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LA1 Sample QuestionsLA1 Sample Questions
Which one of these is unearned income?Which one of these is unearned income?
AA Income from a part time jobIncome from a part time jobBB Deposit interestDeposit interestCC Income from short term contact employment Income from short term contact employment DD Income from a self employed tradeIncome from a self employed trade
Which one of these is unearned income?Which one of these is unearned income?
AA Income from a part time jobIncome from a part time jobBB Deposit interestDeposit interestCC Income from short term contact employment Income from short term contact employment DD Income from a self employed tradeIncome from a self employed trade
ANSWER: BANSWER: B
If a self employed client needs to provide a replacementIf a self employed client needs to provide a replacementincome in the event of ill health, how would you describeincome in the event of ill health, how would you describethat need?that need?
AA Savings needSavings needBB Protection needProtection needCC Investment needInvestment needDD Retirement funding need Retirement funding need
If a self employed client needs to provide a replacementIf a self employed client needs to provide a replacementincome in the event of ill health, how would you describeincome in the event of ill health, how would you describethat need?that need?
AA Savings needSavings needBB Protection needProtection needCC Investment needInvestment needDD Retirement funding need Retirement funding need
ANSWER: BANSWER: B
Which of these is the most likely financial need of a client in his late Which of these is the most likely financial need of a client in his late 60’s?60’s?
AA Savings needSavings needBB Protection needProtection needCC Investment needInvestment needDD Retirement needRetirement need
Which of these is the most likely financial need of a client in his late Which of these is the most likely financial need of a client in his late 60’s?60’s?
AA Savings needSavings needBB Protection needProtection needCC Investment needInvestment needDD Retirement needRetirement need
ANSWER: CANSWER: C
The principle of The principle of ‘utmost good faith’‘utmost good faith’ meant that: meant that: A A The proposer must have an insurable interest in the life assured The proposer must have an insurable interest in the life assured BB All material facts must be disclosed to the life assurance All material facts must be disclosed to the life assurance
companycompanyCC The policy conditions must be written in plan languageThe policy conditions must be written in plan languageDD The policyholder can cancel the policy within ten days and get a The policyholder can cancel the policy within ten days and get a
full refund of all premiums paidfull refund of all premiums paid
The principle of The principle of ‘utmost good faith’‘utmost good faith’ meant that: meant that: A A The proposer must have an insurable interest in the life assured The proposer must have an insurable interest in the life assured BB All material facts must be disclosed to the life assurance All material facts must be disclosed to the life assurance
companycompanyCC The policy conditions must be written in plan languageThe policy conditions must be written in plan languageDD The policyholder can cancel the policy within ten days and get a The policyholder can cancel the policy within ten days and get a
full refund of all premiums paidfull refund of all premiums paid
ANSWER: BANSWER: B
When must a policyholder have an ‘When must a policyholder have an ‘insurable interestinsurable interest’ in the’ in theLifeLife assured?assured?
AA At all times during the policyAt all times during the policyBB Only at the date of completion of the proposal formOnly at the date of completion of the proposal formCC Only at the date of notification of a claimOnly at the date of notification of a claimDD Only at the date the policy is issued Only at the date the policy is issued
When must a policyholder have an ‘When must a policyholder have an ‘insurable interestinsurable interest’ in the’ in theLifeLife assured?assured?
