Insurance Mock Exam
問題一覧
1
1. Variable life insurance policy owners may make withdrawals in terms of __________?
D. Nunber of units through cancellation of units
2
Which of the following statements about flexibility features of variable life policies is false?
b. Policyholders can take loans against their variable life up to the entire withdrawal valuc of their policies
3
The investment returns under variable life insurance policy _____________
I. Are not guaranteed
II. Are assured
III. Are linked to the performance to of the investment fund managed by the life insurance company
IV. Fluctuate according to the rise and fall of market prices
c. I, III, and IV
4
Which of the following statements is TRUE?
I. The policy value of variable life policies is determined by the offer price at the time of valuation
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of the surrender
III. The life company needs to maintain a separate account for variable life policies distinct from the general account
d. II and III
5
Which of the following statements is FALSE?
c. Misrepresentation is a specific form of twisting
6
Which of the following statements about variable life policies is TRUE?
I. Offer price is used to determine the number of units to be credited to the account
II. The margin between the bid and offer price is used to cover the managements cost of the policy
III. The policy value is calculated based on the bid price of units allocated into the policy
d. II, and III
7
What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income?
d. Fixed income securites
8
What are the disadvantages of investing in common shares?
I. Dividends are paid more than fixed rates
II. Investors are exposed to market and specific risks
III. Shares can become worthless if company becomes insolvent
c. II, and III
9
Which of the following statements about the difference between variable life policies and endowment policies are FALSE?
I. The policy values of variable life policies directly reflect the performance of the fund of the life company
II. The premiums and benefits of the endowment policies are described at the inception of the policy whereas variable life are flexible as the are account driven
III. The benefits and risks of variable life and endowment policies directly accrue to the policyholders
D. II and III
10
Which of the following statements about twisting is FALSE?
D. It refers to an agent offering a prospect a special inducement to purchase a policy
11
Mr. Juan Dela Cruz is currently earning ₱30,000.00 per month. He is 35 years old and he has a reasonable amount of savings. He has a moderate level of risk tolerance. What kind of policy would you recommend for him to buy?
C. Participating whole life
12
What are the benefits available when investing in variable life funds?
I. The variable life funds offer policyholders an access to pooled or diversified portfolios
II. The variable life policyholders can vary his premium payments, take premium holidays, add single premium top-ups and change the level of the sum assured easily
III. The variable life policyholder can have access to a pool of qualified and trained professional fund managers
A. I and II
13
Rank the following in terms of their liquidity, from the least liquid to the most liquid:
I. Short term securities
II. Property
III. Cash
IV. Equities
C. II, I, IV, III
14
A unit trust is _____________________
A. Established by a trust deed which enables a trustee to hold the pool of money and assets in trust in behalf of the investor
15
Under variable life insurance policies_________
I. There is no guaranteed minimum sum assured for the purpose of declaring dividends
II. There is no guaranteed minimum sum assured as a level of life insurance protection
III. Each of the policy owner’s premium will be used to purchase units the number of which is dependent on the selling price of each unit
IV. Purchase of units can only be made from the variable life fund itself, which will then create new units and add investment monics to the value of the fund
C. III and IV
16
The benefits of investing in variable life funds include _______________________
I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product design of variable life policies have clear structures which cater seperately for investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial investment
C. I, II, and III
17
Which of the following BEST describes the policy benefits of variable life policies?
C. The policy benefits are directly linked to the investment performance of the underlying assets
18
Why is it important that the customer must understand the sales proposal in full?
B. Because the impact of changes in investment condition on variable life policy is borne solely by the customer
19
Which of the following statements about rebating are TRUE?
I. Rebating is prohibited under the Insurance Code
II. Rebating deals with offering the prospect a special inducement to purchase a policy
III. Rebating will enhance the sales performance and uphold the prestige of an agent
A. I and II
20
Which one of the following statements is FALSE?
A. Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company
21
Which of the following statements about option top-up under variable life insurance is FALSE?
