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Free Practice Questions for Korea Variable Insurance Sales Qualification (변액보험판매관리사)

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Key Facts: Korea Variable Insurance Sales Qualification (변액보험판매관리사) Exam

40 MCQs / 75 Min

Official examination format (single session)

Korea Life Insurance Association

70 Points / 100

Passing score requirement (28/40 correct)

KLIA Examination Center

KRW 40,000

Official examination registration fee

exam.insure.or.kr

특별계정 (Separate Account)

Legally segregated fund evaluated daily at market value

Insurance Business Act Article 108

자본시장법 & 금소법

Governing investor protection & disclosure statutes

Financial Services Commission

GMDB & GMAB

Statutory minimum guarantees protecting principal and benefits

Life Insurance Association Product Regulations

The Korea Variable Insurance Sales Qualification (변액보험판매관리사) is South Korea's statutory credential administered by the Korea Life Insurance Association (생명보험협회) required to solicit variable insurance contracts. The official exam features 40 items mixing true/false and four-option multiple choice in 60 minutes of testing time (70 minutes for paper-based sittings) with a 70-point pass mark and a KRW 40,000 fee. This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. Independent practice by OpenExamPrep.

Sample Korea Variable Insurance Sales Qualification (변액보험판매관리사) Practice Questions

Try these sample questions to review concepts for the Korea Variable Insurance Sales Qualification (변액보험판매관리사) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In financial market classification (금융시장의 분류), which characteristic fundamentally distinguishes the money market (단기금융시장) from the capital market (자본시장)?
A.The money market deals exclusively in equity securities with indefinite maturities.
B.The money market trades financial instruments with maturities of one year or less to manage short-term liquidity.
C.The money market is organized strictly as a public exchange where retail investors trade long-term corporate bonds.
D.The money market operates with higher credit default risk and greater price volatility than the capital market.
Explanation: The money market (단기금융시장) deals in debt instruments with maturities of one year or less (such as call loans, commercial paper CP, and certificates of deposit CD) to facilitate short-term liquidity management. In contrast, the capital market (자본시장) facilitates long-term corporate and governmental financing through equities and long-term bonds with maturities exceeding one year.
2Which statement accurately describes the core economic function of the primary market (발행시장) as opposed to the secondary market (유통시장)?
A.The primary market facilitates the continuous trading of previously issued securities between investors without raising new capital for issuers.
B.The primary market is where issuers raise new long-term funds by creating and selling newly issued securities to investors.
C.The primary market determines day-to-day market liquidity and fair market value pricing for existing securities.
D.The primary market is exclusively operated by the Korea Exchange (한국거래소) through automated order-matching engines.
Explanation: The primary market (발행시장) is the market where corporations and governments raise new financial capital by issuing new stocks or bonds to investors. The secondary market (유통시장) provides liquidity by enabling investors to buy and sell existing securities among themselves, establishing market pricing without directly providing new funds to the original issuer.
3What is the primary distinction between common stock (보통주) and preferred stock (우선주) under South Korean corporate finance principles?
A.Preferred stock grants voting rights at the annual general shareholders' meeting, whereas common stock carries no voting rights.
B.Preferred stock confers a preferential claim on corporate dividends and liquidation proceeds, typically in exchange for having no voting rights.
C.Common stock guarantees a fixed dividend yield that cannot be changed by the board of directors.
D.Preferred stock holders bear unlimited personal liability for corporate debts upon bankruptcy.
Explanation: Preferred stock (우선주) gives shareholders priority over common shareholders regarding dividend distributions and residual assets upon corporate liquidation. In exchange for this economic preference, preferred stock generally carries no voting rights (의결권) at general meetings of shareholders, unlike common stock (보통주) which holds standard voting rights.
4How is the Price-to-Earnings Ratio (PER / 주가수익비율) defined and interpreted in equity fundamental analysis?
A.Stock Price divided by Book Value per Share (BPS), indicating corporate liquidation value.
B.Stock Price divided by Earnings per Share (EPS), measuring how many multiples of annual net earnings investors are paying per share.
C.Annual Dividend per Share divided by Stock Price, indicating the direct cash dividend return.
