Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which of the following statements is true regarding Variable life insurance?
Correct
Variable life insurance
A variable universal life insurance policy allows policyholders the same premium and death benefit flexibility as with a universal life insurance policy. The primary difference is in the crediting of cash values, which in a variable life insurance policy is based on a menu of available fund managers and asset classes and styles. Variable universal life insurance policies are particularly attractive to investors who utilize insurance as a way to achieve tax-deferred growth of assets.Incorrect
Variable life insurance
A variable universal life insurance policy allows policyholders the same premium and death benefit flexibility as with a universal life insurance policy. The primary difference is in the crediting of cash values, which in a variable life insurance policy is based on a menu of available fund managers and asset classes and styles. Variable universal life insurance policies are particularly attractive to investors who utilize insurance as a way to achieve tax-deferred growth of assets. -
Question 2 of 10
2. Question
Which of the following statements is true regarding Voting rights of policyholders?
Correct
Voting rights of policyholders
Similar to an open-end investment company, or mutual fund, a policyholder of a variable life insurance contract is entitled to voting rights in determining the life insurance company’s board of directors. The voting rights of a policyholder differ from those of a mutual fund, however, in that a policyholder does not have the authority to vote on the investment operations or investment management of the insurance company’s general account or any of the separate accounts.Incorrect
Voting rights of policyholders
Similar to an open-end investment company, or mutual fund, a policyholder of a variable life insurance contract is entitled to voting rights in determining the life insurance company’s board of directors. The voting rights of a policyholder differ from those of a mutual fund, however, in that a policyholder does not have the authority to vote on the investment operations or investment management of the insurance company’s general account or any of the separate accounts. -
Question 3 of 10
3. Question
Which of the following statements is true regarding Dollar cost averaging?
Correct
Dollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higherDollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higher.Incorrect
Dollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higherDollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higher. -
Question 4 of 10
4. Question
Which of the following statements is true regarding Sales charge structure?
Correct
Sales charge structure
Life insurance companies typically deduct both a sales charge and a premium expense charge from contributions to a variable life insurance policy. The sales charge is used to compensate the broker who sold the policy and also to cover the costs of issuing the policy. The sales charge is limited by the maximums set forth in the policy contract, typically in the range of 3 to 5%.Incorrect
Sales charge structure
Life insurance companies typically deduct both a sales charge and a premium expense charge from contributions to a variable life insurance policy. The sales charge is used to compensate the broker who sold the policy and also to cover the costs of issuing the policy. The sales charge is limited by the maximums set forth in the policy contract, typically in the range of 3 to 5%. -
Question 5 of 10
5. Question
Which of the following statements is true regarding the accumulation phase?
Correct
Once the contract is annuitized, at the beginning of the payment stream, the accumulation units that have been growing throughout the accumulation phase
are converted into annuitization units. The rate of conversion of accumulation units into annuitization units will be spelled out in the contract and will take into account a number of factors, including actuarial life expectancy and the assumed interest rate. Whether or not the payments rise or fall in value depends upon the relative performance of the subaccount investments in relation to the assumed interest rate.Incorrect
Once the contract is annuitized, at the beginning of the payment stream, the accumulation units that have been growing throughout the accumulation phase
are converted into annuitization units. The rate of conversion of accumulation units into annuitization units will be spelled out in the contract and will take into account a number of factors, including actuarial life expectancy and the assumed interest rate. Whether or not the payments rise or fall in value depends upon the relative performance of the subaccount investments in relation to the assumed interest rate. -
Question 6 of 10
6. Question
Which of the following statements is true regarding Variable life insurance?
Correct
Variable life insurance
A variable universal life insurance policy allows policyholders the same premium and death benefit flexibility as with a universal life insurance policy. The primary difference is in the crediting of cash values, which in a variable life insurance policy is based on a menu of available fund managers and asset classes and styles. Variable universal life insurance policies are particularly attractive to investors who utilize insurance as a way to achieve tax-deferred growth of assets.Incorrect
Variable life insurance
A variable universal life insurance policy allows policyholders the same premium and death benefit flexibility as with a universal life insurance policy. The primary difference is in the crediting of cash values, which in a variable life insurance policy is based on a menu of available fund managers and asset classes and styles. Variable universal life insurance policies are particularly attractive to investors who utilize insurance as a way to achieve tax-deferred growth of assets. -
Question 7 of 10
7. Question
Which of the following statements is true regarding Voting rights of policyholders?
Correct
Voting rights of policyholders
Similar to an open-end investment company, or mutual fund, a policyholder of a variable life insurance contract is entitled to voting rights in determining the life insurance company’s board of directors. The voting rights of a policyholder differ from those of a mutual fund, however, in that a policyholder does not have the authority to vote on the investment operations or investment management of the insurance company’s general account or any of the separate accounts.Incorrect
Voting rights of policyholders
Similar to an open-end investment company, or mutual fund, a policyholder of a variable life insurance contract is entitled to voting rights in determining the life insurance company’s board of directors. The voting rights of a policyholder differ from those of a mutual fund, however, in that a policyholder does not have the authority to vote on the investment operations or investment management of the insurance company’s general account or any of the separate accounts. -
Question 8 of 10
8. Question
Which of the following statements is true regarding Contractual provisions?
Correct
Contractual provisions
Many life insurance contracts, especially term and group life insurance contracts, offer a conversion privilege, which allows the policyholder to convert the group or individual term policy into individually owned, permanent insurance without further medical underwriting. All variable life insurance policies, which provide for explicit charges related to sales loads, insurance risk charges, and cost of insurance charges, must set forth the maximum charges that can be assessed within the contract. This provides an important guarantee to investors and allows them to consider not only the current
charges, but what charges the insurer could impose in future policy years.Incorrect
Contractual provisions
Many life insurance contracts, especially term and group life insurance contracts, offer a conversion privilege, which allows the policyholder to convert the group or individual term policy into individually owned, permanent insurance without further medical underwriting. All variable life insurance policies, which provide for explicit charges related to sales loads, insurance risk charges, and cost of insurance charges, must set forth the maximum charges that can be assessed within the contract. This provides an important guarantee to investors and allows them to consider not only the current
charges, but what charges the insurer could impose in future policy years. -
Question 9 of 10
9. Question
Which of the following statements is true regarding Dollar cost averaging?
Correct
Dollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higher.Incorrect
Dollar cost averaging
Many variable life insurance policies provide for dollar cost averaging, in which a policyholder contributes the same dollar amount to each of the underlying subaccounts over a period of time. The benefit to investors is that by investing a consistent dollar amount, more underlying units of the subaccount are purchased when the price of the subaccount is depressed and fewer units are purchased when the value is higher. -
Question 10 of 10
10. Question
Which of the following statements is true regarding Sales charge structure?
Correct
Sales charge structure
Life insurance companies typically deduct both a sales charge and a premium expense charge from contributions to a variable life insurance policy. The sales charge is used to compensate the broker who sold the policy and also to cover the costs of issuing the policy. The sales charge is limited by the maximums set forth in the policy contract, typically in the range of 3 to 5%. Additionally, the insurance company deducts a portion of the premium deposits in order to cover certain state premium and DAC (Deferred Acquisition Cost) taxes.Incorrect
Sales charge structure
Life insurance companies typically deduct both a sales charge and a premium expense charge from contributions to a variable life insurance policy. The sales charge is used to compensate the broker who sold the policy and also to cover the costs of issuing the policy. The sales charge is limited by the maximums set forth in the policy contract, typically in the range of 3 to 5%. Additionally, the insurance company deducts a portion of the premium deposits in order to cover certain state premium and DAC (Deferred Acquisition Cost) taxes.