QFA Life Assurance (LIA/IOB, Ireland)

Under the Central Bank of Ireland's Minimum Competency Code, what is the minimum annual continuing professional development (CPD) hours requirement for an individual holding the QFA designation?

• A10 hours, with at least 1 hour in each category of retail financial product
• B15 hours, with at least 1 hour in each product category for which they are accredited
• C20 hours, with a minimum of 5 hours dedicated to ethics and regulation
• D30 hours, divided equally among all financial service categories

A client wishes to take out a life assurance policy on their business partner to cover the potential financial loss of their partner's death. For this contract to be legally valid in Ireland, when must insurable interest exist?

• AOnly at the inception of the contract
• BOnly at the time of the claim (death of the life assured)
• CBoth at inception and continuously throughout the term of the policy
• DBoth at inception and at the time of the claim

Which of the following describes the principle of utmost good faith (uberrimae fidei) under the Consumer Insurance Contracts Act 2019 in Ireland?

• AThe consumer must volunteer every fact they think might be relevant, even if not asked
• BThe insurer has no duty of disclosure and can rely entirely on the consumer's self-declar…
• CThe consumer's duty is to answer all questions asked by the insurer honestly and with rea…
• DThe consumer must undergo a medical examination to confirm all statements made in the pro…

A company takes out a keyman life assurance policy on its managing director. The premiums are paid by the company, and the company is the sole beneficiary. What is the tax treatment of the premiums and the policy proceeds on death in Ireland?

• APremiums are tax-deductible for the company, and proceeds are subject to corporation tax
• BPremiums are not tax-deductible, and proceeds are paid tax-free to the company
• CPremiums are tax-deductible only if proceeds are used to pay a dividend, and proceeds are…
• DPremiums are not tax-deductible, but proceeds are subject to Capital Acquisitions Tax (CA…

What is the primary purpose of a Section 72 life assurance policy in Ireland?

• ATo provide a tax-free savings vehicle for first-time buyers' deposits
• BTo fund the inheritance tax liability of the policyholder's beneficiaries without incurri…
• CTo pay off a residential mortgage in the event of the policyholder's death
• DTo provide tax-relieved retirement income for directors of proprietary companies

A client establishes a Section 73 savings policy to fund a future gift tax liability for their child. For the policy proceeds to be exempt from Capital Acquisitions Tax (CAT) when paying the gift tax, what is the minimum duration the policy must be active before a claim is made?

• A3 years
• B5 years
• C8 years
• D10 years

Under the Succession Act 1965, if a deceased person dies intestate (without a will) leaving a surviving spouse and three children, how is their estate divided?

• AThe spouse receives the entire estate
• BThe spouse receives two-thirds of the estate, and the remaining one-third is divided equa…
• CThe spouse receives one-half of the estate, and the remaining one-half is divided equally…
• DThe estate is divided equally among the spouse and all three children

Under the Succession Act 1965, if a deceased person dies leaving a will, a surviving spouse, and children, what is the 'legal right share' that the surviving spouse is entitled to claim?

• AOne-third of the estate
• BOne-half of the estate
• CTwo-thirds of the estate
• DNone, as the will overrides all spouse entitlements

Under the Succession Act 1965, if a deceased person dies leaving a will, a surviving spouse, but no children, what is the 'legal right share' that the surviving spouse is entitled to claim?

• AOne-third of the estate
• BOne-half of the estate
• CTwo-thirds of the estate
• DThe entire estate

If a person dies intestate in Ireland leaving no surviving spouse/civil partner, but leaving three surviving children, how is their estate distributed under the Succession Act 1965?

• AThe entire estate goes to the State (ESB)
• BThe entire estate is divided equally among the three children
• CThe estate is divided among the children and the parents of the deceased
• DThe estate is divided equally among the children and siblings of the deceased

What is the standard exit tax rate applied to growth and income on life assurance policies (such as unit-linked investment bonds) held by individuals in Ireland?

• A20%
• B33%
• C40%
• D41%

What is the effect of the 'deemed disposal' rule on unit-linked life assurance investment policies in Ireland?

