IC VUL MOCK EXAM
1. a: 1. Variable life insurance policy owners may make
withdrawals in terms of
a. Number of unit or fixed monetary amount through cancellation of
units
b.Number of unit or fixed monetary amount of the life cover sum
assured
c. Fixed monetary amount only through reduction of the life cover sum
assured
d. Number of units through cancellation of units
2. b: 1. Which one of the following statements about the
flexibility features of variable life policies is
FALSE?
a. Policy holders may request for a partial withdrawal of the policy
and the with- drawal of the policy and the withdrawal of the policy
and the withdrawal amount will be met by cashing
the units and bid price.
b.Policy holders can take loans against their variable life policy up to
the entire withdrawal
value of their policies.
c. Policy holders have the flexibility of switching from one fund to
another provided it satisfies
the company's switching criteria.
,d.Policy holders have the flexibility of increasing or decreasing their
premiums for regular
premiums variable life policies.
3. c: 1. The returns under variable life insurance policy.
I. Are not guaranteed
II. Are assured
III. Are linked to the performance of the investment fund
management by the life company
IV.Fluctuate according to the rise and fall of market prices
a. I, II and III
b.I, II and IV
c. I, III and IV
d. II, III and IV
4. d: 1. Which of the following statements are TRUE?
I. The policy value of variable life policies is determined by the
offer time of valuation
II.The policy value of endowment policies is the cash value 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
lifer policies distinct
from the general account.
a. I, and II
b.I, II and III
c. I, and II
d. II and III
5. c: 1. Which of the following statements is FALSE?
a. Rebating to offer a prospect a special inducement to purchase a
policy
b.Twisting is a specific form of misrepresentation
c. Misrepresentation is a specific form of twisting
d. Switching is a facility allowing policy holders to switch to another
variable life funds offered by company.
6. d: 1. Which of the following statements about variable life policies are
TRUE?
I. Offer price is used to determine the numbers of units to be
cancelled to the amount
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 base on the bid price of units
allocated into the policy.
a. I, II and III
1. a: 1. Variable life insurance policy owners may make
withdrawals in terms of
a. Number of unit or fixed monetary amount through cancellation of
units
b.Number of unit or fixed monetary amount of the life cover sum
assured
c. Fixed monetary amount only through reduction of the life cover sum
assured
d. Number of units through cancellation of units
2. b: 1. Which one of the following statements about the
flexibility features of variable life policies is
FALSE?
a. Policy holders may request for a partial withdrawal of the policy
and the with- drawal of the policy and the withdrawal of the policy
and the withdrawal amount will be met by cashing
the units and bid price.
b.Policy holders can take loans against their variable life policy up to
the entire withdrawal
value of their policies.
c. Policy holders have the flexibility of switching from one fund to
another provided it satisfies
the company's switching criteria.
,d.Policy holders have the flexibility of increasing or decreasing their
premiums for regular
premiums variable life policies.
3. c: 1. The returns under variable life insurance policy.
I. Are not guaranteed
II. Are assured
III. Are linked to the performance of the investment fund
management by the life company
IV.Fluctuate according to the rise and fall of market prices
a. I, II and III
b.I, II and IV
c. I, III and IV
d. II, III and IV
4. d: 1. Which of the following statements are TRUE?
I. The policy value of variable life policies is determined by the
offer time of valuation
II.The policy value of endowment policies is the cash value 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
lifer policies distinct
from the general account.
a. I, and II
b.I, II and III
c. I, and II
d. II and III
5. c: 1. Which of the following statements is FALSE?
a. Rebating to offer a prospect a special inducement to purchase a
policy
b.Twisting is a specific form of misrepresentation
c. Misrepresentation is a specific form of twisting
d. Switching is a facility allowing policy holders to switch to another
variable life funds offered by company.
6. d: 1. Which of the following statements about variable life policies are
TRUE?
I. Offer price is used to determine the numbers of units to be
cancelled to the amount
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 base on the bid price of units
allocated into the policy.
a. I, II and III