A. Policy owners may buy additional units of the variable life fund and these units will be allocated to new variable life insurance policies
22
The characteristics of a variable life insurance include ________________
I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets
II. Its protection costs are generally met by implicit charges
III. Its commission and company expenses are met by a variety of explicit charges with normally 6 months notice given by the life companies prior to any change
IV. It’s withdrawal value is normally the value of units allocated to the policy owner calculated at the bid price
D. I, III, and IV
23
Which of the following statements about single premium variable life policies are TRUE?
I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance
II. Top-ups or single premium injections are allowed in these plans
III. Policyholders have the flexibility of varying the level cover
C. I and II
24
Investing in bonds offer the following EXCEPT
D. It enables the investor an opportunity for capital appreciation
25
Which of the following statements about variable life policies are TRUE?
I. The withdrawal value is not guaranteed
II. The volatility of the returns depends on the investment strategy of the fund
III. The variable life policyholder has direct control over the investment decisions of the variable life fund
B. I and II
26
Single premium variable life insurance policy:
A. Must be issued with a minimum death benefit
27
Which of the following statements about characteristics of variable life policies are TRUE?
I. Variable policies generally have a longer exposure to equity investment than with participating and other traditional policies
II. The protection costs are generally met by implicit charges, which vary with age and level of cover
III. The commisions and company expenses are met by a variety of explicit charges, some of which are variable
D. I and III
28
Which of the following statements about benefits in variable life fund is FALSE?
B. The fund ensures definite high yield for an investor since it is managed by professionals who are well-versed in the management of risk of investment portfolios
29
The flexibility benefit of investing in variable life funds include ___________________:
I. Policy owners can easily change the level of sum assured and switch their investment between funds
II. Policy owners can easily take premium holidays and add single premium to Top-ups
III. Variable life insurance policies offer the potential for higher returns
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation
B. I, II, and III
30
The fundamental differences between traditional partcipating life insurance policies and variable life insurance policies include ____
I. Variable life insurance policies are less likely to offer more choices in terms of the type of investment funds
II. The investment elements of variable life insurance policies is made known to the policy owner at the outset and is invested in a separately identifiable fund which is made up of units of investment
III. Variable life insurance policies offer the potential for higher returns
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation
B. II, III, and IV
31
The switching facility under variable life insurance policies is a very useful___________
D. For the purpose of financial planning by the policy owners
32
The following statement about surrender value under traditional participating life insurance products are TRUE?
C. The amount of surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages
33
Which of the following statements about risks of investing in variable life funds is TRUE?
C. Policy owners who invest in variable life funds with high equity investment face higher risk but can expect to achieve higher return than the traditional life insurance product over the long term
34
What should be the withdrawal values after a year?
C. PHP 401,107.58
35
The protection cost under a variable life insurance policy ____________________
I. Are met by flat initial charges for regular premium plans
II. Are generally covered by cancellation of units in the fund
III. Are generally met by explicit charges stipulated openly in the policy terms
IV. Vary with age of policy owner and level of cover
D. II, III, and IV
36
Which of the following statements about diversification in portfolio management is FALSE?
B. Diversification can completely eliminate the risk of investing in stocks in a portfolio
37
What are the advantages of investing in preferred shares?
I. It gives shareholders the right to a fixed dividend
II. Has the priority over company assets during a dissolution
III. They enjoy benefit of capital appreciation
A. I, II, and III
38
With traditional participating life insurance products, the allocations to policy owners in the form of dividends _____________________
I. Are not directly linked to the company’s investment performance
II. Have already been smoothened by the life company
III. Do not have the highs and lows of investment return as in good investments years of life company
IV. Are not fixed at the inception of the policy, but are greatly dependent on the investment performance of the company
A. I, II, and III
39
The objective of satisfying customers need profitably can be achieved by and agent through
I. The giving of freebies to the customers
II. Extensive investment training by the company
III. The use of sales plan, where sales goals, strategies, and objectives are coordinated with the market analysis, segmentation and training
IV. The giving of monetary assistance and discount to the customers
B. II and III
40
Which of the statements is true about CASH?
