17. Lila invested $10,000 in one of Long Life Insurance Company's annuity contracts. When issued, the contract was paying a 5 percent rate of return. Two years later, Long Life increased this rate to 7 percent. Underlying Lila's contract is a 3 percent rate of return, guaranteed for the life of the contract. What kind of annuity does Lila own? (Search Chapter 2)

19. Long Life Insurance Company offers a fixed annuity that includes a standard death benefit provision, a seven-year surrender charge period, the option to annuitize at the annuitant's age 65 and a free withdrawal period. What is the length of the free withdrawal period? (Search Chapter 3)

• a. until the contract owner dies
• b. until the annuitant's age 65
• c. ten years
• d. seven years

20. What is the duration of an annuity's free withdrawal period? (Search Chapter 3)

• a. It is the same as its surrender charge period.
• b. It is based on the amount of the initial premium.
• c. It is longer for nonqualified contracts than for qualified contracts.
• d. It is left to the discretion of the contract owner.

• a. a fixed immediate annuity
• b. a variable immediate annuity
• c. a fixed deferred annuity
• d. a variable deferred annuity