LOMA 281 Module 2 Lesson 3 Exam
Questions with 100% Correct Answers
Annuity - ✔✔insurance against the risk of outliving one's financial
resources
annuity contract - ✔✔A contract under which an insurer promises to make
a series of periodic payments to a named individual in exchange for a
premium or a series of premiums.
contract owner - ✔✔The person or other entity who owns and exercises all
the rights and privileges of an annuity contract.
annuitant - ✔✔The person whose lifetime is used to determine the amount
of benefits payable under an annuity contract. If not the contract owner,
they are not a party to the contract.
payee - ✔✔The person or entity who receives the periodic income
payments according to the terms of an annuity contract. If not the contract
owner, they are not a party to the contract.
beneficiary - ✔✔The party designated to receive the policy proceeds
following the death of the insured. Also known as first beneficiary.
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, accumulation value - ✔✔equals the premiums paid, plus investment
earnings, less withdrawals or fees.
fixed annuity - ✔✔An annuity contract under which the insurer guarantees
the minimum interest rate that will be applied to the annuity's accumulation
value during the accumulation period and the minimum amount of the
periodic income payments that will be made during the payout period.
variable annuity - ✔✔An annuity under which the amount of the
accumulation value and the amount of the periodic income payments
fluctuate in accordance with the performance of one or more specified fund
options. Contract owner assumes most or all of the risk.
hybrid annuities - ✔✔combine features of fixed annuities and variable
annuities.
fixed-indexed annuity - ✔✔offers principal and interest rate guarantees, as
well as the possibility of additional earnings based on changes in a
published index, such as the Standard & Poor's 500 Composite Stock Price
Index (the S&P 500)
market value adjusted annuity - ✔✔An annuity that offers multiple
guarantee periods and multiple fixed interest rates.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions with 100% Correct Answers
Annuity - ✔✔insurance against the risk of outliving one's financial
resources
annuity contract - ✔✔A contract under which an insurer promises to make
a series of periodic payments to a named individual in exchange for a
premium or a series of premiums.
contract owner - ✔✔The person or other entity who owns and exercises all
the rights and privileges of an annuity contract.
annuitant - ✔✔The person whose lifetime is used to determine the amount
of benefits payable under an annuity contract. If not the contract owner,
they are not a party to the contract.
payee - ✔✔The person or entity who receives the periodic income
payments according to the terms of an annuity contract. If not the contract
owner, they are not a party to the contract.
beneficiary - ✔✔The party designated to receive the policy proceeds
following the death of the insured. Also known as first beneficiary.
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, accumulation value - ✔✔equals the premiums paid, plus investment
earnings, less withdrawals or fees.
fixed annuity - ✔✔An annuity contract under which the insurer guarantees
the minimum interest rate that will be applied to the annuity's accumulation
value during the accumulation period and the minimum amount of the
periodic income payments that will be made during the payout period.
variable annuity - ✔✔An annuity under which the amount of the
accumulation value and the amount of the periodic income payments
fluctuate in accordance with the performance of one or more specified fund
options. Contract owner assumes most or all of the risk.
hybrid annuities - ✔✔combine features of fixed annuities and variable
annuities.
fixed-indexed annuity - ✔✔offers principal and interest rate guarantees, as
well as the possibility of additional earnings based on changes in a
published index, such as the Standard & Poor's 500 Composite Stock Price
Index (the S&P 500)
market value adjusted annuity - ✔✔An annuity that offers multiple
guarantee periods and multiple fixed interest rates.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
