I need help answering questions 17-25 please!
17. 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. 18. Which of the following correctly describes the basic income tax treatment of nonqualified annuities? a. Contract principal is not subject to taxation; interest earnings are subject to taxation. b. Contract principal is subject to taxation; interest earnings are not subject to taxation. c. Neither contract principal nor interest earnings are subject to taxation. d. Both contract principal and interest earnings are subject to taxation. 19. The exchange of one annuity contract for another is a tax-free transaction under the rules of: a. IRC Section 72(t) b. FINRA Rule 2330 C. IRS Revenue Ruling 2003-51 d. IRC Section 1035 20. Lorraine invested $50,000 in a nonqualified deferred annuity at the age of 50. Three years later, the contract has grown to $64,000, and Lorraine takes a $5,000 withdrawal. The contract is still in its accumulation stage. Which of the following statements is true? a. The withdrawal is fully taxable. b. The withdrawal is not taxable. c. $4,000 of the withdrawal is taxable; $1,000 is tax free. d. $1,000 of the withdrawal is taxable: $4,000 is tax free. Questions 1 - 10 Questions 21 - 25 >> 21. On what primary basis should Producer Lester determine the suitability of an annuity product he recommends to any of his clients? a. the facts disclosed by the client b. the advice of his more experienced colleagues c. the number and profile of other buyers who have purchased the product d. the commission he will make on the product 22. Which of the following best describes the stated purpose of the NAIC Annuity Suitability Model Regulation? a to promote annuity transactions that minimize consumer complaints to state insurance regulators b. to promote annuity transactions so that more consumers will purchase annuities c. to promote annuity transactions that reduce the amount of information the consumer needs to be given to make a purchasing decision d. to promote annuity transactions that appropriately address the consumer's insurance needs and financial objectives 23. Randy is a producer who is licensed in a state that has enacted the NAIC Suitability in Annuity Transactions Model Regulation. For the sale of which of the following products must Randy abide by the compliance requirements set forth in this model? a. only traditional fixed annuities b. only indexed annuities C. Only variable annuities d. fixed, indexed and variable annuities 24. To which producer would the NAIC annuity suitability requirements apply? a. Trudy, who sells only fixed annuities b. Bart, who sells both fixed and indexed annuities c. Gayle, who sells indexed and variable annuities d. Trudy, Bart, and Gayle 25. Which of the following best defines the purpose of the NAIC annuity suitability model regulation? a."... so that the insurance needs and financial objectives of consumers are appropriately addressed" b."... so that class-action suits against authorized insurers and licensed producers are avoided" C."... so that licensed producers are better educated on the benefits and drawbacks of annuity products d. "... so that insurers maintain unencumbered assets equal to the insurer's reserve liabilities