D.Total Corporate Debt divided by Total Shareholder Equity, reflecting corporate financial leverage.
Explanation: The Price-to-Earnings Ratio (PER / 주가수익비율) is calculated as the current market stock price divided by Earnings per Share (EPS = 당기순이익 / 총발행주식수). It measures how many times current earnings investors are willing to pay for a share of stock; a lower PER may suggest undervaluation relative to earnings power, while a higher PER reflects strong growth expectations or overvaluation.
5What does a Price-to-Book Ratio (PBR / 주가순자산비율) of less than 1.0 generally indicate about a publicly traded company?
A.The company's market capitalization is lower than its net asset accounting book value (청산가치 이하).
B.The company has generated negative operational cash flows for three consecutive fiscal years.
C.The company's earnings per share exceed its gross annual revenue.
D.The company is legally prohibited from paying cash dividends to shareholders.
Explanation: A Price-to-Book Ratio (PBR / 주가순자산비율) below 1.0 means that the company's total market value (or stock price) is lower than its net accounting book value (Book Value per Share / 주당순자산). Theoretically, this implies the market is pricing the firm at less than its net asset liquidation value, often highlighting undervaluation or market skepticism about future return on equity (ROE).
6Which financial metric measures the percentage of corporate net profits paid out to shareholders as cash dividends?
A.Dividend Payout Ratio (배당성향)
B.Dividend Yield (배당수익률)
C.Retention Ratio (사내유보율)
D.Return on Invested Capital (투하자본이익률)
Explanation: The Dividend Payout Ratio (배당성향) is calculated as Total Cash Dividends divided by Net Income (or Dividend per Share divided by EPS). It indicates the proportion of net earnings distributed directly to shareholders rather than retained within the corporation. Dividend Yield (배당수익률), by contrast, compares the dividend per share to the current market stock price.
7What is the contractual term for the stated interest rate printed on a bond certificate that determines the periodic interest payment?
A.Coupon Rate (표면이율)
B.Yield to Maturity (만기수익률)
C.Effective Annual Yield (실효수익률)
D.Real Interest Rate (실질금리)
Explanation: The Coupon Rate (표면이율 / 액면이자율) is the fixed annual interest rate specified on the bond contract. Multiplying the coupon rate by the bond's par value (액면금액) determines the periodic cash interest payment due to the bondholder, regardless of fluctuations in secondary market interest rates.
8How does a discount bond (할인채) generate investment return for an investor?
A.By paying quarterly variable interest coupons linked to KORIBOR.
B.By being issued below its par value and redeemed at full face value at maturity without intermediate coupons.
C.By reinvesting periodic coupons at a compound interest rate paid out in a lump sum at maturity.
D.By granting the holder the right to convert the bond into common stock at a discounted exercise price.
Explanation: A discount bond (할인채 / zero-coupon bond) does not pay periodic cash coupons. Instead, it is issued at a discounted price below its par value (액면가) and pays the full par value at maturity; the difference between the purchase price and redemption par value represents the investor's interest earnings.
9In South Korea's short-term money market (단기금융시장), what is a Certificate of Deposit (CD / 양도성예금증서)?
A.A negotiable bearer deposit certificate issued by commercial banks that can be freely traded in the secondary money market.
B.An unsecured short-term promissory note issued by top-tier non-financial corporations to fund working capital.
C.An ultra-short-term interbank loan with a standard maturity of one business day used for reserve balancing.
D.A government debt obligation issued by the Ministry of Economy and Finance with a 10-year maturity.
Explanation: A Certificate of Deposit (CD / 양도성예금증서) is a negotiable, transferable time-deposit certificate issued by commercial banks, typically with maturities of 91 to 180 days. Because it is issued in bearer form and can be freely transferred in secondary markets, it serves as a prominent benchmark short-term money market instrument in South Korea.
10Under the Capital Markets Act (자본시장법), how is the Base Price (기준가격) of an investment trust fund conventionally expressed and calculated in South Korea?
A.Net Asset Value (NAV) divided by total units, multiplied by 1,000 (KRW per 1,000 units).
B.Gross Asset Value multiplied by the annual management fee percentage.
C.Total paid-in capital divided by total outstanding shares without mark-to-market valuation.
D.Face value of underlying bonds divided by the KOSPI index closing level.
Explanation: In South Korea's fund industry governed by the Capital Markets Act (자본시장법), fund unit prices are expressed as the Base Price (기준가격) per 1,000 units. It is calculated daily as: Base Price = (Fund Net Asset Value / Total Outstanding Units) × 1,000, where Net Asset Value (NAV / 순자산총액) equals total fund assets evaluated at market value minus total fund liabilities.

