VUL MOCK EXAM 2 Questions with Correct Answers (Grade A+)
Question 1: Variable life insurance policy owners may make withdrawals in terms of
Answer: The number of units or fixed monetary income through the cancellation of units.
Question 2: Which one of the following statements about the flexibility features of Variable life policies
is FALSE?
Answer: Policy owners can take loans against their valuable life policies up to the entire withdrawal value
of their policies.
Question 3: The investment returns under a Variable life insurance policy
Answer: Are assured - FALSE
Question 4: Which of the following statements are true?
Answer: ALL EXCEPT - The policy value of life policies is determined by the offer price at the time of
valuation
Question 5: Which of the following statements is FALSE?
Answer: Misrepresentation is a specific form twisting.
Question 6: Which of the following statements about variable life policies are true?
Answer: ALL EXCEPT- Offer price is used to determine the numbers of units to be cancelled from 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 securities
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 statements about the differences between Variable life policies and
Endowment policies are FALSE?
Answer: The policy values of Variable life and Endowment policies directly reflect the performance of the
fund of the life company. The benefits and risks Variable life and Endowment policies directly accure to the
policy owners.
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Question 1: Variable life insurance policy owners may make withdrawals in terms of
Answer: The number of units or fixed monetary income through the cancellation of units.
Question 2: Which one of the following statements about the flexibility features of Variable life policies
is FALSE?
Answer: Policy owners can take loans against their valuable life policies up to the entire withdrawal value
of their policies.
Question 3: The investment returns under a Variable life insurance policy
Answer: Are assured - FALSE
Question 4: Which of the following statements are true?
Answer: ALL EXCEPT - The policy value of life policies is determined by the offer price at the time of
valuation
Question 5: Which of the following statements is FALSE?
Answer: Misrepresentation is a specific form twisting.
Question 6: Which of the following statements about variable life policies are true?
Answer: ALL EXCEPT- Offer price is used to determine the numbers of units to be cancelled from 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 securities
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 statements about the differences between Variable life policies and
Endowment policies are FALSE?
Answer: The policy values of Variable life and Endowment policies directly reflect the performance of the
fund of the life company. The benefits and risks Variable life and Endowment policies directly accure to the
policy owners.
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