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Serious Question for Angelina Fernandez, MAS

masgnoeL

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Loyal
Angelina Fernandez,

In the sentence "Under the current provisions, the PPF will cover up to 90% of an insurer's liability on any life policy.", can you clarify if the PPF is meant only for whole life policy and not other types of insurance policies, for example endowment life policy?

Or when you wrote "life policy", you really meant "whole life" as well as "endowment life" policies.

You can refer to Wiki Answer, which I hope, is also the reference you and MAS refer to: http://wiki.answers.com/Q/What_is_endowment_policies

To further complicate the definitions, please refer to:
http://www.heavens-above.com/financialinfo/insure/whole-life-insurances.html

Here, it defines Whole-Life to include:

Life insurance may be grouped into the following categories:
- Ordinary Life Insurance
- Term
- Straight or whole life
- Limited payment
- Endowment and retirement income


So, in view of the various terminologies existing, please kindly clarify this aspect and let us not be ambiguous in the writings or definitions.


http://www.mas.gov.sg/news_room/let...Are_Foreign_Banks_in_Singapore_Regulated.html


Dear Editor,
I refer to “Do more to protect policy holders” (Straits Times Forum, 22 September 2008).


2. Under the deposit insurance scheme, administered by the Singapore Deposit Insurance Corporation (SDIC), an individual’s Singapore dollar current, savings and fixed deposit accounts with a full bank or finance company in Singapore have an aggregate coverage of up to S$20,000 per institution. This coverage fully insures more than 80% of individual

depositors in Singapore and is within international norms of 80% to 90%.


3. MAS, together with the SDIC, will review the coverage limit regularly, taking into consideration the objectives of the scheme and international norms. In determining the appropriate coverage limit, our primary objective is to provide adequate protection for small depositors. Depositors should also be aware that the higher the coverage, the higher the cost of this protection, which may then be passed on to them.


4. As for protection for insurance policy owners, MAS requires all insurers to establish a separate insurance fund for each class of business. The assets in each fund can only be used to meet the fund's expenses and liabilities and each fund's assets must, at all times, exceed its liabilities plus a safety margin imposed by MAS. At the company level, each insurer must also maintain capital adequacy of at least 120 per cent of the required total safety margin. All insurers, including the AIG-owned insurance entities in Singapore, currently meet these regulatory requirements. If an insurer ceases operations, its assets will be used to compensate policy owners. The Insurance Act accords priority to the claims of policy owners, ahead of other unsecured creditors, over the assets of the insurer and its insurance funds.


5. In the unlikely event that an insurer is unable to meet it obligations to policy owners, the Insurance Act already provides for the setting up of a Policy Owner's Protection Fund ("PPF") to compensate policy owners. Under the current provisions, the PPF will cover up to 90% of an insurer's liability on any life policy. For motor bodily injury and work injury insurance policies, the PPF provisions will cover 100% of an insurer's liability arising from compulsory insurance policies underwritten by the insurer.

Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore
 

TeeKee

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Loyal
Angelina Fernandez,

In the sentence "Under the current provisions, the PPF will cover up to 90% of an insurer's liability on any life policy.", can you clarify if the PPF is meant only for whole life policy and not other types of insurance policies, for example endowment life policy? [/COLOR]

you dun have to ask her lah, she already mentioned the word "ANY"....as long as your policy contains the word LIFE....

valid in ANY court of LAW....with the exception of corrupted courts of course....:biggrin:
 
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masgnoeL

Alfrescian
Loyal
I hope you are right. In CPFIS approved investment instruments, there is no mention of Whole Life insurance but only Endowment insurance.

So, is Endowment policy, which is a savings policy, considered a life policy?
 
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