WebCE 4-Hour Annuity Suitability and Best Interest Standards Questions with Answers
49 views 2 purchases
Course
WebCE annuity
Institution
WebCE Annuity
For whom is joint ownership of an annuity often reserved? Correct Answer spouses
At what point does the beneficiary to an annuity acquire rights in the contract? Correct Answer (Wrong) upon contract issue and throughout the life of the contract, until the death of the contract owner or annuitant...
WebCE 4-Hour Annuity Suitability and
Best Interest Standards Questions with
Answers
For whom is joint ownership of an annuity often reserved? Correct Answer spouses
At what point does the beneficiary to an annuity acquire rights in the contract?
Correct Answer (Wrong) upon contract issue and throughout the life of the contract,
until the death of the contract owner or annuitant
Generally speaking, how long is the accumulation period for immediate annuities?
Correct Answer one month to one year
For which of the following needs are traditional deferred annuities best suited?
Correct Answer retirement planning
For what reason would an individual choose a variable annuity over a fixed annuity?
Correct Answer for the potential to earn greater contract growth
At the time he purchased his variable annuity, Ahmed directed $5,000 of his
premium into Subaccount A when the unit value was $10. A year later, the unit value
had increased to $15. Assuming he made no additional premium deposits, what is
the value of Ahmed's investment in Subaccount A now? Correct Answer $7,500
For most indexed annuities, what is the specified floor? Correct Answer 0 percent
Which feature of indexed annuities prevents any negative index returns from
affecting the contract's previously credited and accumulated values? Correct Answer
the floor
At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life
with a single premium deposit of $10,000. The declared interest rate on Steve's
contract when it was issued was 5 percent, and the contract guarantees a minimum
rate of 3 percent. The initial declared rate is payable for two years; the renewal rate
for year three and later is subject to change. How much interest will be credited to
Steve's contract at the end of year one? Correct Answer $500
For an indexed annuity, what is credited to the contract at the end of each interest
crediting term? Correct Answer (Wrong) the index interest rate
Darcy owns an indexed annuity. The index that supports her annuity was at 1000
when the contract's interest crediting period began and 1200 when the crediting
period ended. What is the index increase? Correct Answer 20 percent
What covers the cost of a variable annuity's death benefit? Correct Answer the
mortality and expense charge
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsGuru. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
