Annuities

A couple receives a set amount of income from their annuity. When the wife does, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint life

An agent selling variable annuities must be registered with

FINRA

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

It would not occur in a deferred annuity.

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 is another term for the accumulation period of an annuity?

Pay-in period

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 the insurer must be paid.

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period

After applying for an annuity, a 60-year-old insured receives the completed contract on April 7. If he decides he doesn't want the contract, when must he return it?

April 17

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

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed.

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

Depreciation period

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

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

It allows the owner to surrender the annuity without a charge.

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

It is a life contingency option.

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

Payments stop after the first death among the annuitants.

Annuities can be used to fund which of the following?

Retirement plans

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment.

Which of the following products requires a securities license?

Variable annuity

If an annuity contract has defaulted due to nonpayment of premiums, when can it be reinstated?

Within 1 year

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.

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.

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

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

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 is true regarding a market value adjusted annuity?

The owner is guaranteed a fixed interest rate for a specific period of time.

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

The payments will stop when the annuitant dies.

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

The payments will stop when the annuitant dies.