Michigan Variable Annuities Exam – Licensing &
Compliance Practice Test
Save
Terms in this set (84)
Other names for pure life -life income
settlement -life annuity
What annuity settlement pure life settlement option
option produces the
largest monthly income
guaranteed for life?
life with period certain (ie. 10 years) so even if the
annuitant does or does not die within that timeframe,
second life contingency
insurer guarantees to continue the annuity payments
option
to a named beneficiary for the balance of the certain
period.
life with refund; insurer guarantees payments for life,
but if the annuitant dies before the payments received
third life contingency
equal the annuitant's basis (the total amount paid for
option
the annuity), then the insurer agrees to pay out the
remaining basis to a named beneficiary
, which annuity settlement b
option provides the
largest monthly income
payment?
a. life with period certain
b. pure life option
c. life with refund
how long is the free-look 10 calendar days after purchase date (eligible for full
period for Michigan refund including premium paid)
annuity contracts
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 period/units 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
when annuitized, accumulation units are converted to
a set number of annuity units; this number becomes
one of the factors used to calculate the payout each
annuity period/units
month during the annuity phase (once the # of annuity
units is chosen, it will not change, but the value of
each unit change)
arbitrary rate of return set by the insurer for any
separate account they establish; VA owner ust
Assumed Interest Rate
experience a separate account net investment rate of
(AIR)
return that exceeds the AIR in order for those product
values to go up
applies to the variable death benefit, but not var. cash
Applying AIR to variable
value (only a separate account return above the AIR
life
would increase the variable policy death benefit)
Compliance Practice Test
Save
Terms in this set (84)
Other names for pure life -life income
settlement -life annuity
What annuity settlement pure life settlement option
option produces the
largest monthly income
guaranteed for life?
life with period certain (ie. 10 years) so even if the
annuitant does or does not die within that timeframe,
second life contingency
insurer guarantees to continue the annuity payments
option
to a named beneficiary for the balance of the certain
period.
life with refund; insurer guarantees payments for life,
but if the annuitant dies before the payments received
third life contingency
equal the annuitant's basis (the total amount paid for
option
the annuity), then the insurer agrees to pay out the
remaining basis to a named beneficiary
, which annuity settlement b
option provides the
largest monthly income
payment?
a. life with period certain
b. pure life option
c. life with refund
how long is the free-look 10 calendar days after purchase date (eligible for full
period for Michigan refund including premium paid)
annuity contracts
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 period/units 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
when annuitized, accumulation units are converted to
a set number of annuity units; this number becomes
one of the factors used to calculate the payout each
annuity period/units
month during the annuity phase (once the # of annuity
units is chosen, it will not change, but the value of
each unit change)
arbitrary rate of return set by the insurer for any
separate account they establish; VA owner ust
Assumed Interest Rate
experience a separate account net investment rate of
(AIR)
return that exceeds the AIR in order for those product
values to go up
applies to the variable death benefit, but not var. cash
Applying AIR to variable
value (only a separate account return above the AIR
life
would increase the variable policy death benefit)
