WebCE 4-Hour Annuity Suitability and Best Interest Standards Questions with Answers
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WebCE annuity
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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...
for whom is joint ownership of an annuity often re
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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
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