214 FLORIDA INSURANCE LIFE AND VARIABLE ANNUITY ACTUAL EXAM UPDATED

214 FLORIDA INSURANCE LIFE AND VARIABLE ANNUITY ACTUAL EXAM UPDATED variable annuity - CORRECT ANSWER -there is no guarantee of the dollar amount of the payments, they fluctuate according to the value of an account vest primarly in common stocks join and survivor annuity - CORRECT ANSWER -covers two or more lives and contiunes in force so long as any one of them survives period certain annuity - CORRECT ANSWER -annuity imcome option that guarantees a definite minimum peroid of payments life annuity - CORRECT ANSWER -payable during the continued life of the annuitant. No provision is made for the guaranteed return of the unused portion of the premium installment refund annuity - CORRECT ANSWER -annuity income option that provies for the funds remaing at the annuiants death to be paid to the beneficiary in the form of continued annity payments immediate annuity - CORRECT ANSWER -only be purchased with single payment. provides payment of annuity benefit at one payment interval from date of purchase equity indexed annuities (EIA) - CORRECT ANSWER -fixed annuity that offers the potential for higher credited rates of return that their traditional counterparts but also guarantee the owners principal deferred annuity - CORRECT ANSWER -provides postponment of the commencemnt of an annity until after a specified peroid or until the annuiant attains a certain age. annuiant - CORRECT ANSWER -one to who an annuity is payable, or a person upon the contiuance of whoes life further payment depends accumulation period of an annuity - CORRECT ANSWER -the time during which funds are being paid into the annuity payout (annuity period) - CORRECT ANSWER -the point at which the annuity ceases to be an accumulation vehicle and beings to generate benefit payments on a regular basis. funding method of annuity - CORRECT ANSWER -single lump -sum payment or periodic payment over time principal sum - CORRECT ANSWER -beginning sum of money single -premium deferred annuities - CORRECT ANSWER -annuities funded with single premiums assigment provision - CORRECT ANSWER -sets forth the procedure necessary for ownership transfer *transfer is known as assignment *new owner is the assignee *insureable interest does not have to exist between the insured and the asignee *asignee granted all rights of policy ownership, including right to name beneficiary. preferred risk - CORRECT ANSWER -exceptionally good risk *lower preimums *personal characteristics -non smoker, weight within ideal range, favorable cholestrol levels standard risk - CORRECT ANSWER -individuals who fit in the insurers guidlines for policy issue without special restrictions or additional ratings substandard risk - CORRECT ANSWER -one below the insurer's standard or average risk guidelines *poor health, dangerous occupations, or attributes or habits that could be hazardous Fair Credit Reporting Act (FCRA) - CORRECT ANSWER -established procedures for the collection and disclosure of information obtained on consumers through investigation and credit reports. Seeks to insure fairness with the regards to confidentiality, accuracy , and disclosure. avoidance - CORRECT ANSWER -simply avoiding as many risks as possible underwriting - CORRECT ANSWER -term for risk selection *the process of reviewing the many characteristics that make up the risk profile of an applicant to determine if the applicant is insurable, and if so, at standard or substandard rates insurable interest - CORRECT ANSWER -exists when the death of the insured would have a clear financial impact on the policyowner payor rider - CORRECT ANSWER -under juvenile life insurance policies with payment of extra preimum