9 Questions
Match the following insurance policy types with their respective policy values calculation:
Variable life policies = Policy value is determined by the offer price at the time of valuation Endowment policies = Policy value is the cash value plus any accumulated dividends less any outstanding loans at the time of surrender
Match the following terms related to insurance with their definitions:
Rebating = To offer a prospect a special inducement to purchase a policy Twisting = A specific form of misrepresentation
Match the following statements about variable life policies with their accurate descriptions:
The offer price is used to determine the number of units to be credited to the account = TRUE The margin between the bid and offer price is used to cover the management costs of the policy = TRUE
Match the following investment instruments with their suitability for a specific investment goal:
Equities = Investor interested in protecting principal and receiving a steady stream of income Fixed income securities = Investor interested in protecting principal and receiving a steady stream of income
Match the following disadvantages of investing in common shares with their accurate descriptions:
Dividends are paid more than fixed rates = FALSE Investors are exposed to market and specific risks = TRUE
Match the following differences between variable life policies and endowment policies with their accurate descriptions:
The policy values of variable life policies directly reflect the performance of the fund of the life company = TRUE The premiums and benefits of the endowment policies are described at the inception of the policy whereas variable life are flexible as they are account driven = TRUE
Match the following withdrawal options with their descriptions:
a = Number of units or fixed monetary amount through cancellation of units b = Number of units of fixed monetary through reduction 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
Match the following flexibility features with their correct statements:
a = Policy holders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at the bid price b = Policy holders can take loans against their variable life up to the entire withdrawal value of their policies c = Policy holders have the flexibility of switching form one fund to another provided it satisfies the company’s switching criteria d = Policyholders have the flexibility of increasing or decreasing their premiums for regular premium variable life policies
Match the following investment returns descriptions with their correct characteristics:
I, II, and III = Are not guaranteed, Are assured, Are linked to the performance to of the investment fund managed by the life insurance company I, II, and IV = Are not guaranteed, Are assured, Fluctuate according to the rise and fall of market prices I, III, and IV = Are not guaranteed, Are linked to the performance to of the investment fund managed by the life insurance company, Fluctuate according to the rise and fall of market prices II, III and IV = Are assured, Are linked to the performance to of the investment fund managed by the life insurance company, Fluctuate according to the rise and fall of market prices
Test your knowledge of variable life insurance policies and withdrawals by choosing the best answer for each scenario. This quiz is designed for internal use only.
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