CEILLI Questions

1) Apart f ro m the invest ment management charges, what o t her kind of charges do
single premium inv est ment -linked po licy charge?

i. Po licy f ees
ii. Administ rat iv e and mo rt alit y charges
iii. Assurance charges

a. I and I I
b. I and I I I
c. I I and I I I
d. I , I I , and I I I

2) Misrepresent at io n result ing in inducing po licy o wner to cancel o r hav e his

po licy made paid -up in o rder t o purchase a new po licy t o earn mo re income fo r
t he agent is kno wn as

a. Swit ching
b. Replacing
c. Twist ing
d. Changing

3) The swit ching po licy under inv est ment -linked lif e insurance po licies is v ery
usef ul f o r t he purpo se of

a. Financial planning by t he po licy o wners

b. Pro f it planning by t he lif e o ff icers
c. Sales planning by t he f und managers
d. Asset s planning by t he t rust ee

4) The t hree basis t y pes of co rpo rat e sto cks include

a. D ebent ure st ocks, lo an st ocks and co nv ert ible st o cks

b. Fixed inco me st o cks, t reasury bills and t ime depo sit s
c. Pref erence st o cks, unit t rust s, and deriv at ives
d. Fut ures, inv est m ent t rust s and o pt io ns.

5) A majo r dif f erence bet ween t radit io nal wit h -pro f it lif e insurance pro duct and
I nv est ment -linked lif e insurance po licy

a. t radit io nal wit h -pro f it lif e insurance po licy can reduce in v alue
part icular ly when t he lif e f und is being t ransf erred t o po licy reserv e
b. t radit io nal wit h -pro f it lif e insurance po licy can nev er reduce in v alue,
pro v ided t hat t he life of f ice is so lv ent
c. t he v alue o f t radit io nal wit h -pro f it lif e insurance po licy will f luct uat e
great ly depending o n t he inv est ment perf o rmance of t he lif e o ff ice
d. t he v alue o f I nv est ment -linked lif e insurance po licy can nev er f luct uat e
o nce the unit s are added t o t he po licy o wner’s po licy

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6) What do y o u underst and by t he phrase “conduct ing t he f act -f inding" which is
do ne by an inv est ment -linked insurance agent ?

a. Gat hering all inf o rmat io n o f t he inv est ment av ailable by t he insurer.
b. Gat hering all relev ant inf o rmat io n abo ut t he cust omer bef o re making
reco mmendat ion.
c. Gat hering all inf o rmat io n abo ut t he v ario us plans o f f ered by ot her insurers
in t he market .
d. Gat hering as f ar as po ssible all element s t hat will af f ect t he cust omer’s
inv es t ment .

7) I n risk-ret urn pro f ile o f cash f unds, bo nd f unds, balanced f unds, managed f unds
and equit y f unds, a risk -ret urn graph wil l sho w t hat _______________.

i. Higher ret urn no rmally co mes wit h lo wer risk

ii. Higher ret urn no rmally co mes wit h higher risk
iii. A t t he t o p end o f t he graph are t he equit y funds
iv . The relat iv ely risk less cash f unds sit at t he bo t t o m end of t he graph

a. i, ii & iii
b. i, ii & iv
c. i, iii & iv
d. ii, iii & iv

8) Which of the fo llo wing st at ement s abo ut single premium inv est ment -linked
po licies are TRUE ?

i. There is no f ixed t erm in a single premium inv est ment -linked po licy and
t heref o re, t hey are t echnically who le lif e assurance
ii. To p-ups o r single premium inject io ns are allo wed
iii. Po licy ho lders hav e t he f lexibilit y o f v ary ing t he lev el co v er

a. i & ii
b. i & iii
c. ii & iii
d. i, ii & iii

9) The deat h benef it under regular premium inv est ment -linked lif e insurance
po licies is eit her ______________.