AA At all times during the policyAt all times during the policyBB Only at the date of completion of the proposal formOnly at the date of completion of the proposal formCC Only at the date of notification of a claimOnly at the date of notification of a claimDD Only at the date the policy is issued Only at the date the policy is issued
ANSWER: DANSWER: D
The term The term ‘non disclosure’ ‘non disclosure’ means:means: AA The proposer has not a valid insurable interest in the life The proposer has not a valid insurable interest in the life assuredassuredBB A material fact has been deliberately withheld from the life A material fact has been deliberately withheld from the life
companycompanyCC The life assured has a higher than normal risk of claimThe life assured has a higher than normal risk of claimDD The proposer and life assured are not required to disclose The proposer and life assured are not required to disclose
confidential information about the state of their healthconfidential information about the state of their health
The term The term ‘non disclosure’ ‘non disclosure’ means:means: AA The proposer has not a valid insurable interest in the life The proposer has not a valid insurable interest in the life assuredassuredBB A material fact has been deliberately withheld from the life A material fact has been deliberately withheld from the life
companycompanyCC The life assured has a higher than normal risk of claimThe life assured has a higher than normal risk of claimDD The proposer and life assured are not required to disclose The proposer and life assured are not required to disclose
confidential information about the state of their healthconfidential information about the state of their health ANSWER: BANSWER: B
What is the cooling off period provided when a client takes out a What is the cooling off period provided when a client takes out a LifeLife assurance policy?assurance policy? AA 7 days7 daysBB 10 days10 daysCC 14 days14 daysDD 30 days30 days
What is the cooling off period provided when a client takes out a What is the cooling off period provided when a client takes out a LifeLife assurance policy?assurance policy? AA 7 days7 daysBB 10 days10 daysCC 14 days14 daysDD 30 days30 days
ANSWER: DANSWER: D
A A ‘stand alone serious illness policy’‘stand alone serious illness policy’ pays out: pays out: AA A lump sum on the diagnosis of a specified A lump sum on the diagnosis of a specified illness illness covered by the policycovered by the policyBB A lump sum on the death of the policyholderA lump sum on the death of the policyholderCC An income while the policyholder is unable to An income while the policyholder is unable to work work
due to a specified illness covered by the policydue to a specified illness covered by the policyDD An income for a maximum period of two yearsAn income for a maximum period of two years
following permanent disability following permanent disability
A A ‘stand alone serious illness policy’‘stand alone serious illness policy’ pays out: pays out: AA A lump sum on the diagnosis of a specified A lump sum on the diagnosis of a specified illness illness covered by the policycovered by the policyBB A lump sum on the death of the policyholderA lump sum on the death of the policyholderCC An income while the policyholder is unable to An income while the policyholder is unable to work work
due to a specified illness covered by the policydue to a specified illness covered by the policyDD An income for a maximum period of two yearsAn income for a maximum period of two years
following permanent disability following permanent disability
ANSWER: AANSWER: A
If a unit linked protection policy has a sum assured of €100,000If a unit linked protection policy has a sum assured of €100,000and a current cash value of €5,000. What is the current ‘sum atand a current cash value of €5,000. What is the current ‘sum at risk’ under the policy?risk’ under the policy? AA €100,000€100,000BB €5,000€5,000CC €105,000€105,000DD €95,000€95,000
If a unit linked protection policy has a sum assured of €100,000If a unit linked protection policy has a sum assured of €100,000and a current cash value of €5,000. What is the current ‘sum atand a current cash value of €5,000. What is the current ‘sum atrisk’ under the policy?risk’ under the policy? AA €100,000€100,000BB €5,000€5,000CC €105,000€105,000DD €95,000€95,000
ANSWER: DANSWER: D
A A Low Cost Whole Of Life Policy Low Cost Whole Of Life Policy is:is: AA A term assurance policyA term assurance policyBB A combination of a with profit whole of life and a decreasing term A combination of a with profit whole of life and a decreasing term
assurance policyassurance policyCC A combination of a non profit whole of life and a term assurance A combination of a non profit whole of life and a term assurance
policypolicyDD A combination of a unit linked protection policy and a term A combination of a unit linked protection policy and a term
assurance policyassurance policy
A A Low Cost Whole Of Life Policy Low Cost Whole Of Life Policy is:is: AA A term assurance policyA term assurance policyBB A combination of a with profit whole of life and a decreasing term A combination of a with profit whole of life and a decreasing term
assurance policyassurance policyCC A combination of a non profit whole of life and a term assurance A combination of a non profit whole of life and a term assurance
policypolicyDD A combination of a unit linked protection policy and a term A combination of a unit linked protection policy and a term
assurance policyassurance policy
ANSWER: BANSWER: B
A A Family Income Benefit (FIB)Family Income Benefit (FIB) policy is: policy is:
AA A unit linked whole of life policyA unit linked whole of life policyBB A level term assurance policyA level term assurance policyCC A low cost whole of life policyA low cost whole of life policyDD A decreasing term assurance policy A decreasing term assurance policy
A A Family Income Benefit (FIB)Family Income Benefit (FIB) policy is: policy is:
AA A unit linked whole of life policyA unit linked whole of life policyBB A level term assurance policyA level term assurance policyCC A low cost whole of life policyA low cost whole of life policyDD A decreasing term assurance policy A decreasing term assurance policy
ANSWER: DANSWER: D
Which of the following is the Which of the following is the most accuratemost accurate description of description of TrackerTracker Bond?Bond?
