Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question One

Mokoena's dependants and nominees dispute the amount of the retirement benefits received. Which one of the following industry bodies could respond to their concerns?

a. Life Insurance Ombuds

b. Pension Funds Adjudicator

c. Mokoena's employer

d. The managing body of the funds

Question2

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question

Mokoena's dependants and nominees were dissatisfied about the delay in the payment of the retirement benefits. Which of the following industry bodies should the dependants and nominees approach?

a. Life Insurance Ombud

b. The managing body of the funds

c. Pension Funds Adjudicator

d. Mokoena's employer

Question3

Choose the best correct conditions which result in the payment of the retirement benefits from a retirement annuity policy?

a. Disability, divorce, and retirement

b. Retirement, resignation, and death.

c. Disability, retirement, and death d. Disability, death, and divorce

Question4

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Which one of the statements below is correct?

a. The accumulated value of John's retirement annuity policy is made up of John's contributions and inheritance plus interest earned. b. The accumulated value of John's retirement annuity policy is made up of both John's and Mokoena's contributions plus interest earned. c. The accumulated value of John's retirement annuity policy is made up of John's contributions plus interest earned.

d. The accumulated value of John's retirement annuity policy is made up of both John's and John's employer's contributions plus interest earned.

Question5

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question

Mokoena and John could insure each other because the South African position which recognises a very wide legal duty to support relatives ...

a. does not allow one to insure the life of a relative

b. allows one can insure the life of a relativ

c. is limited by the requirement of insurable interest.

d. is promoted by the requirement of insurable interest.

Question6

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: If he were to retire immediately, John would be required to purchase an annuity product for ...

a. R189 060

b. R166 667

c. R83 333

d. R100 230

Question7

Mortality tables are used when underwriting a ... policy.

a. death

b. preservation fund c. provident fund

d. retirement annuity fund

Question8

Which of the following underwriting objectives should have been achieved by the underwriting company when issuing a life policy?

a. Speed and time

b. Economy

c. Efficiency

d. Sustainability

Question9

Health condition and age were considered when the insurer issued the ... policy.

a. retirement annuity fund

b. death

c. preservation fund

d. provident fund

Question10

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question

The ... Act is applicable in the marriage between Mokoena and John.

a. Civil Union b. Recognition of Traditional Marriages c. Recognition of Customary Marriages d. Marriage

Question11

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: The type of marriage between John and Mokoena is ...

a. out of community of property.

b. in community of property. c. a same-sex marriage.

d. out of community of property with an antenuptial contract.

Question12

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question

... will not get a share of Mokoena's deceased estate.

a. Mphahlele and Mamgcina b. Vhonani and John c. Tshifularo and Sweetness d. Mphahlele and Tau

Question13

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Mokoena's maternal grandmother will be regarded as a ... in the distribution of retirement benefits.

a. nominee b. beneficiary

c. dependant d. policyholder

Question14

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: The dutiable amount payable by Mokoena's deceased estate is ...

a. R3500000 b. R3 000 000

c. 0

d. R3 360 000

Question15

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Which of the following policies taken out by John may have a surrender value?

a. Retirement annuity fund

b. Death c. Preservation fund

d. Provident fund

Question16

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Mokoena's provident fund will be distributed by ...

a. the managing body of the fund b. an insurance company c. an executor d. Mokoena's employer

Question17

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Mokoena's deceased estate will be distributed ...

a. intestate b. equally

c. testate d. communally

Question18

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: Mokoena's death claim will be ... by the insurer.

a. closed

b. processed

c. rejected

d. paid

Question19

Which of the following documents may the insurer need to identify the cause of death?

a. Post-mortem report b. Death certificate c. Medical report d. Claims notification form

Question20

Read the case study below and answer the questions that follow.

Mokoena and Mphahlele are brothers, who grew up together in a child-headed family. Mokoena, through the support of the government, community members and relatives, studied and qualified to be an accountant. Mokoena discussed further studies with Mphahlele and persuaded him to study towards a social work degree. Mphahlele, with support from Mokoena, completed his studies successfully.

Tau is the child of Mokoena and Mamgcina and was born while Mokoena was completing his studies. Mokoena decided to provide financial support to two orphans until they completed their studies. Lastly, he provides monthly financial support to the child of their neighbour, who is struggling financially.

Mokoena got married to John, who is a medical doctor, and they were advised that, legally, their type of marriage does not require an antenuptial contract. Their children areTshifularo and Sweetness. In addition, Vhonani, the child of the deceased sister of John, is staying with Mokoena and John, and he is still at secondary school.

Below are the life policies for Mokoena and John:

Product Mokoena John

Death policy R3 million R5 million

Retirement annuity (accumulated amount) R209 070 R189 060

Preservation fund (accumulated amount) R125 050 R100 230

Provident fund (accumulated amount) R25 020 R250 090

Mokoena nominated Ludwe (Mokoena's maternal grandmother)asa beneficiary of the death policy and preservation fund. Mokoena did not nominate beneficiaries for other policies. John nominated Vhonani as a beneficiary of the policies listed, except for the death policy. Mokoena committed suicide ten years after all his policies were incepted.

Question: On processing the claim, the insurer found that Mokoena had understated his age on the proposal form and in the policy document. What action should the insurer take?

a. Declare the policy invalid and refund premiums b. Pay the current sum assured c. Reject the death claim d. Reduce the sum assured