r{hlt\AtYil t.

1uL{q0l-)
.-,
-.r',

I
rusumnce col{|flssrotl I oez
In;ra il6,Aen6' Exarnination
-irAnilfir-LrFE ltlguRAllcE

..
1. The investrnent reh,rns undir variable lift insurance pollgy
I. Are not guaranteet'
Il. Are assured
m. Arc linked to the performance of tre inve$nent fund managed bV the llE
comPany
N. Fluctuate according to the rise and fall of market prices.

@ t, ttt and IV
d. II, III and W
2. Which of thq following statement are TRUP

I. The policy value of variable ltfe polides is determined by Ure offer price at the :
Ume of valuathn.
IL The policy ralue of en(owment policies is the cash value plus any
accumulated divldends less any onBtandlng loans due at time of surender,
UL The life company needs to malntaln a separafre acmunt fur varlable life

b. I, II and III
c. I and III
d. II and IIi
3. Variable life insurance policy owners may make witfrdrawals in terms of

a. Number of unlts or fixed moneEry amount through canceHation-of untB

b. Number of units or fixed moneEry amount through reduction of the life
cover sum asured
c. Fixed monehry amount only through reduction of the lifd corer sum
assured
^
(9lt'tuinUer of un'rts through cancellation of uniE.

I
 .aL

llfe
; about
aDout tIE+'lsL features of vadabE
urtr fleSUllU
tfre
the following statements
4. Which of
policies is FALSIF''
ardt
a'
-*
l1lff[*i:#,il.'$ltE
witharawai amount will be
;ft t_
meE srr I'H'flig,S
i*tls.r-m"#Hfr
'"ril iff,;;;bh lrr"-rip to' $e enure
@ HH[ttr",";l#ff fifrdj:
c. il3'"'Jlifiil,,g^ffi"1m one :::-
|ffif;Jl*:"'il:,T sornPartv I -"'*"'..E*Ji-li": tund to another
another

;ffi I#T';Jft;[ii*qP.:Y.lYHn1Yg5;T'
orovided -n*:
tt Sdsnes Ine
or d*reasing their
d. [.:nlfiirol* ttt" l{1ry-.Pj n* polkies'
m*eia.
;*T;'tHffi tti"i"tiit 'ium vaiiaue llfe
Whichofthefollowtr€statments.sgq{"thertlffererrcebeh^,eenvaflab|elre'
policles and endolmen[ po[des ane fruSE?--
polldes dirccfly ref,ect $e
I. The policy wlua or vaf{f l$-"{111!1vtt*t
performance of the fund d the ltfe comparry
policies are described at
u, The premiurt iiO-U"n*G ot tti-ffAd*m"nt pollctes are fisdbte as tluy are
inception of tfe pofiey-*t eteas variable life
account drtven.
pollcies direcdy acrue
III. The benefit .io risks of variable life and endoament
to the PolicYholders'

a. I and [I
b. I, II ANd III
€iland III
i1 rr and III

I. DMdends are pald not more than fted rates

tids
III. Invesbrs are tbrposed to llrarltet and spedffc
ggnrpny becomes lnsolv-ert
'|'
ffi. Shares mn bemhe wor$less if

a. lr$
b. l, uI
c. ILm -

@t,'u and III

is intereSed
7. What is the most suitable invesffnent inFtnrment-lot-tnlY-BgJho
stream or lncogrE
i;'ili,6ctthg-iiis principal and receMng a steady

a. Equities
b. Warants l

c. Variable Uft Policies

e;ffi-i;;;*i,'ni.'
 +.

n-
Gies areTRUE?
aboutvaria*:
B. which of tlre following statements
-::"n'' * * *O:: * *:'
the numbei of unils
I. offer price is usei to determind management
account used to corer the
the bid and offer price ls
U. The margin tietrreen
atlOcated fm fie
cost of d; eolicy. based on the bid pri ce of untB
lll' Th" po[J'H#is calculated
PoticY

