21. What is the standard free-look period provided by most annuity contracts?

a. 10 days

b. 30 days

c. 45 days

d. 65 days

24. Pete invested $50,000 in a variable annuity 15 years ago when he was 52. The contract is now valued at $180,000, and Pete elects to annuitize under a straight life option. The AIR is 5 percent, and the annuity purchase rate is $6.50. What is Pete's initial income payment?

a. $900

b. $1,170

c. $2,500

d. $3,250

25. At the age of 68, Seth elected a life and 10-year term certain option for the payout of his $100,000 annuity. All of the following statements are true EXCEPT:

a. The annuity will make income payments for a minimum of 10 years.

b. Seth will receive an income stream for as long as he lives.

c. At Seth's death, his beneficiary will receive a minimum of $100,000.

d. If Seth were to die at the age of 79, no payment would be made to a beneficiary.

29. What is the early distribution tax penalty that applies to withdrawals from a deferred annuity equal to?

a. 10 percent of the total withdrawal

b. 10 percent of the taxable amount of the withdrawal

c. 10 percent of the nontaxable amount of the withdrawal

d. 10 percent of the amount invested in the contract