1. LA1 Sample Questions

2. Which one of these is unearned income? AIncome from a part time job BDeposit interest CIncome from short term contact employment DIncome from a self employed trade

3. Which one of these is unearned income? AIncome from a part time job BDeposit interest CIncome from short term contact employment DIncome from a self employed trade ANSWER: B

4. If a self employed client needs to provide a replacement income in the event of ill health, how would you describe that need? ASavings need BProtection need CInvestment need DRetirement funding need

5. If a self employed client needs to provide a replacement income in the event of ill health, how would you describe that need? ASavings need BProtection need CInvestment need DRetirement funding need ANSWER: B

6. Which of these is the most likely financial need of a client in his late 60’s? ASavings need BProtection need CInvestment need DRetirement need

7. Which of these is the most likely financial need of a client in his late 60’s? ASavings need BProtection need CInvestment need DRetirement need ANSWER: C

8. The principle of ‘utmost good faith’ meant that: A The proposer must have an insurable interest in the life assured BAll material facts must be disclosed to the life assurance company CThe policy conditions must be written in plan language DThe policyholder can cancel the policy within ten days and get a full refund of all premiums paid

9. The principle of ‘utmost good faith’ meant that: A The proposer must have an insurable interest in the life assured BAll material facts must be disclosed to the life assurance company CThe policy conditions must be written in plan language DThe policyholder can cancel the policy within ten days and get a full refund of all premiums paid ANSWER: B

10. When must a policyholder have an ‘ insurable interest ’ in the Life assured? AAt all times during the policy BOnly at the date of completion of the proposal form COnly at the date of notification of a claim DOnly at the date the policy is issued

11. When must a policyholder have an ‘ insurable interest ’ in the Life assured? AAt all times during the policy BOnly at the date of completion of the proposal form COnly at the date of notification of a claim DOnly at the date the policy is issued ANSWER: D

12. The term ‘non disclosure’ means: A The proposer has not a valid insurable interest in the life assured BA material fact has been deliberately withheld from the life company CThe life assured has a higher than normal risk of claim DThe proposer and life assured are not required to disclose confidential information about the state of their health

13. The term ‘non disclosure’ means: A The proposer has not a valid insurable interest in the life assured BA material fact has been deliberately withheld from the life company CThe life assured has a higher than normal risk of claim DThe proposer and life assured are not required to disclose confidential information about the state of their health ANSWER: B

14. What is the cooling off period provided when a client takes out a Life assurance policy? A7 days B10 days C14 days D30 days

15. What is the cooling off period provided when a client takes out a Life assurance policy? A7 days B10 days C14 days D30 days ANSWER: D

16. A ‘stand alone serious illness policy’ pays out: AA lump sum on the diagnosis of a specified illness covered by the policy BA lump sum on the death of the policyholder CAn income while the policyholder is unable to work due to a specified illness covered by the policy DAn income for a maximum period of two years following permanent disability

17. A ‘stand alone serious illness policy’ pays out: AA lump sum on the diagnosis of a specified illness covered by the policy BA lump sum on the death of the policyholder CAn income while the policyholder is unable to work due to a specified illness covered by the policy DAn income for a maximum period of two years following permanent disability ANSWER: A

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

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

20. A Low Cost Whole Of Life Policy is: AA term assurance policy BA combination of a with profit whole of life and a decreasing term assurance policy CA combination of a non profit whole of life and a term assurance policy DA combination of a unit linked protection policy and a term assurance policy

21. A Low Cost Whole Of Life Policy is: AA term assurance policy BA combination of a with profit whole of life and a decreasing term assurance policy CA combination of a non profit whole of life and a term assurance policy DA combination of a unit linked protection policy and a term assurance policy ANSWER: B

22. A Family Income Benefit (FIB) policy is: AA unit linked whole of life policy BA level term assurance policy CA low cost whole of life policy DA decreasing term assurance policy

23. A Family Income Benefit (FIB) policy is: AA unit linked whole of life policy BA level term assurance policy CA low cost whole of life policy DA decreasing term assurance policy ANSWER: D

24. Which of the following is the most accurate description of Tracker Bond? Bond? AA bond which provides a guaranteed return, at the end of the term, of a specified % of the capital along with a bonus linked to the performance of certain Stock Market indices BA bond which provides a guaranteed return linked to the growth in the Stock Market over a given period of time. CA bond which provides a guaranteed rate of capital growth and return of the capital invested, at the end of the term DA bond which provides a guaranteed income for the term, along with a return of the capital invested, at the end of the term

25. Which of the following is the most accurate description of Tracker Bond? Bond? AA bond which provides a guaranteed return, at the end of the term, of a specified % of the capital along with a bonus linked to the performance of certain Stock Market indices BA bond which provides a guaranteed return linked to the growth in the Stock Market over a given period of time. CA bond which provides a guaranteed rate of capital growth and return of the capital invested, at the end of the term DA bond which provides a guaranteed income for the term, along with a return of the capital invested, at the end of the term ANSWER: A

26. Which one of these clients can take out a Personal Pension Plan? AA self employed mechanic? BA Civil Servant who has additional rental income CAn employee already included in an occupational pension scheme for retirement benefits who wants to boost his retirement benefits DA spouse who only ever worked in the home

27. Which one of these clients can take out a Personal Pension Plan? AA self employed mechanic? BA Civil Servant who has additional rental income CAn employee already included in an occupational pension scheme for retirement benefits who wants to boost his retirement benefits DA spouse who only ever worked in the home ANSWER: A

28. If a Personal Pension Plan holder dies, to whom must the life company pay the value of the Plan? AThe individuals next of kin BThe individuals estate CThe individuals spouse, if alive DThe individual’s nominated beneficiaries of his or her will

29. If a Personal Pension Plan holder dies, to whom must the life company pay the value of the Plan? AThe individuals next of kin BThe individuals estate CThe individuals spouse, if alive DThe individual’s nominated beneficiaries of his or her will ANSWER: B

30. What is the maximum number of agencies an insurance agent can have? A1 B4 CNo maximum D5

31. What is the maximum number of agencies an insurance agent can have? A1 B4 CNo maximum D5 ANSWER: B