INVL — Investment-Linked Insurance Product Salesperson
Administered by TII · 150 MCQs (with computation) · Combined pass mark 140
Who needs this licence?
Required for anyone selling or recommending investment-linked insurance products in Taiwan — variable life, variable annuity, variable universal life. Because these products combine insurance protection with an investment account, the exam spans both insurance regulation and investment theory, making it the hardest of the four licences. INVL registration generally requires LIFE first.
Products covered
- Variable life / variable universal life
- Variable annuity
- Other investment-linked insurance products approved by the FSC
Exam format
- Session 1: 50 questions on investment-linked products & the financial system (50 minutes)
- Session 2: 100 questions on investment theory, including computation (100 minutes)
- Group 1 pass standard: 140 or more across both sessions, with neither session below 60
- Group 2 (candidates also holding a qualifying securities or SITE/SICE credential) is exempt from Session 2 and passes at 70
Distinguishing feature: heavy computation across portfolio risk and return, capital asset pricing, bond valuation and basic options concepts.
Core study scope (concept level)
- ILP product structure: separation of protection and investment accounts, segregated-account concept, fee structure, cost and charge disclosure.
- Suitability and KYC / KYP: requirements on assessment, sales-process records and signed declarations.
- Financial system overview: types of financial institutions, market structure, role of relevant regulators.
- Investment theory: return and risk metrics (standard deviation, variance), modern portfolio theory, the Capital Asset Pricing Model (CAPM), the efficient-market hypothesis, performance measures such as Sharpe and Treynor ratios.
- Bonds and fixed income: yield to maturity, bond pricing, duration concepts.
- Derivatives: basic options and futures concepts.
- ILP-specific regulation: sales-conduct notices and disclosure requirements published by the regulator and TII.
Specific computation formulas and worked examples should be taken from TII's training materials; this page deliberately keeps to concept level.
Recommended preparation
- Take LIFE first — without that grounding you will re-learn the same statutory base.
- Investment theory dominates (100 of 150). Drill portfolio theory, CAPM, bond pricing and Sharpe ratio computations to fluency.
- Use a calculator that conforms to TII's approved-model list, and use the same model in practice.
- Plan 5 – 8 weeks of prep; daily short calculation sets preserve fluency.
- Don't underweight suitability assessment and disclosure rules — they are a frequent question source.
Further reading
Free Practice Questions
These 4 questions are identical to the app's free preview for this exam — tap an option to answer and see the explanation instantly. More free questions →
Generally, when the market expects the economy to expand and the spread between long- and short-term rates to widen, what shape does the yield curve usually take?
Why: The yield curve plots the yields of bonds of the same credit quality across different maturities. When the market expects economic expansion and future rates to rise, long-term yields exceed short-term yields, and the curve is upward-sloping (rising to the upper right), the most common normal shape.
When short-term yields are higher than long-term yields, causing the yield curve to "invert," what signal does the market usually interpret this as?
Why: An inverted yield curve means short-term rates are higher than long-term rates, reflecting market expectations that future rates will fall (often because the Central Bank cuts rates in response to a cooling economy); historically it is often regarded as one of the leading indicators that the economy may slow or enter recession.
A 3-year zero-coupon bond with face value New Taiwan Dollars 1,000 and an annualized yield of 6% (annual compounding). Its issue price is closest to:
Why: Price = 1,000 ÷ (1.06)^3 = 1,000 ÷ 1.191016 = New Taiwan Dollars 839.62. Distractor C discounts only one year (1,000 ÷ 1.06); A and D are estimation errors.
A zero-coupon bond with face value New Taiwan Dollars 1,000 and a 5-year term currently trades at New Taiwan Dollars 747.26. Its implied annualized return (annual compounding) is closest to:
Why: From price = face value ÷ (1+y)^n, solving for y = (1,000 ÷ 747.26)^(1/5) − 1 = (1.33822)^0.2 − 1 ≈ 0.060, i.e., 6.0%. Distractors using simple interest or the wrong number of periods give other values.
Complete INVL question bank + mocks
PrepLicense: TW Insurance ships the full INVL question bank with step-by-step explanations for investment-theory computation.
Independent study aid. Not affiliated with or endorsed by the FSC, LIA-ROC, NLIA, or TII. Exam rules, computation scope and pass requirements are governed by TII.
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