Unit 28 Fl Laws and Rules Pertinent to Variable Contracts

separate account values and variable contract values fluctuate a. daily b. weekly c. monthly d. at the insurer's life

a. daily

FL law requires insurers to distribute to variable annuity owners an annual report containing which of the following? a. dollar value of each unit b. anticipated increase in number of units by the next anny c. forecasted value of each unit by the next anny d. taxable gain on each unit reported by the insurer to the IRA

a. dollar value of each unit

insurers selling variable contracts are subject to a. state insurance regulation b. federal securities regulation c. municipal regulation d. both A and B above

a. dollar value of each unit

after retirement starts, which of the following is TRUE? a. the number of annuity units stay the same b. the value of each annuity unit stays the same c. the dollar amount of monthly payments stays the same d. the value is adjusted to accommodate inflation

a. the number of annuity units stay the same

common stocks are predominantly used in the separate account portfolios because they a.usually provide a hedge against inflation b. guarantee a minimum rate of return c. are based on the full faith and credit of the insurer d. are insured by the federal government

a.usually provide a hedge against inflation

are investment gains in the separate account (and variable annuity and variable life accumulations values) subject to current income taxes? a. yes, but only to the extent of the gain b. no, they are not currently taxable c. yes, but the gain is paid by the insurer d. yes, but taxable gains may be offset by losses

b. no, they are not currently taxable

the period of time from a variable annuity's issue date until the start of payments is known as a. the deductible period b. the accumulation period c. the probationary period d. the funding period

b. the accumulation period

a variable contract agent must notify the Department with 30 days of any change in the following EXCEPT a. the agent's name b. the agent's insurer c. the agent's residence address d. the agent's mailing address

b. the agent's insurer

before variable annuity benefits can be paid out, the accumulation units in the participants account must be converted to a.investment units b. statistical units c. annuity units d. income units

c. annuity units

during the accumulation period of a deferred variable annuity, the value of individual accounts rises or falls based solely on a. variable premiums paid b. the number of annuitants c. investments performance d. company expense ratios

c. investments performance

the difference between scheduled premium and flexible premium variable premium variable life insurance policies will include a. the insurer expenses b. mortality rates c. different separate account portfolios to choose from d. a guaranteed minimum death benefits versus only a variable death benefit

d. a guaranteed minimum death benefits versus only a variable death benefit

an application for a variable annuity must show which of the following on the first page? a. agent's name b. agent's insurance license identification number c. name of the insurer d. all of the above

d. all of the above

which of the following statements regarding variable contracts are TRUE? a.the company cannot guarantee a specific interest yield from investments b. investment results principally derive from stock portfolios c. product and unit values fluctuate d. all of the above statements are true

d. all of the above statements are true

before proposing any variable product the agent must provide the prospect with the a. outline b. prospectus c. consumer buyer's guide d. table of guaranteed values

prospectus

if a consumer is harmed by an insurer or agent who violates FL laws relating to annuity sales, all of the following actions may be ordered by the OIR Except a. immediate surrender of all licenses b. monetary restitution of all costs to the consumer by the agent c. contract rescission by the insurer d. refund of premiums or account value, whichever is larger

a. immediate surrender of all licenses

variable contracts include all of the following EXCEPT a. variable annuities b. variable term life c. variable whole life d. variable universal life

b. variable term life

variable life insurance and variable annuities contracts derive their products values largely from a. insurer guarantees b. general account performance c. separate account performance d. equity index performance

c. separate account performance

which of the following statements regarding variable contracts is (are) TRUE? a. insurers selling variable products are subject to regulation by the Office of Insurance Regulation (OIR) b. Variable annuities and variable life insurance policies are considered investments c. the common stock and other assets of a separate account are under supervision of the Securities and Exchange Commission (SEC) d. all of the statements are true

d. all of the statements are true