hk-iiqe-paper-5 case studies
hk-iiqe-paper-5 · Put your knowledge to work in context.
The Insurance Intermediaries Qualifying Examination (IIQE) Paper 5, also known as Investment-Linked Long Term Insurance, is a Hong Kong licensing examination for individuals who wish to sell or advise on investment-linked long term insurance (ILAS) products. It is one of several papers set by the Insurance Authority's examination body and is typically required for technical representatives and responsible officers whose scope of regulated activity includes ILAS. The hk-iiqe-paper-5 case studies are 5 cases and about 4,490 words.
1The retiring teacher and the 70% equity allocation
Mr Chan, 58, is a secondary school teacher who plans to retire at 65. He holds HK 2.4 million in time deposits, has no investment experience beyond his MPF default fund, and told the adviser he "cannot afford to lose the principal - it's my retirement money".
957 words, about 5 min2Where did my HK$180,000 go?
Ms Wong, 41, bought a 15-year regular premium ILAS three years ago, paying HK 60,000 a year. The premium allocation schedule is 60% in years 1–3, 80% in years 4–6 and 100% from year 7; unallocated premium is retained by the insurer as an initial charge.
895 words, about 4 min3Six funds, two exposures
Mr Lee, 45, has held a single premium ILAS worth HK 1.6 million for four years. On his adviser's suggestion he selected six funds: Greater China Growth, Asia Pacific Equity, Hong Kong Equity, China Consumption, Asian Bond and Global Emerging Markets.
857 words, about 4 min4The deposit rollover that became a five-year policy
Mrs Cheung, 67, a retired cleaner with HK 850,000 in savings and a monthly pension of HK 6,000, visits her bank branch to roll over a maturing time deposit. A licensed insurance intermediary employed by the bank, who has never met her before, recommends a single premium ILAS of HK$800,000 with 100% premium allocation, invested in a "Stable Income Fund" holding 60% Asian high-yield bonds and 40% Asian equities.
870 words, about 4 min5The premium holiday that changed the guarantee
Mr Tam, 52, has paid HK 48,000 a year for eight years into a 20-year regular premium ILAS. Forty per cent of each premium is allocated to a "Guaranteed Fund" promising 120% of the premiums allocated to it at the end of policy year 15, subject to two conditions in the product brochure: no withdrawals from that fund, and no premium holiday longer than 12 consecutive months.
911 words, about 5 min