1
FWD TRAINING AND DEVELOPMENT ACADEMY
VL MOCK EXAM LATEST 2026-27 LATEST
VERSION WITH ANSWERS KEY PROVIDED
1. A UNIT TRUST is .
a. Established by a trust deed which enable a trustee to hold
the pool of money and assets in trust on behalf of the
investor
b. A close-end fund and does not have to dispose of its assets if a large
number of investors sell their shares
c. One whereby an investor buys units in the trust itself and not shares in
the company
d. Anorganization registeredunder the
SECURITIESANDEXCHANGECOMMISSION(SEC)which usually invests
in a wide range of equities and other investments
2. What is the most suitable investment instrument for someone who
is interested in protecting his principal while receiving a steady
stream of income?
a. Equities
b. Warrants
c. Variable Life Policies
d. Fixed Income Securities
3. Whichoneof thefollowingstatementsabouttheflexibilityfeaturesof
variablelifepolicies isFALSE?
a. Policyholders mayrequestforapartialwithdrawal of thepolicy
,2
andthewithdrawalamountwill be met by cashing the units at bid
price
b. Policyholders can take loans against their variable life
policies up to the entire withdrawal value of their policies
c. Policyholders have the flexibility of switching from 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 premiums
variable lifepolicies
4. 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
a. I, II c. II, III
b. I, III d. I, II, and III
, 3
5. Whichof thefollowingstatementsabouttheoption totop-
upundervariablelifeinsuranceproducts is TRUE?
I. Policy ownersmaybuyadditionalunitsof
thevariablelifefundand theseunits willbe allocated to new
variable life insurance policies
II. Furtherpremiums at timeof top-up willbe used
infull,afterdeducting chargesfortop-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 ownersarenormallyallowedtotop-uptheirpolicies
atanytime, subject toa minimum amount
a. II, III and IV c. I, II and IV
b. I, II and III d. I, IIIand IV
6. 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 apolicy
III. Rebating will enhance the sales performance and uphold the prestige
of an agent
a. I and II b. Iand III c. II and III d. III
7. An investor in variable life funds gets to enjoy these benefits:
I. Policy owners have access to pooled or diversified portfolios of
FWD TRAINING AND DEVELOPMENT ACADEMY
VL MOCK EXAM LATEST 2026-27 LATEST
VERSION WITH ANSWERS KEY PROVIDED
1. A UNIT TRUST is .
a. Established by a trust deed which enable a trustee to hold
the pool of money and assets in trust on behalf of the
investor
b. A close-end fund and does not have to dispose of its assets if a large
number of investors sell their shares
c. One whereby an investor buys units in the trust itself and not shares in
the company
d. Anorganization registeredunder the
SECURITIESANDEXCHANGECOMMISSION(SEC)which usually invests
in a wide range of equities and other investments
2. What is the most suitable investment instrument for someone who
is interested in protecting his principal while receiving a steady
stream of income?
a. Equities
b. Warrants
c. Variable Life Policies
d. Fixed Income Securities
3. Whichoneof thefollowingstatementsabouttheflexibilityfeaturesof
variablelifepolicies isFALSE?
a. Policyholders mayrequestforapartialwithdrawal of thepolicy
,2
andthewithdrawalamountwill be met by cashing the units at bid
price
b. Policyholders can take loans against their variable life
policies up to the entire withdrawal value of their policies
c. Policyholders have the flexibility of switching from 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 premiums
variable lifepolicies
4. 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
a. I, II c. II, III
b. I, III d. I, II, and III
, 3
5. Whichof thefollowingstatementsabouttheoption totop-
upundervariablelifeinsuranceproducts is TRUE?
I. Policy ownersmaybuyadditionalunitsof
thevariablelifefundand theseunits willbe allocated to new
variable life insurance policies
II. Furtherpremiums at timeof top-up willbe used
infull,afterdeducting chargesfortop-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 ownersarenormallyallowedtotop-uptheirpolicies
atanytime, subject toa minimum amount
a. II, III and IV c. I, II and IV
b. I, II and III d. I, IIIand IV
6. 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 apolicy
III. Rebating will enhance the sales performance and uphold the prestige
of an agent
a. I and II b. Iand III c. II and III d. III
7. An investor in variable life funds gets to enjoy these benefits:
I. Policy owners have access to pooled or diversified portfolios of
