UOL Maps News Cloud 3 od laddering 26 Nick is receiving quarterly income payments from his variable annuity At the time he annuitized, his contract's accumulated value was $200,000, and the AIR was set at 5 percent His first quarterly payment was $3,600 his second quarterly payment was also $3,600 Which of the following statements is true (Search Chapter 4) a Nick elected fixed annuitization b Nick's annuity values grew by a net 5 percent e c Nick's annuity values grew at a net rate of less than 5 percent d Nick's annuity values declined at a net rate of 5 percent 27 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 28 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 (Search Chapter 4) 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 ed If Seth were to die at the age of 79, no payment would be made to a beneficiary 29 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 (Search Chapter 4) a $900 b $1,170 c $2,500 d $3,250 30 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 (Search Chapter 5) a $900 ob $1,170 c $2,500 od $3,250 30 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 (Search Chapter 5) 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 O d $1,000 of the withdrawal is taxable $4,000 is tax free Questions 11 20 Questions 31 40 IM Mall database Loud financial i U 21 Connect 10 DO A Youtube Maps New 32 Paul invested $25,000 in a nonqualified deferred annuity at the age of 47 Five years later, the contract has grown to $38,000, and Paul surrenders his contract for its full value The early withdrawal tax penalty is assessed on how much of Paul's surrender (Search Chapter 5) a $0 b $13,000 c $25,000 d $38,000 33 On what primary basis should Producer Lester determine the suitability of an annuity product he recommends to any of his clients (Search Chapter 6) 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 34 To which producer would the NAIC annuity suitability requirements apply (Search Chapter 6) 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 E database Cloud financial aid d21 Connect To Do As YouTube Maps News 36 With respect to the marketing and selling of annuities to seniors, which of the following statements is true (Search Chapter 6) a Producers have the duty to be alert to prospects and clients who may lack the ability to make informed decisions due to diminished capacity ob Annuities are never suitable products for seniors c Producers must obtain a power of attorney before they can sell a product to anyone older than 70 d Producers cannot subject a senior prospect or client to a suitability assessment that is more detailed or rigorous than what would apply to any prospect or client 37 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 (Search Chapter 6) a only traditional fixed annuities b only indexed annuities c only variable annuities d fixed, indexed and variable annuities e mail E database iCloud financial aid d21E Connect To Do As YouTube Maps News 7 At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into Subaccount A when the unit value was $10 A year later, the unit value had increased to $15 Assuming he made no additional premium deposits, what is the value of Ahmed's investment in Subaccount A now (Search Chapter 2) a $25,000 b $16,666 c $7,500 d $8,333 8 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) a, a fixed immediate annuity b a variable immediate annuity c a fixed deferred annuity di a variable deferred annuity o live mail iCloue database iCloud financial aid 021 Connect To Do As YouTube Maps News 9 Sam purchased a variable annuity for $15,000 At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and $5,000 into the contract's bond subaccount With this deposit, he acquired 1,000 units in the stock subaccount and 1,000 units in the bond subaccount Though he made no additional premium payments, the value of his contract one year later had grown to $20,000 $14,000 in the stock subaccount and $6,000 in the bond subaccount How many accumulation units are now associated with Sam's contract (Search Chapter 2) a 2,000 b 2,600 e c 2,666 d 2,800 10 At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single premium deposit of $10,000 The declared interest rate on Steve's contract when it was issued was 5 percent, and the contract guarantees a minimum rate of 3 percent The initial declared rate is payable for two years the renewal rate for year three and later is subject to change How much interest will be credited to Steve's contract at the end of year one (Search Chapter 2) a $300 b $500 c $800 d $1 000 CUM 10 DO A YOUTUDe Maps News 11 John purchased a