Missed Questions Study Guide Chapter 5
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
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
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurer's guaranteed minimum rate of interest
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint Life Joint life annuity settlement option pays benefits to two or more annuitants, but stops upon the death of the first
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate
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 TRUE for both equity indexed annuities and fixed annuities?
They have a guaranteed minimum interest rate