IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 111:

  Life insurance policy in which two people are covered on one policy is called:

  A. Mortgage life insurance

  B. Group life insurance

  C. Whole life insurance

  D. Survivors universal insurance

  Correct Answer: D

• Question 112:

  At times when you have more money available, you can pay as if it were a whole life policy and accumulate cash value on a tax deferred basis. It is the advantage of:

  A. Survivorship universal life insurance

  B. Group life insurance

  C. Both A and B

  D. None of these

  Correct Answer: B

• Question 113:

  In variable life insurance the number and type of insurance choice available are dependent on insurer, but some policies are available with a wide variety of separate accounts also known as:

  A. Super accounts

  B. Child accounts

  C. Sub accounts

  D. Special accounts

  Correct Answer: C

• Question 114:

  Some general criticisms on variable life insurance include all EXCEPT:

  A. High cost

  B. Flexible premiums

  C. Limited in investment choices

  D. Investment risk is unknown

  Correct Answer: B

• Question 115:

  Variable life insurance is:

  A. Permanent life insurance

  B. Temporary life insurance

  C. Flexible life insurance

  D. None of these

  Correct Answer: A

• Question 116:

  Theory of life insurance is evolved from:

  A. Need-based analysis

  B. Cost based analysis

  C. Cost and return based analysis

  D. Both Aand B

  Correct Answer: A

• Question 117:

  If investment returns are very poor, this could lead to:

  A. Down in the market share of that particular investment

  B. Policy Lapsing

  C. Stock exchange collapse

  D. Minimum premium

  Correct Answer: B

• Question 118:

  In variable universal life (VUL) policies the maximum premium standard set was:

  A. To define a maximum cash value per death benefit and to define a maximum premium for a given death benefit

  B. To define a minimum cash value per death benefit and to define a moderate premium for a given death benefit

  C. To define a maximum cash value per death benefit and to define a moderate premium for a given death benefit

  D. None of these

  Correct Answer: A

• Question 119:

  Policy holders of whole life insurance use the cash dividends in many ways as:

  A. To lower or vanish premium

  B. To purchase more insurance

  C. To pay more term insurance

  D. All of these

  Correct Answer: D

• Question 120:

  Which premium life insurance is flexible enough under which policy holder may change the death benefit from time to time?

  A. Variable life insurance

  B. Universal life insurance

  C. Term life insurance

  D. Straight life insurance

  Correct Answer: B