variable annuity with a premium deposit of $30,000 He allocated these funds equally among three of the contract's investment options a domestic stock account fund, a long term bond account fund, and the fixed account fund How much of John's original investment will the insurer guarantee (Search Chapter 2) a $10,000 b $20,000 ec $30,000 d $0 12 Darcy owns an indexed annuity The index that supports her annuity was at 1000 when the contract's interest crediting period began and 1200 when the crediting period ended What is the index increase (Search Chapter 2) a 10 percent b 20 percent c 40 percent d 200 percent 13 Marcia purchased a deferred variable annuity and selected two subaccounts, A and B for the allocation of her $20,000 premium dannels ch 15 13 Marcia purchased a deferred variable annuity and selected two subaccounts and B, for the allocation of her $20,000 premium deposit She directed $15 000 into Subaccount A and $5,000 into Subaccount B At the time of her purchase, the value of a Subaccount A unit was $15, and the value of a Subaccount B unit was $10 How many total units did Marcia purchase (Search Chapter 2) a 20,000 b 15,000 C 2,000 d 1,500 14 Mack purchased a variable annuity with a $50,000 premium deposit, which he split equally between two subaccounts At the time of purchase, the value of a unit in Subaccount 1 was $25, and the value of a unit in Subaccount 2 was $10 Six months later, the unit value of Subaccount 1 had risen to $30, and the unit value of Subaccount 2 had declined to $8 What was the value of Mack's contract at that point (Search Chapter 2) a $48,000 b $50,000 c $52,000 d $55,000 Come 10 DA Youlube Maps News iClor 19 Ten years ago, John purchased a deferred annuity and named his daughter, Suzanne as beneficiary Over the years, John invested $50,000 in the contract upon his death, the contract was valued at $118,000 Assuming that John died without annuitizing and the contract contained the standard death benefit provision, how much will Suzanne receive (Search Chapter 3) a $50,000 b $68,000 c $118,000 ed $57,000 20 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 UOL Maps News Cloud 3 od laddering 26 Nick is receiving quarterly income payments from his variable annuity At the time he annuitized, his contract's accumulated value was $200,000, and the AIR was set at 5 percent His first quarterly payment was $3,600 his second quarterly payment was also $3,600 Which of the following statements is true (Search Chapter 4) a Nick elected fixed annuitization b Nick's annuity values grew by a net 5 percent e c Nick's annuity values grew at a net rate of less than 5 percent d Nick's annuity values declined at a net rate of 5 percent 27 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 28 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 (Search Chapter 4) 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 ed If Seth were to die at the age of 79, no payment would be made to a beneficiary 29 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 (Search Chapter 4) a $900 b $1,170 c $2,500 d $3,250 30 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 (Search Chapter 5) a $900 ob $1,170 c $2,500 od $3,250 30 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 (Search Chapter 5) 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 O d $1,000 of the withdrawal is taxable $4,000 is tax free Questions 11 20 Questions 31 40 IM Mall database Loud financial i U 21 Connect 10 DO A Youtube Maps New 32 Paul invested $25,000 in a nonqualified deferred annuity at the age of 47 Five years later, the contract has grown to $38,000, and Paul surrenders his contract for its full value The early withdrawal tax penalty is assessed on how much of Paul's surrender (Search Chapter 5) a $0 b $13,000 c $25,000 d $38,000 33 On what primary basis should Producer Lester determine the suitability of an annuity product he recommends to any of his clients (Search Chapter 6) 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 34 To which producer would the NAIC annuity suitability requirements apply (Search Chapter 6) 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 E database Cloud financial aid d21 Connect To Do As YouTube Maps News 36 With respect to the marketing and selling of annuities to seniors, which of the following statements is true (Search Chapter 6) a Producers have the duty to be alert to prospects and clients who may lack the ability to make informed decisions due to diminished capacity ob Annuities are never suitable products for seniors c Producers must obtain a power of attorney before they can sell