Annuities
How long is the right to examine period for new individual annuities issued in the state?
10 days
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
When annuity is written, whose life expectancy is taken into account?
Annuitant
Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?
Bail-out
An agent selling variable annuities must be registered with
FINRA
Which of the following best describes a bail-out provision?
It allows the owner to surrender the annuity without a charge
Annuities can be used to fund which of the following?
Retirement plans
Which of the following is true regarding a waiver of a surrender changer on an annuity contract?
The charge may be waived if the annuitant is confined to a long-term care facility for at least 30 days.
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
The insurance company's general account
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following products requires a securities license?
Variable annuity
Under which of the following annuity does the annuitant select the time period for the benefits, and under the insurer determines how much each payment will be?
Installments for a fixed period
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option
Which of the following is not true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
Which of the following is NOT true about a joint and survivor annuity benefit option?
Payments stop after the first death among the annuitants.
After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage?
Surrender charge
an insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 2.5%. During an economic downswing, the investments only drew 2%. What interest rate will the insurer pay to its policyholders?
2.5%`
A couple receives a set amount if income for their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint life
The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?
THe cash value will be paid to the annuitant's estate.
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cas value of the plan, whichever is the greater amount
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Guaranteed surrender value
A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she live. When the wife dies, payments stop/ What settlement option sis they select?
Joint and survivor
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint life annuity
Which of the following is another term for accumulation period of an annuity?
Pay-in period
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
Underlying assets for variable annuity contracts must be maintained in what type of account?
separate account
All of the following statements are true regarding installments for fixed period annuity settlement option EXCEPT
t is a life contingency option
What happens if a deferred annuity is surrendered before the annuitization period?
the owner will receive the surrender value of the annuity
Which of the following is NOT true regarding Equity Indexed Annuities?
they earn lower interest rates than fixed annuities