MICHIGAN VARIABLE EXAM 2024 WITH 100% CORRECT ANSWERS

MICHIGAN VARIABLE EXAM 2024 WITH 100% CORRECT ANSWERS accumulation phase - correct answer the period during which contributions are made to an annuity accumulation unit - correct answer an accounting measure, similar to a mutual fund share, used to determine an annuitant's proportionate interest in the insurer's separate account during the accumulation phase of a variable annuity. Both the number an value of these units will change during the accumulation phase administration charge - correct answer under an insurance or annuity contract, the charge the insurance company makes to compensate for maintaining records, accounting and reports generation annuitant - correct answer a person who receives the distribution from an annuity contract annuity - correct answer a contract in which the insurer agrees, for a price, to make regular payments to an individual for life or some fixed period annuity phase - correct answer the period, after annuitization, during which annuity payments are made to an annuitant annuity unit - correct answer An accounting measure used to determine the amount of each payment during an annuity's distribution stage. The calculation takes into account the value of each accumulation unit and such other factors as assumed interest rate and mortality risk. assumed interest rate AIR - correct answer an assumption, built into variable annuity contracts, of the minimum rate of return the insurer expects to receive and that forms the basis for an initial annuity payment as well as a "floor" from which to measure gain combined ("balanced") annuity - correct answer an annuity providing for payments that derive from b