a product to anyone older than 70 d Producers cannot subject a senior prospect or client to a suitability assessment that is more detailed or rigorous than what would apply to any prospect or client 37 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 (Search Chapter 6) a only traditional fixed annuities b only indexed annuities c only variable annuities d fixed, indexed and variable annuities e mail E database iCloud financial aid d21E Connect To Do As YouTube Maps News 7 At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into Subaccount A when the unit value was $10 A year later, the unit value had increased to $15 Assuming he made no additional premium deposits, what is the value of Ahmed's investment in Subaccount A now (Search Chapter 2) a $25,000 b $16,666 c $7,500 d $8,333 8 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) a, a fixed immediate annuity b a variable immediate annuity c a fixed deferred annuity di a variable deferred annuity o live mail iCloue database iCloud financial aid 021 Connect To Do As YouTube Maps News 9 Sam purchased a variable annuity for $15,000 At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and $5,000 into the contract's bond subaccount With this deposit, he acquired 1,000 units in the stock subaccount and 1,000 units in the bond subaccount Though he made no additional premium payments, the value of his contract one year later had grown to $20,000 $14,000 in the stock subaccount and $6,000 in the bond subaccount How many accumulation units are now associated with Sam's contract (Search Chapter 2) a 2,000 b 2,600 e c 2,666 d 2,800 10 At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single premium deposit of $10,000 The declared interest rate on Steve's contract when it was issued was 5 percent, and the contract guarantees a minimum rate of 3 percent The initial declared rate is payable for two years the renewal rate for year three and later is subject to change How much interest will be credited to Steve's contract at the end of year one (Search Chapter 2) a $300 b $500 c $800 d $1 000 CUM 10 DO A YOUTUDe Maps News 11 John purchased a variable annuity with a premium deposit of $30,000 He allocated these funds equally among three of the contract's investment options a domestic stock account fund, a long term bond account fund, and the fixed account fund How much of John's original investment will the insurer guarantee (Search Chapter 2) a $10,000 b $20,000 ec $30,000 d $0 12 Darcy owns an indexed annuity The index that supports her annuity was at 1000 when the contract's interest crediting period began and 1200 when the crediting period ended What is the index increase (Search Chapter 2) a 10 percent b 20 percent c 40 percent d 200 percent 13 Marcia purchased a deferred variable annuity and selected two subaccounts, A and B for the allocation of her $20,000 premium dannels ch 15 13 Marcia purchased a deferred variable annuity and selected two subaccounts and B, for the allocation of her $20,000 premium deposit She directed $15 000 into Subaccount A and $5,000 into Subaccount B At the time of her purchase, the value of a Subaccount A unit was $15, and the value of a Subaccount B unit was $10 How many total units did Marcia purchase (Search Chapter 2) a 20,000 b 15,000 C 2,000 d 1,500 14 Mack purchased a variable annuity with a $50,000 premium deposit, which he split equally between two subaccounts At the time of purchase, the value of a unit in Subaccount 1 was $25, and the value of a unit in Subaccount 2 was $10 Six months later, the unit value of Subaccount 1 had risen to $30, and the unit value of Subaccount 2 had declined to $8 What was the value of Mack's contract at that point (Search Chapter 2) a $48,000 b $50,000 c $52,000 d $55,000 Come 10 DA Youlube Maps News iClor 19 Ten years ago, John purchased a deferred annuity and named his daughter, Suzanne as beneficiary Over the years, John invested $50,000 in the contract upon his death, the contract was valued at $118,000 Assuming that John died without annuitizing and the contract contained the standard death benefit provision, how much will Suzanne receive (Search Chapter 3) a $50,000 b $68,000 c $118,000 ed $57,000 20 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

Question

