Quiz 4 Annuities
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of an annuity.
Which of the following is True regarding the annuity period?
It may last for the lifetime of the annuitant.
A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?
Joint and Survivor
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
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint life annuity
Which of the following is NOT true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner.
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set 2.5%. During an economic downswing, the investments only drew 2%. What interest rate will the insurer pay to its policyholders?
2.5%
After applying for an annuity, a 60-year-old insured receives the completed contract on April 7. If he decides he doesn't want the contract, when must he return it?
April 17
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
An agent selling variable annuities must be registered with
FINRA
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?
Joint life
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate.
Which of the following statements is true regarding a waiver of a surrender change on an annuity contract?
The charge may be waived if the annuitant is confined to a long-term care facility for at least 30 days.