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52 Cards in this Set

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Mother fund

Read carefully

One type of bonus which the life insurer pays to a participating policy that has been kept in force until maturity or death is the ______ bonus.

Terminal

Not cash, not interim, not reversionary

The arrangement in which a policy owner transfers ALL HIS RIGHTS AND OWNERSHIP of his policy to another person is known as _____ assignment

Absolute

Insurance act states type of policies eligible for nomination are any life policy or accident and health policy which provide?

Death benefit, governed by sg law, issued by a registered insurer.

All of the above

An investment linked subfund with a basket of assets comprising an apportionment of investments between EQUITY AND FIXED INCOME instruments within a pre-determined range is called a ________ fund

Balanced

Not equity, not bond, not property

Factors considered to determine whether medical examination is required are?

Policy term, attaching rider, premium frequency but most important of all is sum assured

There are 4

Which rider gives the insured the right to purchase additional amounts of insurance at specified intervals, without EVIDENCE OF SUITABILITY?

Guaranteed insurability option rider,


Key word guaranteed

Not the non guaranteed ones

endowment insurance policy truthd

Riders can be attached,


It can be issued on a participating policy


Premium is usually level throughout policy term


Sum assured cannot be paid out only in installments. can be single premium

4 points

Will needs a what court document? If policy owner dies leaving a will?

Grant of probate

A key person insurance policy is usually an/a "______" term insurance policy.

Level

Not supplementary, not increasing, not decreasing

Joint mortgage decreasing term insurance is usually issued as a collateral security for a housing loan granted by a bank, and payable on the death of ONE OF THE LIVES INSURED. This is a ______ policy.

First to die life insurance

Not second to die or group or long term care insurance

Participating life insurance policies are also known as ______ policies

With profit

Not with returns, not with interest or with revenue

The _____ form provides the LIFE INSURER with the primary source of information about the Risk to be insured.

Proposal form

Not health declaration, not cover note, not claim form

Trust is between trustee and _____

Settlor

Not assignor, not nominee, not bailor

Investment link life insurance policy truths

Disclosure under policy is more transparent, policy owner does not bear full investment risk, it is shared with fund manager, there is a guaranteed minimum surrender value, unit value fluctuates with the value of underlying assets.

During the sale process, a life insurer representative need NOT give to his client a copy of the _______.

Internal governance policy

He gives benefit illustration, product summary and guide to life insurance

participating endowment insurance policy privileges

Policy loan, non forfeiture option, automatic premium loan.... but not fund switching

Before 2013, cpf allowed members at age 55 to withdraw cpf minimum sum to purchase ______ annuities.

Deferred

Not drawdown, not temporary, not immediate.

The rate at which is primarily used to determine the premiums for health insurance is ______ rate.

Morbidity

Not mortality, not mobility, not modernity

Original age convertible option truths.

Under the option, permanent insurance coverage is treated as if it had been in effect since the effective date of the convertible term insurance policy.

renewal premium rate not based on insured's age, it is not a more common option that attained age conversion option. No large cash outlay at time of conversion.

The policy owner of _____ insurance policy CANNOT make any insurance nomination.

Group life

Not term, not whole life, not endowment

The investment risk of an ILP is borne entirely by the : ________.

Policy owner

Not trustee, not life insurer, not fund manager

Which policy has increasing premiums?

Yearly renewable premium policy

Not single premium policy, not regular premium policy, not limited premium payment policy.

Policy owner who surrenders participating life insurance policy cannot _____.

Accelerate the payment of future bonuses

He can apply for a loan, he can change premium payment mode, he can surrender for cash bonus

The level of non guarantees bonuses of participating life insurance policies is dependent on the value of the assets backing them, which in turn depends mainly on investment returns, expenses and _____.

Claim payments

Not inflation, not premium rates, not exchange rates

Using _____, is not a payment method for a regular annual premium due under a ordinary life insurance policy.

Cpf savings

Can use Giro, can use bankers order or cash and.cheque.

Always use allocation rate first x annual premium

1000 x .80 for 800


800 divide OP 2.11


Find BP


Total cost divide BP


OP units - BP units is answer

Under the non forfeiture option, the built up cash value in a whole life insurance policy cannot be ___.

Exchanged for a new policy with a similar sum assured

Can be surrendered for cash, can be used yo purchase paid up insurance, can be used to purchase extended term insurance

If there is a ___ rider attached to a juvenile policy, all future premiums up to a certain specified age of the child will be waived upon the policy owners death or total and permanent disablement.

Payor benefit

Not waiver of premium, not family income benefit, not guaranteed insurability option.

Accelerated critical illness terminates when..

When a valid claim is made.

The ___ bonus is paid in addition to sum assured irespective of time of claim, age of insured or period policy has been in force.

Reversionary bonus

Most sub fund switches allowed under investment link policies are done on a ___, basis

Bid to bid

Not bid to offer, not offer to offer, not offer to bid

Participating basis policies

Annuity, endowment.

Not group life, not increasing term insurance not personal accident insurance.

Income tax payable is based on ___ income.

Chargable

Not earned, not statutory, not assessable.

large fluctuations in bonus declared by bonuses is avoided by ___ bonuses over time.

smoothing

Not averaging, not analysing, not computing

Witness to trust nomination must be __ of age.

21

Proper claimants include who?

Spouse, child, parents, sibling and nephew.

Not grandchild, uncle ot grandparents

Revocable nomination not allowed for

An annuity bought under cpf minimum sum scheme

The consideration for the promise by the policy owner to forgoe/surrender all rights under a life policy insurance is the

Surrender value

Not cash dividend, premium or maturity value.

First premium payment acknowledged by what document?

Conditional payment deposit receipt.

Not permanent receipt, official receipt or intermediary receipt.

duplicate policy does not require

Self addressed envelope with postage paid

Requires written request, police report, payment of cost of duplication.

60 40 maximise returns, promotional material describing investment strat is an example of __, fund.

Managed

Group term insurance truths

Riders can be attached, cant assign to 3rd party, coverage stops after employee has resigned, coverage starts when employee starts work or upon confirmation.

Tax relief for handicap sibling is ___, using cash to top up cpf minimum sum.

14K

Annuity, which stops when both annuitants die is ___annuity.

Joint life

Not multiple, single or joint and survivor

Since 1 jan 2001, cpf savings can be used for what ___ premium on ILPs.

Single

ILP prevents risk of sever price decline of any one stock by ____.

Diversification

Not flexibility, fund management or dollar cost averaging

Common law rights of agents to principals

Remuneration and indemnity

Not termination, apparent, implied authority or confidentiality.

When life insurance agent is acting as agent of the insured he may ___.

Advise in insurance cover required.

May not issue cover note, advise quantum or sign proposal form on behalf of the insured.

the ____ is not required to be given to prospective clients before they purchase a ILP.

Profile statement

Must provide benefit illustrator, product summary and your guide to life insurance

The ___ will increase the benefit payable on death.

Term rider

Not tpd, waiver of premium, critical illness

Document not required when processing a surrender of policy by policy owner is the ____.

Deed poll

He will require policy contract, surrender voucher, deed of assignment if prior notice was previously lodged