• AThe policy must be surrendered after 5 years, and a new policy started
• BThe policy is taxed on its growth every 8 years, even if it is not surrendered
• CThe life office automatically switches the client's funds to cash every 8 years to protec…
• DThe client must sell 10% of their units annually to pay the ongoing fund management fee

An individual wishes to claim tax relief on premiums paid for an Income Protection policy (Permanent Health Insurance). What is the maximum percentage of their relevant earnings on which they can claim tax relief?

• A10%
• B15%
• C20%
• D30%

How are the claim benefits paid under a private Income Protection (Permanent Health Insurance) policy taxed in Ireland when received by the individual?

• AThey are paid entirely tax-free
• BThey are subject to exit tax at a flat rate of 41%
• CThey are treated as earned income and subject to PAYE, PRSI, and USC
• DThey are subject to Capital Acquisitions Tax (CAT) as a gift from the insurer

How are the lump sum benefits paid under a Serious Illness (Critical Illness) insurance policy taxed in Ireland when paid to an individual who is the policy owner?

• AThey are subject to Capital Gains Tax (CGT) at 33%
• BThey are subject to exit tax at 41%
• CThey are treated as earned income and taxed under PAYE
• DThey are completely free of income tax, CGT, and CAT

A self-employed client wants to take out life cover and obtain tax relief at their marginal rate on the premiums. Which product is most suitable for this client?

• ALevel Term Assurance
• BPension Term Assurance (also known as Section 785 cover)
• CConvertible Term Assurance
• DWhole of Life Assurance

Under a 'Joint Life First Death' term assurance policy, when is the sum assured paid by the life office?

• AUpon the death of the first of the two lives assured, after which the policy terminates
• BUpon the death of the second of the two lives assured, with no payment on the first death
• COne-half is paid on the first death, and the remaining half is paid on the second death
• DThe full sum assured is paid on both deaths, meaning two full payouts are possible

What is the primary advantage of adding a 'Conversion Option' to a Term Assurance policy in Ireland?

• AIt automatically converts the policy to a pension when the policyholder reaches age 65
• BIt allows the policyholder to extend the cover or start a new policy at the end of the te…
• CIt converts the policy from a death benefit to a serious illness benefit if the policyhol…
• DIt exempts the policyholder from paying exit tax on any investment growth within the poli…

Why would an adviser recommend 'indexation' on a life assurance protection policy?

• ATo link the policy benefits to the performance of the Irish stock market index
• BTo increase both the sum assured and the premium annually to prevent inflation from erodi…
• CTo ensure that the policy qualifies for Section 72 tax-exempt status
• DTo allow the client to switch between unit-linked funds without tax penalty

What is the key difference between a Dual Life policy and a Joint Life policy?

• ADual Life covers two people and can pay out twice, whereas Joint Life covers two people b…
• BDual Life is an investment policy, while Joint Life is purely a protection policy
• CDual Life qualifies for tax relief on premiums, whereas Joint Life does not
• DDual Life requires medical underwriting for only one of the lives, whereas Joint Life req…

A bank requires a client to take out life assurance to cover a home loan. What type of term assurance policy is specifically designed to reduce in line with the outstanding balance of a capital and interest mortgage?

• ALevel Term Assurance
• BDecreasing Term Assurance (Mortgage Protection)
• CIncreasing Term Assurance
• DWhole of Life Assurance

A client is considering a 'Reviewable Whole of Life' policy. What is the risk associated with this type of policy compared to a 'Guaranteed Whole of Life' policy?

• AThe death benefit is not paid if the policyholder outlives the term
• BThe insurer can review the policy and increase the premiums significantly after a set per…
• CThe policy proceeds will become subject to income tax rather than being tax-free
• DThe policyholder is locked into a fixed fund choice with no option to switch

Under a 'Life of Another' policy, Person A takes out a policy on the life of Person B and pays the premiums. On the death of Person B, the proceeds are paid to Person A. What are the Capital Acquisitions Tax (CAT) implications for Person A in Ireland?

