Annuities Quiz Chapter 5
When an annuity is written, whose life expectancy is taken into account?
Annuitant
What license or licenses are required to sell variable annuities
Both a life insurance license and a securities license
An agent selling variable annuities must be registered with
FINRA
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 is NOT true Regarding the Life with Guaranteed Minimum annuity settlement option?
It doesn't not guarantee that the entire principal amount will be paid out
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 best describe a pure life annuity settlement option
Pure life provides payments for as long as the annuitant is alive
annuities can be used to fund which of then following
Retirement pans
Which of the following is TRUE regarding variable annuities
The annuitant assumes the risks on investment
The president of a company is starting an annuity and decides that his crop. will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
In a fixed annuity, which pop the following is true regarding the guaranteed interest rate on the investment
The annuitant will receive the higher of either the guaranteed min rate or current rate
If the beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid
The annuitant's estate
the annuity owner dies during thew 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
Who bears all the investment risk in a fixed annuity?
The insurance company
All of the following statements are true installments for fixed amount EXCEPT
The payments will stop when the annuitant dies
