QFA Life AssuranceQFA Life Assurance

Sample QuestionsSample Questions

What is the most accurate description of a life company which is owned by its shareholders?

A A proprietary company B A mutual company C A branch companyD A unit liked company

Sample Question

Sample Question

If a self employed client needs to provide a replacement income in the even of ill health, how would you describe that need?

A Savings needB Protection needC Investment needD Retirement funding need

Sample Question

A life assurance policy to which a once off premium is paid is usually referred to as:

A An AP policyB An SP policyC An MP policyD An APR policy

Sample Question

If a unit linked investment policy has 2,300 units and the current Bid price of units in the fund to which the policy is linked is €1.57 and the current offer price of units in the fund is €1.65 what is the current encashment value of the policy?

A €4,467B €3,975C €2,300D €3,611

Sample Question

The term ‘guarantee’ means:

A The life assuredB A life assurance policy issued to a trusteeC The legal owner of a life assurance policyD The admission of a claim under a life assurance

policy

Sample Question

A tied insurance agent for life assurance can sell the policies of:

A No more than four life companiesB Only one life companyC At least five life companies D No more than five life companies

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What is the maximum number of agencies and insurance agent can have?

A 1B 4C No MaximumD 5

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Additional commission paid by the a life assurance company to an intermediary, based on the level of sales that intermediary has introduced to the company over a 12 month period, is normally referred to as:

A Renewal CommissionB Trial CommissionC Over-ride CommissionD Fund based Commission

Sample Question

Which one of the following can take out a Section 785 policy? A An individual who was self employed in the past and had contributed to a Personal Pension Plan, but who

is not currently working.B A Civil Servant who has no other earned incomeC An employee who is included in a pension scheme at work for retirement benefits D A woman who works in the home and who has had never worked outside the home

Sample Question

A Family Income Benefit (FIB) policy is:

A A unit linked whole of life policy B A level term assurance policyC A low cost whole of life policyD A decreasing term assurance policy

Sample Question

Which one of the following is the most accurate description of what ‘review able’ term assurance is?

A The cover can be increased or decreased at any time by the policyholder

B The premium is not guaranteed for the full term of the policyC The policy is linked to a unit linked fund; if the fund underperforms,

the premium will be increased by the life company D The policy is only sold in conjunction with a profit whole of the life

policy

Sample Question

Mary Smith, who had a term assurance policy on her own life for €100,000 life cover, died on 2nd September 2006On being informed of the claim the life company noticed that the €40 monthly premium due on the policy on 1st September 2006 had not been paid. The policy terms and conditions provide for 30 days of grace in relation to payment of premiums.

What minimum amount can the life company legally pay out under the terms of the policy?

A Nil, as a premium due was not paid at the date of death.B €100, 000 as Mary died during the days of grace period.C €50, 000 i.e. 50% as a premium due was not paid at the date of deathD €99, 960 i.e. €100,000 less the unpaid premium of €40

Sample Question

A compound reversionary bonus under a with profit whole of life policy is:

A paid on the total premiums paid to dateB paid on the initial sum assured onlyC paid on the initial sum assured and attaching bonusesD paid on the attaching bonuses only

Sample Question

The premium guarantee period under a unit linked protection policy is:

A the period at the start of the policy when the premiums are not used to buy unitsB the period during which the life company can not cancel the policy provided the policyholder pays all premiums due.C The period during which the life company guarantees that the unit fund will grow at a certain minimum rate.D The period within which the life company guarantees that the

surrender value will not be less than the premium paid to date

Sample Question

If a unit linked protection policy has a sum assured of €100,000 and a current cash value of €5,000, which is the current ‘sum at risk’ under the policy?

A €100,000B €5,000C €105,000D €95,000

Sample Question

A Low Cost Whole of Llife policy is:

A A term assurance policyB A combination of a with profit whole of life and a

decreasing term assurance policy C A combination of a non profit whole of life and a

term assurance policy D A combination of a unit linked protection policy and a decreasing term assurance policy

Sample Question

If the cash value of a unit linked protection policy is€105,000 and the Sum Assured is €100, 000 what amount is payable if the life assured dies at that time?

A €105,000B €100,000C €95,000D €5,000

Sample Question

A Section 60 policy is a protection policy designed to:

A Repay the outstanding balance of a capital & interest mortgageB Provide a fund to pay certain taxes which may arise on the death of the life assuredC Provide an income if an individual is unable to work due to sickness or disability lasting longer than 6

monthsD Pay medical costs associated with long term care requirements

Sample Question

Joe is insured for €100,000 life cover with €75, 000 accelerated Serious Illness Cover

If Joe makes a serious illness claim what life cover, if any, will he still have after the claim is paid out?

A NoneB €75,000C €100,000D €25,000

Sample Question

A policy with ‘double cover’ is a policy which:

A Pays out twice the sum assured on deathB Pays out twice the sum assured in the event of a serious illness claimC Covers two lives assured D Provides life cover and stand alone serious illness cover

within the one policy