UOL Maps News Cloud 3 od  laddering 26  Nick is receiving quarterly income payments from his variable annuity  At the time he annuitized, his contract's accumulated value was $200,000, and the AIR was set at 5 percent  His first quarterly payment was $3,600  his second quarterly payment was also $3,600  Which of the following statements is true  (Search Chapter 4)   a  Nick elected fixed annuitization  b  Nick's annuity values grew by a net 5 percent  e c  Nick's annuity values grew at a net rate of less than 5 percent  d  Nick's annuity values declined at a net rate of 5 percent  27  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 28  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  (Search Chapter 4) 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  ed  If Seth were to die at the age of 79, no payment would be made to a beneficiary  29  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  (Search Chapter 4) a  $900 b  $1,170 c  $2,500 d  $3,250 30  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  (Search Chapter 5) a  $900 ob  $1,170 c  $2,500 od  $3,250 30  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  (Search Chapter 5) 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  O d  $1,000 of the withdrawal is taxable  $4,000 is tax free  Questions 11   20 Questions 31   40    IM Mall database Loud financial i U 21 Connect   10 DO A    Youtube Maps New 32  Paul invested $25,000 in a nonqualified deferred annuity at the age of 47  Five years later, the contract has grown to $38,000, and Paul surrenders his contract for its full value  The early withdrawal tax penalty is assessed on how much of Paul's surrender  (Search Chapter 5) a  $0 b  $13,000 c  $25,000 d  $38,000 33  On what primary basis should Producer Lester determine the suitability of an annuity product he recommends to any of his clients  (Search Chapter 6) 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 34  To which producer would the NAIC annuity suitability requirements apply  (Search Chapter 6) 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 E database Cloud   financial aid  d21 Connect   To Do As    YouTube Maps News 36  With respect to the marketing and selling of annuities to seniors, which of the following statements is true  (Search Chapter 6) a  Producers have the duty to be alert to prospects and clients who may lack the ability to make informed decisions due to diminished capacity  ob  Annuities are never suitable products for seniors  c  Producers must obtain a power of attorney before they can sell a product to anyone older than 70  d  Producers cannot subject a senior prospect or client to a suitability assessment that is more detailed or rigorous than what would apply to any prospect or client  37  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  (Search Chapter 6) a  only traditional fixed annuities b  only indexed annuities c  only variable annuities d  fixed, indexed and variable annuities e mail E database iCloud financial aid d21E Connect   To Do As      YouTube Maps   News 7  At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into Subaccount A when the unit value was $10  A year later, the unit value had increased to $15  Assuming he made no additional premium deposits, what is the value of Ahmed's investment in Subaccount A now  (Search Chapter 2) a  $25,000 b  $16,666 c  $7,500 d  $8,333 8  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) a, a fixed immediate annuity b  a variable immediate annuity c  a fixed deferred annuity di a variable deferred annuity o live mail iCloue database iCloud financial aid 021 Connect   To Do As   YouTube Maps News 9  Sam purchased a variable annuity for $15,000  At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and $5,000 into the contract's bond subaccount  With this deposit, he acquired 1,000 units in the stock  subaccount and 1,000 units in the bond subaccount  Though he made no additional premium payments, the value of his contract one year later had grown to $20,000  $14,000 in the stock subaccount and $6,000 in the bond subaccount  How many accumulation units are now associated with Sam's contract  (Search Chapter 2) a  2,000  b  2,600 e c  2,666 d  2,800 10  At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single premium deposit of $10,000  The declared interest rate on Steve's contract when it was issued was 5 percent, and the contract guarantees a minimum rate of 3 percent  The initial declared rate is payable for two years  the renewal rate for year three and later is subject to change  How much interest will be credited to Steve's contract at the end of year one  (Search Chapter 2)   a  $300 b  $500 c  $800 d  $1 000 CUM 10 DO A    YOUTUDe Maps News 11  John purchased a variable annuity with a premium deposit of $30,000  He allocated these funds equally among three of the contract's investment options  a domestic stock account fund, a long term bond account