i. The sum assured cho sen by t he life assured o r t he v alue o f t he unit s in t he

f und at t he bid price, whichev er is higher
ii. The sum assured cho sen by t he life assured plus t he v alue of unit s in t he
f und at t he bid price
iii. The minimum sum assured o r t he v alue of the unit s in t he f und at t he bid
price, whichev er is higher
iv . The minimum sum assured plus t he v alue o f t he unit s in t he f und at t he
bid price

a. i & ii
b. ii & iii
c. iii & iv
d. i & iv

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10) Under t he f ree -lo o k pro v isio n

a. t here is no f ree -lo o k pro v isio n in an inv estment -linked po licy as t here is
no lif e insurance
b. t he agent can decide when he want s to deliver t he po licy
c. t he agent can decide wit hin 15 day s of t he issuance of t he po licy to
demand a f ull ref und o f all his uni t s at o ff er price
d. a po licy ho lder has o nly 15 day s f ro m t he date he receiv es t he po licy
do cument t o examine and decide t he suit abilit y o f t he po licy and demands
a f ull ref und

11) The f o llo wing is t he benef it s o f purchasing an inv est ment -linked po licy , exc ept

a. Po o ling and D iv ersif icat io n

b. Administ rat io n
c. E xpert ise
d. I nco me

12) What is the minimum age f o r a perso n t o apply a Regular P remium I nv estment -
Linked Plan f o r o wn self ?

a. 18 Years
b. 16 Years
c. 12 Years
d. 21 Years

13) When an inv est ment -linked po licy reaches mat urit y , t he mat urit y v alue will be

a. The basic sum assured and t he acco unt v alue.

b. The acco unt v alue.
c. The acco unt v alue plus t erminal/ mat urit y bo nus.
d. The basic sum assured and t he acco unt v alue plus t erminal/mat urit y bo nus

14) What are t wo similarit ies bet ween a regular premium inv est ment -linked plan
and a who le lif e part icipat ing plan?

i. B o t h plans pro v ide lif et ime co v erage up to maximum age 100.

ii. B o t h plans allo w t he addit io n o f riders wit hout addit io nal premium.
iii. B o t h are ent it led to t he same inco me t ax relief t reat ment f o r premiums
paid.
iv . The minimum age f o r an indiv idual t o apply o n o wn life, and no t as
juv enile applicat io n arrangement , is age 1 6 f o r bo t h pro duct s.

a. i and ii
b. ii and iii
c. i and iii
d. i, ii, iii and iv

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15) What are t wo similarit ies bet ween a regular premium inv est ment -linked plan
and a who le lif e part icipat ing plan?

i. B o t h plans pro v ide lif et ime co v erage up to maximum age 100.

ii. B o t h plans allo w t he addit io n o f riders wit hout addit io nal premium.
iii. B o t h are ent it led to t he same inco me t ax relief t reat ment f o r premiums
paid.
iv . The minimum age f o r an indiv idual t o apply o n o w n life, and no t as
juv enile applicat io n arrangement , is age 16 f o r bo t h pro duct s.

a. i and ii
b. ii and iii
c. i and iii
d. i, ii, iii and iv

16) Which of the fo llo wing st at ement s abo ut Real E st at e I nv est Trust s (RE I Ts) is
NOT t rue?

a. RE I Ts o perat e in a way similar t o unit t rust s.

b. Rent al inco me f ro m t he pro pert ies inv est ed by a RE I T is dist ribut ed t o
inv est o rs in t he f o rm o f div idend.
c. A RE I T can inv est in a wide range of pro pert ies like malls, o f f ice blo cks,
apart ment s, co mmercial lo t s, ho t els, et c.
d. RE I Ts may acquire shares in pro pert y dev elopment companies.

