Life insurance annuities

An individual had been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

A portion of the benefit up to a limit is tax free; the rest is taxable income

What license or licenses are required to sell variable annuities?

Both a life insurance license and a securities license

Fixed annuities provide all of the following EXCEPT

Hedge against inflation

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed min interest rate

If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?

It is a percentage of the cash value and decreases over time.

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?

Annuity Certain Annuity Certain option allows the annuitant to select the time period or the amount of the benefits to be paid out. Under the installments for a fixed period, distribution begins on a specific date and stops on a specific date.