Michigan Variable Exam
Questions & Answers 100%
Verified (Grade A+)
accumulation phase - CORRECT ANSWER-the period during which
contributions are made to an annuity
accumulation unit - CORRECT ANSWER-an accounting measure, similar to a
mutual fund share, used to determine an annuitant's proportionate interest in the
insurer's separate account during the accumulation phase of a variable annuity.
Both the number an value of these units will change during the accumulation phase
administration charge - CORRECT ANSWER-under an insurance or annuity
contract, the charge the insurance company makes to compensate for maintaining
records, accounting and reports generation
annuitant - CORRECT ANSWER-a person who receives the distribution from an
annuity contract
annuity - CORRECT ANSWER-a contract in which the insurer agrees, for a price,
to make regular payments to an individual for life or some fixed period
,annuity phase - CORRECT ANSWER-the period, after annuitization, during
which annuity payments are made to an annuitant
annuity unit - CORRECT ANSWER-An accounting measure used to determine
the amount of each payment during an annuity's distribution stage. The calculation
takes into account the value of each accumulation unit and such other factors as
assumed interest rate and mortality risk.
assumed interest rate AIR - CORRECT ANSWER-an assumption, built into
variable annuity contracts, of the minimum rate of return the insurer expects to
receive and that forms the basis for an initial annuity payment as well as a "floor"
from which to measure gain
combined ("balanced") annuity - CORRECT ANSWER-an annuity providing for
payments that derive from both fixed and variable annuity accounts
death benefit guarantee (VA) - CORRECT ANSWER-an amount equal to the
higher of the separate account balance or the sum of the purchase payments,
which is paid to the beneficiary of a variable annuitant in the event of their death
during the accumulation phase
deferred annutiy - CORRECT ANSWER-an annuity in which payments begin
more than one payment period (one month to one year) after the purchase date
direct method - CORRECT ANSWER-an approach to managing a variable
products separate account that utilizes an open ended investment company (similar
to a mutual fund family) created inside the structure of an insurer
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,diversification - CORRECT ANSWER-an investing technique characterized by
buying a variety of different investments the market risk is spread out and reduced
dual licensure - CORRECT ANSWER-the requirement that a person who sells
variable life or variable annuities must be state licensed to sell life insurance, and
also federally licensed as a registered representative of an NASD member to sell
variable products
expense guarantee - CORRECT ANSWER-a guarantee made by an insurer that
expenses for a variable product will not exceed certain maximum levels
fixed amount option - CORRECT ANSWER-an insurance or annuity settlement
option in which a chosen amount is paid out for an approximate length of time
when principal and interest are exhausted
fixed annuity - CORRECT ANSWER-an annuity providing that the insurer will
pay the annuitant a guaranteed, fixed amount during the annuity phase
fixed period option - CORRECT ANSWER-an insurance or annuity settlement
option in which an approximate amount is paid out fo ra chosen length of time
when principal and interest are exhausted
flexible premium deferred annuity FPDA - CORRECT ANSWER-a deferred
annuity purchased with a series of payments, which may be irregular as to amount
or timing
, flexible premium variable life - CORRECT ANSWER-a type of life insurance, also
known as variable universal life, which is characterized by flexible premiums,
adjustable death benefit, and the ability of the owner to make partial surrenders
general account - CORRECT ANSWER-the account that holds all o fthe assets of
an insurer other than those in the separate accounts. the general account holds the
premiums for all fixed life and annuity products and is typically conservatively
invested in bonds and commercial real estate to produce a relatively stable return
growth - CORRECT ANSWER-an investment objective that focuses on long-term
capital appreciation rather than immediate income
immediate annuity - CORRECT ANSWER-an annuity, purhcased with a single
premium payment, in which annuity payments begin the next period (one month
to one year) after purchase
income - CORRECT ANSWER-an investemnt objective that focuses on dividends
and interest to produce income rather than capital appreciation
indirect method - CORRECT ANSWER-an approach to managing a variable
products separate account that uses a unit investment trust contract with an
investment company external to the insurer
interest only option - CORRECT ANSWER-an insurance or annuity settlement
option in which the insurer holds the principal and pays interest to the beneficiary
with a guaranteed minimum rate
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
Questions & Answers 100%
Verified (Grade A+)
accumulation phase - CORRECT ANSWER-the period during which
contributions are made to an annuity
accumulation unit - CORRECT ANSWER-an accounting measure, similar to a
mutual fund share, used to determine an annuitant's proportionate interest in the
insurer's separate account during the accumulation phase of a variable annuity.
