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CEILLI Sample Questions Set 3 ENG PDF
CEILLI Sample Questions Set 3 ENG PDF
1. Choose the combination that best described the features of Government bonds.
A. I & II only
B. I & III only
C. II & IV only
D. I & IV only
A. Ensuring that the fund manager adhere to the provision of the trusts deeds.
B. Acting generally to protect the unit holder.
C. Holding the pool of money and assets in trust on behalf on the investors.
D. Managing the portfolio of investment and administering the buying and selling of shares in the
unit trust itself.
3. Apart from the investment management charges, what other kind of charges do single premium
investment-linked policy charged?
I. Policy Fee
II. Administrative and mortality charges
III. Assurance charges
7. Which of the following funds normally include a provision for the deferment of unit redemption by
the manager, for up to 12 months, except for death?
9. Under an investment-linked life insurance policy, if a policy owner pays a regular payment to the
insurance company, this is normally a ______________.
10. Investment-linked life insurance policy owners may make withdrawals in terms of _________.
11. Which one of the following best describes the policy benefits of investment-linked policies?
12. The administrative fee, insurance charge, fund management fee and the like under an investment-
linked life insurance policy are ______________.
A. Usually guaranteed
B. Not subject to review
C. Subject to change by the life office after written notice is given
D. Always up-front charges
I. The adverse economic conditions, in the last 15 years, have made them be wary of
investments.
II. The fall of many established financial institution in the last few years.
III. The stock market cannot be approached by ordinary people.
IV. Many investors have seen their fortune dwindling due to the financial crisis.
15. Misrepresentation resulting in inducing policy owner to cancel or have his policy made paid-up in
order to purchase a new policy to earn more income for the agent is known as ___________.
A. Switching C. Twisting
B. Replacing D. Changing
16. The offer price under an investment-linked life insurance policy is__________.
A. The price at which units under policy are offered for sale by the life office.
B. The price at which units under policy are bought back by the life office.
C. Also known as the bid price.
D. A fixed amount throughout the life of the policy.
17. The law that govern the other forms of life insurance is regulated by the laws that govern the
business of investment-linked life insurance such as the ________________.
18. The switching facility under investment-linked life insurance policies is very useful for the purpose
of __________________.
19. Under the dual pricing method of single premium policies, _________________.
A. There is only one price quoted whether the policy owner is buying or selling his units.
B. The bid price is always higher than the offer price.
C. The policy owner buys the units at the offer price and sells the units at the bid price.
D. The policy owner buys the unit at the life office’s buying price and sells the units at the life
office’s selling price.
20. The principal legal document regulating income tax in Malaysia is the ________________.
21. Owing to changes in the market environment many insurance companies now sell their product on
a _______________ basis.
A. Sales-oriented C. Market-oriented
B. Hard sales D. Varied product
22. When a consumer becomes aware of a potential opportunity and feels the need for a product to satisfy
his needs, the term used in the consumer buying decision process is known as _____________.
23. The term used in marketing where results are measured against the plan and changes made when
and where necessary is known as __________________.
A. Planning C. Controlling
B. Sales goal D. Sales strategy
24. Customer Fact Finding Form by an investment-linked life insurance agent should provide answers
to which of the following questions?
26. What must an agent do to ensure the client is given proper advice on investment?
A. Ensure that there is a right combination of objectives and make sure proper risk analysis is
done.
B. Show the wide selection of investment for the client to choose from.
C. Motivate the client to borrow money to invest in guaranteed investment vehicles.
D. Ensure that the advice is advantageous to the agent and the insurance company.
Zurich confidential or proprietary information Version: Jan 2013
Prepared by: Agency Training & Development Page 4
Ceilli Sample Questions (Eng) – Set 3
30. Adam lives in UK. He was impressed by the investment-linked life insurance policy that you
bought when he was down for a holiday in Malaysia. He is now on London and wants to buy a
similar plan. What plan should he say that he wants to buy to his agent?
32. What is the second stage in the process of providing advice to customer?
33. The Takaful Investment-linked Life Insurance Plan was developed due to:
34. What is defined as “the management process responsible for identifying, anticipation and satisfying
customers requirement profitably”?
A. Investment C. Marketing
B. Investment-linked D. Marketing investment
A. The price at which the agent sells the unit linked policy.
B. The price at which the investor sells the units held in the fund.
C. The price at which the life office buys the units in the investment fund.
D. The price at which the agent buys the units in the investment fund.
36. When units are cashed to meet death, maturity or surrenders; these are cashed at the ______.
37. The government has allowed insurance premiums paid as relief to a certain extend because the
government _____________.