B. Amount invested in cash depends on size of the cash flow requirement
41
Under a regular premium variable whole life plan________________________________
I. Premium top-ups and holidays, subject to the company's administrative rules are usually allowed
II. Life protection is the main objective of the plan with investment as the nominal purpose
III. Withdrawals after the payment of a few years premium are usually allowed
IV. A single premium contribution is made to the policy which uses the premium to purchase units in a variable life fund to provide a certain level of life cover
D. I, II, and III
42
Which of the following statements about investment objectives is FALSE?
A. People invest money in fixed deposits to produce high and guaranteed returns
43
Which of the following is / are the main characteristic (s) of variable life policies?
I. The policies can be used for investment, as a source of regular savings and protection
II. The withdrawal values and protection benefits are determined by the investment
III. The net cash values of the policies are the gross cash values shown in the policy that includes dividends up to the date of surrender less and indebtedness including interest
D. I and II
44
Risk can be classified into two particular categories in relation to investment. They include ____________________________:
I. The risk of not losing some or all of the person's initial investment
II. The risk of rate of return on the investment not matching up to the individual's expectation
III. The risk of rate of return on the investment matching up to the individual's expectation
IV. The risk of losing some or all of a person's initial investment
D. II and IV
45
The duties of the trustee of unit trust do not include:
A. Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself
46
Policy fee payable by variable life insurance policy owner is to cover _________________
D. The administrative expenses of setting up the variable life insurance policy
47
The selling price under a variable life insurance policy is:
B. The price at which units under the policy are offered for sale by the life company
48
Diversification in investment involves_________
C. Reducing the risks of investment by putting one fund under management into several categories of investment
49
Variable life funds can be invested in any financial instruments including cash funds, bond funds, equity funds, property funds, specialized funds, and diversified funds. Equity funds _____________:
D. Invest in shares of stocks and invest who buy such assets usually aim for capital appreciation
50
Which of the following statements describe the differences between variable life products and participating products?
I. Variable life products allow policyholders to vary the premium payments unlike participating products.
II. Variable life products can take the form of whole life or endowment policies with participating products.
III. Variable life products allow policyholders to pay future single premiums from time to time to add more units to his account unlike participating products.
A. I, II, and III
51
Assuming no movement in the prices and charges / fees are deducted after the single premium has been invested into the account, how much will the policyholder lose if he surrenders the policy now?
B. Ps. 33,246.78
52
Which of the following statements BEST describes “variable life” policies?
D. It is a flexible premium policy with returns that will vary with the underlying value of investments
53
Which of the following factors contribute to the specific risk of an investment:
I. Rate of corporate taxes
II. Fraud of senior management
III. Financial leverage of the company
B. II and III
54
Investing in bonds offers the following advantages EXCEPT
D. It enables the investor an opportunity for capital appreciation
55
Rank the following investment instruments in terms of their level of risks, from the least risky to the most risky.
I. cash and deposit
II. derivatives
III. a well diversified investment portfolio of a company
IV. stock options
A. I, IV, III, and II
56
In risk-return profile of cash funds, bond funds, balanced funds, managed funds and equity funds, a risk-return graph will show that______
I. Higher return normally comes with lower risk
II. Higher return normally comes with higher risk
III. At the top end of the graph are the equity funds
IV. The relatively risk-less cash funds sit at the bottom end of the graph
B. II, III, and IV
57
Which of the following statements are TRUE?
I. The policy value of variable life policies is determined by the offer price at the time of valuation.
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of surrender.
Ill. The life company needs to maintain a separate account for variable life policies distinct from the general account.
D. II and III
58
Which of the following information is NOT required to be disclosed to policyholders of variable life policies?
