QFA Life Assurance Sample Questions

Sample Question What is the most accurate description of a life company which is owned by its shareholders? A A proprietary company B A mutual company C A branch company D A unit liked company

Sample Question If a self employed client needs to provide a replacement income in the even of ill health, how would you describe that need? A Savings need B Protection need C Investment need D Retirement funding need

Sample Question A life assurance policy to which a once off premium is paid is usually referred to as:   A An AP policy B An SP policy C An MP policy D An APR policy

Sample Question If a unit linked investment policy has 2,300 units and the current Bid price of units in the fund to which the policy is linked is €1.57 and the current offer price of units in the fund is €1.65 what is the current encashment value of the policy? A €4,467 B €3,975 C €2,300 D €3,611

Sample Question The term ‘guarantee’ means: A The life assured B A life assurance policy issued to a trustee C The legal owner of a life assurance policy D The admission of a claim under a life assurance policy  

Sample Question A tied insurance agent for life assurance can sell the policies of: A No more than four life companies B Only one life company C At least five life companies D No more than five life companies

Sample Question What is the maximum number of agencies and insurance agent can have? A 1 B 4 C No Maximum D 5

Sample Question Additional commission paid by the a life assurance company to an intermediary, based on the level of sales that intermediary has introduced to the company over a 12 month period, is normally referred to as: A Renewal Commission B Trial Commission C Over-ride Commission D Fund based Commission

Sample Question Which one of the following can take out a Section 785 policy?   A An individual who was self employed in the past and had contributed to a Personal Pension Plan, but who is not currently working. B A Civil Servant who has no other earned income C An employee who is included in a pension scheme at work for retirement benefits D A woman who works in the home and who has had never worked outside the home

Sample Question A Family Income Benefit (FIB) policy is:   A Family Income Benefit (FIB) policy is: A A unit linked whole of life policy B A level term assurance policy C A low cost whole of life policy D A decreasing term assurance policy

Sample Question Which one of the following is the most accurate description of what ‘review able’ term assurance is? A The cover can be increased or decreased at any time by the policyholder B The premium is not guaranteed for the full term of the policy C The policy is linked to a unit linked fund; if the fund underperforms, the premium will be increased by the life company D The policy is only sold in conjunction with a profit whole of the life policy

Sample Question Mary Smith, who had a term assurance policy on her own life for €100,000 life cover, died on 2nd September 2006 On being informed of the claim the life company noticed that the €40 monthly premium due on the policy on 1st September 2006 had not been paid. The policy terms and conditions provide for 30 days of grace in relation to payment of premiums.   What minimum amount can the life company legally pay out under the terms of the policy? A Nil, as a premium due was not paid at the date of death. B €100, 000 as Mary died during the days of grace period. C €50, 000 i.e. 50% as a premium due was not paid at the date of death D €99, 960 i.e. €100,000 less the unpaid premium of €40

Sample Question  A compound reversionary bonus under a with profit whole of life policy is: A paid on the total premiums paid to date B paid on the initial sum assured only C paid on the initial sum assured and attaching bonuses D paid on the attaching bonuses only

Sample Question The premium guarantee period under a unit linked protection policy is:   A the period at the start of the policy when the premiums are not used to buy units B the period during which the life company can not cancel the policy provided the policyholder pays all premiums due. C The period during which the life company guarantees that the unit fund will grow at a certain minimum rate. D The period within which the life company guarantees that the surrender value will not be less than the premium paid to date

Sample Question If a unit linked protection policy has a sum assured of €100,000 and a current cash value of €5,000, which is the current ‘sum at risk’ under the policy?   A €100,000 B €5,000 C €105,000 D €95,000

Sample Question A Low Cost Whole of Llife policy is:   A A term assurance policy B A combination of a with profit whole of life and a decreasing term assurance policy C A combination of a non profit whole of life and a term assurance policy D A combination of a unit linked protection policy and a decreasing term assurance policy

Sample Question   If the cash value of a unit linked protection policy is €105,000 and the Sum Assured is €100, 000 what amount is payable if the life assured dies at that time? A €105,000 B €100,000 C €95,000 D €5,000

A Section 60 policy is a protection policy designed to: Sample Question   A Section 60 policy is a protection policy designed to:   A Repay the outstanding balance of a capital & interest mortgage B Provide a fund to pay certain taxes which may arise on the death of the life assured C Provide an income if an individual is unable to work due to sickness or disability lasting longer than 6 months D Pay medical costs associated with long term care requirements

Sample Question Joe is insured for €100,000 life cover with €75, 000 accelerated Serious Illness Cover   If Joe makes a serious illness claim what life cover, if any, will he still have after the claim is paid out? A None B €75,000 C €100,000 D €25,000

Sample Question A policy with ‘double cover’ is a policy which:   A policy with ‘double cover’ is a policy which: A Pays out twice the sum assured on death B Pays out twice the sum assured in the event of a serious illness claim C Covers two lives assured D Provides life cover and stand alone serious illness cover within the one policy