Which of the ff statements about flexibility feature of variable life policies is false?

The investment returns under variable life insurance policy

I. are not guaranteed

Ii. are assured

III. are linked to the performance of the investment fund managed by the life insurance company

IV. fluctuate according to the rise and fall of market places

Which of the following statements is true?

I. The policy value of variable life policies is determined by the offer price at the time valuation

II. The policy value of endowment policies is the cash value plus 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

Which of the ff statements is false?

Which of the ff 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 management cost of the policy

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

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

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

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

I. the policy value 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 account driven

III. the benefits and risks of variable life and endowment policies directly accure to the policyholders

Which of the ff statements about twisting is FALSE?

Mr Juan dela Cruz is currently earning Php 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?

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 premiums holidays, add single 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

Rank the ff in term of their liquidity, from the least liquid to the most liquid

I. Short term securities

II. Property

III. Cash

IV. Equities

A unit trust is

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 monies to the value of the fund

Which of the ff BEST describes the policy benefits of variable life policies?

the benefits available when investing in variable life funds include:

I. policyowners have an access to pooled or diversified portfolios

II. policyowners can easily change the level of the premium payments as the product design as variable life

III. policyowners can gain access to variable life funds managed by professional investment managers with proven track records

IV. policyowners can buy a variable life insurance policy only with a high initial investment

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

which of the ff 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

which of the ff statements is FALSE?

which of the ff statements about option top-up under variable life insurance is false?

the characteristic 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 variety of explicit charges with normally 6 month notice given by the life companies prior to any change

IV. its withdrawal value is normally the value of units allocated to the policy owner calculated ate the bid price

which of the ff statement 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 single premium injections are allowed in these plans

III. policyholders have the flexibility of varying the level cover

Investing in bonds offer the ff EXCEPT?

which of the ff 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

Single premium variable life insurance policy

w/c of the ff 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, w/c vary w/ the age and level of cover

III. the commissions and company expenses are met by a variety of explicit charges , some of w/c are variable

w/c of the ff statements about benefits in variable life fund is FALSE?

the flexibility benefit of investing in variable life funds include

I. policyowners can easily change the level of sum assured and switch their investment between funds

II. policyowners 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

the fundamental differences between traditional participating life insurance policies and variable life life insurance policies include:

I. VLI policies are less likely to offer more choices in terms of the type of investment funds

II. the investment elements of VLI policies is made known to the policy owner at the outset and is invested in a separately identifying fund which is made up of units of investment

III. VLI policies offer the potential for higher returns

IV. traditional participating policies aim to produce a steady return by smoothing out market fkuctuation