Michigan Variable Annuities Exam Guide Latest
2025-2026 With Questions and Correct Answers
Graded A+|Assured Success
Death Benefit Guarantee - CORRECT ANSWER-an amount equal to the higher of the
separate account balance or the sum of the purchase pmts, which is paid to the beneficiary of a
variable annuitant in the event of their death during the accumulation phase
Deferred Annuity - CORRECT ANSWER-An annuity that starts sometime in the future.
,Direct Method - CORRECT ANSWER-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 ANSWER-an investing technique characterized by buying a
variety of different investments so that the market risk is spread out and reduced
Dual Licensure - CORRECT ANSWER-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
reg rep of an NASD member to sell variable products
Expense Guarantee - CORRECT ANSWER-a guarantee made by an insurer that expenses
for a variable product will not exceed certain maximum levels
Fixed Amount Option - CORRECT ANSWER-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 ANSWER-an annuity providing that the insurer will pay the
annuitant a guaranteed, fixed amount during the annuity phase
, Other names for pure life settlement - CORRECT ANSWER--life income
-life annuity
What annuity settlement option produces the largest monthly income guaranteed for life? -
CORRECT ANSWER-pure life settlement option
second life contingency option - CORRECT ANSWER-life with period certain (ie. 10 years)
so even if the annuitant does or does not die within that timeframe, insurer guarantees to
continue the annuity payments to a named beneficiary for the balance of the certain period.
third life contingency option - CORRECT ANSWER-life with refund; insurer guarantees
payments for life, but if the annuitant dies before the payments received equal the annuitant's
basis (the total amount paid for the annuity), then the insurer agrees to pay out the remaining
basis to a named beneficiary
which annuity settlement option provides the largest monthly income payment?
a. life with period certain
b. pure life option
c. life with refund - CORRECT ANSWER-b
how long is the free-look period for Michigan annuity contracts - CORRECT ANSWER-10
calendar days after purchase date (eligible for full refund including premium paid)
2025-2026 With Questions and Correct Answers
Graded A+|Assured Success
Death Benefit Guarantee - CORRECT ANSWER-an amount equal to the higher of the
separate account balance or the sum of the purchase pmts, which is paid to the beneficiary of a
variable annuitant in the event of their death during the accumulation phase
Deferred Annuity - CORRECT ANSWER-An annuity that starts sometime in the future.
,Direct Method - CORRECT ANSWER-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 ANSWER-an investing technique characterized by buying a
variety of different investments so that the market risk is spread out and reduced
Dual Licensure - CORRECT ANSWER-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
reg rep of an NASD member to sell variable products
Expense Guarantee - CORRECT ANSWER-a guarantee made by an insurer that expenses
for a variable product will not exceed certain maximum levels
Fixed Amount Option - CORRECT ANSWER-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 ANSWER-an annuity providing that the insurer will pay the
annuitant a guaranteed, fixed amount during the annuity phase
, Other names for pure life settlement - CORRECT ANSWER--life income
-life annuity
What annuity settlement option produces the largest monthly income guaranteed for life? -
CORRECT ANSWER-pure life settlement option
second life contingency option - CORRECT ANSWER-life with period certain (ie. 10 years)
so even if the annuitant does or does not die within that timeframe, insurer guarantees to
continue the annuity payments to a named beneficiary for the balance of the certain period.
third life contingency option - CORRECT ANSWER-life with refund; insurer guarantees
payments for life, but if the annuitant dies before the payments received equal the annuitant's
basis (the total amount paid for the annuity), then the insurer agrees to pay out the remaining
basis to a named beneficiary
which annuity settlement option provides the largest monthly income payment?
a. life with period certain
b. pure life option
c. life with refund - CORRECT ANSWER-b
how long is the free-look period for Michigan annuity contracts - CORRECT ANSWER-10
calendar days after purchase date (eligible for full refund including premium paid)
