Korea Variable Insurance Sales Qualification (변액보험판매관리사) key terms

A life insurance product whose cash value and death benefit are linked to the performance of separately managed investment funds chosen by the policyholder, so investment risk is borne largely by the contract holder rather than the insurer.

A legally segregated pool of assets inside an insurer that holds variable insurance policyholder funds, kept separate from the insurer's general account so investment results flow directly to policyholders.

The insurer's own asset pool backing guaranteed benefits and fixed products; variable insurance premiums are not invested here, and it bears the insurer's credit and interest-rate risk.

A promised floor, such as a guaranteed minimum death benefit or a return of accumulated premiums, that limits downside for variable policyholders; the specific scope depends on the product design.

A charge deducted from variable insurance accounts to fund the insurer's minimum guarantee obligations; it is disclosed separately from fund management fees.

Deductions taken from premiums or account value for acquisition, administration and maintenance costs; in variable insurance these reduce the amount actually invested in funds.

The amount paid to a policyholder who cancels a variable contract early, after deducting surrender charges and reflecting current fund value; it can be below total premiums paid.

The annual fee charged by the asset manager of a variable insurance fund, expressed as a percentage of net assets and deducted from fund value before returns are credited.

Total expense ratio: the combined annual cost of a fund, including management, custody and administrative fees, expressed as a percentage of net asset value and used to compare fund efficiency.

The per-unit value of a variable insurance fund calculated from total net assets divided by units outstanding; it rises or falls with investment performance and drives account value.

The process by which an asset manager selects and trades securities inside a variable insurance fund according to a stated investment objective, policy and risk limits.

A document describing a variable insurance fund's objective, strategy, risks, fees and past performance, which must be provided so the customer understands what is being invested in.

The degree to which a fund's returns fluctuate over time; higher volatility means a wider range of possible outcomes and greater risk of loss over short horizons.

The possibility that fund performance will be negative and the policyholder's account value will fall, including market, credit, liquidity and currency risks that the insurer does not guarantee against.

A reduction in the amount originally invested, arising when fund returns are negative and exceed any guarantee; it is a core disclosure point in variable insurance sales.

Spreading money across asset classes, sectors or regions to reduce the impact of any single investment's poor performance on the overall portfolio.

The planned division of a portfolio among asset types such as equities, bonds and cash, chosen to match the customer's risk tolerance, time horizon and financial goals.

A structured questionnaire and evaluation used to classify a customer's risk tolerance, investment experience and horizon before recommending variable insurance products.

The judgment that a specific variable product and fund selection match the customer's assessed risk profile, needs and objectives before a sale is completed.

A regulatory duty requiring sellers to recommend only products consistent with the customer's investment purpose, risk tolerance and financial situation, and to document that assessment.

The legal obligation to explain key product features, risks, fees and surrender conditions clearly so the customer can make an informed decision before contracting.

The requirement to deliver and explain the product description, investment prospectus and key risk disclosures, and to obtain the customer's written confirmation of receipt and understanding.

The policyholder's or insured's obligation to truthfully disclose material health and other underwriting facts; breach can allow the insurer to cancel or adjust the contract.

Failure to disclose or misrepresentation of material facts at application; consequences may include cancellation, reduced benefits or premium adjustment depending on intent and materiality.

The policyholder's right to cancel a new variable insurance contract within a statutory period after receiving the policy, with a refund of paid premiums net of specified deductions.

A mandatory waiting period after the application during which the contract is not yet fully effective, giving the customer time to reconsider before coverage and investments begin.

Sales conduct that misleads or pressures customers, such as promising guaranteed returns, omitting loss risk, or inducing cancellation and replacement of existing policies for commission.

A new contract taken out to replace an existing policy, typically by surrendering or reducing it; it requires special comparison disclosure because the customer may lose guarantees or incur new costs.

A sales process in which the customer receives full explanation, the suitability assessment is properly done, and all required documents and confirmations are obtained before contracting.

A sale missing required explanation, suitability review or documentation, which can trigger regulatory sanctions and insurer liability for customer losses.

A process in which a neutral body reviews a complaint between a policyholder and an insurer and proposes a resolution, often used for mis-selling and disclosure disputes.

The framework of rules and practices ensuring fair treatment, clear information, suitability and accessible redress for customers of financial products including variable insurance.

Taking part of the accumulated account value out before maturity or surrender, which reduces the remaining investment amount and may trigger charges or tax consequences.

A loan secured by the surrender value of a policy, available within limits set by the insurer; interest accrues and unpaid loans reduce eventual benefits.

Moving accumulated value from one variable insurance fund to another within the same contract, sometimes free and sometimes subject to a set number of free switches per year.

A direct reduction of income tax liability for qualifying contributions such as pension savings products, subject to annual limits and income conditions.

A tax treatment in which investment gains inside a contract are not taxed annually but only when funds are withdrawn or the contract matures, allowing compounding on pre-tax amounts.

The tax levied on pension payments received from qualifying pension products, typically at a reduced rate compared with ordinary income tax, with rates varying by age at receipt.

A long-term savings product qualifying for tax benefits, where contributions may receive a tax credit and payouts are taxed as pension income under prescribed rules.

A reduction of taxable income before the tax rate is applied, lowering tax by the marginal rate; it differs from a tax credit, which cuts tax directly.