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Michigan Variable Annuities Exam Questions &
Answers | Latest Already Graded A+ |Questions
with Correct Answers 2026 latest update!!
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Terms in this set (84)
Other names for pure life settlement -life income
-life annuity
What annuity settlement option pure life settlement option
produces the largest monthly
income guaranteed for life?
second life contingency option 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 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
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which annuity settlement option b
provides the largest monthly income
payment?
a. life with period certain
b. pure life option
c. life with refund
how long is the free-look period for 10 calendar days after purchase date (eligible for
Michigan annuity contracts full refund including premium paid)
accumulation period/units a $5,000 prem deposit in a VA in which the units are
valued at $5, would purchase 1,000 accumulation
units. New prem pmts change the number of
accumulation units in a purchaser's account, and
market fluctuations change each unit's value, so
remember that both the number and value of
accumulation units change
annuity period/units when annuitized, accumulation units are converted
to a set number of annuity units; this number
becomes one of the factors used to calculate the
payout each month during the annuity phase (once
the # of annuity units is chosen, it will not change,
but the value of each unit change)
Assumed Interest Rate (AIR) arbitrary rate of return set by the insurer for any
separate account they establish; VA owner ust
experience a separate account net investment rate
of return that exceeds the AIR in order for those
product values to go up
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Applying AIR to variable life applies to the variable death benefit, but not var.
cash value (only a separate account return above
the AIR would increase the variable policy death
benefit)
Applying AIR to variable annuity applies to the variable annuity unit value and any
payouts, but not o the variable accumulation value
(only a separate account return above the AIR
would increase the variable annuity unit values and
pmts)
Combination Annuities Combo offers features of fixed and variable
contracts
-Fixed portion offers guaranteed rate
-Variable portion tries to achieve higher rate of
return
-$ in fixed portion goes to general account for
conservative investment
-$ in variable portion goes to separate account for
stocks, bond, mutual funds
-Reps must have securities and insurance licenses
Guaranteed living benefits (GLB) Accumulation, income, and withdrawal guarantee
features of annuities; attractive to older and
conservative consumers
guaranteed minimum account value variable annuity guaranteed life benefit that
(GMAV) ensures the contract's account value will be the
greater of the premiums paid or the actual account
value after a specified period of time, such as 8 or
10 years
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Michigan Variable Annuities Exam Questions &
Answers | Latest Already Graded A+ |Questions
with Correct Answers 2026 latest update!!
Save
Terms in this set (84)
Other names for pure life settlement -life income
-life annuity
What annuity settlement option pure life settlement option
produces the largest monthly
income guaranteed for life?
second life contingency option 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 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
https://quizlet.com/1165816176/michigan-variable-annuities-exam-questions-answers-latest-already-graded-a-questions-with-correct-answers-2026-l… 1/16
,4/9/26, 3:16 PM Michigan Variable Annuities Exam Questions & Answers | Latest Already Graded A+ |Questions with Correct Answers 2026 latest up…
which annuity settlement option b
provides the largest monthly income
payment?
a. life with period certain
b. pure life option
c. life with refund
how long is the free-look period for 10 calendar days after purchase date (eligible for
Michigan annuity contracts full refund including premium paid)
accumulation period/units a $5,000 prem deposit in a VA in which the units are
valued at $5, would purchase 1,000 accumulation
units. New prem pmts change the number of
accumulation units in a purchaser's account, and
market fluctuations change each unit's value, so
remember that both the number and value of
accumulation units change
annuity period/units when annuitized, accumulation units are converted
to a set number of annuity units; this number
becomes one of the factors used to calculate the
payout each month during the annuity phase (once
the # of annuity units is chosen, it will not change,
but the value of each unit change)
Assumed Interest Rate (AIR) arbitrary rate of return set by the insurer for any
separate account they establish; VA owner ust
experience a separate account net investment rate
of return that exceeds the AIR in order for those
product values to go up
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Applying AIR to variable life applies to the variable death benefit, but not var.
cash value (only a separate account return above
the AIR would increase the variable policy death
benefit)
Applying AIR to variable annuity applies to the variable annuity unit value and any
payouts, but not o the variable accumulation value
(only a separate account return above the AIR
would increase the variable annuity unit values and
pmts)
Combination Annuities Combo offers features of fixed and variable
contracts
-Fixed portion offers guaranteed rate
-Variable portion tries to achieve higher rate of
return
-$ in fixed portion goes to general account for
conservative investment
-$ in variable portion goes to separate account for
stocks, bond, mutual funds
-Reps must have securities and insurance licenses
Guaranteed living benefits (GLB) Accumulation, income, and withdrawal guarantee
features of annuities; attractive to older and
conservative consumers
guaranteed minimum account value variable annuity guaranteed life benefit that
(GMAV) ensures the contract's account value will be the
greater of the premiums paid or the actual account
value after a specified period of time, such as 8 or
10 years
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