Chapter Exam - Annuities

Which of the following is associated with an immediate annuity?

lack of an accumulation period

When a deferred annuity is surrendered, who must sign the authorization to do so?

owner

What is the tax treatment of benefit payments for a non-qualified annuity?

benefit payments are always taxable

An annuitant is paid $495 per month until the contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this?

fixed amount

Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)?

annual investment gains are included in participant's gross income

A single-life annuity only has ONE

annuitant

Tori has an annuity that pays her a $500 per month income benefit for life or for ten years, whichever is longer. What kind of annuity is this?

Fixed life annuity with period certain

An annuity which starts paying monthly benefits within a month after issuance is called a(n)

immediate annuity

The annuitant in a single premium deferred annuity (SPDA)

makes only one premium payment

What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the state guarantee period?

subject to market value adjustment

The owner's cost basis for a non-qualified deferred annuity is typically the same as the

total premiums paid

During the liquidation phase of an annuity contract, to whom are the income benefits normally payable to?

annuitant

Which of these pays an income to two or more annuitants until the death of the last annuitant?

joint and survivor

What is another term used for a "pure" life annuity?

life income

The authority to change the beneficiary in an individual annuity lies with the

owner