@ All of the abore

E lanO[
c. 1 and III
d. Il and III
9. Which of the followirg silatement
is FIIISE?
. ),--
a.Rebatingistoofferaplos@aspeclalir,rducementtopurEhaseaPollcy,
o' t*iHii iJ ffi;fi;t[*'*
misriPresentation

ffi"*:l$ffift" snch to another variabre

""?!ffi:Bl,f"fi'*1il
tit" tunOt offered bV comPanY

10. A.UNfl. TRUST iS

hold tre potrl of

qu*
by deed which enables a Uustee to
@estaofished I of the investor'
money unO tottt in trtr* on belralf
dispose'off its asst if targe
b. A cto.e-end tund ano aoes,iil;.*-tr
in ttre
.. txm:;1ry*s*tH"iflT'the trusr rEerf and not shares
invesEnent
d fl1E:lizauon invesB in a wide range of equiues and offirer
llquidi$, from the least liquid to
$e mo6t
11, Rank the following in terms of their
liouid;

l. Short term securities

ii. it p;tty '

ffi. C.ash
N. Equities
a. 'lV,It, III, I
b. III, I.IV, II
9tl'I;Hl
3
 in variable life funds?
12. What are the beients available when investing

L The variable life funds offer policyholders an access to pooled or dlverslfied

. Portfotios. premlum PqyrelF,Fke premium
rI. The variabl€ life policyholdcrs can vary his
'' #t.,d;#;add single premium top-"pi and'change thi-level of lmlassured
easilY.
III. The. variable lift pollcyholder cin have access to a pool of qualtfled and
tralned profussional fund managers'

a. I and II '!.
6. i Eiid ttt
@ r, II ancl rII
a[ II and III
13. Mr. Juan deta Cruz is currently eaming P 3O,O(n.00 per month. tle is 35 years old
and has a reasonable amount of savings. He has a moderaE le\rel of rlsk blerance.
What kind of policy would you recommend for hlm b buy?

a. Participating Endowment
b. Variable Life Folicies
.. p.',ulipatiii w-tiil ur.
@mnudtes
14. Which of the following statements about twisting is FALSE?

a. Twisting is a special form of misrepresentstion'

b. It refers to an agent including a poficyholder to disconUnue policy w'tth
another company without didosing the disadvantage of doin$ so
c. It includes misleading or incomplete comparlson of policies
@ tt refers to an agent-ofiering a prcspect special inducement b purchase a
- policy.

15. Which of the following statements about rebating are TRUP

I. Rebatino is orohibited under the Iniunnee Code.

u. Rebatin6 ddrls with ofEring the ptospst a spec'lal indwement b ptr$uea
policy
EI. RebaUng will enhance the sales performance and uphold the presfige d an
agent

@tandtl
b. I and III
c. II an6III
,{--

.?

proposal in tull?
that the customer mustunderstand the sales
16. why is it important
not guar'1n't=-a:lreturn
a. Because the insurer does life
@a"."ril ii.'1ip".t ;i d;lj{l: ilr"rttt''enrionoiuon on variable

;'*'l*$ffi
d' Becat ;*#fr, euaffi ffinsffi*oations
"'="-- =APLL9
the pollcy b enefits variable life Policies? '
L7. which one of the following BEST describes
on death or disabili$ --:;
a. The poticy beneflts are payable only il;G;Grm pertormance of the life
b. The policy penefits *iu ilffia"il
performance of
r.-r*:TJlt benefits are direcdy tinked to the investment
v.
underlYing assets'
- the
d. Thd policy'beneftts are guaranteed'
18. The benefiE of investrng in vartable lifefunds include

I. Policy dtversifred portfollos of investment

or d-s113-
owners have access to pool{t ol ry11,T:,"1*,1?.il'I.i *
o-urne" on ;t
u,the
u. poticy
product
ffig. the roret gl ur.-p*Iium'paymenB
variable fie insurapce pglkies trave dear structures
whidl
Oesign-oi

