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CEILLI Trial Ques English
CEILLI Trial Ques English
DATE
DURATION 1 Y2 hours
LANGUAGE ENGLISH
THE MALA YSIAN INSURANCE INSTITIlTE, NO 5, JALAN SRI SEMANT AN SA TU, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR.
GENERAL LINE: 03 - 20878882 CUSTOMER SERVICE: 03 - 2087 8883
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S The Certificate Examination in Investment-Linked Life Insurance
1. Copy your Candidate Examination Number (CEN) from your examination entry
permit into the box provided on the cover page of this question paper.
4. Mark all your answers on the answer sheet provided. You are to blacken only
one oval with the alphabet corresponding to your answer choice for each
numbered row. If there appears to be more than one answer choices, select
the one you think is the best alternative.
5. You may write anything on the examination question paper BUT Mil will not
consider anything that you have written for marking.
6. Only correct answers will be given a point. Wrong and unmarked answers will
not be given any point. Therefore you are to answer all questions even if you
have to guess.
9. This question book, answer sheet and other materials provided during this
examination are NOT permitted to be taken away from the examination hall. It
is the onus, duty and responsibility of the candidate to hand-in personally to the
Presiding Official all these materials before leaving the hall.
a The Certificate Examination in Investment-Linked Life Insurance
1. The payment made to the insured upon the cancellation of a policy is called
A surrender value.
B penalty payment.
C investment value.
D return of premium.
A Shares
B Options
C Property options
D Unit trust options
4. Using the single pricing method, calculate the cash value of 4,000 units at a unit
price of RM1, a mortality charge of 2% and a RM1 00 policy fee.
A RM3,500
B RM3,800
C RM3,820
D RM3,620
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a The Certificate Examination in Investment-Linked Life Insurance
5. Name some of the criteria used to compare conventional insurance products with
investment-linked insurance products.
I Investment risks
II Investment return
III Surrender benefit
IV Management expenses
A I and II
B /, II and III
C I, II and IV
o II, III and IV
6. Treasury bills are generally considered to be of no risk. When is this NOT true?
9. Under the calculation of death benefits on unit value or death cover basis, what is
the criteria for payment upon death?
A To disclose all material facts which will influence the acceptance of the
proposal by the insurer.
B To include a statement on claim procedures.
C To serve as ground for claim rejection.
D To simplify the work of an agent.
11. Who are appointed to supervise the way a company performs its obligations in
respect of debenture stocks?
A Bankers
B Lawyers
C Trustees
D Arbitrators
A Policyholders have total flexibility to alter their needs for investment and
protection.
B Policyholders have partial flexibility to alter their need for investment and
protection.
C The insurers have total discretion to invest on behalf of policyholders.
D Policyholders have no right to change the terms of the policy.
15. Which of the following is/are NOT readily available for most individual investors?
A Property
B Investment trusts
C Annuities and pensions
D Buying up a new company
I Cash funds
II Diversified funds
III Specialised funds
IV Money market funds
A II and IV
B I, II and III
C I, II and IV
D I, II, III and IV
17. What are the factors that can affect commodity prices?
A I, II and III
B I, II and IV
C II, III and IV
D I, II, III and IV
18. The charges deducted from the benefits received by a policyholder are
A II and III
B I, II and III
C I, II and IV
D II, III and IV
19. Under the current investment-linked whole life plans the policy has total flexibility
to alter a policyholder's need for investment and protection in accordance with the
A market trend.
B change of law.
C insurers suggestion.
D policyholder's wishes.
20. What is the minimum death benefit for investment-linked life insurance policies?
A RM3,000
B RM5,OOO
C RM10,000
D RM12,000
A not allowed.
B allowed after a certain period.
C allowed after the premium is fully paid.
D allowed when the investor becomes invalid.
22. A liquid instrument which carries little or no risk of losing the principal amount is
known as
A I and II
B I and IV
C II and III
D III and IV
A I and III
S I and IV
C II and III
o II and IV
are linked to the performance of the investment fund managed by the life
office.
II fluctuate according to the rise and fall of market prices.
III are not guaranteed.
IV are assured.
A I and III
S III and IV
C I, II and III
o I, III and IV
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a The Certificate Examination in Investment-Linked Life Insurance
28. What distinguishes investment-linked insurance policies from unit trust products?
30. At which price does the policyholder buy the units in an investment-linked life
insurance policy?
31. Which type of policy does NOT have the surrender benefit?
A Potential products
B Potential customers
C The future of the agent
o Percentage of closing a deal
A Property pricing.
B The level of available funds.
C Fluctuations in the share market.
o The availability of management advice.
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S The Certificate Examination in Investment-Linked Life Insurance
35. How can an ordinary investor gain access to well diversified investment-linked
funds managed by professional investment managers with proven track records?
A sales report.
B marketing plan.
e sales presentation.
o purchase presentation.
37. What are the factors involved in the customer's shopping around for a suitable
product to meet his needs?
A I and IV
B II and III
e L III and IV
o II, III and IV
38. Why is the personal delivery of a policy regarded as an important aspect of providing
after-sales service?
A I, II and III
B I, III and IV
C II, III and IV
o I. II, III and IV
I Safety
II Taxation treatment
III Growth (capital gains)
IV Income (steady stream of income)
A I and II
B I, II and III
C I. III and IV
o II, III and IV
A takaful companies.
B composite insurers.
C Bank Negara Malaysia.
o Syarikat Takaful Malaysia Sdn. Bhd.
41. What is the main DISADVANTAGE of property funds compared to equity funds?
A 1 January 2008.
B 1 January 2009.
C 1 February 2009.
D 1 October 2009.
44. What is the difference between endowment assurance and whole life assurance?
A There is no difference.
B Whole life policies only pay upon the death of the insured.
C Endowment assurance usually has a shorter term and an early maturity date.
D Whole life policies pay upon the policyowner's retirement from employment.
A I only
B I and II
C II and III
D I, II and III
46. Which funds are at the top end of the risk-return graph?
A Cash funds
B Equity funds
C Balanced funds
D Managed funds
A cash bonus
B terminal bonus
C survival benefit
D reversionary bonus
48. With regard to Bank Negara Malaysia's circular JP: 1/1997, what factors must be
taken into account to measure a licensed insurer's margin of solvency?
A I, II and III
B I, II and IV
C II. III and IV
D I, II, III and IV
A temporary assurance.
B investment-linked life insurance.
C non-participating whole life insurance.
D non-participating endowment insurance.
50. The principal legal document regulating income tax in Malaysia is the
51. The premium relief is allowable when the is on the life of the spouse of
the individual.
I life insurance
II deferred annuity
III general insurance
A I only
B II only
C I and II
D II and III
A nominee
B assignee
C life assured
D policy owner
A 14
B ~
C 21
D 30
54. If a policyholder buys units on the dual pricing basis, how many units can he get by
paying RM1 0,000 for a unit priced RM2?
A 5,000 units
B 6,000 units
C 8,000 units
D 10,000 units
56. must be done if there is a major change that might have happened
to the clients' investment account.
A A regular review
B An ad hoc review
C An emergency review
D An accidental review
57. The customer fact find form contains the following information, EXCEPT:
A medical history.
B cash flow analysis.
C customer's risk profile.
D life and financial priorities and goals.
A II and III
B I, II and III
C II, III and IV
D I, II, III and IV
59. When marketing investment-linked life insurance products, which of the following are
the final step in a structured approach?
A Twisting
B Switching
C Withdrawal
D Money laundering