A. The net withdrawal value as of the statement date
問題一覧
1
1. Variable life insurance policy owners may make withdrawals in terms of __________?
D. Nunber of units through cancellation of units
2
Which of the following statements about flexibility features of variable life policies is false?
b. Policyholders can take loans against their variable life up to the entire withdrawal valuc of their policies
3
The investment returns under variable life insurance policy _____________
I. Are not guaranteed
II. Are assured
III. Are linked to the performance to of the investment fund managed by the life insurance company
IV. Fluctuate according to the rise and fall of market prices
c. I, III, and IV
4
Which of the following statements is TRUE?
I. The policy value of variable life policies is determined by the offer price at the time of valuation
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of the surrender
III. The life company needs to maintain a separate account for variable life policies distinct from the general account
d. II and III
5
Which of the following statements is FALSE?
c. Misrepresentation is a specific form of twisting
6
Which of the following statements about variable life policies is TRUE?
I. Offer price is used to determine the number of units to be credited to the account
II. The margin between the bid and offer price is used to cover the managements cost of the policy
III. The policy value is calculated based on the bid price of units allocated into the policy
d. II, and III
7
What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income?
d. Fixed income securites
8
What are the disadvantages of investing in common shares?
I. Dividends are paid more than fixed rates
II. Investors are exposed to market and specific risks
III. Shares can become worthless if company becomes insolvent
c. II, and III
9
Which of the following statements about the difference between variable life policies and endowment policies are FALSE?
I. The policy values of variable life policies directly reflect the performance of the fund of the life company
II. The premiums and benefits of the endowment policies are described at the inception of the policy whereas variable life are flexible as the are account driven
III. The benefits and risks of variable life and endowment policies directly accrue to the policyholders
D. II and III
10
Which of the following statements about twisting is FALSE?
D. It refers to an agent offering a prospect a special inducement to purchase a policy
11
Mr. Juan Dela Cruz is currently earning ₱30,000.00 per month. He is 35 years old and he has a reasonable amount of savings. He has a moderate level of risk tolerance. What kind of policy would you recommend for him to buy?
C. Participating whole life
12
What are the benefits available when investing in variable life funds?
I. The variable life funds offer policyholders an access to pooled or diversified portfolios
II. The variable life policyholders can vary his premium payments, take premium holidays, add single premium top-ups and change the level of the sum assured easily
III. The variable life policyholder can have access to a pool of qualified and trained professional fund managers
A. I and II
13
Rank the following in terms of their liquidity, from the least liquid to the most liquid:
I. Short term securities
II. Property
III. Cash
IV. Equities
C. II, I, IV, III
14
A unit trust is _____________________
A. Established by a trust deed which enables a trustee to hold the pool of money and assets in trust in behalf of the investor
15
Under variable life insurance policies_________
I. There is no guaranteed minimum sum assured for the purpose of declaring dividends
II. There is no guaranteed minimum sum assured as a level of life insurance protection
III. Each of the policy owner’s premium will be used to purchase units the number of which is dependent on the selling price of each unit
IV. Purchase of units can only be made from the variable life fund itself, which will then create new units and add investment monics to the value of the fund
C. III and IV
16
The benefits of investing in variable life funds include _______________________
I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product design of variable life policies have clear structures which cater seperately for investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial investment
C. I, II, and III
17
Which of the following BEST describes the policy benefits of variable life policies?
C. The policy benefits are directly linked to the investment performance of the underlying assets
18
Why is it important that the customer must understand the sales proposal in full?
B. Because the impact of changes in investment condition on variable life policy is borne solely by the customer
19
Which of the following statements about rebating are TRUE?
I. Rebating is prohibited under the Insurance Code
II. Rebating deals with offering the prospect a special inducement to purchase a policy
III. Rebating will enhance the sales performance and uphold the prestige of an agent
A. I and II
20
Which one of the following statements is FALSE?
A. Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company
21
Which of the following statements about option top-up under variable life insurance is FALSE?
