Chapter 3 (Products)

Question 1

What is the complexity that surrounds critical illness cover

Answer 1

-complex disease definition
-point of claim underwriting
-actual condition covered requires more evidence than initially led to believe
-varying levels of payout
-exclusions
-differing definitions of the same condition

Question 2

What claims definitions can be used for permanent disability

Answer 2

-Occupation based
-ADW/ADL
-functional/physical impairment

Question 3

What are the main features of income protection (the ones you forget)

Answer 3

-paid until you retire
-rehabilitation and proportionate benefits
-replacement ratio
-incapacity definition (Occupation/ADL)

Question 4

What does regulation 28 state

Answer 4

it limits the extent of investing in particular assets/asset classes to protect the investor from:
-poor diversified portfolios
-over exposure
-complex instruments and portfolios