annuities

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income? APay-out period BLiquidation period CDepreciation period DAnnuitization period

Depreciation period

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy? ALife with period certain BJoint limited annuity CJoint life DJoint and survivor

Joint life

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive AGuaranteed minimum benefit. BThe amount paid into the annuity. CThe remainder of the principal. DNothing; the payments will cease.

Nothing; the payments will cease

Which of the following is TRUE regarding variable annuities? AThe funds are invested in the company's general account. BThe company guarantees a minimum interest rate. CA person selling variable annuities is required to have only a life agent's license. DThe annuitant assumes the risks on investment.

The annuitant assumes the risks on investment.

Who bears all of the investment risk in a fixed annuity? AThe annuitant BThe insurance company CThe owner DThe beneficiary

The insurance company

What happens if a deferred annuity is surrendered before the annuitization period? AThe owner will only receive a refund of premium. BThe insurer can only apply the surrender value toward another annuity. CDeferred annuities cannot be surrendered prior to the annuitization period. DThe owner will receive the surrender value of the annuity.

The owner will receive the surrender value of the annuity.

Which of the following is NOT true regarding Equity Indexed Annuities? AThe insurance company keeps a percentage of the returns. BThey have guaranteed minimum interest rates. CThey are less risky than variable annuities. DThey earn lower interest rates than fixed annuities.

They earn lower interest rates than fixed annuities.

All other factors being equal, which of the following individuals would receive the largest monthly check from a single premium straight life immediate annuity? AA 50-year-old woman BA 60-year-old man CA 60-year-old woman DA 50-year-old man

A 60-year-old man