Annuities

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? A. The annuitant must be a natural person B. A corporation can be an annuitant as long as it is also the owner C. A corporation can be an annuitant as long as the beneficiary is a natural person D. The contract can be issued without an annuitant

A. The annuitant must be a natural person

All of the following are true of an annuity owner EXCEPT A. The owner must be the party to receive benefits B. The owner pays the premiums on the annuity C. The owner has the right to name the beneficiary D. The owner is the party who may surrender the annuity

A. The owner must be the party to receive benefits

Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated? A. Refund life B. Variable annuity C. Annuity certain D. Fixed annuity

C. Annuity certain

Which of the following is NOT true regarding the annuitant? A. The annuitant receives the annuity benefits B. The annuitant must be a natural person C. The annuitant cannot be the same person as the annuity owner D. The annuitant's life expectancy is taken into consideration for the annuity

C. The annuitant cannot be the same person as the annuity owner

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income? A. Liquidation period B. Depreciation period C. Annuitization period D. Pay-out period

B. Depreciation period

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? A. Full premium refund without any charges B. Guaranteed surrender value C. No payments D. Annuity dividends

B. Guaranteed surrender value

Which of the following is TRUE for both equity indexed annuities and fixed annuities? A. Both are considered to be more risky than variable annuities B. They invest on a conservative basis C. They have a guaranteed minimum interest rate D. They are both tied to an equity index

C. They have a guaranteed minimum interest rate

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits? A. Variable period B. Variable amount C. Fixed period D. Fixed amount

D. Fixed amount

Annuities can be used to fund which of the following? A. Variable life insurance B. Group Life Insurance C. Estate Creation D. Retirement Plans

D. Retirement Plans

Which of the following is TRUE regarding the annuity period? A. It is also referred to as the accumulation period B. It is the period of time during which the annuitant makes premium payments into the annuity C. It may last for the lifetime of the annuitant D. During this period of time the annuity payments grow interest tax deferred

C. It may last for the lifetime of the annuitant