A. Policy owners may buy additional units of the variable life fund and these units will be allocated to new variable life insurance policies
22
The characteristics of a variable life insurance include ________________
I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets
II. Its protection costs are generally met by implicit charges
III. Its commission and company expenses are met by a variety of explicit charges with normally 6 months notice given by the life companies prior to any change
IV. It’s withdrawal value is normally the value of units allocated to the policy owner calculated at the bid price
D. I, III, and IV
23
Which of the following statements about single premium variable life policies are TRUE?
I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance
II. Top-ups or single premium injections are allowed in these plans
III. Policyholders have the flexibility of varying the level cover
C. I and II
24
Investing in bonds offer the following EXCEPT
D. It enables the investor an opportunity for capital appreciation
25
Which of the following statements about variable life policies are TRUE?
I. The withdrawal value is not guaranteed
II. The volatility of the returns depends on the investment strategy of the fund
III. The variable life policyholder has direct control over the investment decisions of the variable life fund
B. I and II
26
Single premium variable life insurance policy:
A. Must be issued with a minimum death benefit
27
Which of the following statements about characteristics of variable life policies are TRUE?
I. Variable policies generally have a longer exposure to equity investment than with participating and other traditional policies
II. The protection costs are generally met by implicit charges, which vary with age and level of cover
III. The commisions and company expenses are met by a variety of explicit charges, some of which are variable
D. I and III
28
Which of the following statements about benefits in variable life fund is FALSE?
B. The fund ensures definite high yield for an investor since it is managed by professionals who are well-versed in the management of risk of investment portfolios
29
The flexibility benefit of investing in variable life funds include ___________________:
I. Policy owners can easily change the level of sum assured and switch their investment between funds
II. Policy owners can easily take premium holidays and add single premium to Top-ups
III. Variable life insurance policies offer the potential for higher returns
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation
B. I, II, and III
30
The fundamental differences between traditional partcipating life insurance policies and variable life insurance policies include ____
I. Variable life insurance policies are less likely to offer more choices in terms of the type of investment funds
II. The investment elements of variable life insurance policies is made known to the policy owner at the outset and is invested in a separately identifiable fund which is made up of units of investment
III. Variable life insurance policies offer the potential for higher returns
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation
B. II, III, and IV
31
The switching facility under variable life insurance policies is a very useful___________
D. For the purpose of financial planning by the policy owners
32
The following statement about surrender value under traditional participating life insurance products are TRUE?
C. The amount of surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages
33
Which of the following statements about risks of investing in variable life funds is TRUE?
C. Policy owners who invest in variable life funds with high equity investment face higher risk but can expect to achieve higher return than the traditional life insurance product over the long term
34
What should be the withdrawal values after a year?
C. PHP 401,107.58
35
The protection cost under a variable life insurance policy ____________________
I. Are met by flat initial charges for regular premium plans
II. Are generally covered by cancellation of units in the fund
III. Are generally met by explicit charges stipulated openly in the policy terms
IV. Vary with age of policy owner and level of cover
D. II, III, and IV
36
Which of the following statements about diversification in portfolio management is FALSE?
B. Diversification can completely eliminate the risk of investing in stocks in a portfolio
37
What are the advantages of investing in preferred shares?
I. It gives shareholders the right to a fixed dividend
II. Has the priority over company assets during a dissolution
III. They enjoy benefit of capital appreciation
A. I, II, and III
38
With traditional participating life insurance products, the allocations to policy owners in the form of dividends _____________________
I. Are not directly linked to the company’s investment performance
II. Have already been smoothened by the life company
III. Do not have the highs and lows of investment return as in good investments years of life company
IV. Are not fixed at the inception of the policy, but are greatly dependent on the investment performance of the company
A. I, II, and III
39
The objective of satisfying customers need profitably can be achieved by and agent through
I. The giving of freebies to the customers
II. Extensive investment training by the company
III. The use of sales plan, where sales goals, strategies, and objectives are coordinated with the market analysis, segmentation and training
IV. The giving of monetary assistance and discount to the customers
B. II and III
40
Which of the statements is true about CASH?
