Oregon Life Insurance Licensing
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1. Pure Life Annuity provides the highest monthly benefit, but there
is no guarantee that the entire principal will be
paid out
2. Equity Indexed Annuity A fixed deferred annuity that offers the tradi-
tional guaranteed minimum interest rate and an
excess interest feature that is based on the per-
formance of an external equities market index.
3. Immediate Annuity This type of annuity can only be purchased with
a single payment and typically begins paying
income within one month of purchase.
4. What is the difference between a single The number of payments that purchase the an-
premium and a flexible premium pay- nuity
ment options in a deferred annuity?
5. How are annuities classified depending Single life and multiple life annuities
on how many lives they cover?
6. If the current interest rate on an annu- current rate
ity is higher than the guaranteed rate,
which rate will the annuity owner re-
ceive as part of the annuity payment?
7. Regarding annuity payments, what is The annuitant receives payments from the annu-
the difference between the annuitant ity during the annuitization period; the benefi-
and the beneficiary of an annuity? ciary receives benefits after the annuitant's death
8. Flexible deferred annuity An annuity purchased with multiple payments
that begin income payments after one year from
the moment of purchase.
, Oregon Life Insurance Licensing
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9. Two classifications of annuities accord- Immediate and deferred
ing to the time when annuity payments
begin?
10. Under a straight life annuity, if the Nothing; the payments will cease.
annuitant dies before the principal
amount is paid out, the beneficiary will
receive
11. Who bears all of the investment risk in insurance company
a fixed annuity?
12. Which is not one of the uses of annu- Estate liquidation. Annuities are most commonly
ities used to fund a person's retirement, but they
can be used to accumulate cash for any reason.
Annuities can also be used to liquidate an estate.
13. Equity indexed annuity The annuity that has a guaranteed minimum
interest rate and allows the annuitant to invest
money in an index (i.e.: S&P 500). The invest-
ments grow as the index grows.
14. The annuitant dies while the annuity is The beneficiary will receive the greater of the
still in the accumulation stage. money paid into the annuity of the cash value.
15. The payments will stop when the annu- False
itant dies.
16. What determines the penalty for sur- The current interest rate at the time of surrender
rendering a market value adjusted an-
nuity prematurely?
17. Variable Annuity Benefit payment amounts are not guaranteed.
, Oregon Life Insurance Licensing
Study online at https://quizlet.com/_jdy4xb
18. Annuity contracts grow tax deferred There is no current income taxation upon the
growth in the annuity.
19. Straight Life Annuity The payout option that will guarantee an annuity
payment for the remainder of an individual's life.
This option typically provides the largest monthly
payment.
20. Annuity Certain pays income only for a certain period of time
21. Life Contingency Options No guarantee that all the proceeds will be paid
out
22. What is the general rule for death ben- Death benefits are generally not subject to in-
efits payable to the beneficiary of a life come taxes.
insurance policy?
23. 7 Pay Test (MEC) Premiums paid during the first 7 years must not
exceed the total amount of net level premiums
require to pay the policy up using guaranteed
mortality costs and interest
24. According to the taxation rules of life Cash value growth is tax deferred
insurance policies, how are cash value
increases taxed?
25. Modified Endowment Contract (MEC) Any cash value policy that builds cash value faster
than a Seven-Pay Whole Life Contract and there-
fore loses the tax advantages of life insurance.
26. In a direct rollover, how is the money From trustee to trustee
transferred from one retirement plan
to another new one?
Study online at https://quizlet.com/_jdy4xb
1. Pure Life Annuity provides the highest monthly benefit, but there
is no guarantee that the entire principal will be
paid out
2. Equity Indexed Annuity A fixed deferred annuity that offers the tradi-
tional guaranteed minimum interest rate and an
excess interest feature that is based on the per-
formance of an external equities market index.
3. Immediate Annuity This type of annuity can only be purchased with
a single payment and typically begins paying
income within one month of purchase.
4. What is the difference between a single The number of payments that purchase the an-
premium and a flexible premium pay- nuity
ment options in a deferred annuity?
5. How are annuities classified depending Single life and multiple life annuities
on how many lives they cover?
6. If the current interest rate on an annu- current rate
ity is higher than the guaranteed rate,
which rate will the annuity owner re-
ceive as part of the annuity payment?
7. Regarding annuity payments, what is The annuitant receives payments from the annu-
the difference between the annuitant ity during the annuitization period; the benefi-
and the beneficiary of an annuity? ciary receives benefits after the annuitant's death
8. Flexible deferred annuity An annuity purchased with multiple payments
that begin income payments after one year from
the moment of purchase.
, Oregon Life Insurance Licensing
Study online at https://quizlet.com/_jdy4xb
9. Two classifications of annuities accord- Immediate and deferred
ing to the time when annuity payments
begin?
10. Under a straight life annuity, if the Nothing; the payments will cease.
annuitant dies before the principal
amount is paid out, the beneficiary will
receive
11. Who bears all of the investment risk in insurance company
a fixed annuity?
12. Which is not one of the uses of annu- Estate liquidation. Annuities are most commonly
ities used to fund a person's retirement, but they
can be used to accumulate cash for any reason.
Annuities can also be used to liquidate an estate.
13. Equity indexed annuity The annuity that has a guaranteed minimum
interest rate and allows the annuitant to invest
money in an index (i.e.: S&P 500). The invest-
ments grow as the index grows.
14. The annuitant dies while the annuity is The beneficiary will receive the greater of the
still in the accumulation stage. money paid into the annuity of the cash value.
15. The payments will stop when the annu- False
itant dies.
16. What determines the penalty for sur- The current interest rate at the time of surrender
rendering a market value adjusted an-
nuity prematurely?
17. Variable Annuity Benefit payment amounts are not guaranteed.
, Oregon Life Insurance Licensing
Study online at https://quizlet.com/_jdy4xb
18. Annuity contracts grow tax deferred There is no current income taxation upon the
growth in the annuity.
19. Straight Life Annuity The payout option that will guarantee an annuity
payment for the remainder of an individual's life.
This option typically provides the largest monthly
payment.
20. Annuity Certain pays income only for a certain period of time
21. Life Contingency Options No guarantee that all the proceeds will be paid
out
22. What is the general rule for death ben- Death benefits are generally not subject to in-
efits payable to the beneficiary of a life come taxes.
insurance policy?
23. 7 Pay Test (MEC) Premiums paid during the first 7 years must not
exceed the total amount of net level premiums
require to pay the policy up using guaranteed
mortality costs and interest
24. According to the taxation rules of life Cash value growth is tax deferred
insurance policies, how are cash value
increases taxed?
25. Modified Endowment Contract (MEC) Any cash value policy that builds cash value faster
than a Seven-Pay Whole Life Contract and there-
fore loses the tax advantages of life insurance.
26. In a direct rollover, how is the money From trustee to trustee
transferred from one retirement plan
to another new one?
