Chapter 7 Life Insurance Exam
Questions and Answers
P is a forty year old woman and would like to purchase an annuity that will
provide a lifetime income stream beginning at age sixty. Which of the
following did she NOT buy? - -An immediate annuity
- T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide? - -Income that
cannot be outlived by the owner
- Which type of contract liquidates an estate through recurrent payments? -
-Annuity
- The type of annuity that can be purchased with one monetary deposit is
called a(n) - -Immediate Annuity
- Which of these is an element of a Single Premium annuity? - -Lump Sum
Payment
- How does an indexed annuity differ from a fixed annuity? - -Indexed
annuity owners receive credited interest tied to the fluctuations of the linked
index
- What is considered to be a characteristics of an immediate annuity? - -
Benefit payments start within one payment period of purchase
- Which of the following is NOT included in an annuity contract? - -AD&D
rider
- Which of these statements concerning an Individual Straight Life annuity is
accurate? - -Payments are made to an annuitant for life
- If an annuity is terminated prior to beginning of the income payment
period, the contract owner receives - -The contract surrender value at that
time
- Variable annuities may invest premiums in each of the following EXCEPT:
-Common Stock
-Money Market Securities
-Insurers Corporate Business Account
-Junk Bonds - -Insurers corporate business account
Questions and Answers
P is a forty year old woman and would like to purchase an annuity that will
provide a lifetime income stream beginning at age sixty. Which of the
following did she NOT buy? - -An immediate annuity
- T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide? - -Income that
cannot be outlived by the owner
- Which type of contract liquidates an estate through recurrent payments? -
-Annuity
- The type of annuity that can be purchased with one monetary deposit is
called a(n) - -Immediate Annuity
- Which of these is an element of a Single Premium annuity? - -Lump Sum
Payment
- How does an indexed annuity differ from a fixed annuity? - -Indexed
annuity owners receive credited interest tied to the fluctuations of the linked
index
- What is considered to be a characteristics of an immediate annuity? - -
Benefit payments start within one payment period of purchase
- Which of the following is NOT included in an annuity contract? - -AD&D
rider
- Which of these statements concerning an Individual Straight Life annuity is
accurate? - -Payments are made to an annuitant for life
- If an annuity is terminated prior to beginning of the income payment
period, the contract owner receives - -The contract surrender value at that
time
- Variable annuities may invest premiums in each of the following EXCEPT:
-Common Stock
-Money Market Securities
-Insurers Corporate Business Account
-Junk Bonds - -Insurers corporate business account
