Segregated Funds Exam Questions and Answers with complete solutions | Graded A+

Segregated Funds Exam Questions and Answers with complete solutions | Graded A+ What document must a client be given prior to completing an application for an individual Variable Insurance Contract (IVIC)? - Information folder: the information folder contains all of the essential information for an informed purchasing decision, thus, it must be given to the client before he completes an application and makes the decision to purchase an IVIC What is a segregated fund? - A segregated fund is a pool of funds held by an insurance company What are the six exclusive features of segregated funds? - 1. Maturity guarantee and death benefit guarantee 2. bypass of probate 3. creditor protection 4. bankruptcy protection 5. reset feature 6. favorable tax treatment What is a bond fund? - A bond fund or debt fund is a fund that invests with bonds which can be contrasted with stock funds and money funds What is a balanced fund? - Balanced funds own both stocks and bonds, they keep the balance between the two asset classes by usually placing 60% of their assets in stocks and 40% in bonds