A. Feels that by giving this relief, all Malaysians will be able to purchase insurance easily.
B. Is giving this relief to encourage national thrift and promote individual financial independence.
C. Feels that the tax they will collect if the relief is not given is considerably low and insignificant.
D. Is allowing this relief to make sure it is popular.
A. I only
B. I & II only
C. I, II & III only
D. All of the above
41. Customers who have purchased policies from an organization who are sales-oriented, usually
ended buying policies which
42. For the dual pricing method, the number of units that can be purchased is _______.
43. Generally, a market-oriented insurance company should undertake the following functions;
A. I,II,IV only.
B. I,II,III only.
C. I,III,IV only.
D. II,III,VI only.
44. Siva is a very satisfied insurance client. He is happy with his agent and the plans that have been
offered to him. His agent has done a lot for him. Siva will definitely do the following:
I. Speak highly about the level of commitment and service given to him by his agent.
II. Recommend that his agent be given a letter of recommendation and an award from the
company
III. Help him in prospecting and referring his friend to the agent.
IV. Keep his agent a very well guarded secret.
45. What are the stages involved in providing effective advice to investment-linked life insurance
customers?
46. It is one of the methods used by government to borrow money from the public. It is a short-term
funding vehicle issued by Central Bank and it is also the safest type of investment which carries no
risk except the country is politically unstable, it is
47. Which of the following section of the insurance Act 1996 explains the term “investment-linked
insurance business”?
A. 7(1)(b)
B. 71(b)
C. 70(1)(b)
D. 7(2)(b)
A. Investors have to pit in a large initial outlay to establish and expose the shares.
B. On expiry, warrants which are not exercised lose their value completely.
C. Like ordinary shares, there is no chance for price recovery.
D. By selling the warrants given to an investor in the first instance, the investor cannot benefit from
the capital gain.
51. One of the factors that have contributed to the expansion of the investment-linked life insurance
business in Singapore was _______________.
A. The requirement of the Securities Exchange ct 1934 that all insurance agents and agency office
employees dealing in variable life insurance must pass an examination in securities business.
B. The regulations of investment company’s management and operation including that of how the
premiums are going to be invested, financial information of the insurer, chargeable fees and
expenses and rights of policy owners.
C. The introduction of the Enhanced Investment Scheme (EIS) by the Central Provident Fund
(CPF) in 1993.
D. The introduction of the new generation of investment-linked life insurance products, the Hambro
Whole Life in 1997.
52. In respect of investment-linked life insurance funds, the difference between the offer and bid prices
in normal market condition is _________________.
53. Investment-linked funds can be invested in any financial instruments including cash funds, bond
funds, property funds, specialized funds & diversified funds. Equity funds _____________.
A. Invest in stocks & shares and the magnitude of the change in unit prices will depend on the
quantity only of the equities held.
B. Invest in stocks and shares and are inherently of lower risk in nature and the prices of stocks
and shares are stable.
C. Invest in stocks and shares and investor who buy such assets usually aim for capital
appreciation.
D. Invest in stocks and shares and during market recession, such assets are usually the last to
depreciate.
54. Investment-linked funds can be structured into two ways, namely accumulation units and
distribution units. In accumulation units, the investment income of the fund is ____________.
A. Ploughed back into the fund, thus the unit prices will increase over the long term.
B. Ploughed back into the fund, thus the unit prices will decrease over the long term.
C. Used to purchase additional units to be distributed to the policy owner, thus the unit price
remains unchanged but the policy owner gets more units.
D. Used to purchase additional units to be distributed to the policy owner, thus the unit price
decreased and the policy owner gets more units.
I. Accessibility of funds
II. Availability of funds
III. Investment horizon
IV. Investment objectives
56. The benefits of investing in an investment-linked policy are all false EXCEPT:
A. Client is expected to monitor and switch the funds on his own all the time the policy is in force.
B. The burden of fund management is borne by the company’s professional management team
and does not burden the client.
C. Client has the option to instruct the fund managers to follow his investment outlook and
strategies.
D. Client has the option to make decisions on how the company must invest his money totally.
57. Why does Bank Negara require insurer to submit a proposal on investment linked business before
they can be allowed to operate such line of business.
58. The premium system used in the calculation of premium rates in an investment-linked policy is
using a ________________.
59. The formula for the circulation of Return on Gross Premium (RGP) is:
60. In Part II of General Sales Principles of LIAM’s Code of Conduct, intermediate are forbidden to
ANSWERS
1. B 21. C 41. A
2. D 22. C 42. A
3. A 23. C 43. B
4. B 24. B 44. C
5. C 25. C 45. B
6. A 26. A 46. C
7. A 27. A 47. B
8. D 28. C 48. D
9. A 29. C 49. D
10. D 30. D 50. B
11. D 31. B 51. C
12. C 32. C 52. C
13. A 33. B 53. C
14. B 34. C 54. A
15. C 35. D 55. D
16. A 36. B 56. B
17. B 37. B 57. D
18. A 38. A 58. D
19. C 39. C 59. A
20. A 40. D 60. C