B. Amount invested in cash depends on size of the cash flow requirement
41
Under a regular premium variable whole life plan________________________________
I. Premium top-ups and holidays, subject to the company's administrative rules are usually allowed
II. Life protection is the main objective of the plan with investment as the nominal purpose
III. Withdrawals after the payment of a few years premium are usually allowed
IV. A single premium contribution is made to the policy which uses the premium to purchase units in a variable life fund to provide a certain level of life cover
D. I, II, and III
42
Which of the following statements about investment objectives is FALSE?
A. People invest money in fixed deposits to produce high and guaranteed returns
43
Which of the following is / are the main characteristic (s) of variable life policies?
I. The policies can be used for investment, as a source of regular savings and protection
II. The withdrawal values and protection benefits are determined by the investment
III. The net cash values of the policies are the gross cash values shown in the policy that includes dividends up to the date of surrender less and indebtedness including interest
D. I and II
44
Risk can be classified into two particular categories in relation to investment. They include ____________________________:
I. The risk of not losing some or all of the person's initial investment
II. The risk of rate of return on the investment not matching up to the individual's expectation
III. The risk of rate of return on the investment matching up to the individual's expectation
IV. The risk of losing some or all of a person's initial investment
D. II and IV
45
The duties of the trustee of unit trust do not include:
A. Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself
46
Policy fee payable by variable life insurance policy owner is to cover _________________
D. The administrative expenses of setting up the variable life insurance policy
47
The selling price under a variable life insurance policy is:
B. The price at which units under the policy are offered for sale by the life company
48
Diversification in investment involves_________
C. Reducing the risks of investment by putting one fund under management into several categories of investment
49
Variable life funds can be invested in any financial instruments including cash funds, bond funds, equity funds, property funds, specialized funds, and diversified funds. Equity funds _____________:
D. Invest in shares of stocks and invest who buy such assets usually aim for capital appreciation
50
Which of the following statements describe the differences between variable life products and participating products?
I. Variable life products allow policyholders to vary the premium payments unlike participating products.
II. Variable life products can take the form of whole life or endowment policies with participating products.
III. Variable life products allow policyholders to pay future single premiums from time to time to add more units to his account unlike participating products.
A. I, II, and III
51
Assuming no movement in the prices and charges / fees are deducted after the single premium has been invested into the account, how much will the policyholder lose if he surrenders the policy now?
B. Ps. 33,246.78
52
Which of the following statements BEST describes “variable life” policies?
D. It is a flexible premium policy with returns that will vary with the underlying value of investments
53
Which of the following factors contribute to the specific risk of an investment:
I. Rate of corporate taxes
II. Fraud of senior management
III. Financial leverage of the company
B. II and III
54
Investing in bonds offers the following advantages EXCEPT
D. It enables the investor an opportunity for capital appreciation
55
Rank the following investment instruments in terms of their level of risks, from the least risky to the most risky.
I. cash and deposit
II. derivatives
III. a well diversified investment portfolio of a company
IV. stock options
A. I, IV, III, and II
56
In risk-return profile of cash funds, bond funds, balanced funds, managed funds and equity funds, a risk-return graph will show that______
I. Higher return normally comes with lower risk
II. Higher return normally comes with higher risk
III. At the top end of the graph are the equity funds
IV. The relatively risk-less cash funds sit at the bottom end of the graph
B. II, III, and IV
57
Which of the following statements are TRUE?
I. The policy value of variable life policies is determined by the offer price at the time of valuation.
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of surrender.
Ill. The life company needs to maintain a separate account for variable life policies distinct from the general account.
D. II and III
58
Which of the following information is NOT required to be disclosed to policyholders of variable life policies?
A. The net withdrawal value as of the statement date