CHS-8:ANNUITIES EXAM QUESTIONS WITH
COMPLETE SOLUTIONS.
Period certain - ANSWER Which annuity payout option allows the policyowner to
choose a pre-determined number of benefit payments?
Period Certain
Straight Life
Installment refund
Amount certain
Annuity certain - ANSWER Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is called
Variable payout
Fixed accumulation
Interest guaranteed
Annuity certain
During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments - ANSWER Lisa has recently bought a fixed annuity. Which
of these is considered to be a disadvantage of owning this type of annuity?
Payments cease 5 years after the annuitant's death
During periods of inflation, annuitants will experience an increase in purchasing
power of their payments
During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
Payment amounts can be unpredictable from month to month
Premiums paid plus interest earned is returned to the beneficiary - ANSWER Andy
the annuitant dies before the annuity start date. Which of the following is a TRUE
statement?
Principal returned is taxable
Benefits are still payable tax-free to the beneficiary
Company retains entire cash value
Premiums paid plus interest earned is returned to the beneficiary
COMPLETE SOLUTIONS.
Period certain - ANSWER Which annuity payout option allows the policyowner to
choose a pre-determined number of benefit payments?
Period Certain
Straight Life
Installment refund
Amount certain
Annuity certain - ANSWER Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is called
Variable payout
Fixed accumulation
Interest guaranteed
Annuity certain
During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments - ANSWER Lisa has recently bought a fixed annuity. Which
of these is considered to be a disadvantage of owning this type of annuity?
Payments cease 5 years after the annuitant's death
During periods of inflation, annuitants will experience an increase in purchasing
power of their payments
During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
Payment amounts can be unpredictable from month to month
Premiums paid plus interest earned is returned to the beneficiary - ANSWER Andy
the annuitant dies before the annuity start date. Which of the following is a TRUE
statement?
Principal returned is taxable
Benefits are still payable tax-free to the beneficiary
Company retains entire cash value
Premiums paid plus interest earned is returned to the beneficiary
