MI Variable Life and Annuities Producer Exam Questions And Answers 100% Pass.
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Course
MI Variable Life and Annuities
Institution
MI Variable Life And Annuities
MI Variable Life and Annuities Producer
Exam Questions And Answers 100% Pass.
A variable annuity has a payout that is - answerContingent upon the profitability of the
investment portfolio
Which of the following would be considered the largest cost incurred on the value of a variable
annuity?
...
MI Variable Life and Annuities Producer
Exam Questions And Answers 100% Pass.
A variable annuity has a payout that is - answer✔Contingent upon the profitability of the
investment portfolio
Which of the following would be considered the largest cost incurred on the value of a variable
annuity?
a) the cost of insurance
b) Mortality fee
c) Investment management fee
The two main categories of policy loan interest rates are - answer✔Fixed and variable
Which of the following types of policies would allow a policyowner to choose a premium
amount payment schedule?
a) Fixed premium
b) Indeterminate premium
c) Flexible premium
d) Initial premium - answer✔c) Flexible premium
SIMPLE Plans require all of the following EXCEPT
a) Employees must receive a minimum of $5,000 in annual compensation.
b) At least 1,000 employees.
c) No other qualified plan can be used.
d) No more than 100 employees/ - answer✔b) At least 1,000 employees.
Employer contributions made to a qualified plan - answer✔Are subject to vesting requirements
Which of the following is used to determine interest rates on variable products? - answer✔a)
Cash value
b) Interest rate index
c) consumer price index
d) annual average rate
b) Interest rate index
For a retirement plan to be qualified, it must be designed for the benefit of? -
answer✔Employees
Which of the following requires mandates a prospectus?
a) Secured Investors Protection Act of 1970
b) Fair Credit Act of 1933
c) Securities Act of 1933
d) Securities Exchange Act of 1934 - answer✔c) Securities Act of 1933
Traditional IRA contributions are tax deductible based on which of the following?
a) IRA limit
b) Owner's income
c) How long the plan has been in force
d) Owner's age - answer✔b) Owner's income
A variable life insurance policy states all of the following current and maximum policy charges
EXCEPT
a) Administrative expenses
b) Mortality costs
c) Investment management fee
d) Guaranteed cash value - answer✔d) Guaranteed cash value
What does a variable annuity guarantee to the annuitant at retirement?
a) Tax-free income
b) Total payments that equal at least the amount invested in the contract
c) Higher returns than can be obtained from a fixed annuity
d) None of the above - answer✔d) None of the above
*None of these answers are true. If the performance in the separate account does well over time
and lives long enough, he or she will come out much better than from a fixed annuity, but there
are no guarantees this will occur.
Which of the following is a key distinction between variable whole life and variable universal
life products?
a) Variable whole life has a guaranteed death benefit.
b) Variable universal life is regulated solely through FINRA.
c) Variable whole life allows policy loans from the cash value.
d) Variable universal life has a fixed premium. - answer✔a) Variable whole life has a guaranteed
death benefit.
All of the following are true of an annuity owner EXCEPT
a) The owner must be the party to receive benefits.
b) The owner pays the premiums on the annuity.
c) The owner has the right to name the beneficiary.
d) The owner is the party who may surrender the annuity. - answer✔a) The owner must be the
party to receive benefits.
An insurance company receives an application with some information missing and issues the
policy anyway. what is this called? - answer✔Waiver
Death benefits payable to a beneficiary under a life insurance policy are generally - answer✔Not
subject to income taxation by the Federal Government.
All of the following entities regulate variable life policies EXCEPT
a) The Guaranty Association
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