• AThe proceeds are completely exempt from CAT
• BThe proceeds are subject to CAT if Person A and Person B are not married or in a civil pa…
• CThe proceeds are subject to income tax first, and then CAT
• DCAT is only payable if the sum assured exceeds €1,000,000

When a life assurance policy is assigned 'absolutely' to a bank, what does this mean for the policyholder?

• AThe policyholder retains ownership but must get the bank's permission to make claims
• BThe policyholder transfers full legal ownership of the policy to the bank, and it cannot…
• CThe bank becomes the owner of the policy, but the policyholder can reclaim ownership once…
• DThe bank pays the premiums on behalf of the policyholder

A term assurance policy has lapsed because the policyholder missed premium payments. What does a typical 'Reinstatement Clause' allow the policyholder to do?

• AStart a new policy at standard rates, ignoring any changes in their health
• BRestore the original policy within a specified timeframe (e.g., 6 months) by paying outst…
• CReceive a refund of all premiums paid since the policy started
• DConvert the policy to a savings plan with no loss of value

Under the Central Bank of Ireland's Consumer Protection Code, what is the mandatory cooling-off period during which a consumer can cancel a life assurance policy without penalty?

• A14 days from policy inception
• B30 days from the date they are notified that the policy has been issued
• C15 days from the date the proposal form was signed
• D45 days from the date of the first premium payment

Before recommending a life assurance policy, the Consumer Protection Code requires an intermediary to carry out a suitability assessment. This process includes gathering information about the client. How is this document commonly referred to?

• ATerms of Business
• BFactfind
• CSuitability Statement
• DPolicy Schedule

Under the Consumer Protection Code, when must an adviser provide the client with a written Statement of Suitability?

• AAt least 10 days before the first premium is due
• BPrior to the signing of the proposal form or application for the product
• CWithin 14 days after the policy document has been issued by the insurer
• DOnly if the client explicitly requests it in writing

An individual is unable to work due to long-term illness. What state benefit might they receive in Ireland, and how does it compare to a private Income Protection policy?

• AState Illness Benefit, which is paid indefinitely regardless of how long they are sick
• BState Illness Benefit, which is a flat rate paid for a maximum of 2 years, whereas privat…
• CState Invalidity Pension, which is paid automatically from day one of sickness
• DState Jobseeker's Allowance, which requires them to be actively seeking work

What is a 'Deferred Period' in an Income Protection (Permanent Health Insurance) policy?

• AThe period at the start of the policy during which no claims can be made for any reason
• BThe time between the start of an illness or disability and when the policy begins paying…
• CThe period of time after a claim ends before the client can resume paying premiums
• DThe period during which the insurer can review and increase the premium rates

An adviser is explaining the difference between 'Own Occupation' and 'Any Occupation' definition of disability under an Income Protection policy. Which statement is correct?

• AOwn Occupation is cheaper because it only pays if the client cannot do any work whatsoever
• BOwn Occupation pays out if the client is unable to perform the duties of their specific j…
• CAny Occupation pays out if the client cannot do their specific job, regardless of their e…
• DAny Occupation is the industry standard for high-earning professionals like surgeons

Under a private Income Protection policy in Ireland, how is the 'Proportional Benefit' calculated if a claimant returns to work in a reduced capacity (part-time or lower salary) due to their illness?

• ANo benefit is paid once the client returns to work in any capacity
• BThe full benefit continues to be paid for up to 6 months after returning to work
• CA reduced benefit is paid, calculated as the proportion of the drop in earnings compared…
• DThe benefit is halved regardless of the client's new part-time salary

What is the maximum limit on the total benefit (including any state benefits) that an individual can receive under an Income Protection policy in Ireland?

• A50% of pre-disability earnings
• B75% of pre-disability earnings
• C100% of pre-disability earnings
• DThere is no limit; they can receive whatever sum assured they chose at inception

What does the 'Escalation of Benefit' feature do on an Income Protection policy during a claim?

