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2026 Statistics

Key Facts: SCI BCP Exam

40 questions

BCP is 40 multiple-choice questions

SCI - Certification in General Insurance

45 minutes

Time allowed to complete the BCP examination

SCI - Certification in General Insurance

70% to pass

Candidates must answer at least 28 of 40 questions correctly

SCI BCP exam format

9 chapters

BCP 7th-Edition syllabus covers nine chapters of insurance fundamentals

SCI BCP study text

S$75 to S$85

Approximate BCP examination fee inclusive of GST

SCI examination fees

No negative marking

One mark per correct answer; no penalty for wrong or blank answers

SCI BCP exam format

Computer Screen Exam

BCP is taken as a CSE at SCI examination centres

Singapore College of Insurance

100

Free original practice questions here

OpenExamPrep

The BCP (Basic Insurance Concepts and Principles) examination is the foundational general-insurance module of the Singapore College of Insurance's Certification in General Insurance. It has 40 multiple-choice questions to be answered in 45 minutes, and you need 70% (28 of 40 correct) to pass, with no negative marking. The fee is roughly S$75 to S$85 inclusive of GST and the test is taken as a Computer Screen Examination at SCI centres. The nine-chapter syllabus covers risk and insurance, the six principles of insurance, contract and agency law, insurance documents, claims, reinsurance and co-insurance, the Singapore market and regulation. This 100-question bank gives original practice with full explanations across all of these areas.

Sample SCI BCP Practice Questions

Try these sample questions to test your SCI BCP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In insurance terms, what is the most accurate definition of 'risk'?

A.The certainty that a loss will occur

B.The uncertainty of a loss occurring

C.The amount of money an insurer charges

D.A guaranteed financial gain

Explanation: Risk is the uncertainty or chance that a loss will occur. Insurance deals with pure risk, where the outcome is either a loss or no loss. Because the outcome is uncertain, insurers can pool many similar risks and predict losses across the group.

2Which type of risk is insurable under a normal insurance contract?

A.Speculative risk

B.Pure risk

C.Market risk

D.Entrepreneurial risk

Explanation: Only pure risk is normally insurable. A pure risk has two possible outcomes: loss or no loss, with no possibility of gain. Speculative risks carry the chance of gain as well as loss and are generally not insurable.

3What is the difference between a 'peril' and a 'hazard'?

A.A peril increases the chance of loss; a hazard is the cause of loss

B.A peril is the cause of a loss; a hazard increases the likelihood or severity of a loss

C.They mean exactly the same thing

D.A peril applies only to life insurance; a hazard only to general insurance

Explanation: A peril is the prime cause of a loss, such as fire, flood or theft. A hazard is a condition that increases the chance that a peril will occur or makes the resulting loss more severe, such as storing flammable goods near a heater.

4A factory owner deliberately leaves rubbish piled against a wall, hoping a fire will destroy an unprofitable building. This is an example of which type of hazard?

A.Physical hazard

B.Moral hazard

C.Morale hazard

D.Fundamental hazard

Explanation: Moral hazard arises from the attitude or dishonesty of the insured, such as deliberately causing or exaggerating a loss. Here the owner intends to bring about the loss to gain from the insurance, which is classic moral hazard.

5Which of the following best describes how insurance works as a financial mechanism?

A.It eliminates the chance that a loss will happen

B.It transfers the financial consequences of risk from the individual to a pool

C.It guarantees that policyholders will profit

D.It removes the need for any risk management

Explanation: Insurance transfers the financial consequences of a risk from an individual to a pool of many insureds. The premiums of the many who do not suffer a loss pay for the losses of the few who do. Insurance does not prevent losses; it spreads their cost.

6The 'law of large numbers' is important to insurers because it allows them to:

A.Charge the highest possible premium

B.Predict the likely number of losses more accurately as the number of similar risks increases

C.Avoid paying any claims

D.Insure only speculative risks

Explanation: The law of large numbers states that as the number of similar, independent exposures grows, the actual loss experience moves closer to the expected loss. This lets insurers estimate likely claims and set adequate premiums for the pool.

7A 'fundamental risk' is best described as a risk that:

A.Affects only one individual and is personal in cause

B.Is widespread in cause and effect, often arising from social, economic or natural forces

C.Always carries the chance of profit

D.Can never be reduced by insurance

Explanation: A fundamental risk is widespread in its cause and effect, arising from social, economic, political or natural forces such as war, inflation or earthquakes. It affects large groups rather than a single person, which is why some fundamental risks are difficult to insure privately.

8Which of the following is a method of risk control known as 'risk reduction'?

A.Buying an insurance policy to transfer the loss

B.Installing a sprinkler system to limit fire damage

C.Deciding not to undertake a hazardous activity at all

D.Keeping a cash reserve to pay for losses

Explanation: Risk reduction (loss control) involves measures that lessen the frequency or severity of a loss, such as installing sprinklers to limit fire damage. It reduces the impact of the peril rather than removing or transferring the risk.

9Risk avoidance as a risk-management technique means:

A.Reducing the severity of a loss after it occurs

B.Not engaging in the activity that gives rise to the risk

C.Transferring the risk to an insurer

D.Retaining the risk and paying for losses yourself

Explanation: Risk avoidance means deciding not to undertake the activity that creates the risk, so the chance of loss is removed entirely. For example, a company that never operates ships avoids all marine risks associated with shipowning.

10Why is gambling NOT the same as insurance, even though both involve uncertainty?

A.Gambling creates a new speculative risk, while insurance handles an existing pure risk

B.Gambling always pays more than insurance

C.Insurance involves no uncertainty at all

D.Gambling requires insurable interest

Explanation: Gambling creates a brand-new speculative risk that did not exist before the bet, with the chance of gain. Insurance deals with an already-existing pure risk and aims only to restore the insured after a loss, not to create a chance of profit.

