Readiing guid

All of the following are true regarding Market Value Adjusted annuities, EXCEPT:? Ans-They are also known as Equity Indexed annuities
The principal use of a Life Annuity is to:
Ans-Arrange an income for old age
Annuities must be written by which of the following:
Ans-Life insurance companies
Single premium immediate annuities are most commonly used for which of the following:
Ans-Retirement expense
A woman has inherited a sum of money. She is age 60 and desires to purchase an annuity that will appreciate with market and economic conditions. What type of annuity should she consider?
Ans-Variable
All of the following are true regarding deferred annuities, EXCEPT:
Ans-They provide an immediate source of education funds
An annuity where both the principal and the interest are guaranteed, but excess interest may accrue since performance is calculated using an indexing method that is usually linked to the S&P 500 is known as a:
Ans-Equity indexed annuity
Which of the following Annuities will start paying the annuitant a monthly payment right away for the rest of their life:
Ans-Immediate
Cash Surrender is available on an annuity in which of the following situations:
Ans-During the accumulation period
On a fixed annuity, the interest rate that is paid the first year, which could decline thereafter is known as the:
Ans-Current interest rate
If a client annuitizes an annuity to pay them $250 a month for life or for 15 years, whichever is longer, they have chosen which annuity pay-out option:
Ans-Period certain
On which type of annuity must a producer disclose that excess earnings above the guaranteed rate may vary:
An Equity Indexed annuity
A husband and wife are co-annuitants and decide to select the joint life payout option upon annuitization. They will receive monthly annuity payments from the insurer until:

AEither the husband or wife dies

>Which of the following is a characteristic of an annuity:

AThey provide protection for a retired individual from outliving their savings

Which type of annuity requires that the customer bear part of the risk:

AA Market Value Adjusted annuityAlice has an annuity with life and 10-year certain period that has her husband Marty listed as beneficiary. If Alice dies 13 years into the 10-year certain period, what will Marty receive from the insurer:DZeroWhich of the following is NOT true regarding deferred annuities:Ans-They are often used to fund lottery pay-outs or structured settlements

All of the following are true regarding annuities, EXCEPT:

Ans -On a life annuity, payments begin upon the death of the annuitant

>All of the following are true regarding an IRC Section 403(b) Tax Sheltered Annuity, EXCEPT:

AThey are available to anyone with earned incomeWhen selling a variable annuity, the most important thing for a producer to verify is the applicant's __________?>Ans- Tax statusA client might purchase an immediate annuity for all of the following reasons, EXCEPT:Ans- To save money for a child's future college expenses