©THEBRIGHT EXAM SOLUTIONS
11/7/2024 12:35 PM
4-Hour Annuity Suitability and Best Interest
Standards Exam WebCE Questions With
Correct Answers
For whom is joint ownership of an annuity often reserved? - answer✔spouses
At what point does the beneficiary to an annuity acquire rights in the contract? -
answer✔(Wrong) upon contract issue and throughout the life of the contract, until the death of
the contract owner or annuitant
Generally speaking, how long is the accumulation period for immediate annuities? -
answer✔one month to one year
For which of the following needs are traditional deferred annuities best suited? -
answer✔retirement planning
For what reason would an individual choose a variable annuity over a fixed annuity? -
answer✔for the potential to earn greater contract growth
At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into
Subaccount A when the unit value was $10. A year later, the unit value had increased to $15.
Assuming he made no additional premium deposits, what is the value of Ahmed's investment in
Subaccount A now? - answer✔$7,500
For most indexed annuities, what is the specified floor? - answer✔0 percent
Which feature of indexed annuities prevents any negative index returns from affecting the
contract's previously credited and accumulated values? - answer✔the floor
At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single
premium deposit of $10,000. The declared interest rate on Steve's contract when it was issued
was 5 percent, and the contract guarantees a minimum rate of 3 percent. The initial declared
rate is payable for two years; the renewal rate for year three and later is subject to change.
How much interest will be credited to Steve's contract at the end of year one? - answer✔$500
11/7/2024 12:35 PM
4-Hour Annuity Suitability and Best Interest
Standards Exam WebCE Questions With
Correct Answers
For whom is joint ownership of an annuity often reserved? - answer✔spouses
At what point does the beneficiary to an annuity acquire rights in the contract? -
answer✔(Wrong) upon contract issue and throughout the life of the contract, until the death of
the contract owner or annuitant
Generally speaking, how long is the accumulation period for immediate annuities? -
answer✔one month to one year
For which of the following needs are traditional deferred annuities best suited? -
answer✔retirement planning
For what reason would an individual choose a variable annuity over a fixed annuity? -
answer✔for the potential to earn greater contract growth
At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into
Subaccount A when the unit value was $10. A year later, the unit value had increased to $15.
Assuming he made no additional premium deposits, what is the value of Ahmed's investment in
Subaccount A now? - answer✔$7,500
For most indexed annuities, what is the specified floor? - answer✔0 percent
Which feature of indexed annuities prevents any negative index returns from affecting the
contract's previously credited and accumulated values? - answer✔the floor
At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single
premium deposit of $10,000. The declared interest rate on Steve's contract when it was issued
was 5 percent, and the contract guarantees a minimum rate of 3 percent. The initial declared
rate is payable for two years; the renewal rate for year three and later is subject to change.
How much interest will be credited to Steve's contract at the end of year one? - answer✔$500
