TRAD 1
A life insurance agent is permitted to:
a. Approve an application for insurance
b. Waive any of the requirements of the company
c. Guarantee dividends of participating agencies
d. Prepare routine proposals for life insurance coverage
d. Prepare routine proposals for life insurance coverage
What is the most suitable investment instrument for someone who is interested in protecting his principal, while receiving a steady stream of income?
a. Equities
b. Warrants
c. Variable Life Policies
d. Fixed Income Securities
d. Fixed Income Securities
The suicide clause is in effect for
a. The first 6 months
b. The first year
c. The first 2 years
d. The first 18 months
c. The first 2 years
What are the disadvantages when investing in common shares?
I. Dividends are paid not more than fixed rates.
II. Investors are exposed to market and specific risks.
III. Shares can become worthless if company becomes insolvent.
a. I, and II
b. I, and III
c. II, and III
d. I, III, and III
c. II, and III
Who invented Telephone
a. Alexander Graham Bell
b. John Pierce
c. Charles Cheever
d. Antonio Meucci
a. Alexander Graham Bell
Your client George wants to apply for a life insurance policy. As his advisor, you would advise him to do all of the following, EXCEPT which one?
a. Furnish initial information as to insurability
b. Give details pertaining to non-forfeiture options
c. To convey to the company the desire of the applicant to obtain insurance
d. To furnish information on which the contract of life insurance may be written
c. To convey to the company the desire of the applicant to obtain insurance
Variable life insurance policy owners may withdraw in terms of ____.
a. Number of units or fixed monetary amount through cancellation of units.
b. Number of units or fixed monetary amount through reduction of the life cover sum assured.
c. Fixed monetary amount only through reduction of the life cover sum assured.
d. Number of units through cancellation of units.
a. Number of units or fixed monetary amount through cancellation of units.
If a policy owner commits suicide within one year. What’s the company’s liability?
a. The company is not liable at all
b. The company would be liable for the payment of the face value of the policy
c. The company would be liable for the payment of the premiums paid by the insured only
d. None of the above
c. The company would be liable for the payment of the premiums paid by the insured only
A unit trust is ____.
a. Established by a trust deed, which enables a trustee to hold the pool of money and assets in trust on behalf of the investor.
b. A close-end fund, and does not have to dispose of its assets if a large number of investors sell their shares.
c. One whereby an investor buys units in the trust itself and not shares in the company.
d. An organization registered under the Securities and Exchange Commission (SEC) which usually invests in a wide range of equities and other investments.
a. Established by a trust deed, which enables a trustee to hold the pool of money and assets in trust on behalf of the investor.
Who invented Karaoke
a. Robert De Leon
b. Freddie Aguilar
c. Robert Del Rosario
d. Mark Asuncion
c. Robert Del Rosario
Persuading a policy owner, directly or indirectly, to surrender or lapse a policy in one company and replacing it with a policy in another company is
a. Rebating b. Twisting c. Knocking d. Discounting
b. Twisting
Under a variable life insurance policy, the protection costs ____.
I. Are met by flat initial charges for regular premium loans
II. Are generally covered by the cancellation of units in the fund
III. Are generally met by explicit charges stipulated openly in the policy terms
IV. Vary with the age of policy owner and level of coverage
a. I, II, and III
b. I, II, and IV
c. I, III, and IV
d. II, III, and IV
d. II, III, and IV
Group life insurance covers ____.
a. Death provided it is during working hours and in the place of employment
b. Death of the employee regardless of cause except suicide during the first year (sometimes two years)
c. Accidental death only
d. Only death by heart attack, pneumonia or cancer
b. Death of the employee regardless of cause except suicide during the first year (sometimes two years)
A single premium variable life insurance policy ____.
a. Has no withdrawal value
b. Must be issued with a maximum withdrawal value
c. Has no death benefit
d. Must be issued with a minimum death benefit
d. Must be issued with a minimum death benefit
Who invented Calculator
a. Blaise Pascal
b. Jack Kilby
c. Mark Cale
d. Edith Clarke
a. Blaise Pascal
Which one of the following statements is correct?
a. Rebating of premiums can only be authorized by the head office of the insurer
b. Life insurance is not allowed to identify on his letterhead the name of the insurer he represents
c. Life insurance agents are allowed to act for two insurers at the same time under the same license
d. Rebating of premiums by an insurance agent is prohibited
d. Rebating of premiums by an insurance agent is prohibited
Which of the following statements about risks of investing in variable life funds is TRUE?
a. Investment in variable life funds which are fully invested in units of equity is not suitable for policy owners who can tolerate the risks of short term fluctuations in their account value.
b. Policyowners who are risk averse should buy variable life insurance policies with high equity investment.
c. Policyowners who are risk averse should not purchase life insurance policies with high protection and guaranteed cash maturity values
d. Policyowners who invest in variable life funds with high equity investment face greater risk but offer the potential for higher returns over the long term than traditional life insurance policies.
d. Policyowners who invest in variable life funds with high equity investment face greater risk but offer the potential for higher returns over the long term than traditional life insurance policies
Mr. Dela Cruz stated in his application that he was 30 years of age and a policy was issued to him on that basis. When he died twenty years later it was found out that, in fact, he was 34 years of age at the time of his application. In conformity with the Insurance Code, the company
a. Paid the amount of insurance payable to his beneficiary reduced in relation to his actual age at the time the contract was signed
b. Paid one-half of the face value of the policy
c. Need not pay the face value of the policy but refund all premiums paid
d. Paid the full face value of the policy without any extra charges
a. Paid the amount of insurance payable to his beneficiary reduced in relation to his actual age at the time the contract was signed
35. Investing in bonds offers the following advantages EXCEPT :
a. It allows the investor a chance for capital preservation
b. It is a place of temporary refuge when the investor foresees that the market outlook is uncertain
c. It enables the investor an opportunity for capital appreciation
d. It offers protection to the principal and a guaranteed steady stream of income
c. It enables the investor an opportunity for capital appreciation
Who invented Aircon?
a. Milton Reeves
b. Karl Benz
c. Alexander Winton
d. Willis Carrier
d. Willis Carrier