Session 2 Final
4. A policy loan provision must be offered by the insurer after 3 years allowing the variable life policy contract holder to borrow what percentage of cash value? A. 75% B. 90% C. 100% D. No policy loan is allowed from a variable life contract
A
8. With a variable contract, which of the following risks are assumed by the insurance company? I. Mortality risk II. Expense risk III. Market risk IV. Business risk A. I and II B. I and IV C. II and III D. III and IV
A
2. If a variable annuity has an assumed interest rate of 5% and the annualized return of the separate account is 4%, the value of I. The accumulation unit will rise II. The annuity unit will rise III. The accumulation unit will fall IV. The annuity unit will fall A. I and II B. I and IV C. II and III D. III and IV
B
3. The value of a variable annuity separate account fluctuates in relationship to A. The general account maintained by the insurance company B. The value of the separate account portfolio C. The Consumer Price Index D. The S&P 500 market index
B
6. Both an insurance and a securities license are required to sell which of the following? A. Mutual funds B. Universal variable life insurance C. Whole life insurance D. Insurance company stocks
B
9. Which of the following annuity payout options typically provides the largest monthly payment upon annuitization? A. Joint with last survivor B. Life only C. Life with period certain D. Random withdrawal
B
1. An annuity may be purchased by any of the following methods exCePT A. Single payment immediate B. Single payment deferred C. Periodic payment immediate D. Periodic payment deferred
C
10. Variable life insurance (VLI) and universal variable life insurance (UVL) are similar in that both A. Require scheduled premium payments B. Offer a minimum death benefit C. Require the purchaser to assume investment risk D. Pay money into the insurance company's general account
C
7. The investment performance of a variable life insurance separate account affects which of the following? A. The fixed death benefit B. The assumed interest rate C. The variable death benefit D. The payout option
C
5. The difference between a fixed annuity and a variable annuity is that the variable annuity I. Offers a guaranteed return II. Offers a payment that may vary in amount III. Will always pay out more money than the fixed annuity IV. Attempts to offer protection to the annuitant from inflation A. I and III B. I and IV C. II and III D. II and IV
D
