Chapter Exam Annuities || 100% Errorless Answers.
Variable annuities may invest premiums in each of the following, EXCEPT: correct answers
Insurer's corporate business account
An immediate annuity consists of a correct answers Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? correct
answers Deferred
Which of these statements concerning an Individual Straight Life annuity is accurate? correct
answers Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against: correct answers the risk
of living longer than expected
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? correct answers Fixed Deferred
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): correct answers
Immediate annuity
The type of annuity that can be purchased with one monetary deposit is called a(n): correct
answers Immediate annuity
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? correct answers Single Premium
What is considered to be a characteristic of an immediate annuity? correct answers Benefit
payments start within one payment period of purchase
Which of these is an element of a Single Premium annuity? correct answers Lump-sum payment
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT?
correct answers The income from the TSA is received income tax-free
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract value
has been paid. This type of annuity is called: correct answers An installment Refund annuity
G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving
monthly payments from the annuity. When G dies, the insurer: correct answers Does not have to
make any further payments
Variable annuities may invest premiums in each of the following, EXCEPT: correct answers
Insurer's corporate business account
An immediate annuity consists of a correct answers Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? correct
answers Deferred
Which of these statements concerning an Individual Straight Life annuity is accurate? correct
answers Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against: correct answers the risk
of living longer than expected
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? correct answers Fixed Deferred
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): correct answers
Immediate annuity
The type of annuity that can be purchased with one monetary deposit is called a(n): correct
answers Immediate annuity
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? correct answers Single Premium
What is considered to be a characteristic of an immediate annuity? correct answers Benefit
payments start within one payment period of purchase
Which of these is an element of a Single Premium annuity? correct answers Lump-sum payment
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT?
correct answers The income from the TSA is received income tax-free
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract value
has been paid. This type of annuity is called: correct answers An installment Refund annuity
G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving
monthly payments from the annuity. When G dies, the insurer: correct answers Does not have to
make any further payments