17) Co mpared t o gov ernment bo nd f unds, co rpo rat e bo nd f unds hav e

i. Lo wer y ields and lo wer risks.

ii. Higher y ields and higher risks .
iii. M o re o r less similar y ield and risk rat io s.
iv . A lo nger t enure.

a. i, ii, iii and iv

b. ii
c. iii and iv
d. iv

18) The Co de o f Co nduct pert aining t o lif e insurance selling applies t o

i. A ll agent s.
ii. A ll emplo y ees o f lif e insurers.
iii. I nsurance bro kers.
iv . A gent s and insurance bro kers.

a. i, ii, iii and iv

b. i and iii
c. i and ii
d. i, ii, and iv

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19) The t erm “pro spect s” ref ers to

a. Po t ent ial Cust omers

b. Po t ent ial Agent s
c. I nsurers
d. I nt ermediaries

20) The t erm ‘lif e insurance’ used in t he Co de of Et hics and Co nduct co v ers all
t y pes of insurance including

i. Ordinary Lif e I nsurance

ii. All t y pes o f annuit ies
iii. I nv est ment -Linked I nsurance
iv . Permanent Healt h I nsurance

a. i, ii, iii and iv

b. i and iii
c. i and ii
d. i, ii, and iv

21) Which of the fo llo wing sho ws t he co rrect selling pro cess?

a. Lo cat ing t he pro spect iv e > t he sales present at io n > Co nduct ing t he sales
int erv iew > Handling Object io ns > Clo sing t he sale
b. Lo cat ing t he pro spect iv e > Co nduct ing t he sales int erv iew > t he sales
present at io n > Handling Object io ns > Clo sing t he sale
c. Lo cat ing t he pro spect iv e > Handling Object i o n s > Conduct ing t he sales
int erv iew > t he sales present at io n > Clo sing t he sale
d. Lo cat ing t he pro spect iv e > Handling Object i o ns > t he sales present at io n >
Co nduct ing t he sales int erv iew > Clo sing t he sale

22) The benef it s of an inv estment -linked po licy are :

i. I t pro v ides access t o a div ersif ied inv est ment po rt fo lio . Thus, it has bet t er
risk charact erist ics t han a no n -div ersif ied po rt f o lio .
ii. I t of f ers f lexibilit ies.
iii. Fixed no minal charges are lev ied o n t he po licy .
iv . The lif e insurer insulat es t he po licy o wner against market risks.

a. i and ii
b. ii and iv
c. i and iii
d. i, ii, iii and iv

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23) What are t he t y pes o f real est at e pro pert ies?

i. Agricult ural Pro pert y

ii. Resident ial Pro pert y
iii. Co mmercial Pro pert y
iv . I ndust rial Pro pert y

a. i and ii
b. i, ii and iii
c. ii, iii and iv
d. i, ii, iii and iv

24) Surrender charges under t he inv est ment -linked lif e insurance po licies (6 )

a. A re deduct ed f ro m t he v alue o f unit s at surrender

b. A re deduct ed f ro m t he v alue o f unit s at t he co mmencement of t he po lit ics
c. I s applicable t o po licies wit h no t unifo rm allo cat io n
d. Represent s init ial expenses which hav e already been incurred and
reco v ered.

25) Under t he dual pricing met ho d of single premium po licies, ( 19)

a. There is o nly o ne price quo t ed whet her t he po licy o wner is buy ing o r
selling his unit s
b. The bid price is alway s higher t han t he of f er price
c. The po licy o wner buy s the unit s at the of f er price and sell t he unit s at t he
bid price.
d. The po licy o wner buy s the unit s at the lif e of f ice’s buy ing price and s ells
t he unit s at t he lif e o f f ice’s selling price.

