QFA Life Assurance Sample Paper 1
A convertible term coverage may be more suitable than a unit-connected whole of existence
coverage due to the fact:
(i) it is less expensive
(ii) the rates can be level
(iii) the lifestyles assured needs to cover the potential lack of earned earnings until retirement
age
A (i) and (ii) handiest
B (i) and (iii) only
C (ii) and (iii) handiest
D (i) (ii) and (iii) - ANS-D
7.3 - CTA versus Whole of Life
A twin lifestyles coverage held via a married couple is legally presumed to be held as:
A tenants in commonplace
B sole tenants
C limitless tenants
D joint tenants. - ANS-D
five.1.3 - Life Assurance guidelines
A guaranteed whole of existence guarantee policyholder has ceased paying rates, yet the
existence corporation has maintained the coverage with reduced cowl. This policy is called:
A surrendered
B paid up
C subrogated
D assigned - ANS-B
2.3.1.1 - Encashment cost
A existence assurance business enterprise CANNOT ask on a suggestion form if the proposed
existence assured:
A has undertaken a genetic check in the past
B smokes
,C has been in health facility within the past
D has a history of mental contamination - ANS-A
12.Three.4 - Genetic checks
A lifestyles warranty Disclosure Notice ought to FIRST be given to a patron taking away a
lifestyles assurance coverage before the:
A client signs and symptoms the idea form
B coverage is issued
C cooling off duration expires
D policy has been in force for greater than 60 days - ANS-A
12.2.Five - Provide a Disclosure of Information Notice
A lifestyles employer will usually have the right to refuse policyholder transfer commands into
which of the following form of unit funds?
A Unitised with earnings
B Equity
C Property
D Managed - ANS-C
8.1.Five - Property fund regulations
A want to accumulate a capital sum from regular surplus income over a time frame is which type
of private monetary need?
A Savings
B Investment
C Protection
D Loan - ANS-A
1.1 - Main kinds of personal monetary needs
A coverage which affords a fixed quantity of life cowl for lifestyles in return for a set premium is
referred to as which kind of policy?
A Decreasing Term Assurance
B Guaranteed whole of life
C Unit-connected entire of existence
D Temporary guarantee - ANS-B
2.Three.1 - Guaranteed Whole of Life
, A Technology Fund is which one of the following varieties of fund?
A Commodity
B Managed
C Specialist
D Multi-asset - ANS-C
8.1.3 - Unit Fund Choice
A unit-linked bond is which sort of lifestyles guarantee coverage?
A Term
B Convertible time period
C Savings
D Whole of life - ANS-D
8.1 - Unit related Investment Bonds
A unit-connected bond pays an 'automated earnings' price of €2,000 consistent with annum to
Joan. How is this price taxed?
A It is paid below PAYE
B Exit tax is deducted from any gain realised with the aid of the partial encashment earlier than
price to Joan
C It is paid gross to Joan but is prone to profits tax and USC in her fingers
D It is paid to Joan much less standard charge tax; she has no in addition tax liability on the
charge received - ANS-B
8.1.Thirteen - Regular encashment facility
A unit-linked fund, that's experiencing robust inflows, has total property valued on a shopping for
fee foundation of €20 million, with predicted acquisitions prices of two%. What is the fund's
present day unit price assuming the fund has a million gadgets?
A €19.Forty
B €19.60
C €20.00
D €20.40 - ANS-D
8.1.6 - Unit Pricing
A unit-connected complete of lifestyles policy has life cover of €100,000. It also has 1,450 units
allocated to the coverage and the present day unit rate is €1.44.
What is the contemporary encashment price of the coverage, before exit tax?
A convertible term coverage may be more suitable than a unit-connected whole of existence
coverage due to the fact:
(i) it is less expensive
(ii) the rates can be level
(iii) the lifestyles assured needs to cover the potential lack of earned earnings until retirement
age
A (i) and (ii) handiest
B (i) and (iii) only
C (ii) and (iii) handiest
D (i) (ii) and (iii) - ANS-D
7.3 - CTA versus Whole of Life
A twin lifestyles coverage held via a married couple is legally presumed to be held as:
A tenants in commonplace
B sole tenants
C limitless tenants
D joint tenants. - ANS-D
five.1.3 - Life Assurance guidelines
A guaranteed whole of existence guarantee policyholder has ceased paying rates, yet the
existence corporation has maintained the coverage with reduced cowl. This policy is called:
A surrendered
B paid up
C subrogated
D assigned - ANS-B
2.3.1.1 - Encashment cost
A existence assurance business enterprise CANNOT ask on a suggestion form if the proposed
existence assured:
A has undertaken a genetic check in the past
B smokes
,C has been in health facility within the past
D has a history of mental contamination - ANS-A
12.Three.4 - Genetic checks
A lifestyles warranty Disclosure Notice ought to FIRST be given to a patron taking away a
lifestyles assurance coverage before the:
A client signs and symptoms the idea form
B coverage is issued
C cooling off duration expires
D policy has been in force for greater than 60 days - ANS-A
12.2.Five - Provide a Disclosure of Information Notice
A lifestyles employer will usually have the right to refuse policyholder transfer commands into
which of the following form of unit funds?
A Unitised with earnings
B Equity
C Property
D Managed - ANS-C
8.1.Five - Property fund regulations
A want to accumulate a capital sum from regular surplus income over a time frame is which type
of private monetary need?
A Savings
B Investment
C Protection
D Loan - ANS-A
1.1 - Main kinds of personal monetary needs
A coverage which affords a fixed quantity of life cowl for lifestyles in return for a set premium is
referred to as which kind of policy?
A Decreasing Term Assurance
B Guaranteed whole of life
C Unit-connected entire of existence
D Temporary guarantee - ANS-B
2.Three.1 - Guaranteed Whole of Life
, A Technology Fund is which one of the following varieties of fund?
A Commodity
B Managed
C Specialist
D Multi-asset - ANS-C
8.1.3 - Unit Fund Choice
A unit-linked bond is which sort of lifestyles guarantee coverage?
A Term
B Convertible time period
C Savings
D Whole of life - ANS-D
8.1 - Unit related Investment Bonds
A unit-connected bond pays an 'automated earnings' price of €2,000 consistent with annum to
Joan. How is this price taxed?
A It is paid below PAYE
B Exit tax is deducted from any gain realised with the aid of the partial encashment earlier than
price to Joan
C It is paid gross to Joan but is prone to profits tax and USC in her fingers
D It is paid to Joan much less standard charge tax; she has no in addition tax liability on the
charge received - ANS-B
8.1.Thirteen - Regular encashment facility
A unit-linked fund, that's experiencing robust inflows, has total property valued on a shopping for
fee foundation of €20 million, with predicted acquisitions prices of two%. What is the fund's
present day unit price assuming the fund has a million gadgets?
A €19.Forty
B €19.60
C €20.00
D €20.40 - ANS-D
8.1.6 - Unit Pricing
A unit-connected complete of lifestyles policy has life cover of €100,000. It also has 1,450 units
allocated to the coverage and the present day unit rate is €1.44.
What is the contemporary encashment price of the coverage, before exit tax?
