All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
Which of the following is best classified as a SHORT-TERM insurance product?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A homeowner’s buildings policy covering storm damage.Correct
- b) A retirement annuity that pays an income from age 55.
- c) A whole-life assurance policy.
- d) A participatory interest in a unit trust.
Why this is the answer
Short-term insurance covers indemnity risks such as buildings, motor and contents. Retirement annuities and life assurance are long-term insurance, and a unit-trust interest is a collective investment, not insurance.
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