Loma 280 Chapter 10 Questions and
Answers|Latest Update
maturity date Correct Ans-The date on which the insurer begins to make the periodic income
payments under an annu-ity contract.
misstatement of age or sex provision Correct Ans-A life insurance or annuity policy provi-sion
that describes the action the insurer will take to adjust the amount of the policy benefit in the
event that the age or sex of the insured is incorrectly stated
mortality and expense risk (M&E) charge Correct Ans-A fee charged the owner of a vari-able
annuity which covers various risks and expenses assumed by the insurer, including the risk
involved in providing the annuity death benefit and certain other guarantees.
payee Correct Ans-The person or entity who receives the periodic income pay-ments
according to the terms of an annuity contract
payout annuity Correct Ans-An annuity in the payout period
, payout option Correct Ans-The choices an annuity contract owner has as to how the insurer
will distribute the funds in an annuity during the payout period.
payout options provision Correct Ans-An annuity contract provision that lists and describes
each of the payout options from which the contract owner may select
payout period Correct Ans-The period during which the insurer makes periodic income pay-
ments under an annuity contract.
period certain Correct Ans-The stated period over which the insurer will make periodic
income payments for a period certain annuity.
period certain annuity Correct Ans-An annuity that is payable for a stated period of time,
regardless of whether the annuitant lives or dies.
periodic fee Correct Ans-An amount charged the owner of an annuity contract at
predetermined intervals—for example, every year or every month. It typi-cally compensates the
insurer for its administrative expenses
Answers|Latest Update
maturity date Correct Ans-The date on which the insurer begins to make the periodic income
payments under an annu-ity contract.
misstatement of age or sex provision Correct Ans-A life insurance or annuity policy provi-sion
that describes the action the insurer will take to adjust the amount of the policy benefit in the
event that the age or sex of the insured is incorrectly stated
mortality and expense risk (M&E) charge Correct Ans-A fee charged the owner of a vari-able
annuity which covers various risks and expenses assumed by the insurer, including the risk
involved in providing the annuity death benefit and certain other guarantees.
payee Correct Ans-The person or entity who receives the periodic income pay-ments
according to the terms of an annuity contract
payout annuity Correct Ans-An annuity in the payout period
, payout option Correct Ans-The choices an annuity contract owner has as to how the insurer
will distribute the funds in an annuity during the payout period.
payout options provision Correct Ans-An annuity contract provision that lists and describes
each of the payout options from which the contract owner may select
payout period Correct Ans-The period during which the insurer makes periodic income pay-
ments under an annuity contract.
period certain Correct Ans-The stated period over which the insurer will make periodic
income payments for a period certain annuity.
period certain annuity Correct Ans-An annuity that is payable for a stated period of time,
regardless of whether the annuitant lives or dies.
periodic fee Correct Ans-An amount charged the owner of an annuity contract at
predetermined intervals—for example, every year or every month. It typi-cally compensates the
insurer for its administrative expenses
