hk-iiqe-paper-5 study plan

Define an investment-linked long term insurance (ILAS) policy and distinguish it from traditional whole life and unit trust products by listing at least five structural differences.

Map the lifecycle of an ILAS policy from application, premium payment, allocation to underlying funds, to maturity, surrender or claim, and label each stage with the parties involved.

Explain how the investment risk sits with the policyholder and articulate what that means for guaranteed versus non-guaranteed benefits.

Identify at least six product features commonly found in ILAS offerings, such as premium allocation periods, fund switching, partial withdrawal and death benefit guarantees, and describe the purpose of each.

Break down a specimen ILAS product structure into its building blocks: allocation account, accumulation units, reference units and the investment component.

Explain the role of premium allocation rates and how initial versus renewal allocation periods change the amount actually invested.

Classify the main charge types in an ILAS policy, including premium charges, policy administration fees, fund management fees, surrender charges, and mortality and morbidity charges, and state when each is deducted.

Calculate the net amount invested for a simple two-year premium allocation schedule given a set of stated rates and charges.

Describe at least five categories of underlying funds available under ILAS platforms, such as equity, bond, balanced, money market and guaranteed funds, and state the risk-return profile of each.

Explain how asset allocation across asset classes drives the expected volatility and return of a portfolio, using a simple two-asset example.

Distinguish between accumulation units and reference units and explain how unit pricing, bid-offer spread and valuation timing affect a policyholder.

Interpret a fund fact sheet and extract the fund objective, benchmark, risk indicator, ongoing charges and top holdings without relying on external figures.

Read a specimen policy document structure and locate the sections covering charges, fund options, switching rules, surrender values and cooling-off rights.

Explain how the cooling-off period works for ILAS policies, what refund the policyholder receives, and how market movements during that period affect the refund amount.

Compute an illustrative surrender value at the end of years one, three and five using stated surrender charge scales and a flat assumed fund return.

Describe how partial withdrawals and premium holidays are typically treated and what charges or unit cancellations they trigger.

Outline the Hong Kong regulatory framework applicable to ILAS, naming the key regulators and the principal ordinance and subsidiary legislation that govern insurance intermediaries.

Explain the role of the Insurance Authority in licensing and supervising insurance intermediaries and describe the types of licence relevant to selling ILAS.

Summarise the conduct requirements that apply to ILAS sales, including the requirement to conduct a financial needs analysis, the prohibition on unauthorised inducements, and the rules on disclosure of remuneration.

Describe the client agreement, the risk disclosure statement and the record-keeping obligations that support an ILAS sale.

Explain the purpose of the policy illustration and the requirement that benefit illustrations be presented on a consistent basis.

Design a financial needs analysis interview script that captures the client's investment objectives, time horizon, liquidity needs, existing portfolio and tolerance for loss.

Explain how a risk profiling questionnaire is constructed and identify at least four common weaknesses in risk profiling tools, such as over-reliance on a single score or ambiguity in risk tolerance versus risk capacity.

Apply a suitability assessment to three contrasting client scenarios and justify why a particular ILAS product and fund mix is or is not suitable.

Describe the disclosure obligations at the point of sale, including product risks, charges, non-guaranteed nature of returns and the consequences of early surrender.

Explain the requirements around the risk disclosure statement and the client's acknowledgement of investment risk.

Explain the post-sale obligations of an intermediary, including delivering the policy, confirming the cooling-off rights and responding to client queries during the free-look period.

Describe how fund switching requests are processed, what limits or charges may apply and what confirmation the client should receive.

Outline the claims process for death and other insured events under an ILAS policy, including documentation, valuation timing and payment of the higher of sum assured or account value where applicable.

Explain the surrender process, the difference between full surrender and partial withdrawal, and how surrender values are calculated at the valuation point.

Identify the record-keeping and periodic reporting obligations, including annual statements showing units held, unit prices and account value.

Consolidate the six domains by building a revision sheet linking each product feature to the charge it generates and the regulatory or disclosure requirement it triggers.

Answer at least 120 practice questions across all domains and record accuracy by domain to identify remaining weak areas.

Re-teach the three weakest areas in writing, at least 200 words each, without referring to notes.

Rehearse explaining an ILAS product to a hypothetical client in a five-minute spoken summary covering features, charges, risks and suitability.