Prulife

Variable life insurance policy owners may make withdrawals in terms of ________________.

• Number of units or fixed monetary amount through cancellation of units.

  
  

• Number of units or fixed monetary amount through reduction of the life cover sum assured.

  
  

• Fixed monetary amount only through reduction

  
  

• Number of units through cancellation of units.

  
  

Which one of the following statements about the flexibility features of variable life policies is FALSE?

• Policyholders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at bid price.

  
  

• Policyholders can take loans against their variable life policies up to the entire withdrawal value of their policies.

  
  

• Policyholders have the flexibility of switching from one fund to another provided it satisfies the company’s switching criteria.

  
  

• Policyholders have the flexibility of increasing or decreasing their premiums for regular premiums variables life policies.

  
  

The investment returns under variable life insurance policy __________________.

I. Are not guaranteed.

II. Fluctuate according to the rise and fall of the market price.

III. Are linked to the performance of the investment fund management by the life company. IV. Are assured.

• I, II and III

• I, III and IV

• I, II and IV

• II, III and IV

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 values plus any accumulated dividends less any outstanding loans due at time of surrender.

III. The life company needs to maintain a separate account for variable life policies distinct from the general account.

• I and II

• I

• II and III

• III and IV

Which of the following statements is FALSE?

• Rebating is to offer a prospect a special inducement to purchase a policy.

• Twisting is a specific form of misrepresentation.

• Misrepresentation is a specific form of twisting.

• Switching is a facility allowing policy holder to switch to another variable life funds offered by the company.

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

I. Offer price is used to determine the numbers of units to be credited to the account.

II. The margin between the bid and offer price is used to cover the management cost of the policy .

III. The policy value is calculated based on the bid price of units allocated into the policy.

• II and III

• All of the above

• I and II

• I and III

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

• Equities

• VUL Policies

• Fixed Income Securities

• Warrants

 What are the disadvantages of investing in common shares?

I. Dividends are paid not more than fixed rates

II. Investors are exposed to market and specific risks

III. Shares can become worthless if company becomes insolvent

• I, II

• II, III

• I, III

• I, II and III

Which statements are FALSE regarding the difference between Endowment policies and Variable Life policies?

I. The benefits and risks of Endowment and Variable Life policies directly accrue to the policyowners.

II. The premiums and benefits of the Endowment policies are stated at its inception while those of Variable Life policies are flexible as they are account driven.

III. Their policy values directly reflect the performance of the fund of the life company.

• I and II

• I and III

• II and III

• I, II and III

Which of the following statements about twisting is FALSE?

• it refers to an agent offering a prospect a special inducement to purchase a policy.

• It refers to an agent inducing a policyholder to discontinue policy with another company without disclosing the disadvantage of doing so

• It includes misleading or incomplete comparison of policies

• Twisting is a special form of misrepresentation