1. Of the following, three are benefits offered by deferred annuities. Which is not?

a. tax deferral

b. flexible funding

c. capital gains treatment on withdrawn funds

d. probate avoidance

2. What is the direct basis for the growth of an indexed annuity's values?

a. the rate of inflation

b. the performance of equity funds in which the product's premiums are invested

c. changes in the issuing insurer's operational and mortality costs

d. the performance of a market index to which the product is tied

4. For which of the following needs would a deferred annuity be suitable?

a. short-term savings

b. liquidity

c. tax-deferred accumulation

d. immediate income

6. What is the growth of a variable annuity's funds based on?

a. the performance of the investment accounts in which its premiums are deposited

b. the performance of the S&P 500 or the Dow Jones Industrial Average, whichever the annuity owner selects

c. the insurer's investment returns on its annuity reserves

d. quarterly interest rates declared by the insurer's board of directors

10. What entity backs the guarantees provided by fixed annuity products?

a. the FDIC

b. the state insurance commission

c. the NAIC

d. the issuing insurance company