II1. policy owners can gain access to variable llfe iunds managed by professional
investment m*do with proven track records'
6rv'. ,5".ble llfe insurance poltcy only with a- high initial
L!-L !-:r!,
rv. |.6v ffdffi
investment

a. I, II and IV
b, I, III and IV
€.'tl.ll and lII
\f ti, ttt ano tv

19, Under variable life insurance policies

L There is no guaranteed minimum sum assured for the purpose of @tartrlg

dividends
11. There is no guaranteed minimum sum mtred as a lEuel of lift inerrance
protection
m. le.cn of the policy owner's premiums will be used b purduse'units and the
number of which is dqendent onthe sd[ng-price of eadt unit
ry. Purchase of units can onlv be *ade frd-di w!au!1ry. gP !1'e]f, S[l
or me
will tien create new uniE and add sre invesilnent monles to Rlc vatue

a. I and IV
b, II and IV
c. UI aild IV
@ II and III
?/-./
E'
poticies rye
about single pr€mium variable life
zo. which of the foltowing statements
TRUE?

I.Thereisnoftxedtermin3.'ipleP9Tiumvariablelifepolicy,andtherefQre,
life insurance
they are technic:lly whgle
alloared in these plans
iI. Tog'ups or single premlum.iniffi;;t; the level comer.
irr. poricyrroril;'i.,HJih; iioiu,iriry orvarying
(*rt.II and III
Y ri and III
c. I and II
d. I and ltl *

21. The characteristics of i variable life insuransg poliry include

L
- lts withdrawal value and proEcfion benefits are determined bY the
investment performance of the underlying assets'.
Ii. Its protection costs are generally met by implkit darges
IU. Its commission and company expenses ire met by a variety of ocplicft
ln"rg# *ith normally 5 months nouce given uy the llfe companies prtor b
;;;h;"s;
1y. Its withdrawal value is nonnally'the value of uniB allocated to the pollcy
owner calculated at the bid Price'
d. t, tl dHg rrl
b. II, III and IV
c. I, II and IV
@ I, III and IV
which of the folloring statemenB about option to topup under varlabte llE
insurance prodults is fiuSef
a. policy owners may buy addltionat uniB of the variabte.]ife tund and trese
units wtll be attocateo to new vaiable llie insurance,pollcies,. _a_
b. Further, premiums at the time of top'9p will be used in full, after
deducting charges for topup, to purcr,ase'additional gnlB of the
variable
life fundi
*" o*':: .T: "T*. :::
@ H# ffirr,l1 "*normalfi
". "u'.. :" : :::",
policies at any '[is1s'
d. Policy o**ii-t" allswed to bp-up their :

subject to a minimum amount

.

Whlch of the following statements is FITISE?

a. variabte tife insurance poiicies offer investors P{kl= *q_IlTt at$
indirecty linked to the hy61n1ent performaae of-the liE company'
b. ufe comp#v out a vatuauon of its tunds yeas 3nd any surphts
"iiiorry
as an inve$ment medja
ffl Both Whole Ufe Endowme* ffi-tt"U"
: *in benefits that become payable * a futureu="0
clae'
6
 policles
icies vari6 cbw'v" to
vans5 according
life
t!fl!n:^*
elem€nt variable
"d' The' investment
rvestment
fi;;;t;lJ" of theportfolio

z4.Whichofthefollowingstatementsaboutben{tsin.variaurelrefundisFAI5E?
principal and guarant@
a. It offers protection to the """.: T:I
@n*: '"T"-::::-:::-1'r11wu
#n"" for-capital preserva$on
\
-
'

c. rt attornrs ure investor " ilffi'il'"i

: 1l :'HfLryi'ffi#

:':.:,:'_ a":,
25.WhichofthefoltowinelstatemenBaboutvariablelifepoticlesareTRUE?
tund
il;;il;;; tne mvestment stuatesv of the
II. .The volatlliry of the r'etur!?
;""t'"1 ;;t
the irwesinrent decislons
i rr. rne va rl#rJ'ir. -rili+l"ro"?Tii'iitli,t
of the uatiaUte lifb tund'

