SERIES 65 LATEST STUDY GUIDE QUESTIONS AND
ANSWERS SURE A+
✔✔Combination Privilege - ✔✔A benefit offered by a mutual fund whereby the investor
may qualify for a sales charge breakpoint by combining separate investments in two or
more mutual funds under the same management.
✔✔Exchange Traded Fund (ETF) - ✔✔shares traded on securities markets that
represent the legal right of ownership over part of a basket of individual stock
certificates or other securities
✔✔Real Estate Investment Trust (REIT) - ✔✔an organization that purchases, owns, and
manages real estate for its investors
✔✔Combination Annuity - ✔✔-receive the advantages of both fixed and variable
annuities
-contribute to both the general and separate accounts
✔✔(Equity) Index Annuity - ✔✔*Earnings rate based on stock market index -- Annuitant
guratneed a certain return called the participation rate
✔✔Index Annuity Crediting Methods - ✔✔1. Annual Reset
2. High Water Mark
3. Point to Point
✔✔Life Annuity - ✔✔An annuity that provides periodic income payments for at least the
lifetime of a named individual
✔✔Exclusion Ratio - ✔✔method of determining which part of an annuity payment is
taxable, and which part represents the tax-free return of the annuitant's after-tax cost
basis.
, ✔✔whole life insurance - ✔✔Insurance that is kept in force for a person's entire life and
pays a benefit upon the person's death, whenever that may be.
✔✔Policy Loan - ✔✔A nonforfeiture value in which an insurer loans a part or all of the
cash value of the policy assigned as security for the loan to the policyowner.
✔✔Universal Life Insurance - ✔✔a whole life policy that combines term insurance and
investment elements
✔✔Scheduled (Fixed) Premium Variable Life - ✔✔Minimum Death bene
Premium determined by tables
After expenses, net premium invested in separate account
✔✔Flexible Premium Variable Life VUL UVL - ✔✔Analogous to variable annuity
Premiums and benefits vary prems invested in sep account
✔✔Maximum allowable sales load on variable life... - ✔✔9% computer over any 20 year
period
✔✔Allowable Deductions from separate account - ✔✔Mortaliy risk fee, expense risk fee,
investment management fee
✔✔Which charges are deducted from the gross premium -- SAS - ✔✔Sales load, Admin
fee, state premium taxes
✔✔Variable life and assumed Interest rate - ✔✔Over AIR - extra funds availiable to
insured and increase in death benefit
Met AIR - No change in benefit
Less than AIR - Death benefit may decrease
✔✔Variable life insurance calculations - ✔✔Death benefit - annually
Cash value - monthly
Separate account unit values -- daily
✔✔Forward Contract - ✔✔an arrangement calling for future delivery of an asset at an
agreed-upon price
✔✔futures contract - ✔✔An agreement to buy or sell a specific commodity or currency
at a set price on a set date in the future
✔✔hedge fund - ✔✔a limited partnership of investors that uses high risk methods, such
as investing with borrowed money, in hopes of realizing large capital gains.
ANSWERS SURE A+
✔✔Combination Privilege - ✔✔A benefit offered by a mutual fund whereby the investor
may qualify for a sales charge breakpoint by combining separate investments in two or
more mutual funds under the same management.
✔✔Exchange Traded Fund (ETF) - ✔✔shares traded on securities markets that
represent the legal right of ownership over part of a basket of individual stock
certificates or other securities
✔✔Real Estate Investment Trust (REIT) - ✔✔an organization that purchases, owns, and
manages real estate for its investors
✔✔Combination Annuity - ✔✔-receive the advantages of both fixed and variable
annuities
-contribute to both the general and separate accounts
✔✔(Equity) Index Annuity - ✔✔*Earnings rate based on stock market index -- Annuitant
guratneed a certain return called the participation rate
✔✔Index Annuity Crediting Methods - ✔✔1. Annual Reset
2. High Water Mark
3. Point to Point
✔✔Life Annuity - ✔✔An annuity that provides periodic income payments for at least the
lifetime of a named individual
✔✔Exclusion Ratio - ✔✔method of determining which part of an annuity payment is
taxable, and which part represents the tax-free return of the annuitant's after-tax cost
basis.
, ✔✔whole life insurance - ✔✔Insurance that is kept in force for a person's entire life and
pays a benefit upon the person's death, whenever that may be.
✔✔Policy Loan - ✔✔A nonforfeiture value in which an insurer loans a part or all of the
cash value of the policy assigned as security for the loan to the policyowner.
✔✔Universal Life Insurance - ✔✔a whole life policy that combines term insurance and
investment elements
✔✔Scheduled (Fixed) Premium Variable Life - ✔✔Minimum Death bene
Premium determined by tables
After expenses, net premium invested in separate account
✔✔Flexible Premium Variable Life VUL UVL - ✔✔Analogous to variable annuity
Premiums and benefits vary prems invested in sep account
✔✔Maximum allowable sales load on variable life... - ✔✔9% computer over any 20 year
period
✔✔Allowable Deductions from separate account - ✔✔Mortaliy risk fee, expense risk fee,
investment management fee
✔✔Which charges are deducted from the gross premium -- SAS - ✔✔Sales load, Admin
fee, state premium taxes
✔✔Variable life and assumed Interest rate - ✔✔Over AIR - extra funds availiable to
insured and increase in death benefit
Met AIR - No change in benefit
Less than AIR - Death benefit may decrease
✔✔Variable life insurance calculations - ✔✔Death benefit - annually
Cash value - monthly
Separate account unit values -- daily
✔✔Forward Contract - ✔✔an arrangement calling for future delivery of an asset at an
agreed-upon price
✔✔futures contract - ✔✔An agreement to buy or sell a specific commodity or currency
at a set price on a set date in the future
✔✔hedge fund - ✔✔a limited partnership of investors that uses high risk methods, such
as investing with borrowed money, in hopes of realizing large capital gains.
