FWD Training and Development Academy VL MOCK
Exam 2023 with complete solution
Established by a trust deed which enable a trustee to hold the pool of money and assets
in trust on behalf of the investor
A UNIT TRUST is
Fixed Income Securities
What is the most suitable investment instrument for someone who is interested in
protectinghis principal while receiving a steady stream of income?
Policyholders can take loans against their variable life policies up to the entire
withdrawal value of their policies
Which one of the following statements about the flexibility features of variable life
policies is FALSE?
II, III
What are the disadvantages when 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
II, III and IV
Which of the following statements about the option to top-up under variable life
insurance products is TRUE?
I. Policy owners may buy additional units of the variable life fund and these units will be
allocated to new variable life insurance policies
II. Further premiums at time of top-up will be used in full, after deducting charges for
top-ups, to purchase additional units of the variable life funds.
III. To top-up a policy, the policy owner pays further single premium at the time oftop-up
IV. Policy owners are normally allowed to top-up their policies at any time, subject to a
minimum amount
III
Which of the following about rebating is FALSE?
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
I, II and III
An investor in variable life funds gets to enjoy these benefits:
I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product
design of variable life insurance policies have clear structures which cater separately for
investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional
investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial
investment
Number of units or fixed monetary amount through cancellation of units
Variable life insurance policy owners may withdraw in terms of
, I
Which of the following statements are FALSE?
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 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 life policies
distinct from the general account.
I, II and IV
Characteristics of a variable life insurance policy 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 a variety of implicit charges with
normally 6 months 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 at the bid price
For the purpose of financial planning by the policy owners
The facility to do switching under a variable life insurance policy is very useful
I and II
Which of the following statements about variable life policies are TRUE?
I. Variable life policies generally have a larger exposure to equity investment thanwith
participating and other traditional policies
II. The protection costs are generally met by implicit charges, which vary with age and
level of cover
III. Commissions and company expenses are met by a variety of explicit charges, some
ofwhich are variable
I and II
Which of the following statements about variable life policies are TRUE?
I. The cash 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
II and III
Which of the following statements about single premium variable life policies are TRUE?
I. There is no fixed term in a single premium variable life policy and therefore, theyare
technically whole life insurance
II. Top-up single premium injections are allowed in these plans
III. Policyholders have the flexibility of varying the level cover
Variable life insurance policies offer investors plans with values that are indirectly linked
to the investment performance of the life company
Which one of the following statements is FALSE?
II, III and IV
In traditional life insurance products, the allocations to policy owners in the form of
dividends
Exam 2023 with complete solution
Established by a trust deed which enable a trustee to hold the pool of money and assets
in trust on behalf of the investor
A UNIT TRUST is
Fixed Income Securities
What is the most suitable investment instrument for someone who is interested in
protectinghis principal while receiving a steady stream of income?
Policyholders can take loans against their variable life policies up to the entire
withdrawal value of their policies
Which one of the following statements about the flexibility features of variable life
policies is FALSE?
II, III
What are the disadvantages when 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
II, III and IV
Which of the following statements about the option to top-up under variable life
insurance products is TRUE?
I. Policy owners may buy additional units of the variable life fund and these units will be
allocated to new variable life insurance policies
II. Further premiums at time of top-up will be used in full, after deducting charges for
top-ups, to purchase additional units of the variable life funds.
III. To top-up a policy, the policy owner pays further single premium at the time oftop-up
IV. Policy owners are normally allowed to top-up their policies at any time, subject to a
minimum amount
III
Which of the following about rebating is FALSE?
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
I, II and III
An investor in variable life funds gets to enjoy these benefits:
I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product
design of variable life insurance policies have clear structures which cater separately for
investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional
investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial
investment
Number of units or fixed monetary amount through cancellation of units
Variable life insurance policy owners may withdraw in terms of
, I
Which of the following statements are FALSE?
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 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 life policies
distinct from the general account.
I, II and IV
Characteristics of a variable life insurance policy 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 a variety of implicit charges with
normally 6 months 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 at the bid price
For the purpose of financial planning by the policy owners
The facility to do switching under a variable life insurance policy is very useful
I and II
Which of the following statements about variable life policies are TRUE?
I. Variable life policies generally have a larger exposure to equity investment thanwith
participating and other traditional policies
II. The protection costs are generally met by implicit charges, which vary with age and
level of cover
III. Commissions and company expenses are met by a variety of explicit charges, some
ofwhich are variable
I and II
Which of the following statements about variable life policies are TRUE?
I. The cash 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
II and III
Which of the following statements about single premium variable life policies are TRUE?
I. There is no fixed term in a single premium variable life policy and therefore, theyare
technically whole life insurance
II. Top-up single premium injections are allowed in these plans
III. Policyholders have the flexibility of varying the level cover
Variable life insurance policies offer investors plans with values that are indirectly linked
to the investment performance of the life company
Which one of the following statements is FALSE?
II, III and IV
In traditional life insurance products, the allocations to policy owners in the form of
dividends
