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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
Which of the following statements about variable life policies is TRUE?
B. I & II
26
Single premium variable life insurance policy:
Must be issued with a minimum death benefit
27
Which of the following statements about characteristics of variable life policy is TRUE?
D. I & III
28
Which of the following statements about benefits in variable life fund is False?
The fund ensures a definite high yield...
29
The flexibility benefit of investing in variable life funds include
All of the above
30
The fundamental differences between traditional participating life insurance policies and variable life insurance policy include
B. II, III, IV
31
The switching facility under variable life insurance policies is very useful
For the purpose of financial planning by the policy owners
32
Which of the following statements about surrender value under traditional participating life insurance products is TRUE?
In the case of participating policies,...
33
Which of the following statements about risks of investing in variable life funds is TRUE?
Policy owners who invest in variable....
34
What should be the withdrawal values after a year?
C. 401,107.58
35
The protection cost under a variable life insurance policy
D. II, III & IV
36
Which of the following statements about diversification in portfolio management is False?
Diversification can completely eliminate...
37
What are the advantages of investing in preferred shares?
A. I, II & III
38
Which traditional participating life insurance products the allocations to policy owners in the form of dividends
D. II, II, & IV
39
The objective of satisfying customers needs profitably can be achieved by and agent through
D. II, III & IV
40
Which of the statement is true about CASH?
Amount invested in cash depends on the size of the cash flow requirement
41
Under regular premium variable whole life insurance plan
D. I, II & III
42
Which of the following statements about investment objectives is false?
People invest money in fixed deposits to produce high and guaranteed returns
43
Which of the following is/are the main characteristics of variable life policies?
D. I & II
44
Risk can be classified into two particular categories in relation to investment. The include....
D. II & IV
45
The duties of the trustee of unit trust do not include:
Managing the portfolio of investment...
46
Policy fee payable by variable life insurance policy owner is to cover
The administrative expenses of setting up...
47
The selling price under a variable life insurance policy is:
The price at which units under the policy...
48
Diversification in investment involves
Reducing the risk of investment by putting the fund...
49
Variable life funds can be invested in any financial instrument...
Invest in shares of stocks and investors...
50
Which of the followings statements describe the differences between variable life products and participating products?
A. I, II, and III
51
Assuming no movement in the prices and charges/fees...
P33,246,78
52
Which of the following statements does BEST describe variable life policies?
It is a flexible premium policy with returns....
53
Which of the following factors contribute to the specific risk of an investment?
B. II and III
54
Investing in bonds offers the following advantages EXCEPT
It offers protection to the principal and guaranteed a steady stream of income
55
Rank the following investment instruments...
A. I, IV, III & II
56
In a risk-return profile of cash funds, bond funds, and balance funds,.....
B. II, III, & IV
57
Which of the following statements are TRUE?
D. II & III
58
Which of the following information is NOT required to be disclosed to the policyholders...
The net withdrawal value as of the statement date
59
Which of the following statements about benefits in variable life fund is FALSE?
It offers protection to the principal and guaranteed a steady stream of income

Variable Life Licensing Mock Exam (1 decks)

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