NAIC 390 Exam | 50 Questions with 100% Correct Answers | Verified | Latest Update 2024
Regarding indexed annuities, the participation rate is best described as: - The percentage of increase in the index that will be used to calculate the index-linked interest rate. Mortality and expense risk charges are designed to offset the insurer's risk that the annuitant will outlive his or her - Life expectancy. By creating a shared-risk pool, a fixed annuity evens out the ______ of the participants. - Mortality risk. Kate chooses a payment option that will guarantee payments for her lifetime but with an additional guarantee that payments will be made for at least 10 years should she die before then. This is referred to as a(n) ___________ payout. - Life with period-certain. Variable annuities offer investment options through a variety of ___________ that have a range of investment objectives to match consumer's risk tolerances, time horizons, and goals. - Variable subaccounts. With this type of variable annuity living-benefit guarantee, the insurer promises a fixed lifetime payment calculated a hypothetical benefit base even if the contract performs poorly. - Guaranteed minimum income benefit. If an annuitant surrenders his or her contract before reaching age 59 1/2, a ____________ prematuredistribution tax penalty will apply. - 10%
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