Which of the following statements about variable life policies are TRUE? I. Variable life policies generally have a larger exposure to equity investment than with participating and... Which of the following statements about variable life policies are TRUE? I. Variable life policies generally have a larger exposure to equity investment than with 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 of which are variable A) I and II B) II and III C) I, II and III D) I and III
Understand the Problem
The question is asking us to evaluate statements regarding variable life policies to determine which ones are true.
Answer
C) I, II and III
The final answer is C) I, II and III
Answer for screen readers
The final answer is C) I, II and III
More Information
All three statements about variable life policies are true. These policies typically have a larger exposure to equity investments, protection costs are managed through varying implicit charges, and commissions and expenses are covered by explicit variable charges.
Tips
A common mistake would be overlooking the costs structure in variable life policies, which includes both implicit and explicit charges that vary based on several factors.
Sources
- VUL-Mock Exam Flashcards by Kat Cole | Brainscape - brainscape.com
- [PDF] ILP MODULE QUIZZES [2014] - Quia - quia.com
- VUL 21-49 Flashcards by Amor Gacang | Brainscape - brainscape.com
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