WebCE Annuity Suitability Certification Training Final Exam Questions with Answers

An investor purchased a variable annuity from a financial adviser in her bank's investment services department. In the event of financial failure of the insurer, the annuity contract value is A. Protected by FDIC coverage B. Protected by SIPC coverage C. Protected by the state guaranty association D. Not protected Correct Answer C. Protected by the state guaranty association Which of the following riders does NOT guarantee an income benefit? A. Guaranteed Lifetime Withdrawal Benefit (GLWB) B. Guaranteed Minimum Income Benefit (GMIB) C. Guaranteed Minimum Withdrawal Benefit (GMWB) D. Guaranteed Minimum Accumulation Benefit (GMAB) Correct Answer D. Guaranteed Minimum Accumulation Benefit (GMAB) The assumed interest rate (AIR) is relevant for establishing the unit value for which of the following types of annuities? A. Fixed SPIA's B. Index annuities C. Fixed MYG annuities D. Variable Annuities Correct Answer D. Variable Annuities Which of the following riders provides a guaranteed percentage of withdrawal for the life of the annuitant? A. Guaranteed Minimum Accumulation Benefit (GMAB) B. Guaranteed Lifetime Withdrawal Benefit (GLWB) C. Guaranteed Minimum Income Benefit (GMIB) D. Guaranteed Minimum Withdrawal Benefit (GMWB) Correct Answer D. Guaranteed Minimum Withdrawal Benefit (GMWB) A variable annuity hardship withdrawal that avoids annuity contract surrender charges are typically available for all of the following circumstances EXCEPT: A. Nursing home confinement B. Education expenses C. Natural disaster D. Unemployment Correct Answer B. Education expenses