@),,tt ano ttt

EI I and IT
c. I and lll
;. II and IIi
25. Investing in bonds offers the following advantages
E(CEPT
r r r
a.Itoffersprotectiontotheprincipalandguararrteedsteadyqeamof
income ulat $e
ffiIt is a place of temporary refuge urhen the investor'foreees
v market outook is uncerbin

o. n iilil"""r an omrturllty frepitalappeciation \

"iiiit"t
27. Sinqld piemium variable life insurance policy:
ffust be issued with a minimum death benefit
@
Y
f*fust be lssued with a nra:rlmum u*ttrdrawal
value
c. Has no death benefit

variaHe life policies are

28, which of ttre following statements about characteristics of
TRUE? .- . -
.: inffi
L Variabte life policies generally,have a l"tge. exposre b eqPlty

drarges' t iltdt wry wi$t

II.
-': The orotection costs are qeReratU mA UV impticlt
;94;nAkuel of cover variety of exdlclt'chargei
ilI. Gommissiom and comDanv expenses arc met by a
are variable'
some of whlch
 .
-"-'
---t --t''
--^' ----t'

a. l, II and III
b. I and II
;: II and III
Iflrl and III participasng llfre
29. rh"
tne Siillr?l; $lt"Fgrt *out
}El(owing .statemeq! surender value under traditional
.*i;nraHd piSaucs iJ TRUE?
is
a. Cash value is paid when a yearly ren€n'l'able term instrance PollcY
b.Whenaparilcipa$rrglnsurancepoliqissunendered,thezurrendervalue

@H*ffiT"s#r,ffi i""ttl'-*'::tl*f*":$TlH*t*.,*ff;
lower at older ags.
a. i-.lii"-i"r" otft*ApaUng pollcie, the net cash surrcnder value includes
ttre sureno".*iui orUte-plia-up addiUon up to ttre date of $'Erender'

plicies
rv'
30. The tundamental differences betwqen tradifional participatinglife
;iid iftEEiiilii[insiir:dnae]blicies indude
insurance
:

i. Variable life insurance p_olicies are less likely to offer more choices-in terms of
the type of invesffinent funds
II. The investment element of variable life insurance policies are rnade knoryn to
. the policy owner at the ouBet and are InvesEd ln a separately idenUfiable

III. Variable life'insurance pollcies offiei the poEntial for higher rehrms ,
IV. Traditlonal participattng policies aim to produce a $eady rehrrn W srnooffiing
out marketflucfua$on.

I a. I, III and IV
U, UI and IV
11 II rend III
d. I, II and IV

31. The flexlbillty benefft of investing in varlable llfe funds include

I. Policy owne6 can easily change Sre levcl of sum assltred and slrlldt Ute[r
investrnent bettrueen fu nds.
II. Policy owners can ea$ly hke premium holidays and add single premium to
top-ups,
III.' Variable life insurance products have a simple ptodud deslgn.with a clea-r
structure which caters separately for inve*nent and insurance ptdection.
IV. Policy owners can easily change the level of their premium paynenB
a All of the above
@ I, Il anct llt
c. I, II and IV
d. I, III and IV

32. The sruitching faclllty under varilble lrfe insurance eolicies ls a very uqEfiil

a. For the purpose of profit planning bV tfie ltfe policies

 b.ForthepurposeofassetsPlanningbythetnrstee
piqnning-by-the tund managers
c. For the purpose ii-t"fo praririnb uv thF policv o'{ners
@ ro, the purpose;iffi;il;i
life insurance policy
33. The protection costs under a variable
oremiums plans
I. Are met by a flat initial charges.lo:Io'l"t
II. Are generally t"t*.nmon-* 'nis in the tund in the porrcv tenr'
"#tJbv
[l hEffi iy"T#llJ}ffi#il]4ff t?Hn*-nrv
b. I, Il and IV
c*. I, III and W
G)tt, rrr and N
investing rn vartable
34. Which of the follo,rring about rislrs of "" "::::':-.
a.Policyownetswhoarerisk.avetieshouldbuyvariab|eutelnsuranoe
poticies with high equity. investunent
fully invested in units of eQultY
.b. Investmerit in variable llfe iunds whkh are
tole'ate the risks of'
bonds are not suitable fu;-potic,y ;*nets whb can
shortterm fluct'ration in their cash'value-
high equity invesfinent
c. poricv"iwneii-*tro-in*rt in variaOfe ffe tunds wfdrhigher retum'than the
race sieatei ri.r uut can exp*t to a$,er_e-