26) When a co nsumer beco mes aware of a po t ent ial o ppo rt unit y and f eels t he need
f o r a pro duct t o sat isf y his needs, t he t erm used in t he co nsumer buy ing
decisio n pro cess is kno wn as

a. I nf o rmat io n search
b. Pro blem reco gnit io n
c. Pro blem so lut io n
d. E v aluat io n o f pro blem

27) Mr Tan aged 35, signs up f o r a single premium inv estment -linked plan by pay ing
an init ial RM 100, 000. Six mo nt hs lat er, he pay s ano t her RM100, 000 as t o p up.
The t o t al sum assured in her po li cy aft er pay ment o f t he t o p up is

a. RM 250, 000
b. RM 125, 000
c. RM 205, 000
d. RM 210, 000

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28) Which of the fo llo wing st at ement s are co rrect ?

i. Po licy o wners of invest ment -linked plans sho uld be made t o underst and
t hat t hey who lly bear t he gains o r lo sses f rom t he inv est ment po rt io n o f
t heir po licies.
ii. As respo nsible co rpo rat io ns, lif e insurers are o bliged t o be part ly
respo nsible f o r any drast ic dro p in prices o f f unds under t heir custo dy ;
t hus, t hey hav e to bear part of t he lo sses suf f ered by po licy o wners if such
incident s o ccur.
iii. Fo r inv est ment -linked po licies, an indiv idual can inv est in a diversif ied
po rt f o lio wit h a sum as lo w RM 1,200 per y ear. This is po ssible as t he
o v erall co llect ed premiums co nt ribut ed by inv est ment -linked po licy
o wners f o rm a suff iciency large po o l f o r spreading o v er v aried sto cks o r
securit ies in t he market .
iv . An av erage inco me earner may not po ssess ready suf f icient liquidit y t o
inv est in a spread o f asset s if he want s t o do in t he o pen market o n his
o wn.

a. I , I I I and IV
b. I I and I I I
c. I and I I
d. I , I I , I I I and I V

29) All o f t he fo llo wing st at ement s are t rue, E XCE PT:

a. The inv est ment -linked po licy is direct ly linked t o inv est ment perf o rmance
b. Once t he po licy is in f o rce, t he client s’ inv est ment will gro w st eadily
c. Fund managers will make sure t hat t he inv est ment -linked po licy is
shielded f ro m market f luct uat io ns.
d. The inv est ment -linked po licy o nly pro v ided co v erage and no t hing else

30) I nv est ment -linked insurance po licy is names as t he fo llo wing aro und t he wo rld
E XCE PT (13)

a. M ut ual f und linked po licy

b. Unit -linked po licy
c. V ariable lif e po licy
d. Takaf ul inv est ment -linked lif e

31) The t erm used in market ing where result s are measured against t he plan and
changes made when and where necessary is kno wn as (23)

a. Planning
b. Sales go al
c. Co nt ro lling
d. Sales St rat egy

32) What is a D I SADV ANTAGE o f inv est ing in unit t rust s?

a. Unit t rust s have lo wer risk co mpared t o shares

b. They are managed by pro f essio nal inv est ment t eams
c. E xt ra co st s and charges are included in t his v ehicle
d. I nco me div idend can reinv ested

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33) Which of the fo llo wing st at ement s are co rrect regarding single premium
inv est ment -linked insurance?

i. M o st insurers set t heir minimum basic single as ranging f ro m RM 5,000 t o

RM 20, 000 depending o n pro duct design
ii. All insurers set t heir minimum basic single premium at RM 5, 000.
iii. To p-up premiums, if any , also bear t he same no rmal upf ro nt o r
unallo cat ed premium charge rat io o f aro und 5% as t he basic single
premium
iv . Co st of insurance will be deduct ed regardles s o f whet her t he acco un t
v alue is abo v e o r belo w t he basic sum assured at any po int in t ime.

a. i, iii and iv
b. i and iii
c. ii and iv
d. ii, iii and iv

34) Peo ple generally want t o inv est

i. To lead a co mf o rt able lif est y le

ii. To be co mf o rt able during ret irement
iii. To amass great wealt h
iv . To pro v ide adequat e f unding fo r t heir childr en’s educat io n and t heir
upbringing

A. I I , I I I and IV
B. I , I I and I I I
C. I , I I and I V
D. I I , I I I and IV

35) The perf o rmance of an inv estment depends o n ________________

I. A co unt ry ’s eco no my f acto rs and past experience of t he inv est ed company
II. The co mpet encies and capabilit y o f t he inv est ed co mpany management
t eam
I I I . The number and spread o f small -t ime inv esto rs choo sing to inv est
I V . The inv est ed co mpany ’s lev el of co st and t he lif e cy cle of t he inv est ment
A. I , I I and I I I
B. I , I I and I V
C. I , I I I and IV
D. I I , I I I and IV

36) Which o f t he f o llo wing st at ement s are t rue?