About the Korea Variable Insurance Sales Qualification (변액보험판매관리사) Exam

The Korea Variable Insurance Sales Qualification (official examination name: 변액보험 판매자격시험; the credential is commonly called 변액보험판매관리사) is administered by the Korea Life Insurance Association (생명보험협회 / KLIA / exam.insure.or.kr). Mandated under the Insurance Business Act (보험업법) and the Capital Markets Act (자본시장법), this credential is legally required for any insurance solicitor, financial planner, bancassurance specialist, or general agency consultant seeking to market, advise on, or solicit variable life insurance contracts in South Korea. The examination rigorously tests candidates on macro financial markets, equity and bond valuation, duration, fund structures, variable product mechanics including Variable Whole Life (변액종신보험), Variable Annuity (변액연금보험), and Variable Universal (변액유니버설보험), separate account management (특별계정), guarantee charges (GMDB, GMAB), premium deduction mechanics, tax-exempt requirements, and investor protection standards under the Financial Consumer Protection Act (금융소비자보호법). This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. Independent practice by OpenExamPrep.

Exam sponsor: Korea Life Insurance Association (생명보험협회 / KLIA / exam.insure.or.kr). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Single 75-minute testing session containing 40 four-option multiple-choice items structured across Financial Markets & Investment Products (금융상품의 이해), Variable Insurance Product Structure & Mechanics (변액보험의 이해), Life Insurance Basics & Tax Framework (생명보험의 기초 및 세제), and Sales Ethics & Investor Protection (모집종사자 윤리 및 투자자보호).

Time Limit

60 minutes of testing time (70 minutes for paper-based sittings)

Passing Score

At least 70 points out of 100 across the 40 items (item weightings are set by the Association and are not uniform, so the pass mark is a points total rather than a fixed number of correct answers)

Exam / Certification Fees

KRW 40,000

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

35%

Subject 1: Financial Markets & Investment Products (금융상품의 이해 - 주식, 채권, 파생상품, 금융시장 메커니즘, 펀드 구조, 듀레이션)

Covers financial market classification (money vs capital markets, primary vs secondary markets), equity fundamentals (common vs preferred stock, stock valuation metrics PER, PBR, dividend yield), fixed-income instruments (bond pricing, yield-to-maturity, duration, modified duration, Malkiel's bond pricing theorems), derivative instruments (futures, options, call/put parity, swaps, hedging principles), and collective investment vehicles (fund classification, net asset value NAV calculation, and unit pricing mechanics under the Capital Markets Act 자본시장법).

35%

Subject 2: Variable Insurance Product Structure & Mechanics (변액보험의 이해 - 변액종신, 변액연금, 변액유니버설, 특별계정 펀드 운용, GMDB/GMAB 보증비용, 사업비 구조)

Examines legal characteristics of variable life contracts, operational segregation between the general account (일반계정) and separate account (특별계정), principle of self-responsibility (자기책임의 원칙), Variable Whole Life (변액종신보험) variable death benefit mechanics, Variable Annuity (변액연금보험) phase 1 accumulation and phase 2 payout, Variable Universal (변액유니버설보험) flexible premium payment, partial withdrawals, additional premiums, minimum guarantee mechanisms (GMDB, GMAB, GMWB, GMIB) and guarantee fees, expense deduction structures (contract acquisition, maintenance, risk premium, asset management fee), and separate account fund switching rules.

