PRIMARY CARE DUNPHY AND WINLAND
BROWN 6TH EDITION TERMINAL
CERTIFICATION EVALUATION COMPLETE
QUESTIONS WITH FULL SOLUTION
ALREADY PASSED
⩥ P, age 50, purchased an annuity that P will fund with $500/ month for
15 years. The annuity will then pay P retirement payments after the 15
years. Which type of annuity did P purchase?
Answer: Deferred
⩥ Which of the following annuities pays benefits based on units rather
than specific dollar amounts?
Answer: A Variable annuity
⩥ P is a forty year old woman and would like to purchase an annuity that
will provide a lifetime income stream beginning at age sixty. Which of
the following did she NOT buy?
Answer: An immediate annuity
⩥ One becomes eligible for Social Security disability benefits after
having been disabled for
Answer: 5 months
,⩥ What is Old Age and Survivors Health Insurance (OASDHI) also
known as?
Answer: Social Security
⩥ All of these are considered to be a benefit under Social Security
EXCEPT for
Answer: unemployment
⩥ Q is severely injured in an automobile accident and becomes totally
disabled. How many months must Q be disabled before being able to
apply for Social Security disability benefits?
Answer: 5
⩥ What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive?
Answer: Primary Insurance Amount (PIA)
⩥ Which of these retirement plans can be started by an employee, even
if another plan is in existence?
Answer: Individual Retirement Account (IRA)
⩥ Which plan is intended to be used by a sole proprietor and the
employees of that business?
, Answer: Keogh Plan
⩥ Which product would best serve a retired individual looking to invest
a lump-sum of money through an insurance company?
Answer: Annuity
⩥ An IRA owner can start making withdrawals and NOT be subjected to
a tax penalty beginning at what age?
Answer: 59 1/2
⩥ Which of the following is TRUE about a qualified retirement that is
"top heavy"?
Answer: More than 60% of plan assets are in key employee accounts
⩥ What type of employee welfare plans are not subject to ERISA
regulations?
Answer: church plans
⩥ A Key Employee policy is taken out by Company X on its vice
president. Ten years later, this employee leaves Company X and begins
working for Company Y. If this individual were to die and the policy is
still in force and unchanged, where would the death proceeds be
directed?
Answer: Company X
BROWN 6TH EDITION TERMINAL
CERTIFICATION EVALUATION COMPLETE
QUESTIONS WITH FULL SOLUTION
ALREADY PASSED
⩥ P, age 50, purchased an annuity that P will fund with $500/ month for
15 years. The annuity will then pay P retirement payments after the 15
years. Which type of annuity did P purchase?
Answer: Deferred
⩥ Which of the following annuities pays benefits based on units rather
than specific dollar amounts?
Answer: A Variable annuity
⩥ P is a forty year old woman and would like to purchase an annuity that
will provide a lifetime income stream beginning at age sixty. Which of
the following did she NOT buy?
Answer: An immediate annuity
⩥ One becomes eligible for Social Security disability benefits after
having been disabled for
Answer: 5 months
,⩥ What is Old Age and Survivors Health Insurance (OASDHI) also
known as?
Answer: Social Security
⩥ All of these are considered to be a benefit under Social Security
EXCEPT for
Answer: unemployment
⩥ Q is severely injured in an automobile accident and becomes totally
disabled. How many months must Q be disabled before being able to
apply for Social Security disability benefits?
Answer: 5
⩥ What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive?
Answer: Primary Insurance Amount (PIA)
⩥ Which of these retirement plans can be started by an employee, even
if another plan is in existence?
Answer: Individual Retirement Account (IRA)
⩥ Which plan is intended to be used by a sole proprietor and the
employees of that business?
, Answer: Keogh Plan
⩥ Which product would best serve a retired individual looking to invest
a lump-sum of money through an insurance company?
Answer: Annuity
⩥ An IRA owner can start making withdrawals and NOT be subjected to
a tax penalty beginning at what age?
Answer: 59 1/2
⩥ Which of the following is TRUE about a qualified retirement that is
"top heavy"?
Answer: More than 60% of plan assets are in key employee accounts
⩥ What type of employee welfare plans are not subject to ERISA
regulations?
Answer: church plans
⩥ A Key Employee policy is taken out by Company X on its vice
president. Ten years later, this employee leaves Company X and begins
working for Company Y. If this individual were to die and the policy is
still in force and unchanged, where would the death proceeds be
directed?
Answer: Company X