I. A perso n’s inv est ment ho rizo n is t he lengt h o f t ime that he is prepared t o
ho ld a part icular asset bef o re liquidat es it .
II. The inv est ment ho rizo n o f an indiv idual, amo ng ot her f act o rs, also
depends when he needs liquidit y in t he f ut ure dat e of specif ic
o bject iv e/s.
I I I . The co st o r penalt y t hat an inv esto r has to pay in t he ev ent he needs t o
liquidat e t he asset earlier t han expect ed also has a bearing o n his cho ice
o f inv est ment ho rizo n.
I V . I t is pert inent f o r an agent t o st rike a clear underst anding wit h a po t ent ial
client as t o ho w much t he lat t er is willing to set aside o r commit f o r
acquiring an asset .
A. I , I I , I I I and I V
B. I , I I and I I I
C. I I , I I I and IV
D. I , I I and I V

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37) What are deriv at iv es?
A. They are real est at e invest ment pro v iding go o d capit al appreciat io n and
high f lo w of inco me
B. They are po o ls of f und int ro duced to many inv est o rs kept in t rust by bank
managed by a pro f essio nal f und manager
C. They are pref erence shares t hat giv e t he ho lders t he right t o a f ixed
div ided pro v ided t hat has been made
D. They are f inancial inst rument who se v alues are linked t o t he price o f
underly ing inst rument s in t he cash market

38) V aluat io n of unit s in an inv estment -linked f und must be do ne

A. Six day s in a week, including Sat urday s (half day )
B. E v ery business day
C. E v ery day
D. Sev en day s in a week. Fo r a day t hat f alls o n a weekend o r a public
ho liday , v aluat io n pro cessed by t he auto mated sy st em will be based o n t he
same unit price as t he prev io us business day.

39) What are t he prerequisit es f o r t he launch of a new inv est ment -linked f und?
I. A minimum f und size can be set by t he insurer.
II. The init ial o f fer perio d shall no t be mo re t han 2 mo nt hs f ro m t he dat e o f
launch
I I I . I f t he minimum f und size is not reached by the end o f t he init ial o ff er
perio d, t he insurer can call o f f t he f und and ref und all premiums lo cat ed
I V . The insurer will al so hav e to pay int erest o r pro f it f rom t he premiums
co llect ed during t he init ial of f er perio d to the int ended po licy o wners.
A. I and I I
B. I , I I I and IV
C. I , I I , I I I and I V
D. I , I I and I I I
E.
40) The crit eria f o r co mparing t radit io nal lif e insurance pro duct s with inv est ment -
linked lif e insurance pro duct s include ________
I. The lif e o ff ices management expert ise
II. The pro duct s inv est ment ret urns and risks
I I I . The po licies premium co mput at io n
I V . D eat h benef it pro v ided under t he po licies
A. I , I I and I I I
B. I , I I and I V
C. I , I I I and IV
D. I I , I I I and IV

41) Which of the fo llo wing st at ement s are co rrect ?

I. Agent s may design t heir o wn f inancial planning f o rm t o gat her f inancial
dat a and f inancial inf o rmat io n o f t heir perspect iv e client s f o r analy sis.
Ho wev er, t he fo rmat must be appro v ed by t heir principal
II. The Cust o mer-Fact -Find f o rm o f a lif e insurer o f f icially do cument s
impo rt ant f act s co ncerning t he f inancial dat a co ncerning a pro spect iv e
po licy o wner and his f amily
I I I . Cancellat io n o f a po licy is allo wed i f t he request by a new po licy o wner
f alls wit hin t he 15 day s f ree -lo o k perio d. The premium commences f ro m
t he dat e t he po licy co nt ract is passed t o t he agent fo r deliv ery
I V . The f ree -lo o k perio d co mmences f ro m the dat e t he client signs t he
ackno wledgmen t slip upo n receiv ing t he po licy
A. I , I I and I I I
B. I , I I and I V

