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Variable Life Licensing Mock Exam > VAR > Flashcards

VAR Flashcards

1
Q

Variable life insurance policy owners may make withdrawals in terms of

A

Number of units or fixed monetary amount through the cancellation of units

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2
Q

Which of the following Statements about flexibility features of variable life policies is false?

A

Policy holders can take loans…

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3
Q

The investment returns under a variable life insurance policy

A

C. I, II, IV

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4
Q

Which of the following statements is true?

A

D. II & III

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5
Q

Which of the following statements is false?

A

A misrepresentation is a specific form of twisting

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6
Q

Which of the following statements about variable life policies is True?

A

D. II & III

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7
Q

What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income

A

Fixed income securities

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8
Q

What are the disadvantages of investing in common shares?

A

C. II & III

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9
Q

Which of the following statements about the difference between variable life policies and endowment policies are false?

A

C. I & III

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10
Q

Which of the following statements about twisting is Fales?

A

It refers to an agent offering a prospect a special inducement to purchase a policy

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11
Q

Mr. Juan Dela Cruz is currently earning Php 30,000,000 per month…

A

Variable Life policies

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12
Q

What are the benefits available when investing in variable life funds?

A

A. II & II

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13
Q

Rank the following in terms of their liquidity, from the least liquid to the most liquid.

A

D. II, IV,I,III

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14
Q

A unit trust is

A

established by a trust deed which….

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15
Q

Under variable life insurance policies

A

C. III & IV

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16
Q

The benefits of investing in variable life funds include

A

C. I, II & III

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17
Q

Which of the following BEST describes the policy benefit of variable life policies?

A

The policy benefits are directly linked to investment performance…

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18
Q

Why is it important that the customer must understand the sales proposal in full?

A

Because of the impact of changes in investment condition…

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19
Q

Which of the following statements about rebating is True?

A

A. I & II

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20
Q

Which one of the following statements is Fales?

A

Variable life insurance policies offer investors….

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21
Q

Which of the following statements about the top-up options under variable life insurance is false?

A

Policy owners may buy additional units of the variable life fund…

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22
Q

The characteristics of a variable life insurance include

A

D. I, III, & IV

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23
Q

Which of the following statements about single premium variable life policies are true?

A

A. I, II, & III

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24
Q

Investing in bonds offer the following except

A

It enables the investor an opportunity for capital appreciation

25
Q

Which of the following statements about variable life policies is TRUE?

26
Q

Single premium variable life insurance policy:

A

Must be issued with a minimum death benefit

27
Q

Which of the following statements about characteristics of variable life policy is TRUE?

A

D. I & III

28
Q

Which of the following statements about benefits in variable life fund is False?

A

The fund ensures a definite high yield…

29
Q

The flexibility benefit of investing in variable life funds include

A

All of the above

30
Q

The fundamental differences between traditional participating life insurance policies and variable life insurance policy include

A

B. II, III, IV

31
Q

The switching facility under variable life insurance policies is very useful

A

For the purpose of financial planning by the policy owners

32
Q

Which of the following statements about surrender value under traditional participating life insurance products is TRUE?

A

In the case of participating policies,…

33
Q

Which of the following statements about risks of investing in variable life funds is TRUE?

A

Policy owners who invest in variable….

34
Q

What should be the withdrawal values after a year?

A

C. 401,107.58

35
Q

The protection cost under a variable life insurance policy

A

D. II, III & IV

36
Q

Which of the following statements about diversification in portfolio management is False?

A

Diversification can completely eliminate…

37
Q

What are the advantages of investing in preferred shares?

A

A. I, II & III

38
Q

Which traditional participating life insurance products the allocations to policy owners in the form of dividends

A

D. II, II, & IV

39
Q

The objective of satisfying customers needs profitably can be achieved by and agent through

A

D. II, III & IV

40
Q

Which of the statement is true about CASH?

A

Amount invested in cash depends on the size of the cash flow requirement

41
Q

Under regular premium variable whole life insurance plan

A

D. I, II & III

42
Q

Which of the following statements about investment objectives is false?

A

People invest money in fixed deposits to produce high and guaranteed returns

43
Q

Which of the following is/are the main characteristics of variable life policies?

44
Q

Risk can be classified into two particular categories in relation to investment. The include….

A

D. II & IV

45
Q

The duties of the trustee of unit trust do not include:

A

Managing the portfolio of investment…

46
Q

Policy fee payable by variable life insurance policy owner is to cover

A

The administrative expenses of setting up…

47
Q

The selling price under a variable life insurance policy is:

A

The price at which units under the policy…

48
Q

Diversification in investment involves

A

Reducing the risk of investment by putting the fund…

49
Q

Variable life funds can be invested in any financial instrument…

A

Invest in shares of stocks and investors…

50
Q

Which of the followings statements describe the differences between variable life products and participating products?

A

A. I, II, and III

51
Q

Assuming no movement in the prices and charges/fees…

A

P33,246,78

52
Q

Which of the following statements does BEST describe variable life policies?

A

It is a flexible premium policy with returns….

53
Q

Which of the following factors contribute to the specific risk of an investment?

A

B. II and III

54
Q

Investing in bonds offers the following advantages EXCEPT

A

It offers protection to the principal and guaranteed a steady stream of income

55
Q

Rank the following investment instruments…

A

A. I, IV, III & II

56
Q

In a risk-return profile of cash funds, bond funds, and balance funds,…..

A

B. II, III, & IV

57
Q

Which of the following statements are TRUE?

A

D. II & III

58
Q

Which of the following information is NOT required to be disclosed to the policyholders…

A

The net withdrawal value as of the statement date

59
Q

Which of the following statements about benefits in variable life fund is FALSE?

A

It offers protection to the principal and guaranteed a steady stream of income

Variable Life Licensing Mock Exam (1 decks)

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