Chapter 5 Annuities (10 Questions on Exam)
Variable insurance and variable annuities are regulated by
SEC, FINRA and Department of Insurance
Who bears the investment risk in the fixed annuity
The insurance company
An annuity that guarantees a minimum rate of return is known as?
Fixed annunity
Which of the following is NOT true regarding an annuity certain?
Benefits will stop at the annuitants death
An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?
Deferred
Annuities may be purchased with all of the following payment methods EXCEPT
Deferred
Which type of annuity settlements stops with at the annuitant dies?
Life annuity
What does an annuity protect the contract owner against?
Living longer than expected
Which of the following has the right to surrender a deferred annuity contract?
The annuity owner
Which of the following statements is TRUE about annuities
They can provide a lifetime income
Annuities can be used for the the following EXCEPT
To create an estate
When an annuity is written, whose life expectancy is taken into account?
Annuitant
The time period during which an annuitant contributes to an annuity is called?
The accumulation period
An annuity begins payments to the annuitant one month after it is purchased. Why type is it?
Single premium immediate annuity
All other factors being equal, which of the following types os annuities will provide the highest monthly income?
Straight Life