About the SCI BCP Exam

The Basic Insurance Concepts and Principles (BCP) examination is the foundational module of the Certification in General Insurance (CGI) administered by the Singapore College of Insurance. It must be passed by anyone seeking to act as a general insurance agent or as a representative providing general insurance under Singapore's regulatory framework, and SCI recommends taking it before the PGI or ComGI modules. The 7th-Edition syllabus has nine chapters covering the insurance and reinsurance market, the regulatory landscape, risks and insurance, the principles of insurance, the law of contract and agency, insurance documents, claims, reinsurance and co-insurance, and ethics, professionalism, data protection and cyber hygiene. The exam is delivered as a Computer Screen Examination of 40 multiple-choice questions in 45 minutes, and candidates need 70% (28 correct) to pass. This 100-question bank provides original practice across the core principles and the Singapore market.

Assessment

40 multiple-choice questions covering nine chapters: the insurance and reinsurance market; the regulatory landscape; risks and insurance; principles of insurance; law of contract and agency; insurance documents; claims; reinsurance and co-insurance; and ethics, professionalism, data protection and cyber hygiene.

Time Limit

45 minutes for 40 questions, which is just over one minute per question.

Passing Score

70% — at least 28 of 40 correct. One mark per correct answer, with no negative marking, so every question should be attempted.

Exam Fee

Approximately S$75 to S$85 (inclusive of GST), payable to SCI; fees are revised from time to time, so confirm the current amount on the SCI website. (Singapore College of Insurance (SCI))

SCI BCP Exam Content Outline

20%

Risks and Insurance

The nature of risk and uncertainty, the distinction between peril and hazard, physical and moral hazard, classes of risk (pure versus speculative, particular versus fundamental), risk management options, and how insurance transfers and pools pure risk among many insureds.

25%

Principles of Insurance

The six legal principles that underpin every insurance contract: insurable interest, utmost good faith and the duty of disclosure, indemnity and methods of providing it, proximate cause, subrogation and contribution. Includes which policies are indemnity-based and which are benefit policies.

20%

Law of Contract, Agency and Insurance Documents

The essentials of a valid contract (offer, acceptance, consideration, capacity, legality), the agency relationship and an agent's authority and duties, and the key documents in the insurance transaction: proposal form, cover note, policy, schedule, warranties, conditions and endorsements.

20%

Insurance Market, Reinsurance and Co-insurance

The structure of the Singapore insurance and reinsurance market, the roles of insurers, intermediaries (agents and brokers) and buyers, distribution channels, and the mechanics of reinsurance (facultative and treaty, proportional and non-proportional) and co-insurance.

15%

Regulation, Claims, Ethics and Data Protection

Regulation of insurance by the Monetary Authority of Singapore under the Insurance Act, the claims-handling process from notification to settlement, professional ethics and conduct, and obligations under the Personal Data Protection Act with basic cyber hygiene.

How to Pass the SCI BCP Exam

What You Need to Know

Passing score: 70% — at least 28 of 40 correct. One mark per correct answer, with no negative marking, so every question should be attempted.
Assessment: 40 multiple-choice questions covering nine chapters: the insurance and reinsurance market; the regulatory landscape; risks and insurance; principles of insurance; law of contract and agency; insurance documents; claims; reinsurance and co-insurance; and ethics, professionalism, data protection and cyber hygiene.
Time limit: 45 minutes for 40 questions, which is just over one minute per question.
Exam fee: Approximately S$75 to S$85 (inclusive of GST), payable to SCI; fees are revised from time to time, so confirm the current amount on the SCI website.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

SCI BCP Study Tips from Top Performers

1Master the six principles of insurance first — insurable interest, utmost good faith, indemnity, proximate cause, subrogation and contribution — because Chapters 3 to 5 carry the most questions.

2Be clear on which policies are indemnity policies (motor, property, liability, marine) versus benefit policies such as personal accident, where a fixed sum is paid regardless of actual loss.

3Learn the timing of insurable interest: in property and liability insurance it must exist at the time of loss, a frequent BCP test point.

4Distinguish subrogation (recovering from a third party after paying a claim) from contribution (sharing a loss between two or more insurers covering the same risk).

5Know the Singapore-specific facts: the Monetary Authority of Singapore regulates insurers under the Insurance Act, and representatives must meet PDPA obligations.

6Because there is no negative marking and only 45 minutes, answer the easy conceptual questions first, flag the rest, and never leave a question blank.

Frequently Asked Questions

How many questions are on the BCP exam and how long is it?

The BCP examination has 40 multiple-choice questions and you are given 45 minutes to complete them, which is just over one minute per question.

What is the passing score for BCP?

You need 70% to pass, meaning at least 28 of the 40 questions correct. One mark is awarded for each correct answer and there is no penalty for wrong or blank answers, so attempt every question.

Who administers the BCP exam and how is it taken?

The Singapore College of Insurance (SCI) administers BCP. It is delivered as a Computer Screen Examination (CSE) at SCI examination centres, and an approved calculator from the SCI list may be used.

How much does the BCP exam cost?

The fee is approximately S$75 to S$85 inclusive of GST. Fees are revised periodically, so check the current amount on the SCI website before registering.

Where does BCP fit in the general insurance certification?

BCP is the foundational module of the Certification in General Insurance (CGI). SCI recommends passing BCP before the PGI (Personal General Insurance) or ComGI (Commercial General Insurance) modules.

Are these official SCI BCP questions?

No. These are original OpenExamPrep practice questions written to match the BCP syllabus and skills. The official study text and examination are provided separately by the Singapore College of Insurance.