CHAPTER 7 EXAM - XCEL SOLUTIONS
EXAM QUESTIONS AND ANSWERS
Insurer's corporate business account - ANSWER-Variable annuities may invest
premiums in each of the following, EXCEPT:
Variable - ANSWER-A (n)___________ annuity pays benefits based on units rather
than stated dollar amounts.
Life Annuity with Period Certain - ANSWER-T has an annuity that guarantees an
income payment for the rest of his life. The contract also guarantees that if T dies
before receiving payments for 20 years, the remaining payments will be paid to his
son for the balance of the 20 years. What type of annuity is this?
Income derived from the TSA is received income-tax free - ANSWER-All of the
following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT
Fixed Deferred - ANSWER-N, age 50, recently bought an annuity that will pay a
guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
S&P 500 - ANSWER-Which of the following are Equity Indexed annuities typically
invested in?
Immediate Annuity; starts within 30 days from the purchase date - ANSWER-W is a
39-year old female who just purchased an annuity to provide income for life starting
at age 60. All of these would be acceptable annuity choices EXCEPT a(n)
AD&D Rider - ANSWER-Which of the following is NOT included in an annuity
contract?
Benefit payments start within one payment period of purchase - ANSWER-What is
considered to be a characteristic of an immediate annuity?
the risk of living longer than expected - ANSWER-An individual who purchases a life
annuity is given protection against:
The current contract surrender value - ANSWER-A contract owner terminates an
annuity before the income payment period begins. The owner will then receive
Annuity - ANSWER-Which type of contract liquidates an estate through recurrent
payments?
underlying equity investments - ANSWER-A variable annuity has which of the
following characteristics?
EXAM QUESTIONS AND ANSWERS
Insurer's corporate business account - ANSWER-Variable annuities may invest
premiums in each of the following, EXCEPT:
Variable - ANSWER-A (n)___________ annuity pays benefits based on units rather
than stated dollar amounts.
Life Annuity with Period Certain - ANSWER-T has an annuity that guarantees an
income payment for the rest of his life. The contract also guarantees that if T dies
before receiving payments for 20 years, the remaining payments will be paid to his
son for the balance of the 20 years. What type of annuity is this?
Income derived from the TSA is received income-tax free - ANSWER-All of the
following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT
Fixed Deferred - ANSWER-N, age 50, recently bought an annuity that will pay a
guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
S&P 500 - ANSWER-Which of the following are Equity Indexed annuities typically
invested in?
Immediate Annuity; starts within 30 days from the purchase date - ANSWER-W is a
39-year old female who just purchased an annuity to provide income for life starting
at age 60. All of these would be acceptable annuity choices EXCEPT a(n)
AD&D Rider - ANSWER-Which of the following is NOT included in an annuity
contract?
Benefit payments start within one payment period of purchase - ANSWER-What is
considered to be a characteristic of an immediate annuity?
the risk of living longer than expected - ANSWER-An individual who purchases a life
annuity is given protection against:
The current contract surrender value - ANSWER-A contract owner terminates an
annuity before the income payment period begins. The owner will then receive
Annuity - ANSWER-Which type of contract liquidates an estate through recurrent
payments?
underlying equity investments - ANSWER-A variable annuity has which of the
following characteristics?