fund, and the fixed account fund  How much of John's original investment will the insurer guarantee  (Search Chapter 2) a $10,000 b  $20,000 ec  $30,000   d  $0 12  Darcy owns an indexed annuity  The index that supports her annuity was at 1000 when the contract's interest crediting period began and 1200 when the crediting period ended  What is the index increase  (Search Chapter 2) a  10 percent  b  20 percent c  40 percent d  200 percent 13  Marcia purchased a deferred variable annuity and selected two subaccounts, A and B  for the allocation of her $20,000 premium dannels ch 15 13  Marcia purchased a deferred variable annuity and selected two subaccounts and B, for the allocation of her $20,000 premium deposit  She directed $15 000 into Subaccount A and $5,000 into Subaccount B  At the time of her purchase, the value of a Subaccount A unit was $15, and the value of a Subaccount B unit was $10  How many total units did Marcia purchase  (Search Chapter 2) a  20,000 b  15,000 C  2,000 d  1,500 14  Mack purchased a variable annuity with a $50,000 premium deposit, which he split equally between two subaccounts  At the time of purchase, the value of a unit in Subaccount  1 was $25, and the value of a unit in Subaccount  2 was $10  Six months later, the unit value of Subaccount  1 had risen to $30, and the unit value of Subaccount  2 had declined to $8  What was the value of Mack's contract at that point  (Search Chapter 2) a  $48,000 b  $50,000 c  $52,000 d  $55,000 Come 10 DA    Youlube Maps News iClor 19  Ten years ago, John purchased a deferred annuity and named his daughter, Suzanne  as beneficiary  Over the years, John invested $50,000 in the contract  upon his death, the contract was valued at $118,000  Assuming that John died without annuitizing and the contract contained the standard death benefit provision, how much will Suzanne receive  (Search Chapter 3) a  $50,000 b  $68,000 c  $118,000 ed  $57,000 20  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 UOL Maps News Cloud 3 od  laddering 26  Nick is receiving quarterly income payments from his variable annuity  At the time he annuitized, his contract's accumulated value was $200,000, and the AIR was set at 5 percent  His first quarterly payment was $3,600  his second quarterly payment was also $3,600  Which of the following statements is true  (Search Chapter 4)   a  Nick elected fixed annuitization  b  Nick's annuity values grew by a net 5 percent  e c  Nick's annuity values grew at a net rate of less than 5 percent  d  Nick's annuity values declined at a net rate of 5 percent  27  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 28  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  (Search Chapter 4) 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  ed  If Seth were to die at the age of 79, no payment would be made to a beneficiary  29  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  (Search Chapter 4) a  $900 b  $1,170 c  $2,500 d  $3,250 30  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  (Search Chapter 5) a  $900 ob  $1,170 c  $2,500 od  $3,250 30  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  (Search Chapter 5) 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  O d  $1,000 of the withdrawal is taxable  $4,000 is tax free  Questions 11   20 Questions 31   40    IM Mall database Loud financial i U 21 Connect   10 DO A    Youtube Maps New 32  Paul invested $25,000 in a nonqualified deferred annuity at the age of 47  Five years later, the contract has grown to $38,000, and Paul surrenders his contract for its full value  The early withdrawal tax penalty is assessed on how much of Paul's surrender  (Search Chapter 5) a  $0 b  $13,000 c  $25,000 d  $38,000 33  On what primary basis should Producer Lester determine the suitability of an annuity product he recommends to any of his clients  (Search Chapter 6) 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 34  To which producer would the NAIC annuity suitability requirements apply  (Search Chapter 6) 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 E database Cloud   financial aid  d21 Connect   To Do As    YouTube Maps News 36  With respect to the marketing and selling of annuities to seniors, which of the following statements is true  (Search Chapter 6) a  Producers have the duty to be alert to prospects and clients who may lack the ability to make informed decisions due to diminished capacity  ob  Annuities are never suitable products for seniors  c  Producers must obtain a power of attorney before they can sell a product to anyone older than 70  d  Producers cannot