15%

Subject 3: Life Insurance Basics & Tax Framework (생명보험의 기초이론, 보험계약 약관구조, 변액보험 비과세 세제요건, 중도인출)

Tests mathematical and economic foundations of life insurance (law of large numbers 대수의 법칙, principle of equivalence of receipts and disbursements 수지상등의 원칙, principle of equivalence between benefits and counter-benefits), policy contract terms (cooling-off period 청약철회, quality guarantee contract cancellation 품질보증제도, policy lapse and reinstatement 부활), income tax treatment of insurance gains (보험차익 비과세 요건: 10-year holding period, 5-year equal payment installment KRW 1.5M/month limit, or KRW 100M lump-sum limit), partial withdrawal tax mechanics, and personal tax credits for protection-type insurance policies.

15%

Subject 4: Sales Ethics & Investor Protection (모집종사자의 직업윤리, 적합성/적정성 원칙, 특별계정 운용공시, 수익률 왜곡 광고 금지, 원금손실 위험 고지)

Focuses on professional ethics and statutory sales compliance under the Insurance Business Act (보험업법) and Financial Consumer Protection Act (금융소비자보호법). Covers the six major sales principles with emphasis on the suitability principle (적합성의 원칙), adequacy principle (적정성의 원칙), and duty of explanation (설명의무), customer risk profile assessment, prohibited unfair solicitation practices (churning 승환계약, unlawful rebates/special benefits 특별이익 제공), mandatory principal loss warnings, return disclosure regulations (prohibition of misleading return advertising, maximum illustration yield caps, warning against projecting past returns), separate account quarterly reports, and Deposit Protection Act (예금자보호법) coverage distinctions.

Preparing for the Korea Variable Insurance Sales Qualification (변액보험판매관리사) Exam

What You Need to Know

  • Passing score: At least 70 points out of 100 across the 40 items (item weightings are set by the Association and are not uniform, so the pass mark is a points total rather than a fixed number of correct answers)
  • Assessment: Single 75-minute testing session containing 40 four-option multiple-choice items structured across Financial Markets & Investment Products (금융상품의 이해), Variable Insurance Product Structure & Mechanics (변액보험의 이해), Life Insurance Basics & Tax Framework (생명보험의 기초 및 세제), and Sales Ethics & Investor Protection (모집종사자 윤리 및 투자자보호).
  • Time limit: 60 minutes of testing time (70 minutes for paper-based sittings)
  • Exam / certification fees: KRW 40,000 Official sources

Using Our Practice Resources

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Korea Variable Insurance Sales Qualification (변액보험판매관리사): Suggested Study Strategy

1Master Separate vs. General Account Segregation (특별계정과 일반계정의 구분): Memorize that separate account assets are legally ring-fenced from the insurer's insolvency risks, evaluated daily at market value (시가평가), and pass investment performance directly to policyholders, while guarantee reserves (GMDB, GMAB) are managed in the general account.
2Understand Minimum Guarantee Types & Acronyms: Distinguish GMDB (Guaranteed Minimum Death Benefit - 최저사망보험금 보증), GMAB (Guaranteed Minimum Accumulation Benefit - 최저연금적립금 보증), GMWB (Guaranteed Minimum Withdrawal Benefit - 최저중도인출금 보증), and GMIB (Guaranteed Minimum Income Benefit - 최저연금액 보증). Know that GMDB applies to Variable Whole Life and Variable Annuities, whereas GMAB applies exclusively to Variable Annuities at the end of the accumulation phase.
3Differentiate Variable Product Mechanics: Variable Whole Life (변액종신보험) calculates variable death benefits (변동사망보험금) on a monthly basis (일정 주기별 계산) using the net single premium method or level addition method, whereas cash surrender value (해약환급금) is calculated daily. In Variable Universal Insurance (변액유니버설보험), partial withdrawals reduce both cash value and basic death benefit, while monthly risk premiums are deducted via monthly deductions (월대체보험료).
4Calculate Net Asset Value & Units (기준가격 및 좌수 계산): Remember that Fund Base Price (기준가격) is calculated as (Net Asset Value of the Fund / Total Units) x 1,000. When new premium enters the separate account, new units are purchased at the prevailing day's base price.
5Memorize Duration & Malkiel's Theorems (듀레이션과 말킬의 채권가격 정리): Bond prices move inversely to interest rates; price sensitivity increases with longer maturity and lower coupon rates; capital gain from an interest rate drop exceeds capital loss from an equal interest rate increase (convexity 볼록성); duration represents the weighted average maturity of cash flows.
6Strictly Apply Investor Protection Mandates (금융소비자보호법 6대 판매원칙): Always adhere to the Suitability Principle (적합성의 원칙) and Adequacy Principle (적정성의 원칙). Solicitations must never guarantee future returns, must warn that past performance does not guarantee future results, must disclose the risk of principal loss (원금손실 위험), and must illustrate projected returns within statutory regulatory caps.

