Discuss Finra Series-6 Exam Topic 4 Question 9

Which of the following statements regarding variable life insurance policies is false?

APolicyholders have voting rights similar to those of mutual fund investors.

BMost policies have an expense guarantee provision that establishes a firm limit on how much the insurance company can increase administrative charges.

CInsurance companies are required to give variable life policyholders at least 24 months from the date of purchase to switch to a traditional whole life policy without having to prove insurability.

DThe surrender value of a variable life insurance policy will always be less than its cash value.

Suggested Answer: D

The false statement regarding variable life insurance policies is that the surrender value of a variable life insurance policy will always be less than its cash value. The surrender value of a variable life insurance policy is its cash value.

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11 comments · newest first

Alease 1 year ago

Totally agree, A is definitely a fact!

Karma 1 year ago

Wait, D seems off. How can surrender value always be less?

Louis 1 year ago

B sounds right, expense guarantees are common in these policies.

Lorean 1 year ago

I think C is the false one, not sure about that 24-month rule.

Annmarie 1 year ago

A is true, policyholders do have voting rights.

Stephaine 1 year ago

D seems off to me; I thought the surrender value could be equal to or greater than the cash value in some cases.

Cherri 1 year ago

I remember studying that variable life policies do have voting rights, so A might be true.

Clay 1 year ago

I think option C sounds familiar, but I'm not entirely sure if the 24 months is correct.

Gaynell 1 year ago

I feel like I came across a question about expense guarantees before, so B could be the false one.

Frankie 1 year ago

I think the fragmented ICMP packets and the large total size point to a Ping of Death attack. That's where you send oversized ICMP packets that can crash or freeze the target system. I'm pretty confident that's the right answer here.

Lilli 1 year ago

Hmm, I'm a bit unsure about this one. I know the necessary insurance amounts can change due to factors like inflation and business changes, but I'm not totally sure which one is the exception.

Finra Series-6 Exam - Topic 4 Question 9 Discussion