owners who are risk averse strould not

purcirat" .1!f" inzurance
@ ilEy
poricles-w',d fiigt p.t .Uon and guaranteed castr and maUnty values'

year?
35. What would be the withdrawal value after a
16.00
Offer Price
4.5%
Btd-offer sPread
25,000
Number of UniB bought
1,800
Policy Fee
8,750
Mminand MortalitYOurge ' ' ' ' ': ' ' 700
Top-up Fee
2,000
Admin for ToP-uP

Sum Assured is 190% of singh prernium or the value t t't units' whichever is higher'

ASSUMPTIONS:

1.cho'gEDor.rrlfogor'}!r|EJ\.Ebrlcft=rt}racinplapr.amiurvrhrchacairryar*ad
into the account
is mainbtned at 8%
2. The growtr nte of the unit price and bid-offer +read
and +.Sqto resPedivelY'

a. P 432,000.00
b. P 420,069.02
 1i) e 4ot,to7.sB
)d1 p 4tz,soo.oo

35. what are the advant ages of investing in preferred'shares?

dMdgnd . ..
I. It gives sharefrotders the right to a Qxed
ir. nai the ptiotitv o*i.o*dnyanereeiatien
a$setb during'dissolution
iil. rt ", ".,j", henefit af eaaital
@ I,II an-d IIr
E: 'I and II
c. I and III
d. II and III t-.

37. Which one of the following statements abQut diverstficaH6n ,in portfolb
management is FAISE?
.
a. A diversifled por6o5o prorktes Qr greatei sectrrity b an invesbr ha$lrg
sacrifice the reh.rm for the Por6olio
czm ornpteteirf elnninaE ttre risk of inrresting in stoda
spffillf"on
, c. Divesfication can invotve purdrasirE difiererrt ount,ies
diftnnt
d. . Dive$fication help6 o spi$ the porUolio risk by investing in
categories of investrnent in portrolio

38, V/ith traditional participating life insurance producB, t.he aflocation to policy oruners
in the form of .dividends ' ' :

I. Are not directly linked to the life company's invesfinent performahce

II. Have already been smoothened"by the ltfe company
m. Do not have Ute hlghs and lows of invesfunent. retum as in good
investnentyears of Life Company. .

ry. Are.not fixed at the irrcep8on of the policlt but are gryady dependent on
the investment performance of the llfe company.
a. I, II and III
b. I, II and IV
c. I, III and IV
@ II, ilI and IV

39. The objective satisffing customers need profitably can be achieved by an agent
through
I. The giving of fteebies to the customer
II. Extensivsinvesffnent hainhg by Sre comPany
ru. The use of sales plan, where sales goals, Sab.gies and obiectives ae
coordinabd with market anah/sis, segmenbtion and targeting
iv. Thc aivina ef mene-tarv assisftanee and discount to the customers

a. I and III
@ II and III
 E. kll'?11}u*
r to investnrent' TheY
40.
include ' ,

or all f a Person's initial investment

I: The risk of not losingofsome c
not matdting' up to the
II. The risk of rate retum ot iii!'i*estnte.t
on the investment matchins up to the
indivtdual's
,;. H$1"';,ffiST:X.,m
ocPectation
IV. The rtsk ot rosiig some or all of the personts initial investment
a. I and III
b. I and II
c. IIIand W
@u and IV
4l.UnderaregularpremiumvariabEwhole.lifeinsurangeplan

l.PremiumtoP.uFandhollda}r'strbJecttotheliftconrpant's
'
administrativi ruies are rsualf'albmrcd'
U.
. lil ili".d" ir ir* man oblecuw of the plan with inWnent as a
nominal Purpose
m. withdrcwals after the payment of a fiew years pr€mium are usually
;ibwEd
ry., ;;rgt" premium contribution is mad-e _to trre potisy TFdl :y $tg
premium io puiif,.r" uniBin variable life fund and to provide certaln lanel
of life cover

a. II, UI and tV
b. I, III and IV
c! I, II and IV
@1II and III
,

pollcJ€s?" '
42. Whhh of the folbwinE is/are the mail ctraractert*i{s) of variable'lffiE
treqular.savings
L The nalieies ean be used for invesfunent as a sourgq'of
and protection
The wtsrdrawal values and protecfforf benefiB are di:termined bV ''$e
invesilnent
$I. The net cash values of the polkies are the grGls castr.values shown tle
in
illt"/-Ur61 tncludes divldends up to the dae of surender,
lss arry
i nAe6eOness inclutling interest

