MI VARIABLE LIFE AND
ANNUITIES PRODUCER
Which two terms are associated directly with the way an annuity is funded? -
ANSWERS-Single payment or periodic payments
In order for an investor to make informed investment decisions, all of the
following information must be included in a prospectus EXCEPT
a) Policies to be transferred
b) Tax information
c) Sales charges
d) Securities in the account - ANSWERS-b) Tax information
Which of the following types of policies allows for a flexible premium and a
variable investment component? - ANSWERS-Variable universal life insurance
In insurance, an offer is usually made when - ANSWERS-An applicant submits
an application to the insurer.
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to
an IRA within 60 days. Which of the following is true? - ANSWERS-The
amount of the distribution is reduced by the amount of a 20% withholding tax.
*Distributions from 401(k) plans are taxable as ordinary income in the year of
the distribution. However, if the distribution is rolled over to a Traditional IRA,
taxes are deferred until the required minimum IRA distributions begin. Since
this client actually took a distribution (instead of making a trustee-to-trustee roll
over), the distribution is subject to 20% withholding tax.
,Which of the following best describes what the annuity period is? - ANSWERS-
The period of time during which accumulated money is converted into income
payments
The best definition of an annuity unit is - ANSWERS-An accounting measure
which is created at the beginning of the annuity period and is used to determine
the amount of future annuity payments.
*During the annuity period the current value of a fixed number of annuity units
will determine the amount of each payment. The number of units is fixed at the
time of annuitization.
Under a pure life annuity, an income is payable by the company - ANSWERS-
Only for the life of the annuitant.
All of the following would be different between qualified and nonqualified
retirement plans EXCEPT - ANSWERS-Taxation on accumulation
*Taxation on accumulation is deferred in both types of plans. The rest of the
characteristics would differ.
All of the following statements are true regarding installments for a fixed
amount EXCEPT
a) The payments will stop when the annuitant dies.
b) Value of the account and future earnings will determine the time period for
the benefits.
c) This option pays a specific amount until the funds are exhausted.
d) The annuitant may select how big the payments will be. - ANSWERS-The
payments will stop when the annuitant dies.
, Installments for a fixed amount option has no life contingencies. A specific
amount of benefits will be paid until funds are exhausted whether or not the
annuitant is living.
Variable Whole Life insurance is based on what type of premium? -
ANSWERS-Level fixed
*Variable Whole Life insurance is a level fixed premium investment-based
product.
In order to register as a registered representative, individuals must complete
what type of form? - ANSWERS-Form U4
What best describes taxation during the accumulation period of an annuity? -
ANSWERS-Taxes are deferred
All of the following are general requirements of a qualified plan EXCEPT
a) The plan must be permanent, written and legally binding
b) The plan must provide an offset for social security benefits
c) The plan must be communicated to all employees
d) The plan must be for the exclusive benefits of the employees and their
beneficiaries - ANSWERS-b) The plan must provide an offset for social security
benefits
Installments for a Fixed period annuity settlement option - ANSWERS-- it will
pay the benefit only for a designated period of time
- the payments are not Guaranteed for life
- the insurer determines the amount for each payment
ANNUITIES PRODUCER
Which two terms are associated directly with the way an annuity is funded? -
ANSWERS-Single payment or periodic payments
In order for an investor to make informed investment decisions, all of the
following information must be included in a prospectus EXCEPT
a) Policies to be transferred
b) Tax information
c) Sales charges
d) Securities in the account - ANSWERS-b) Tax information
Which of the following types of policies allows for a flexible premium and a
variable investment component? - ANSWERS-Variable universal life insurance
In insurance, an offer is usually made when - ANSWERS-An applicant submits
an application to the insurer.
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to
an IRA within 60 days. Which of the following is true? - ANSWERS-The
amount of the distribution is reduced by the amount of a 20% withholding tax.
*Distributions from 401(k) plans are taxable as ordinary income in the year of
the distribution. However, if the distribution is rolled over to a Traditional IRA,
taxes are deferred until the required minimum IRA distributions begin. Since
this client actually took a distribution (instead of making a trustee-to-trustee roll
over), the distribution is subject to 20% withholding tax.
,Which of the following best describes what the annuity period is? - ANSWERS-
The period of time during which accumulated money is converted into income
payments
The best definition of an annuity unit is - ANSWERS-An accounting measure
which is created at the beginning of the annuity period and is used to determine
the amount of future annuity payments.
*During the annuity period the current value of a fixed number of annuity units
will determine the amount of each payment. The number of units is fixed at the
time of annuitization.
Under a pure life annuity, an income is payable by the company - ANSWERS-
Only for the life of the annuitant.
All of the following would be different between qualified and nonqualified
retirement plans EXCEPT - ANSWERS-Taxation on accumulation
*Taxation on accumulation is deferred in both types of plans. The rest of the
characteristics would differ.
All of the following statements are true regarding installments for a fixed
amount EXCEPT
a) The payments will stop when the annuitant dies.
b) Value of the account and future earnings will determine the time period for
the benefits.
c) This option pays a specific amount until the funds are exhausted.
d) The annuitant may select how big the payments will be. - ANSWERS-The
payments will stop when the annuitant dies.
, Installments for a fixed amount option has no life contingencies. A specific
amount of benefits will be paid until funds are exhausted whether or not the
annuitant is living.
Variable Whole Life insurance is based on what type of premium? -
ANSWERS-Level fixed
*Variable Whole Life insurance is a level fixed premium investment-based
product.
In order to register as a registered representative, individuals must complete
what type of form? - ANSWERS-Form U4
What best describes taxation during the accumulation period of an annuity? -
ANSWERS-Taxes are deferred
All of the following are general requirements of a qualified plan EXCEPT
a) The plan must be permanent, written and legally binding
b) The plan must provide an offset for social security benefits
c) The plan must be communicated to all employees
d) The plan must be for the exclusive benefits of the employees and their
beneficiaries - ANSWERS-b) The plan must provide an offset for social security
benefits
Installments for a Fixed period annuity settlement option - ANSWERS-- it will
pay the benefit only for a designated period of time
- the payments are not Guaranteed for life
- the insurer determines the amount for each payment
