Question 1
Which life insurance product provides a lump sum on death within a fixed term but pays nothing if the policyholder survives to the end of the term?
Correct Answer:
Term assurance
Question 2
Under a unit-linked life insurance contract, the principal investment risk on the unit fund is borne primarily by whom?
Correct Answer:
The policyholder
Question 3
Which feature most clearly distinguishes a with-profits contract from a conventional without-profits contract?
Correct Answer:
Participation in the surplus of the fund via bonuses
Question 4
An index-linked life insurance contract is one whose benefits are linked to:
Correct Answer:
A published price or salary index
Question 5
Which of the following is a guarantee commonly offered on a conventional with-profits endowment?
Correct Answer:
A guaranteed basic sum assured plus attaching bonuses payable at maturity
Question 1
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About this Exam

Prepare with the IAI SP2 Practice Questions - IAI Subject SP2 Life Insurance Principles Exam practice quiz. This question bank includes 100 questions covering life, insurer, risk, contract, and insurance. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IAI SP2 Practice Questions - IAI Subject SP2 Life Insurance Principles Exam

This practice set contains 100 questions from the matching question bank and focuses on life, insurer, risk, contract, and insurance. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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