Michigan Variable || With Certified Answers.
accumulation phase correct answers the period during which contributions are made to an
annuity
accumulation unit correct answers an accounting measure, similar to a mutual fund share, used to
determine an annuitant's proportionate interest in the insurer's separate account during the
accumulation phase of a variable annuity. Both the number an value of these units will change
during the accumulation phase
administration charge correct answers under an insurance or annuity contract, the charge the
insurance company makes to compensate for maintaining records, accounting and reports
generation
annuitant correct answers a person who receives the distribution from an annuity contract
annuity correct answers a contract in which the insurer agrees, for a price, to make regular
payments to an individual for life or some fixed period
annuity phase correct answers the period, after annuitization, during which annuity payments are
made to an annuitant
annuity unit correct answers An accounting measure used to determine the amount of each
payment during an annuity's distribution stage. The calculation takes into account the value of
each accumulation unit and such other factors as assumed interest rate and mortality risk.
assumed interest rate AIR correct answers an assumption, built into variable annuity contracts, of
the minimum rate of return the insurer expects to receive and that forms the basis for an initial
annuity payment as well as a "floor" from which to measure gain
,combined ("balanced") annuity correct answers an annuity providing for payments that derive
from both fixed and variable annuity accounts
death benefit guarantee (VA) correct answers an amount equal to the higher of the separate
account balance or the sum of the purchase payments, which is paid to the beneficiary of a
variable annuitant in the event of their death during the accumulation phase
deferred annutiy correct answers an annuity in which payments begin more than one payment
period (one month to one year) after the purchase date
direct method correct answers an approach to managing a variable products separate account that
utilizes an open ended investment company (similar to a mutual fund family) created inside the
structure of an insurer
diversification correct answers an investing technique characterized by buying a variety of
different investments the market risk is spread out and reduced
dual licensure correct answers the requirement that a person who sells variable life or variable
annuities must be state licensed to sell life insurance, and also federally licensed as a registered
representative of an NASD member to sell variable products
expense guarantee correct answers a guarantee made by an insurer that expenses for a variable
product will not exceed certain maximum levels
fixed amount option correct answers an insurance or annuity settlement option in which a chosen
amount is paid out for an approximate length of time when principal and interest are exhausted
fixed annuity correct answers an annuity providing that the insurer will pay the annuitant a
guaranteed, fixed amount during the annuity phase
, fixed period option correct answers an insurance or annuity settlement option in which an
approximate amount is paid out fo ra chosen length of time when principal and interest are
exhausted
flexible premium deferred annuity FPDA correct answers a deferred annuity purchased with a
series of payments, which may be irregular as to amount or timing
flexible premium variable life correct answers a type of life insurance, also known as variable
universal life, which is characterized by flexible premiums, adjustable death benefit, and the
ability of the owner to make partial surrenders
general account correct answers the account that holds all o fthe assets of an insurer other than
those in the separate accounts. the general account holds the premiums for all fixed life and
annuity products and is typically conservatively invested in bonds and commercial real estate to
produce a relatively stable return
growth correct answers an investment objective that focuses on long-term capital appreciation
rather than immediate income
immediate annuity correct answers an annuity, purhcased with a single premium payment, in
which annuity payments begin the next period (one month to one year) after purchase
income correct answers an investemnt objective that focuses on dividends and interest to produce
income rather than capital appreciation
indirect method correct answers an approach to managing a variable products separate account
that uses a unit investment trust contract with an investment company external to the insurer
interest only option correct answers an insurance or annuity settlement option in which the
insurer holds the principal and pays interest to the beneficiary with a guaranteed minimum rate
accumulation phase correct answers the period during which contributions are made to an
annuity
accumulation unit correct answers an accounting measure, similar to a mutual fund share, used to
determine an annuitant's proportionate interest in the insurer's separate account during the
accumulation phase of a variable annuity. Both the number an value of these units will change
during the accumulation phase
administration charge correct answers under an insurance or annuity contract, the charge the
insurance company makes to compensate for maintaining records, accounting and reports
generation
annuitant correct answers a person who receives the distribution from an annuity contract
annuity correct answers a contract in which the insurer agrees, for a price, to make regular
payments to an individual for life or some fixed period
annuity phase correct answers the period, after annuitization, during which annuity payments are
made to an annuitant
annuity unit correct answers An accounting measure used to determine the amount of each
payment during an annuity's distribution stage. The calculation takes into account the value of
each accumulation unit and such other factors as assumed interest rate and mortality risk.
assumed interest rate AIR correct answers an assumption, built into variable annuity contracts, of
the minimum rate of return the insurer expects to receive and that forms the basis for an initial
annuity payment as well as a "floor" from which to measure gain
,combined ("balanced") annuity correct answers an annuity providing for payments that derive
from both fixed and variable annuity accounts
death benefit guarantee (VA) correct answers an amount equal to the higher of the separate
account balance or the sum of the purchase payments, which is paid to the beneficiary of a
variable annuitant in the event of their death during the accumulation phase
deferred annutiy correct answers an annuity in which payments begin more than one payment
period (one month to one year) after the purchase date
direct method correct answers an approach to managing a variable products separate account that
utilizes an open ended investment company (similar to a mutual fund family) created inside the
structure of an insurer
diversification correct answers an investing technique characterized by buying a variety of
different investments the market risk is spread out and reduced
dual licensure correct answers the requirement that a person who sells variable life or variable
annuities must be state licensed to sell life insurance, and also federally licensed as a registered
representative of an NASD member to sell variable products
expense guarantee correct answers a guarantee made by an insurer that expenses for a variable
product will not exceed certain maximum levels
fixed amount option correct answers an insurance or annuity settlement option in which a chosen
amount is paid out for an approximate length of time when principal and interest are exhausted
fixed annuity correct answers an annuity providing that the insurer will pay the annuitant a
guaranteed, fixed amount during the annuity phase
, fixed period option correct answers an insurance or annuity settlement option in which an
approximate amount is paid out fo ra chosen length of time when principal and interest are
exhausted
flexible premium deferred annuity FPDA correct answers a deferred annuity purchased with a
series of payments, which may be irregular as to amount or timing
flexible premium variable life correct answers a type of life insurance, also known as variable
universal life, which is characterized by flexible premiums, adjustable death benefit, and the
ability of the owner to make partial surrenders
general account correct answers the account that holds all o fthe assets of an insurer other than
those in the separate accounts. the general account holds the premiums for all fixed life and
annuity products and is typically conservatively invested in bonds and commercial real estate to
produce a relatively stable return
growth correct answers an investment objective that focuses on long-term capital appreciation
rather than immediate income
immediate annuity correct answers an annuity, purhcased with a single premium payment, in
which annuity payments begin the next period (one month to one year) after purchase
income correct answers an investemnt objective that focuses on dividends and interest to produce
income rather than capital appreciation
indirect method correct answers an approach to managing a variable products separate account
that uses a unit investment trust contract with an investment company external to the insurer
interest only option correct answers an insurance or annuity settlement option in which the
insurer holds the principal and pays interest to the beneficiary with a guaranteed minimum rate