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 C. I I and I V
D. I and I V

42) A well-div ersif ied inv est ment -linked f und has ___________
A. M any pro f essio nal f und managers who t ake care o f many funds
B. A bet t er risk charact erist ics t han a less-div ersif ied f und
C. A simple designed pro duct which cat er separat ely f o r inv est ment and
insurance pro t ect ion
D. Pro v isio n of f lexibilit y to change t he lev el of premium pay ment and t ake
premium ho liday s

43) Wit h dual pricing met ho d, Kamal has paid RM4000 premium t o buy his single
premium inv est ment -linked po licy . The o f f er price is RM1 and bid o f f er spread
is 5%. Assuming t he unit price nev er changes, what is t he bid price and t he
amo unt t hat Ahmad will get if he cash in o r claim t he po lic y ?
A. 0.095 and RM 3800 respect iv ely
B. 0.95 and RM 3800 respect iv ely
C. 0.05 and RM 2000 respect iv ely
D. 0.50 and RM 2000 respect iv ely

44) Under a single premium pricing met ho d, Jay bo ught a single -premium
inv est ment -linked po licy . He t o ld 3800 unit s at RM1 .00 unit price. Wit h 1%
mo rt alit y charge and po licy f ee o f RM100, what is t he cash v alue o f his po licy ?
A. RM 3 938
B. RM 3 800
C. RM 3 700
D. RM 3 662

45) The phrase “To p -up” in I nv est ment -Linked Lif e I nsurance means:
A. The po licy o wners pay furt her premium to purchase addit io nal unit s of t he
inv est ment -linked f und which will be added t o t he exist ing unit s in t he
po licy o wner’s acco unt
B. The lif e o ff ice maint ain reserv es t o lev el o ut sho rt t erm f luct uat io n in t he
v alue o f I nv est ment -Linked f und
C. When t he I nvest ment -Linked f und v alue increases, t he v alue o f t he f und
will also increase
D. The po licy o wner can change his inv est ment f und t o ano t her f und which he
believ es t o hav e great o ppo rt unit ies f o r higher ret urn

46) I f t he of f er price in an inv estment dat e is RM2.50 and t he premium amo unt o f
RM250.00 is used t o buy unit s, it will buy __________
A. 0.01 unit
B. 10 unit s
C. 100 unit s
D. 100 unit s less t he unallo cat ed premium

47) The inv est ment ret urns under an inv est ment -linked lif e insurance po licy _____
I. Are no t guarant eed
II. Are assured
III. Are linked t o t he perf o rmance o f t he inv estment fund managed by t he lif e
o f f ice
I V . Fluct uat e acco rding t o t he rise and f all of the market prices
A. I , I I and I I I

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 B. I , I I and I V
C. I , I I I and IV
D. I I , I I I and IV

48) I f Mr. Sam want s to sell o ut RM 2000 f ro m 10 000 unit s o f his account , assuming
v alue o f unit is RM 2/unit , ho w many unit s lef t in his acco unt ?
A. 8000 Unit s
B. 9000 Unit s
C. 6000 Unit s
D. 8500 Unit s

49) I nv est ment -linked f unds are managed by

I. The insurer’s o wn pro f essio nal managers in it s int ernal inv estment
depart ment
II. Fund managers/ f und ho uses appo int ed by t he insurer t hro ugh out so urcing
I I I . Out so urcing to t he f unds o f unit t rust co mpanies since invest ment -linked
f unds are similar t o t he unit t rust f unds
I V . The insurer’s bo ard o f direct o rs who can make special decisio ns o n t he
t y pes of inv est ment v ehicles t o o ff er to po licy o wners.
A. I , I I , I I I and I V
B. I
C. I and I I
D. I and I V

