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Series 65: Unit 24 Exam questions well answered already passed
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Series 65: Unit 24 Exam questions well answered already passed
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Series 65: Unit 24 ExamWhen discussing the purchase of a scheduled premium variable life insurance policy with a client, it
would be correct to state that
A. if a policy loan exceeds the policy cash value, the deficiency must be remedied within 10 business
days to keep the policy from lapsing.
B. you will receive a statement of your death benefit no less frequently than semiannually.
C. premiums will vary based on performance of the separate account.
D. by surrendering the policy, its cash value may be obtained. - correct answer ✔✔By surrendering the
policy, its cash value may be obtained
Which of the following is a possible advantage of scheduled premium variable life insurance over whole
life insurance?
A. Flexibility of premium payments
B. Less risk in the underlying investment instruments
C. Greater guaranteed cash value
D. Possible inflation protection for the death benefit - correct answer ✔✔Possible inflation protection for
the death benefit
A client of an investment adviser representative (IAR) mentions that he has received a prospectus for a
variable annuity but does not really understand the product. It would be reasonable for the IAR to
explain that a variable annuity offers an investor
A. the insurance company's backing of the annuity' performance.
B. a product very similar to a mutual fund but with lower costs and expenses.
C. the opportunity to invest in equity securities on a tax-deferred basis.
D. lifetime income guaranteed never to drop below the initial rate. - correct answer ✔✔The opportunity
to invest in equity securities on a tax-deferred basis
, Which of the following is true with an annuity?
1. Taxes on earned dividends, interest, and capital gains are paid annually until the owner withdraws
money from the contract.
2. Tandom withdrawals are taxed on a LIFO basis.
3. Money invested in a nonqualified annuity represents the investor's cost basis.
4. Upon withdrawal, the amount exceeding the investor's cost basis is taxed as ordinary income. - correct
answer ✔✔Tandom withdrawals are taxed on a LIFO basis, money invested in a nonqualified annuity
represents the investor's cost basis, and upon withdrawal, the amount exceeding the investor's cost
basis is taxed as ordinary income
Larry purchased a deferred annuity and, on his 65th birthday, annuitized the product under a life with
15-year certain option. His spouse, Linda, is the beneficiary. Which of the following statements is
correct?
A. Payments will be made to Larry until his death and then to Linda for another 15 years.
B. Payments will be made to Larry until he is 80 and then cease.
C. Payments will be made to Larry as long as he lives, but should he die prior to reaching age 80, Linda
will receive payments until Larry's 80th birthday.
D. Payments will be made to Larry until he is 80 and then to Linda for the remainder of her life. - correct
answer ✔✔Payments will be made to Larry as long as he lives, but should he die prior to reaching age
80, Linda will receive payments until Larry's 80th birthday
Among the reasons why deferred variable annuities might not be a suitable investment for seniors are all
of the following except
A. potential inflation protection.
B. surrender charges.
C. improper subaccount selection.
D. potential capital fluctuation. - correct answer ✔✔Potential inflation protection
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