CMFAS M9 – Life Insurance and Investment-Linked Policies Free Sample Paper: Life Insurance Principles and Products Topic Preview

Q: Are these CMFAS M9 – Life Insurance and Investment-Linked Policies questions based on the current examinable source?

Yes. They are checked against the course's recorded current examinable source and official SCI exam information. The full course page records the source version and any announced transition date.

Q: How similar is this sample paper to the real CMFAS M9 – Life Insurance and Investment-Linked Policies exam?

These questions preview the practice style available in the course, but they cover only Life Insurance Principles and Products. This is not a full mock exam and the result cannot measure your overall exam readiness.

Q: What does my CMFAS M9 – Life Insurance and Investment-Linked Policies topic-preview score mean?

It reflects only your answers to 15 questions from Life Insurance Principles and Products. Other syllabus areas are not tested here, so the score is not a pass or fail result and should not be used to predict your official exam performance.

Q: Can I retake this free topic preview?

Yes. You can retake these 15 questions, but repeated attempts cover the same topic. The full course unlocks all 500 practice questions and broader mock-exam practice.

Question 1

Which CMFAS M9 term precisely matches this definition? A person of legal age, without mental or other incapacity, is legally competent to enter into a contract. Such a person is said to have contractual capacity.

Accepted Answer

Capacity To Contract

Answer

Minors

Answer

Drunken Persons

Answer

Insurable Interest

Question 2

Which CMFAS M9 term precisely matches this definition? To apply for a life insurance policy, the proposer (also known as the applicant) must complete a life insurance proposal form (some insurers refer to it as the “application form”).

Accepted Answer

Life Insurance Proposal Form

Answer

Contents Of A Proposal Form

Answer

Purpose Of Underwriting

Answer

Other Sources Of Underwriting Information

Question 3

Which CMFAS M9 term precisely matches this definition? Group insurance covers a group of people under one master policy. Typically, a group insurance policy is bought by an organisation such as an employer for the benefit of its individual employees. The insurer issues the master policy contract to the organisation. Thus, the organisation becomes the policy owner. The individual employee does not have a policy…

Accepted Answer

Group Insurance

Answer

Trust Nomination

Answer

Policy types eligible for statutory nomination

Answer

Nomination eligibility — accident and health policy with death benefits

Question 4

Which CMFAS M9 term precisely matches this definition? Is the amount guaranteed to be paid out to the beneficiaries if the life insured dies within the policy term. There will also be guaranteed cash values that will be paid on surrender.

Accepted Answer

Guaranteed benefit

Answer

Non-guaranteed benefits

Answer

Terminal Bonus

Answer

Interim Bonus

Question 5

Which CMFAS M9 term precisely matches this definition? For example, a breadwinner may transfer his risk of premature death or disability to the insurer by paying a small, predictable amount of premium to the insurer.

Accepted Answer

Dealing with risk • Transferring the risk

Answer

Personal risks that can be insured

Answer

Applicant of a life insurance policy

Answer

Life insured of a life insurance policy

Question 6

Which CMFAS M9 term precisely matches this definition? A life insurance policy is a contract which the insurer promises to pay a benefit upon the death of the person who is insured. As such, life insurance provides financial protection against the economic loss caused by the premature death of the person being insured. This benefit is commonly known as Death Benefit. The insurer will pay a lump sum payment of…

Accepted Answer

Life insurance policy

Answer

Applicant of a life insurance policy

Answer

Life insured of a life insurance policy

Answer

Third-party policy

Question 7

Which CMFAS M9 term precisely matches this definition? Regular premiums can be paid via any one of the following frequencies: • Monthly; • Quarterly; • Half-yearly; or • Annually.

Accepted Answer

Frequency Of Premium Payment

Answer

Change In Frequency Of Premium Payment

Answer

Conditional Premium Deposit Receipt

Answer

Premium Notice

Question 8

Which CMFAS M9 term precisely matches this definition? When a policy owner makes a revocable nomination, he will continue to retain full rights and ownership over the policy. This means that he can change or revoke a nomination at any time, without needing the written consent of the nominee or nominees. Only death benefits from the policy will be payable to the nominees. All living benefits will be paid to the…

Accepted Answer

Revocable Nomination

Answer

Policy types eligible for statutory nomination

Answer

Nomination eligibility — accident and health policy with death benefits

Answer

Nomination eligibility — DPS policy

Question 9

An adviser is reviewing Waiver. Which statement accurately explains this M9 concept?

Accepted Answer

Waiver is the intentional and voluntary relinquishment (giving up, forgoing) of a known right. It can be based on a written or oral statement that specifically relinquishes a right (express waiver), or it can be implied by misleading conduct (implied waiver).

Answer

Estoppel arises when an insurance professional intentionally or unintentionally creates the impression that a certain fact exists when it does not, and an innocent third party relies on that impression and suffers damage as a result. In this case, the insurer will be estopped (prevented) from denying this fact. For example, if a claims officer indicates by…

Answer

Omission to disclose a material fact inadvertently (unintentionally) or because the party thought it was not material.

Answer

Inaccurate statements regarding a material fact, believing them to be true, or are made without any intention to mislead.

Question 10

An adviser is reviewing Universal Life Insurance in Chapter 3. Which statement accurately explains this M9 concept?