50) Which st atement /s relat e(s) t o t he applicat io n of co st o f insurance (COI ) in

single premium inv est ment -linked insurance?
I. COI is based o n t he sum assured o r acco unt v alue, whichev er is higher
II. When t he account v alue of a single premium inv est ment -linked po licy is
st ill belo w t he sum assured, t he s ho rtf all gap bet ween t he t wo lev els is
called sum at risk
I I I . D educt io n o f COI is based o n t he sho rt f all amo unt f ro m t he acco unt v alue
lev el t o t he sum assured lev el
I V . COI is based o n t he dif f erence bet ween t he sum assured and acco unt v alue
at any po i nt in t ime
A. I
B. III
C. I I and I I I
D. IV

51) What do y o u underst and by t he phrase “conduct ing t he f act -f inding" which is
do ne by an inv est ment -linked insurance agent ?
A. Gat hering all inf o rmat io n o f t he inv est ment av ailable by t he insurer.
B. Gat hering all relev ant inf o rmat io n abo ut t he cust omer bef o re making
reco mmendat ion.
C. Gat hering all inf o rmat io n abo ut t he v ario us plans o f f ered by ot her insurers
in t he market .
D. Gat hering as f ar as po ssible all element s t hat will af f ect t he cust omer ’s
inv est ment .

52) Which of the fo llo wing st at ement s are co rrect ?

I. The minimum age f o r apply ing a regular inv est ment -linked po licy o n o wn
lif e is age 18 last birt hday

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 II. A mino r aged 16 last birt hday who is apply ing f o r an inv est ment -linked
po licy o n o wn lif e needs parent al co nsent
III. A mino r aged 16 last birt hday can apply f o r a who le lif e part icipat ing
po licy wit ho ut parent al co nsent
IV. M ino rs aged 10 to 15 last birt hday can apply f o r a who le lif e part icipat ing
po licy wit h parent al co nsent
A. I , I I , I I I and I V
B. I , I I and I I I
C. I and I I I
D. I , I I I and IV

53) Which o ne of t he fo llo wing st at ement s abo ut t he diff erence bet ween
inv est ment -linked po licies and endo wment po licies are FALSE ?
I. The po licy v alues of inv est ment -linked and endo wment po licies d irect ly
ref lect t he perfo rmance o f t he f und of t he lif e of f ice
II. The premiums and benef it s o f t he endo wment po licies are described at
incept io n o f t he po licy whereas inv estment -linked po licies are f lexible as
t hey are acco unt driv en
I I I . The benef it s and risk of inv est ment -linked and endo wment po licies
direct ly accrued t o the po licy ho lders
A. I & II
B. I & II I
C. II & III
D. I, II & III

54) Single premium inv est ment -linked lif e insurance po licy
A. Has no deat h benef it
B. Has cash v alue
C. M ust be issued wit h a minimum of RM3000
D. M ust be issued wit h a minimum of RM5000

55) The similarit ies and dif f erences bet ween unit t rust s and single premium
inv est ment -linked plans are :
I. The inv est ment appro ach of bo th is similar
II. The lif e insurance pro t ect io n element is no t part and parcel o f unit t rust
pro duct s, whereas f o r single premium inv estment -linked plans , it is
I I I . Unit t rust do no t impo se co st o f insurance and po licy f ee charges since t he
lif e pro t ect ion element is absent
I V . A t rust ee must be appo int ed f o r unit t rust s but t his is no t co mpulso ry f o r
single premium inv est ment -linked plans
A. I and I I
B. I , I I , I I I and I V
C. I I , I I I and IV
D. I and I I I

