1. Farley and Eliska purchase an immediate joint and last survivor annuity. 3 months after the payments start, they determine that they want to buy a new car and they contact their agent in order to make a withdrawal. Which of the following statements is correct concerning the withdrawal that Farley and Eliska want to make?

a)the withdrawal can be done for cash value

b)the policy will be terminated

c)the withdrawal will not be permitted

d)a market value adjustment (MVA) will be charged

2-Heather, at age 66, purchased a life annuity paying $1,000 per month with a twenty year guarantee. She named her son Thomas as beneficiary. After 8 years of annuity payments, Heather dies and Thomas makes a claim. Which of the following is Thomas entitled to?

a)$1,000 per month for 20 years

b)a lump sum payment of $96,000

c)$1,000 per month for 12 years

d)a lump sum payment of $144,000