Chapter Exam- Annuities

Fixed Deferred

set payments at a certain age for life

A contract owner terminates an annuity before the income payment period begins. The owner will then receive

the current contract surrender value

What is considered to be a characteristic of an immediate annuity?

Benefit payments start within one payment period of purchase.

What is not included in an annuity contract?

AD&D rider

Which type of contract liquidates an estate through recurrent payments?

Annuity

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Deferred

The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?

Flexible installment deferred

Variable annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account

A variable annuity has which of the following characteristics?

Underlying equity investments.

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

Variable