56. Lif e insurers o ff ering inv estment -linked insurance are o bligat ed t o pro v ide
cert ain f undament al “t ransparencies” as required by regulat o ry guidelines.
These are:
I. A separat e Fund Fact Sheet fo r each o f t he funds
II. A st at ement o n t he po licy o wner’s net asset v alue (acco unt v alue) det ails
at least o nce a year
I I I . A perf o rmance repo rt o n each f und o f t he policy o wner at least o nce a
y ear
I V . Publishing o f f und unit prices daily in at least o ne nat io nal E nglish
newspaper and o ne nat io nal Bahasa Malay sia newspaper, and o n t he
insurer’s websit e.
A. I I , I I I and IV

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 B. I , I I and I I I
C. I and I I
D. I , I I , I I I and I V

57. As so on as a po licy co nt ract has been issued by a lif e insurer,

I. The insurer is t o mail (by regist ered mail) t he po licy co nt ract t o t he
co rrespo ndence address o f t he new po licy owner. The regist ered mail sli p
sho uld suf f ice as ev idence t hat t he co nt ract has reached t he po licy o wner.
II. The agent sho uld deliv er t he po licy co nt ract wit ho ut delay
I I I . The deliv ery pro cess sho uld ent ail t he explanat io n o f t he co nt ract ual
pro v isio ns and re -explaining t he benef it s. The agent then has t o request
t he new po licy o wner to sign the deliv ery ackno wledgment slip. Final ly ,
t he agent must ret urn t he signed ackno wledgment slip t o t he insurer fo r
reco rding and f iling.
I V . I f t he new po licy o wner in unav ailable at t he f irst t ime of perso nal
deliv ery by t he agent , ackno wledgment of receipt o f t he po licy co nt ract
signed by a represent at iv e of t he po licy o wner’s ho useho ld o r of f ice shall
be deemed v alid. The agent do es not need to fo llo w up o n this.
A. I and I I
B. I I and I I I
C. I , I I , I I I and I V
D. I , I I I and IV

58. Under inv est ment -linked lif e insurance po licies _________________.
I. There is no guarant eed minimum sum assured f o r t he purpo se o f declaring
bo nuses
II. There is no guarant eed minimum sum assured as a lev el o f lif e insurance
pro t ect io n
I I I . E ach o f t he po licy o wners’s will be used t o purchase unit s, t he number of
which is dependent o n t he o ff er price o f each unit
I V . Purchases o f unit s can o nly be made f ro m t he inv estment -linked f und
it self , which will t hen creat e new unit s and add t he inv est ment mo nies t o
t he v alue o f t he f und
A. I, II & III
B. I, II & IV
C. I, III & IV
D. I I , I I I & IV

59. The administ rat iv e f ee, insurance charge, f und management f ee and the like
under an inv est ment -linked lif e insurance po licy are ______________.
A. Usually guarant eed
B. No t subject t o rev iew
C. Subject t o change by t he lif e of f ice af t er writ t en not ice i s giv en
D. Alway s up -f ro nt charges

60. The f o llo wing st at ement abo ut surrender v alue under inv est ment -linked lif e
insurance is TRUE .
A. The amo unt o f surrender v alue is alway s higher t han t he amo unt under
wit h -pro f it po licies
B. Fo r dual pricing po licies, t he surrender v alu e is t he o ff er price mult iplied
by t he number o f unit s
C. Fo r single pricing po licies, t he surrender v al ue is t he market price
mult iplied by t he number o f unit s
D. The amo unt o f surrender v alue v aries wit h th e age of t he po licy o wner,
being higher at o lder ages

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 ANSWERS
1. A 11. D 21. A 31. C 41. C 51. B
2. C 12. A 22. A 32. C 42. B 52. D
3. A 13. B 23. D 33. B 43. B 53. B
4. A 14. C 24. A 34. B 44. D 54. C
5. B 15. C 25. C 35. B 45. A 55. B
6. B 16. D 26. B 36. A 46. C 56. D
7. D 17. B 27. B 37. D 47. C 57. B
8. A 18. C 28. A 38. B 48. B 58. C
9. A 19. A 29. D 39. C 49. C 59. C
10. D 20. A 30. A 40. D 50. C 60. C

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