Both the number an value of these units will change during the accumulation phase
administration charge - CORRECT ANSWER-under an insurance or annuity
contract, the charge the insurance company makes to compensate for maintaining
records, accounting and reports generation
annuitant - CORRECT ANSWER-a person who receives the distribution from an
annuity contract
annuity - CORRECT ANSWER-a contract in which the insurer agrees, for a price,
to make regular payments to an individual for life or some fixed period
,annuity phase - CORRECT ANSWER-the period, after annuitization, during
which annuity payments are made to an annuitant
annuity unit - CORRECT ANSWER-An accounting measure used to determine
the amount of each payment during an annuity's distribution stage. The calculation
takes into account the value of each accumulation unit and such other factors as
assumed interest rate and mortality risk.
assumed interest rate AIR - CORRECT ANSWER-an assumption, built into
variable annuity contracts, of the minimum rate of return the insurer expects to
receive and that forms the basis for an initial annuity payment as well as a "floor"
from which to measure gain
combined ("balanced") annuity - CORRECT ANSWER-an annuity providing for
payments that derive from both fixed and variable annuity accounts
death benefit guarantee (VA) - CORRECT ANSWER-an amount equal to the
higher of the separate account balance or the sum of the purchase payments,
which is paid to the beneficiary of a variable annuitant in the event of their death
during the accumulation phase
deferred annutiy - CORRECT ANSWER-an annuity in which payments begin
more than one payment period (one month to one year) after the purchase date
direct method - CORRECT ANSWER-an approach to managing a variable
products separate account that utilizes an open ended investment company (similar
to a mutual fund family) created inside the structure of an insurer
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
,diversification - CORRECT ANSWER-an investing technique characterized by
buying a variety of different investments the market risk is spread out and reduced
dual licensure - CORRECT ANSWER-the requirement that a person who sells
variable life or variable annuities must be state licensed to sell life insurance, and
also federally licensed as a registered representative of an NASD member to sell
variable products
expense guarantee - CORRECT ANSWER-a guarantee made by an insurer that
expenses for a variable product will not exceed certain maximum levels
fixed amount option - CORRECT ANSWER-an insurance or annuity settlement
option in which a chosen amount is paid out for an approximate length of time
when principal and interest are exhausted
fixed annuity - CORRECT ANSWER-an annuity providing that the insurer will
pay the annuitant a guaranteed, fixed amount during the annuity phase
fixed period option - CORRECT ANSWER-an insurance or annuity settlement
option in which an approximate amount is paid out fo ra chosen length of time
when principal and interest are exhausted
flexible premium deferred annuity FPDA - CORRECT ANSWER-a deferred
annuity purchased with a series of payments, which may be irregular as to amount
or timing
, flexible premium variable life - CORRECT ANSWER-a type of life insurance, also
known as variable universal life, which is characterized by flexible premiums,
adjustable death benefit, and the ability of the owner to make partial surrenders
general account - CORRECT ANSWER-the account that holds all o fthe assets of
an insurer other than those in the separate accounts. the general account holds the
premiums for all fixed life and annuity products and is typically conservatively
invested in bonds and commercial real estate to produce a relatively stable return
growth - CORRECT ANSWER-an investment objective that focuses on long-term
capital appreciation rather than immediate income
immediate annuity - CORRECT ANSWER-an annuity, purhcased with a single
premium payment, in which annuity payments begin the next period (one month
to one year) after purchase
income - CORRECT ANSWER-an investemnt objective that focuses on dividends
and interest to produce income rather than capital appreciation
indirect method - CORRECT ANSWER-an approach to managing a variable
products separate account that uses a unit investment trust contract with an
investment company external to the insurer
interest only option - CORRECT ANSWER-an insurance or annuity settlement
option in which the insurer holds the principal and pays interest to the beneficiary
with a guaranteed minimum rate
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
