Your Responsibility in Suitable Annuity Sales

The risk that a retiree will outlive the savings accumulated for retirement is known as A. Underwriting risk B. Actuarial risk C. Inflation risk D. Longevity risk

D. Longevity risk

An investor wishes to benefit for tax deferral and is interested in an annuity that permits the ability to direct changes in the underlying investment portfolio based on market fluctuation. An annuity that may be appropriate for this investor is a? A. Index annuity B. Variable annuity C. Single premium immediate annuity D. Fixed payment SPIA

B. Variable annuity

In order to recommend the most suitable annuity product to a customer, in a replacement situation, which of the following questions would be the most important for a producer to ask? A. Does the new plan save the customer money? B. Does the customer know all the new products available on the market? C. Does the customer understand the role of a retirement plan? D. Does the customer understand why the exchange is beneficial?

D. Does the customer understand why the exchange is beneficial?

All of the following information about a customer must be used in determining annuity suitability EXCEPT A. Annual income B. Beneficiary's financial objectives C. Tax status D. Financial experience

B. Beneficiary's financial objectives

If a producer wanted to educate his customer about the features of a variable annuity, which of the following features will need to be discussed? A. No protection from inflation B. Plan guarantees C. Beneficiary designations D. Tax-deferred growth

D. Tax-deferred growth