Hk-iiqe-paper-5 Practice Questions - IIQE Paper V - Investment-linked Long Term Insurance Examination Exam

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Compared to traditional whole life insurance, how are investment risks distributed in an Investment-Linked Assurance Scheme (ILAS)?

The insurer bears all the investment risks. The investment risk is borne entirely by the Insurance Authority. The investment risk is primarily borne by the policyholder. The investment risk is shared equally between the insurer and the SFC.

Correct Answer:

The investment risk is primarily borne by the policyholder.

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