Michigan Variable Annuities Exam

Other names for pure life settlement - Answer--life income -life annuity What annuity settlement option produces the largest monthly income guaranteed for life? - Answer-pure life settlement option second life contingency option - Answer-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 - Answer-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 which annuity settlement option provides the largest monthly income payment? a. life with period certain b. pure life option c. life with refund - Answer-b how long is the free-look period for Michigan annuity contracts - Answer-10 calendar days after purchase date (eligible for full refund including premium paid) accumulation period/units - Answer-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 annui