• AIt increases the premiums annually while a claim is being paid
• BIt increases the weekly benefit payments annually during a claim to help protect the inco…
• CIt extends the policy term automatically if the client is disabled for more than 5 years
• DIt pays a double lump sum if the client is diagnosed with a terminal illness

Under the Consumer Insurance Contracts Act 2019, if a consumer makes a non-disclosure that is deemed 'negligent' (but not fraudulent), how is the insurer permitted to respond to a claim?

• AThe insurer must pay the claim in full and cannot cancel the contract
• BThe insurer can void the contract entirely and refund none of the premiums
• CThe insurer can reduce the claim payment proportionally based on what premium would have…
• DThe insurer must refer the case to the Central Bank of Ireland to decide the penalty

A life assurance underwriter requests a 'Private Medical Attendant's Report' (PMA) during the underwriting of a life policy. What is a PMA?

• AA medical report completed by a doctor appointed by the insurance company who examines th…
• BA questionnaire completed by the client's own GP based on the client's medical history fi…
• CA credit history report obtained from the Irish Credit Bureau
• DA declaration of good health signed by the client's employer

Why might a life office underwriter request 'Financial Underwriting' for an application for a very high sum assured?

• ATo ensure the client has no outstanding credit card debt
• BTo confirm that the client is not hiding assets from the Revenue Commissioners
• CTo verify that the level of cover applied for is reasonable in relation to the client's f…
• DTo check if the client can afford the fund management fees on the policy

What does it mean if an underwriter applies a 'Premium Loading' to a life assurance policy?

• AThe premium is reduced because the client is in exceptionally good health
• BThe standard premium is increased to reflect the client's higher risk due to medical hist…
• CThe policyholder pays a lump sum charge at the start of the policy to cover commissions
• DThe premium is increased annually in line with the Consumer Price Index

A typical life assurance policy in Ireland contains a standard 'Suicide Clause'. How does this clause generally operate?

• ASuicide is excluded from cover for the entire duration of the policy
• BThe sum assured is paid out only if the suicide occurs after the policy has been active f…
• CThe claim is paid but only to the estate of the deceased, not named beneficiaries
• DThe insurer only pays out if the policyholder was clinically diagnosed with depression pr…

What key legal documents must be submitted to a life office to process a death claim on a policy owned solely by the deceased?

• AOnly the original policy document and a GP's death report
• BThe death certificate, the original policy document, and the Grant of Probate or Letters…
• CThe deceased's will and their birth certificate
• DA statutory declaration from the executor and a Revenue tax clearance cert

Most Serious Illness policies in Ireland require a 'Survival Period' after diagnosis. What is the standard duration of this survival period?

• A7 days
• B14 days
• C30 days
• D90 days

Under the Capital Acquisitions Tax (CAT) rules in Ireland, into which tax-free threshold group does a child inheriting from their parent fall?

• AGroup A
• BGroup B
• CGroup C
• DSpousal Group (exempt)

Under Irish CAT legislation, how are cohabiting couples (unmarried couples living together) treated for inheritance tax purposes upon the death of one partner?

• AThey are treated exactly like married couples and are fully exempt
• BThey fall under Group B, enjoying a moderate tax-free threshold
• CThey are treated as strangers in blood, falling under Group C with the lowest tax-free th…
• DThey are taxed at a reduced rate of 20% on all inheritances

What is the primary benefit of writing a life assurance policy in trust under the Married Women's Property Act 1882 in Ireland?

• AThe policy premiums automatically qualify for tax relief at the marginal rate
• BThe policy proceeds are paid directly to the trustees for the beneficiaries, bypassing th…
• CThe policy is exempt from medical underwriting
• DThe proceeds are guaranteed to be exempt from exit tax

To ensure that a Section 72 policy remains exempt from Capital Acquisitions Tax (CAT), what trust structure must be used?

• AIt must be written in an absolute or discretionary trust for the benefit of the beneficia…
• BIt must be held in a corporate trust owned by the policyholder's employer
• CIt must be held directly by the Revenue Commissioners as trustees
• DIt must be structured as a bare trust with the policyholder as the sole beneficiary