VUL Mock Exam 2018 Questions with Correct Answers (Grade A+)
Question 1: Variable Life Insurance policy owners may take withdrawals in terms of
Answer: Number of units or fixed monetary amount through cancellation of units
Question 2: Which of the following statement about flexibility features of variable life policy us FALSE
Answer: Policy owners can take loans against their variable life policies up to the entire withdrawal value of
their policies
Question 3: Investment returns under variable insurance policy
Answer: ALL except Are assured
Question 4: Which of the following statement is TRUE?
Answer: ALL except The policy value of variable life policies is determined by the offer price at the time of
valuation
Question 5: Which of the following statement of FALSE
Answer: Misinterpretation id a specific form of twisting
Question 6: Which of the following statement about variable life policies are TRUE
Answer: All except Offer price is used to determine the number of units to be cancelled to the account.
Question 7: What is the most suitable investment instrument for an investor who is interested in
protecting his principal and receiving a steady stream of income
Answer: Fixed income securitues
Question 8: What are the disadvantages of investing in common shares
Answer: ALL except Dividends are paid not more than fixed rates
Question 9: Which of the following statement about the differences between variable life policies and
endowment policies are FALSE
Answer: ALL except The premiums and benefits of endowment policies are described at inception of the
policy whereas variable life policies are flexible as they are account driven
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, Question 10: Which of the following statement about twisting is FALSE
Answer: It refers to an agent offering a prospect a special inducement to purchase a policy
Question 11: Mr Juan Dela Cruz is currently earning Ps 30,000/month. He is 35 yrs old and has
reasonable amount of savings. He has a moderate level for risk tolerance. What kind of policy would
you recommend to buy
Answer: Variable life policies
Question 12: What are the benefits available when investing in variable life funds
Answer: All Except The variable life policyholder can have access to a pool of qualified and trained
professional fund managers
Question 13: Rank the following in terms of their liquidity, from least liquid to the most liquid
Answer: Property, Short Term Securities, Equities, Cash
Question 14: A unit trust is
Answer: Established by a trust deed which enables a trustees to hold the pool of money and assets in trust on
behalf of the investor
Question 15: Under variable life insurance policies
Answer: All except There is no guaranteed minimum sum assured for the purpose of declaring dividends
and There is not guaranteed minimum sum assured as a level of life insurance protection
Question 16: The benefits of investing in variable life funds include
Answer: All except Policy owners can buy a variable life insurance policy only with high initial investment
Question 17: Which of the following best describes the policy benefits variable life policies
Answer: The policy benefits are directly linked to the investment performance of the underlying assets
Question 18: Why is it important that the customer must understand the sales proposal in full
Answer: Because the impact of changes in investment condition on variable life policy borne solely by the
customer
Question 19: Which if the following statement about rebating is TRUE
Answer: ALL Except Rebating will enhance the sales performance and uphold the prestige of an agent
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Question 1: Variable Life Insurance policy owners may take withdrawals in terms of
Answer: Number of units or fixed monetary amount through cancellation of units
Question 2: Which of the following statement about flexibility features of variable life policy us FALSE
Answer: Policy owners can take loans against their variable life policies up to the entire withdrawal value of
their policies
Question 3: Investment returns under variable insurance policy
Answer: ALL except Are assured
Question 4: Which of the following statement is TRUE?
Answer: ALL except The policy value of variable life policies is determined by the offer price at the time of
valuation
Question 5: Which of the following statement of FALSE
Answer: Misinterpretation id a specific form of twisting
Question 6: Which of the following statement about variable life policies are TRUE
Answer: All except Offer price is used to determine the number of units to be cancelled to the account.
Question 7: What is the most suitable investment instrument for an investor who is interested in
protecting his principal and receiving a steady stream of income
Answer: Fixed income securitues
Question 8: What are the disadvantages of investing in common shares
Answer: ALL except Dividends are paid not more than fixed rates
Question 9: Which of the following statement about the differences between variable life policies and
endowment policies are FALSE
Answer: ALL except The premiums and benefits of endowment policies are described at inception of the
policy whereas variable life policies are flexible as they are account driven
Page 1
, Question 10: Which of the following statement about twisting is FALSE
Answer: It refers to an agent offering a prospect a special inducement to purchase a policy
Question 11: Mr Juan Dela Cruz is currently earning Ps 30,000/month. He is 35 yrs old and has
reasonable amount of savings. He has a moderate level for risk tolerance. What kind of policy would
you recommend to buy
Answer: Variable life policies
Question 12: What are the benefits available when investing in variable life funds
Answer: All Except The variable life policyholder can have access to a pool of qualified and trained
professional fund managers
Question 13: Rank the following in terms of their liquidity, from least liquid to the most liquid
Answer: Property, Short Term Securities, Equities, Cash
Question 14: A unit trust is
Answer: Established by a trust deed which enables a trustees to hold the pool of money and assets in trust on
behalf of the investor
Question 15: Under variable life insurance policies
Answer: All except There is no guaranteed minimum sum assured for the purpose of declaring dividends
and There is not guaranteed minimum sum assured as a level of life insurance protection
Question 16: The benefits of investing in variable life funds include
Answer: All except Policy owners can buy a variable life insurance policy only with high initial investment
Question 17: Which of the following best describes the policy benefits variable life policies
Answer: The policy benefits are directly linked to the investment performance of the underlying assets
Question 18: Why is it important that the customer must understand the sales proposal in full
Answer: Because the impact of changes in investment condition on variable life policy borne solely by the
customer
Question 19: Which if the following statement about rebating is TRUE
Answer: ALL Except Rebating will enhance the sales performance and uphold the prestige of an agent
Page 2
