Loma 280 Chapter 10 Exam 2025
Questions and Answers
accumulated value - ✔✔During a deferred annuity's accumulation period, the amount
paid for the deferred annuity, plus the investment earnings, minus the amount of any
withdrawals and fees
accumulation period - ✔✔The period between the contract owner's purchase of a
deferred annuity and the beginning of the payout period
annuitant - ✔✔The person whose lifetime is used to determine the amount of benefits
payable under an annuity contract.
annuity - ✔✔A series of periodic payments
annuity period - ✔✔The time span between each of the payments in the series of
periodic annuity payments
back-end sales charge - ✔✔An amount charged to an annuity contract owner when she
withdraws money from an contract
contingent payee - ✔✔The person or other entity who will receive any remaining
annuity payments upon the death of the payee.
contract owner - ✔✔The person or other entity who owns and exercises all the rights
and privileges of an annuity contract.
death benefit - ✔✔An amount of money payable to a beneficiary designated by a
deferred annuity contract owner if the contract owner dies before the annuity payments
begin. Also known as a survivor benefit
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, deferred annuity - ✔✔An annuity under which periodic income payments are sched-
uled to begin more than one annuity period after the date on which the annuity was
purchased.
entire contract provision - ✔✔An insurance and annuity policy provision that defines
the documents that constitute the contract between the insurance company and the
policyowner.
equity-indexed annuity (EIA) - ✔✔A type of annuity that offers certain principal and
earnings guarantees, but also offers the possibility of additional earnings by linking the
contract to a published index
fixed amount annuity - ✔✔An annuity that guarantees the payment of periodic income
payments of a specified minimum dollar amount for as long a period as the annuity's
accumulated value will provide, regardless of whether the annuitant lives or dies
fixed amount option - ✔✔An annuity contract payout option under which the insurer
provides periodic income payments of at least a specified minimum amount for as long
a period as the annuity's accumu-lated value will provide, regardless of whether the
annuitant lives or dies
fixed annuity - ✔✔An annuity contract under which the insurer guarantees the mini-
mum interest rate that will be applied to the annuity's accumulated value dur-ing the
accumulation period and the minimum amount of the periodic income payments that
will be made during the payout period
fixed period option - ✔✔An annuity contract payout option under which the insurer
makes annuity payments for a specified period of time.
fixed subaccount - ✔✔A subaccount that guarantees payment of a fixed rate of interest
for a specified period of time
flexible-premium annuity - ✔✔An annuity that is purchased by the payment of peri-
odic premiums that can vary between a set minimum amount and a set maxi-mum
amount.
free-look provision - ✔✔An insurance and annuity policy provision that gives the
policyowner a stated period of time—usually at least 10 days—after the policy is
delivered in which to examine the policy.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Questions and Answers
accumulated value - ✔✔During a deferred annuity's accumulation period, the amount
paid for the deferred annuity, plus the investment earnings, minus the amount of any
withdrawals and fees
accumulation period - ✔✔The period between the contract owner's purchase of a
deferred annuity and the beginning of the payout period
annuitant - ✔✔The person whose lifetime is used to determine the amount of benefits
payable under an annuity contract.
annuity - ✔✔A series of periodic payments
annuity period - ✔✔The time span between each of the payments in the series of
periodic annuity payments
back-end sales charge - ✔✔An amount charged to an annuity contract owner when she
withdraws money from an contract
contingent payee - ✔✔The person or other entity who will receive any remaining
annuity payments upon the death of the payee.
contract owner - ✔✔The person or other entity who owns and exercises all the rights
and privileges of an annuity contract.
death benefit - ✔✔An amount of money payable to a beneficiary designated by a
deferred annuity contract owner if the contract owner dies before the annuity payments
begin. Also known as a survivor benefit
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, deferred annuity - ✔✔An annuity under which periodic income payments are sched-
uled to begin more than one annuity period after the date on which the annuity was
purchased.
entire contract provision - ✔✔An insurance and annuity policy provision that defines
the documents that constitute the contract between the insurance company and the
policyowner.
equity-indexed annuity (EIA) - ✔✔A type of annuity that offers certain principal and
earnings guarantees, but also offers the possibility of additional earnings by linking the
contract to a published index
fixed amount annuity - ✔✔An annuity that guarantees the payment of periodic income
payments of a specified minimum dollar amount for as long a period as the annuity's
accumulated value will provide, regardless of whether the annuitant lives or dies
fixed amount option - ✔✔An annuity contract payout option under which the insurer
provides periodic income payments of at least a specified minimum amount for as long
a period as the annuity's accumu-lated value will provide, regardless of whether the
annuitant lives or dies
fixed annuity - ✔✔An annuity contract under which the insurer guarantees the mini-
mum interest rate that will be applied to the annuity's accumulated value dur-ing the
accumulation period and the minimum amount of the periodic income payments that
will be made during the payout period
fixed period option - ✔✔An annuity contract payout option under which the insurer
makes annuity payments for a specified period of time.
fixed subaccount - ✔✔A subaccount that guarantees payment of a fixed rate of interest
for a specified period of time
flexible-premium annuity - ✔✔An annuity that is purchased by the payment of peri-
odic premiums that can vary between a set minimum amount and a set maxi-mum
amount.
free-look provision - ✔✔An insurance and annuity policy provision that gives the
policyowner a stated period of time—usually at least 10 days—after the policy is
delivered in which to examine the policy.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
