David purchased an immediate annuity with a single $50,000 premium payment. He elects to receive income payments on a quarterly basis. When will his income begin? (Search Chapter 3) a. in one month b. in three months c. in six months d. in one year 22. Nikki purchased a fixed deferred annuity with a $10,000 premium payment. The contract offers a one-time bonus feature of 4 percent. Which of the following statements is true? (Search Chapter 3) a. The insurer will credit Nikki's contract with an additional $400. b. The insurer will add an additional 4 percent to the contract's death benefit. c. The insurer will increase the contract's guaranteed minimum rate of return by 4 percent during the first year. d. Nikki can withdraw an additional 4 percent of the contract's accumulated value without surrender charge. 23. At what point are a nonqualified annuity's earnings subject to income tax? (Search Chapter 3) a. when they are credited to the contract b. when they are withdrawn from the contract c. when they exceed the amount of premium deposited d. never 24. Troy purchased a deferred annuity for $100,000, naming himself and his wife as joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the contract had grown to $235,000, and Troy decided to annuitize under a joint and survivor life payout. He and his wife had received income totaling $50,000 when Troy died. How much will daughter Trudy receive at Troy's death? (Search Chapter 4) a. $0 b. $100,000 c. $135,000 d. $180,000 25. At the age of 68, Donna elected a straight life income option for the payout of her $150,000 deferred annuity. She received monthly payments for three years, totaling $42,000, and then she died. How much will her beneficiary receive? (Search Chapter 4) a. $150,000 b. $108,000 c. $42,000 d. $0