WorksheetsIC EXA REVIEW
Total questions: 8
Worksheet time: 4mins
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 company
IV. Fluctuate according to the rise and fall of market prices.
I, II and III
I, II, IV
I, III, IV
II, III, IV
Which of the following statements are TRUE?
I. The policy value life policies is determined by the other price at the time of valuation
II. The policy value of endowment policies is the cash value plus any accumulated dividends
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
I and III
II and III
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 ife cover sum assured
Fixed monetary amount only through reduction of life cover sum assured
Number of units through cancellation of units
Which of the following statements about the flexibility of variable 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 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 premium variable life policies
Which of the following statements about the difference between variable life policies and endowment policies are FALSE?
I. The policy values of variable life and endowment policies directly reflect the performance of the fund of the life company
II. The premiums and benefits of the endowment policies are described at inception of the policy whereas variable life policies are flexible as they are account driven.
III. The benefits and risks of variable life and endowment policies directly accrue to the policyholders.
I and II
I, II and III
I and III
II and III
What are the disadvantages of investing in common shares?
I. Dividends are paid not more that fixed rates
II. Investors are exposed to market and specific risks
III. Share can become worthless if company becomes insolvent
I, II
I, III
II, III
I, II 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
Warrants
Variable Life Policies
Fixed Income Securities
Which of the following statements about variable life policies are 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.
All of the above
I and II
I and III
II and III
