Michigan Variable Annuities Exam
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
Other names for pure life settlement - 🧠 ANSWER ✔✔-life income
-life annuity
What annuity settlement option produces the largest monthly income
guaranteed for life? - 🧠 ANSWER ✔✔pure life settlement option
second life contingency option - 🧠 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 - 🧠 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 - 🧠 ANSWER ✔✔b
how long is the free-look period for Michigan annuity contracts - 🧠
ANSWER ✔✔10 calendar days after purchase date (eligible for full refund
including premium paid)
accumulation period/units - 🧠 ANSWER ✔✔a $5,000 prem deposit in a VA
in which the units are valued at $5, would purchase 1,000 accumulation
units. New prem pmts change the number of accumulation units in a
purchaser's account, and market fluctuations change each unit's value, so
remember that both the number and value of accumulation units change
annuity period/units - 🧠 ANSWER ✔✔when annuitized, accumulation units
are converted to a set number of annuity units; this number becomes one
, of the factors used to calculate the payout each month during the annuity
phase (once the # of annuity units is chosen, it will not change, but the
value of each unit change)
Assumed Interest Rate (AIR) - 🧠 ANSWER ✔✔arbitrary rate of return set by
the insurer for any separate account they establish; VA owner ust
experience a separate account net investment rate of return that exceeds
the AIR in order for those product values to go up
Applying AIR to variable life - 🧠 ANSWER ✔✔applies to the variable death
benefit, but not var. cash value (only a separate account return above the
AIR would increase the variable policy death benefit)
Applying AIR to variable annuity - 🧠 ANSWER ✔✔applies to the variable
annuity unit value and any payouts, but not o the variable accumulation
value (only a separate account return above the AIR would increase the
variable annuity unit values and pmts)
Combination Annuities - 🧠 ANSWER ✔✔Combo offers features of fixed and
variable contracts
-Fixed portion offers guaranteed rate
-Variable portion tries to achieve higher rate of return
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
Other names for pure life settlement - 🧠 ANSWER ✔✔-life income
-life annuity
What annuity settlement option produces the largest monthly income
guaranteed for life? - 🧠 ANSWER ✔✔pure life settlement option
second life contingency option - 🧠 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 - 🧠 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 - 🧠 ANSWER ✔✔b
how long is the free-look period for Michigan annuity contracts - 🧠
ANSWER ✔✔10 calendar days after purchase date (eligible for full refund
including premium paid)
accumulation period/units - 🧠 ANSWER ✔✔a $5,000 prem deposit in a VA
in which the units are valued at $5, would purchase 1,000 accumulation
units. New prem pmts change the number of accumulation units in a
purchaser's account, and market fluctuations change each unit's value, so
remember that both the number and value of accumulation units change
annuity period/units - 🧠 ANSWER ✔✔when annuitized, accumulation units
are converted to a set number of annuity units; this number becomes one
, of the factors used to calculate the payout each month during the annuity
phase (once the # of annuity units is chosen, it will not change, but the
value of each unit change)
Assumed Interest Rate (AIR) - 🧠 ANSWER ✔✔arbitrary rate of return set by
the insurer for any separate account they establish; VA owner ust
experience a separate account net investment rate of return that exceeds
the AIR in order for those product values to go up
Applying AIR to variable life - 🧠 ANSWER ✔✔applies to the variable death
benefit, but not var. cash value (only a separate account return above the
AIR would increase the variable policy death benefit)
Applying AIR to variable annuity - 🧠 ANSWER ✔✔applies to the variable
annuity unit value and any payouts, but not o the variable accumulation
value (only a separate account return above the AIR would increase the
variable annuity unit values and pmts)
Combination Annuities - 🧠 ANSWER ✔✔Combo offers features of fixed and
variable contracts
-Fixed portion offers guaranteed rate
-Variable portion tries to achieve higher rate of return
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