AA A bond which provides a guaranteed return, at the end of the term, of a A 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 specified % of the capital along with a bonus linked to the performance of certain Stock Market indicesof certain Stock Market indices
BB A bond which provides a guaranteed return linked to the growth in the A bond which provides a guaranteed return linked to the growth in the Stock Market over a given period of time.Stock Market over a given period of time.
CC A bond which provides a guaranteed rate of capital growth and return of A bond which provides a guaranteed rate of capital growth and return of the capital invested, at the end of the termthe capital invested, at the end of the term
DD A bond which provides a guaranteed income for the term, along with a A bond which provides a guaranteed income for the term, along with a return of the capital invested, at the end of the termreturn of the capital invested, at the end of the term
Which of the following is the Which of the following is the most accuratemost accurate description of description of TrackerTracker Bond?Bond?
AA A bond which provides a guaranteed return, at the end of the term, of a A 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 specified % of the capital along with a bonus linked to the performance of certain Stock Market indicesof certain Stock Market indices
BB A bond which provides a guaranteed return linked to the growth in the A bond which provides a guaranteed return linked to the growth in the Stock Market over a given period of time.Stock Market over a given period of time.
CC A bond which provides a guaranteed rate of capital growth and return of A bond which provides a guaranteed rate of capital growth and return of the capital invested, at the end of the termthe capital invested, at the end of the term
DD A bond which provides a guaranteed income for the term, along with a A bond which provides a guaranteed income for the term, along with a return of the capital invested, at the end of the termreturn of the capital invested, at the end of the term
ANSWER: AANSWER: A
Which one of these clients can take out a Personal Pension Plan?Which one of these clients can take out a Personal Pension Plan? AA A self employed mechanic?A self employed mechanic?BB A Civil Servant who has additional rental incomeA Civil Servant who has additional rental incomeCC An employee already included in an occupational pension An employee already included in an occupational pension scheme for retirement benefits who wants to boost his retirement scheme for retirement benefits who wants to boost his retirement benefitsbenefitsDD A spouse who only ever worked in the homeA spouse who only ever worked in the home
Which one of these clients can take out a Personal Pension Plan?Which one of these clients can take out a Personal Pension Plan? AA A self employed mechanic?A self employed mechanic?BB A Civil Servant who has additional rental incomeA Civil Servant who has additional rental incomeCC An employee already included in an occupational pension An employee already included in an occupational pension
scheme for retirement benefits who wants to boost his retirement scheme for retirement benefits who wants to boost his retirement benefitsbenefits
DD A spouse who only ever worked in the homeA spouse who only ever worked in the home
ANSWER: AANSWER: A
If a Personal Pension Plan holder dies, to whom must the life company pay If a Personal Pension Plan holder dies, to whom must the life company pay the value of the Plan?the value of the Plan? AA The individuals next of kinThe individuals next of kinBB The individuals estateThe individuals estateCC The individuals spouse, if aliveThe individuals spouse, if aliveDD The individual’s nominated beneficiaries of his or her willThe individual’s nominated beneficiaries of his or her will
If a Personal Pension Plan holder dies, to whom must the life company pay If a Personal Pension Plan holder dies, to whom must the life company pay the value of the Plan?the value of the Plan? AA The individuals next of kinThe individuals next of kinBB The individuals estateThe individuals estateCC The individuals spouse, if aliveThe individuals spouse, if aliveDD The individual’s nominated beneficiaries of his or her willThe individual’s nominated beneficiaries of his or her will
ANSWER: BANSWER: B
What is the What is the maximum maximum number of agencies an number of agencies an insurance agentinsurance agent can have? can have? AA 11BB 44CC No maximumNo maximumDD 55
What is the What is the maximum maximum number of agencies an number of agencies an insurance agentinsurance agent can have? can have? AA 11BB 44CC No maximumNo maximumDD 55
ANSWER: BANSWER: B