Accepted Answer

Provides flexible death cover, premium and premium payment period.

Answer

Provide retirement income.

Answer

Protects against being unable to perform a specific number of Activities of Daily Living (ADLs) [usually 3 out 6 ADLs].

Answer

Protects against risk of loss of income if a person is disabled.

Question 11

An adviser is reviewing Surrender Benefit. Which statement accurately explains this M9 concept?

Accepted Answer

The policy owner is normally allowed to surrender at any time all the units in the fund at the bid price.

Answer

Return on gross premium is the growth rate of your initial single premium over a period of time, to provide you with the surrender value at the end of the period. The rate is measured on a compound interest rate basis.

Answer

Interest can be viewed as the cost of “renting” money, and is paid by the borrower to the lender. If someone borrows money from a bank, he will have to pay interest on the loan. When he deposits money with a bank, he is actually lending his money to the bank, although he does not usually think of it in this way. In this case, since he is the lender and the…

Answer

It is computed by applying an interest rate to the total of an original principal sum and interest credited to it in earlier time periods.

Question 12

An adviser is reviewing Premium Breakdown. Which statement accurately explains this M9 concept?

Accepted Answer

The amount of the premium used for insurance coverage, other charges and the purchase of units are unbundled and transparent. They are disclosed in the Product Summary and Policy Contract.

Answer

The part of your premiums allocated for the purchase of units will be invested in your chosen investment-linked sub- fund. The sub-fund is invested according to its specified investment objective. The performance of the sub-fund can be tracked through the daily publication of unit prices.

Answer

In a front-end loaded plan, a certain amount of the premiums will be used to help defray the insurer’s expenses, such as distribution and administration costs in the early years. These expenses decrease over time.

Answer

Forward pricing is the most widely used pricing model in the local insurance industry. It basically means that the number of units that are purchased from the underlying investment sub-funds shall be determined by reference to the offer price established on the next valuation date. In essence, it means that the next available offer price after the premium…

Question 13

An adviser is reviewing Health insurance products. Which statement accurately explains this M9 concept?

Accepted Answer

These products are designed to cover hospital expenses, surgical expenses and emergency accident outpatient expenses incurred as a result of accident, sickness or disease commencing or occurring during the period of insurance.

Answer

• Financial protection against premature death. • Financial protection against outliving resources. • Financial protection against ill health and disablement. » Critical illness insurance. » Medical expense insurance. » Hospital cash (income) insurance. » Disability income insurance. » Long-term care insurance. • Financial protection for businesses

Answer

Pooling brings together a large number of exposures of similar risk characteristics, thereby allowing the application of the law of large numbers to predict the frequency (probable number of losses) and severity of losses (probable size of the losses).

Answer

With the increasing number of insured persons, risk and uncertainty will diminish. Thus, the larger the insured group, the more predictable will be the loss experience for the insured group as a whole.

Question 14

An adviser is reviewing Investment-linked Life Insurance policies (ILPs) in Chapter 1. Which statement accurately explains this M9 concept?

Accepted Answer

ILPs provide a combination of protection and investment elements.

Answer

These products are designed to cover hospital expenses, surgical expenses and emergency accident outpatient expenses incurred as a result of accident, sickness or disease commencing or occurring during the period of insurance.

Answer

• Assist in making savings possible. • Provides a safe investment. • Encourages thrift. • Minimises worries and provides peace of mind.

Answer

An insurer accepts the risk of financial loss of a large number of people, but only a small percentage of these people will actually suffer an insured financial loss at any given period.

Question 15

An adviser is reviewing Nomination eligibility — ElderShield supplementary policy. Which statement accurately explains this M9 concept?

Accepted Answer

An ElderShield supplementary policy does not allow a trust nomination but allows a revocable nomination.

Answer

An Integrated Shield Plan does not allow a trust nomination but allows a revocable nomination, although a revocable nomination may have limited practical relevance because medical claims are usually paid to the healthcare provider.

Answer

A trust nomination transfers policy rights to the nominees and restricts later changes, while a revocable nomination lets the policy owner retain control and change or revoke the nomination through the permitted process.

Answer

Under a trust nomination, the nominees receive both living benefits and death benefits. Under a revocable nomination, living benefits remain payable to the policy owner and nominees receive death benefits.

CMFAS M9 – Life Insurance and Investment-Linked Policies Free Sample Paper & Practice Questions

Which CMFAS M9 term precisely matches this definition? A person of legal age, without mental or other incapacity, is legally competent to enter into a contract. Such a person is said to have contractual capacity.

CMFAS M9 – Life Insurance and Investment-Linked Policies

About This Free Sample Paper

Why Use a Question Bank & Mock Exams?

Frequently Asked Questions

Pass on Your First Attempt

CMFAS M9 – Life Insurance and Investment-Linked Policies Free Sample Paper & Practice Questions

Which CMFAS M9 term precisely matches this definition? A person of legal age, without mental or other incapacity, is legally competent to enter into a contract. Such a person is said to have contractual capacity.

CMFAS M9 – Life Insurance and Investment-Linked Policies

Unlock 20% Discount

About This Free Sample Paper

Why Use a Question Bank & Mock Exams?

Frequently Asked Questions

Pass on Your First Attempt

Try Before You Buy