Segregated Funds & Annuities -
Chapter 2 questions and
answers
10 years.
(Reference: Chapter 2) - answer What is the minimum maturity date for a
segregated fund contract?
NAVPU = [total value of assets - liabilities] / [number of units outstanding].
(Reference: Chapter 2) - answer What is the NAVPU Formula?
$35,000. The client receives the greater of market value or guarantee.
(Reference: Chapter 2) - answer Jenna invests $40,000 in a 75% / 75%
segregated fund. Upon maturity, the value of the fund is $35,000. How much
does Jenna receive?
Any time.
(Reference: Chapter 2) - answer Sarah has $10,000 invested in a segregated
fund. She wants to withdraw $5,000. When can Sarah make the withdrawal?
Interest, dividends, and capital gains.
(Reference: Chapter 2) - answer Which type of investment returns are
generated by income funds?
, $25,000.
(Reference: Chapter 2) - answer Laura invests $100,000 in a segregated fund
with a guarantee. How much of Laura's original capital is at risk?
The issue of whether or not an investor's assets are exempt from claims of
their creditors in the event that the investor becomes bankrupt.
(Reference: Chapter 2) - answer What does creditor protection refer to?
Guaranteed Minimum Withdrawal Benefit.
(Reference: Chapter 2) - answer What does GMWB stand for?
Deferred Sales Charge.
(Reference: Chapter 2) - answer What does DSC stand for?
What are the two guarantees provided by a segregated fund? - answer A
maturity guarantee and a death benefit guarantee.
What is the minimum maturity date of a segregated fund? - answer 10 years,
they can be more but 10 is the lowest number of years available.
What does unlimited upside potential mean? - answer There is a minimum
contract value at maturity, but there is no maximum to what the value may
be.
When the market value at maturity is less than the guarantee value, where
does the difference come from? - answer The insurer makes up the difference
between the market value and the guarantee from its financial reserves. In
Chapter 2 questions and
answers
10 years.
(Reference: Chapter 2) - answer What is the minimum maturity date for a
segregated fund contract?
NAVPU = [total value of assets - liabilities] / [number of units outstanding].
(Reference: Chapter 2) - answer What is the NAVPU Formula?
$35,000. The client receives the greater of market value or guarantee.
(Reference: Chapter 2) - answer Jenna invests $40,000 in a 75% / 75%
segregated fund. Upon maturity, the value of the fund is $35,000. How much
does Jenna receive?
Any time.
(Reference: Chapter 2) - answer Sarah has $10,000 invested in a segregated
fund. She wants to withdraw $5,000. When can Sarah make the withdrawal?
Interest, dividends, and capital gains.
(Reference: Chapter 2) - answer Which type of investment returns are
generated by income funds?
, $25,000.
(Reference: Chapter 2) - answer Laura invests $100,000 in a segregated fund
with a guarantee. How much of Laura's original capital is at risk?
The issue of whether or not an investor's assets are exempt from claims of
their creditors in the event that the investor becomes bankrupt.
(Reference: Chapter 2) - answer What does creditor protection refer to?
Guaranteed Minimum Withdrawal Benefit.
(Reference: Chapter 2) - answer What does GMWB stand for?
Deferred Sales Charge.
(Reference: Chapter 2) - answer What does DSC stand for?
What are the two guarantees provided by a segregated fund? - answer A
maturity guarantee and a death benefit guarantee.
What is the minimum maturity date of a segregated fund? - answer 10 years,
they can be more but 10 is the lowest number of years available.
What does unlimited upside potential mean? - answer There is a minimum
contract value at maturity, but there is no maximum to what the value may
be.
When the market value at maturity is less than the guarantee value, where
does the difference come from? - answer The insurer makes up the difference
between the market value and the guarantee from its financial reserves. In