subject a senior prospect or client to a suitability assessment that is more detailed or rigorous than what would apply to any prospect or client  37  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  (Search Chapter 6) a  only traditional fixed annuities b  only indexed annuities c  only variable annuities d  fixed, indexed and variable annuities e mail E database iCloud financial aid d21E Connect   To Do As      YouTube Maps   News 7  At the time he purchased his variable annuity, Ahmed directed $5,000 of his premium into Subaccount A when the unit value was $10  A year later, the unit value had increased to $15  Assuming he made no additional premium deposits, what is the value of Ahmed's investment in Subaccount A now  (Search Chapter 2) a  $25,000 b  $16,666 c  $7,500 d  $8,333 8  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) a, a fixed immediate annuity b  a variable immediate annuity c  a fixed deferred annuity di a variable deferred annuity o live mail iCloue database iCloud financial aid 021 Connect   To Do As   YouTube Maps News 9  Sam purchased a variable annuity for $15,000  At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and $5,000 into the contract's bond subaccount  With this deposit, he acquired 1,000 units in the stock  subaccount and 1,000 units in the bond subaccount  Though he made no additional premium payments, the value of his contract one year later had grown to $20,000  $14,000 in the stock subaccount and $6,000 in the bond subaccount  How many accumulation units are now associated with Sam's contract  (Search Chapter 2) a  2,000  b  2,600 e c  2,666 d  2,800 10  At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single premium deposit of $10,000  The declared interest rate on Steve's contract when it was issued was 5 percent, and the contract guarantees a minimum rate of 3 percent  The initial declared rate is payable for two years  the renewal rate for year three and later is subject to change  How much interest will be credited to Steve's contract at the end of year one  (Search Chapter 2)   a  $300 b  $500 c  $800 d  $1 000 CUM 10 DO A    YOUTUDe Maps News 11  John purchased a variable annuity with a premium deposit of $30,000  He allocated these funds equally among three of the contract's investment options  a domestic stock account fund, a long term bond account fund, and the fixed account fund  How much of John's original investment will the insurer guarantee  (Search Chapter 2) a $10,000 b  $20,000 ec  $30,000   d  $0 12  Darcy owns an indexed annuity  The index that supports her annuity was at 1000 when the contract's interest crediting period began and 1200 when the crediting period ended  What is the index increase  (Search Chapter 2) a  10 percent  b  20 percent c  40 percent d  200 percent 13  Marcia purchased a deferred variable annuity and selected two subaccounts, A and B  for the allocation of her $20,000 premium dannels ch 15 13  Marcia purchased a deferred variable annuity and selected two subaccounts and B, for the allocation of her $20,000 premium deposit  She directed $15 000 into Subaccount A and $5,000 into Subaccount B  At the time of her purchase, the value of a Subaccount A unit was $15, and the value of a Subaccount B unit was $10  How many total units did Marcia purchase  (Search Chapter 2) a  20,000 b  15,000 C  2,000 d  1,500 14  Mack purchased a variable annuity with a $50,000 premium deposit, which he split equally between two subaccounts  At the time of purchase, the value of a unit in Subaccount  1 was $25, and the value of a unit in Subaccount  2 was $10  Six months later, the unit value of Subaccount  1 had risen to $30, and the unit value of Subaccount  2 had declined to $8  What was the value of Mack's contract at that point  (Search Chapter 2) a  $48,000 b  $50,000 c  $52,000 d  $55,000 Come 10 DA    Youlube Maps News iClor 19  Ten years ago, John purchased a deferred annuity and named his daughter, Suzanne  as beneficiary  Over the years, John invested $50,000 in the contract  upon his death, the contract was valued at $118,000  Assuming that John died without annuitizing and the contract contained the standard death benefit provision, how much will Suzanne receive  (Search Chapter 3) a  $50,000 b  $68,000 c  $118,000 ed  $57,000 20  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

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UOL Maps News Cloud 3 od. laddering 26. Nick is receiving quarterly income payments from his variable annuity. At the time he annuitized, his contract's

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