Frequently Asked Questions

What is the Korea Variable Insurance Sales Qualification (변액보험판매관리사) and who requires it?

The Korea Variable Insurance Sales Qualification (변액보험판매관리사) is a statutory professional certification administered by the Korea Life Insurance Association (생명보험협회 / KLIA / exam.insure.or.kr). Under South Korean insurance and financial investment regulations, any registered life insurance solicitor (보험설계사), agency representative (보험대리점), bancassurance specialist, or financial consultant must hold this certification to solicit, market, or advise on variable life insurance products (변액종신보험, 변액연금보험, 변액유니버설보험).

What is the official examination format, time limit, and passing score?

The official examination consists of 40 four-option multiple-choice questions administered in a single 75-minute testing session. To pass, candidates must achieve an overall score of at least 70 points out of 100 (which corresponds to answering at least 28 out of 40 questions correctly). The registration fee is KRW 40,000.

Why are variable insurance products subject to both insurance and securities regulations in South Korea?

Variable insurance policies are hybrid financial instruments combining life insurance mortality protection with investment fund management. The policyholder directs premium allocations into a separate account (특별계정) invested in stocks, bonds, and derivatives, assuming all investment performance risk (자기책임의 원칙). Consequently, variable insurance is governed concurrently by the Insurance Business Act (보험업법) for policy formation and underwriting, and by the Capital Markets Act (자본시장법) and Financial Consumer Protection Act (금융소비자보호법) for investment disclosure, suitability profiling, and investor protection.

How are variable insurance products protected under the Depositor Protection Act (예금자보호법)?

Assets invested in the separate account (특별계정) are based on pass-through investment performance and are legally excluded from protection under the Depositor Protection Act (예금자보호법). However, the minimum guaranteed amounts funded through guarantee fees (such as GMDB 최저사망보험금 보증 and GMAB 최저연금적립금 보증) and traditional non-variable special riders (선택특약) held in the general account (일반계정) are legally protected up to KRW 50 million per depositor across the insurer's protected obligations.

What are the tax exemption requirements for variable insurance policy gains (보험차익 비과세 요건)?

Under South Korea's Income Tax Act, gains from a variable life policy (보험차익 = 만기보험금 또는 해약환급금 - 총납입보험료) are tax-exempt if specific statutory criteria are met: for monthly installment contracts, the contract must be maintained for at least 10 years, premiums paid for at least 5 years on an equal installment basis, and total monthly contributions must not exceed KRW 1.5 million per person. For lump-sum single-premium contracts, the policy must be maintained for at least 10 years with a total premium cap of KRW 100 million across all insurers.

Is this OpenExamPrep question bank an official examination or translation?

No. This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. The official examination is administered exclusively in Korean (ko) by the Korea Life Insurance Association (생명보험협회). OpenExamPrep provides this independent study bank to assist bilingual candidates, financial planners, actuaries, and insurance professionals in mastering the technical Korean terminology, financial mechanics, and regulatory frameworks required for the qualification. Independent practice by OpenExamPrep.