Insurance - Study Mode

[#201] Under Variable life insurance, if the cash value became zero, the policy would _________
Correct Answer

(D) Terminate

Explanation

Solution: Under Variable life insurance, if the cash value became zero, the policy would Terminate. Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds.

[#202] In traditional cash value policies, the policy reserve form part of a _________
Correct Answer

(B) General investment account

Explanation

Solution: In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer's general account.

[#203] In Variable insurance policies, the policy reserve form part of a _________
Correct Answer

(A) Special investment account

Explanation

Solution: In Variable insurance policies, the policy reserve form part of a Special investment account.

[#204] Which is a dilemma of an old age person?
Correct Answer

(C) Both A & B

Explanation

Solution: Both A & B are dilemma of an old age person. How much old age pension is to be provided and Where to invest the fund.

[#205] Which is not a pension related contingency?
Correct Answer

(A) Health

Explanation

Solution: Health is not a pension related contingency. Contingent benefits are the benefits payable if a scheme member dies during employment (or self-employment) to which a pension arrangement relates. The definition includes lump sum benefits and pensions payable to dependants.