from a stroke recently and is bedridden at home. His family
engaged a part-time nurse to take care of him. If John is covered under a
range of policies, which one should he claim from?
(C6 / S2.2)
38. A Dread Disease Policy provides coverage that is:
A. World-wide
B. Whole Life
C. Available in Singapore and West Malaysia only
D. Reduced by the payment of other similar insurance plans
(C6 / S2.3.1)
39. You are proposing a 50% Acceleration Critical Illness Policy to your client for his
wife who is a homemaker. In this case, you should also propose to attach a
(C9 / S5.7.1)
40. A cancelable policy grants the insurer the right to terminate the policy
(C11 / S3.4.9)
41. Which of the following characteristics of group insurance is important to the
underwriter in determining the “feel” of future claim experience?
(C11 / S3.4.6)
42. Which of the following best describes voluntary group insurance policies?
(C3 / S4.1)
43. Which of the following describes Portable Medical Benefit Scheme (PMBS)?
(C3 / S4.2.3)
44. Which of the following expenses do not qualify under Transferable Medical
Insurance Scheme (TMIS) special benefits?
(C3 / S4.2.4)
45. To be eligible for the TMIS benefits, an employee must be:-
A. Below age 55
B. Working on a permanent employment contract or a temporary one with a
term of 12 months or more.
C. Working full time with the same employer.
D. Either a Singaporean or a foreigner.
(C12 / S4.1.2(b)(ii))
46. Switching from one A&H Policy to another is detrimental if:-
(C12 / S4.1.2(b)(ii))
47. Advisory Process Requirement does not apply to the following:-
A. Eldershield
B. Telemarketing policies
C. Direct marketing policies
D. Hospitalization plan
(C12 / S4.4)
48. Which of the following is considered an offence and liable to a fine not exceeding
$25,000 or imprisonment for a term not exceeding 12 months or both?
(C12 / S5)
49. Which of the following constitutes the Best Practice Standards set out under
MAS Notice 120?
(C12 / S2)
50. MAS Notice120 covers A&H policies and life polices with A&H benefits. The latter
refers to benefits paid out under the following situation:
1. B 26. B
2. D 27. C
3. B 28. D
4. D 29. D
5. D 30. A
6. B 31. D
7. B 32. C
8. A 33. C
9. C 34. C
10. A 35. D
11. D 36. A
12. C 37. D
13. D 38. A
14. D 39. C
15. C 40. D
16. A 41. B
17. B 42. D
18. A 43. B
19. B 44. D
20. D 45. C
21. D 46. C
22. D 47. A
23. D 48. D
24. B 49. D
25. A 50. A