Annuities Quiz Chapter 5

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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


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