A. II
b. I
;: I, tt and'Iu
@t and II
 is Eue about CASH?
43. which of the following statements
cash now
depends on the size or the
HfiI'".llJSJ"ff''5I.,
bult run in ttre sto*
; fiHL:X"ff cish increases when there is .a
market
d.rn'u&*ntincashdecreaseswheninterestratesrise.-:
of the to*owingliaternents about investment
ooi""ti,o ff ,oL'E?
44. which
@lPeople invest monery in fixed deposiB to Produce high ard
f guaianteea rehrms'
standard of liv{ng
u. feople invest money to enhanc,e a comforBble
c. peopte invest *onryio-piliil fdrforhEher edr,rcation for theirl
children
d. i;;,Br,"nt in cornmodities has no regnrlar income
insfiuments irTcluding cash '
45. Variable life fUnds can E invesed in any financial
fun6' and dlvefslfied '
funds, bonds funds, equltV fundt, pt"p.t*y irnat, speciitizeO
funds. EquitY Funds means
change in unit
a. Invest in shares of stgcks and the rnagnitude of the
-pr.rceswillonlydeperrdontheqYaltiEyoftheeq.uitiesheld
b. invest in snirer-of tto.f" and duting market'recession, such as
assets are usually the last to depreciate
c.Invest in shares ;i".d"which are inherently of lower ri.sk in nature
and the orices of stocks are stable
6;i"r""tlritf,"t"t of stocks and investor who buys such assets usually
veims fer eaeital aooreciation
4$: In risk-return profile of cash funds, furlds, balanced funds, managd funds
OonOs
and equity funds, a risk'return graph willshow that

I. Higher rehtm normally. comes with lower rilk

II. Hilher reum normally comes wHfr mgner nsk

ry. The relatively risf-hsJcabn tunds slt at the bottom end of the graPh
.,

a. I, II ANd III
@ri,III and w
c. I, II and IV
cl. l, III and lV
 '1-.-' l-
- *L
-rf4 .
,
. .,.1i
-. -,

47. The duties of the trustee of unit trust do nd indude:

G.-iManaging the portrolio of invesunert and admlnistering the hryirlg

Yand selllng of sharcs ln the unit trust ltself
b. Ensuring that the fund "manager adherc to the prwision of the trusts
deeds
c. Acting gener€lly to protect the unlt-holders
d. Holdlng the pool of monery and asseE in trust in behalf of the
. investors_ :

Tne selling price undera varlable llfe insurince poliry is:

a. The prtce at which untts under tre policy are bought oacr uy- ue fre
company
b. The price at which units under the pollcy are oftrcd fur sate by the
_ llfe company
@^*
tll
known as the bid price
A fixed amount Urroqgtrout the liE of the policy

Policy fee payable by variabh llfe insuranee poticy cirvner is to cover .

.. T" handfing charges by profiessionar rnvestment managirs

b- The price cf eadr unlt bor4ght under the variable rre insiiance plicv
c. The mortarity costs of the variabre rift insurance poricy
@rte
- aa*lni-tlraw" *p."t* of sttilnE up the wriable life insunnce
policy

a. putt[g all the tunds under management into on. caqony or

investment
b. Spreading the risk of invesilnent by not pu6ng $e fund lnto saneral
Gtegories inveshrent
^.
q2Retluclng thi
risks of inrrestnrent uy prrtong one runo unoer
managernent into saneral categories of invesmnent
d' Reduclng the risks of invdnerrt by putting all one! eggs in one
basket.