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Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?

Bail-out

What license or licenses are required to sell variable annuities?

Both a life insurance license and a securities license

Which of the following is NOT a term for a period of time during which the annuitant or the beneficiary receives income?

Depreciation period

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Joint and survivor

When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?

The insurance company's general account

Which of the following products requires a securities license?

Variable annuity

If a contract holder returns an annuity contract within the free look period, he or she -

Will receive a fund of all funds paid

When an annuity is written, whose life expectancy is taken into account?

Annuitant

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or cash value of the plan, whichever is the greater amount

An annuity owner is funding an annuity,what will supplement her retirement?

Equity Indexed Annuity

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

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT -

It is a life contingency option

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant

Which of the following is true regarding the annuity period?

It may last for the lifetime of the annuitant

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

Which of following is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner

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

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

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a -

Joint life annuity

Which of the following best describes a bail-out provision?

It allows the owner to surrender the annuity without a charge

Annuities can be used to fund which of the following?

Retirement plans

Which of the following is TRUE regarding variables annuities?

The annuitant assumes the risk on investment

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment

The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?

The cash value will be paid to the annuitant's estate

If an annuity was defaulted due to nonpayment of premium, what must happen before the policy can be reinstated?

All overdue payments and any debt due to insurer must be paid

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

An agent selling variable annuities must be registered with

FINRA

Under which installments options does the annuitant select the amount of each payments, and the insurer determines how long they will pay benefits?

Fixed amount

Annually renewable term policies provide a level death benefit for a premium that -

Increases annually

In regards to disclosure requirements for annuity contracts, if the buyer's guide and the disclosure document are available to be printed from the insurer's website -

This will fulfill the disclosure requirements for applications received through the internet

After an annuity contract is delivered, a contract holder has a free-look period of -

10 days

How long is the free look period for annuities if the contract holder is older than 65?

30 days

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

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

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary

Which of the following is true regarding a waiver of a surrender charge on a an annuity contract?

The charge may be viewed if the annuitant is confined to a long-term care facility for at least 30 days

All of the following are true of an annuity owner EXCEPT -

The owner must be the party to receive benefits

What happens if a deferred annuity is surrendered before the annuitization period?

The owner will receive the surrender value of the annuity

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies

The following statements are true regarding installments for a fixed amount EXCEPT -

The payments will stop when the annuitant dies

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into payments


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