Series 65 Exam Lesson 29 Annuities Quiz

Series 65 Exam Lesson 29 Annuities Quiz
This is a Series 65 Exam Lesson 29 Annuities Quiz: a free quiz for Series 65 Exam Lesson 29 Annuities Quiz which is covering the unit investment trust . Try it and see how you do if you need help listen the lesson over.

Series Series 65 Exam Lesson 29 Annuities Quiz

Series 65 Exam Lesson 29 Annuities Quiz  is covering the Annuities information you need to understand for the Series 65 Exam

Below are questions based on Series 65 Exam Lesson 29 Annuities lesson of the series. Choose the letter of the correct answer.

Series 65 Exam Lesson 29 Annuities Quiz

1. It is a contract wherein the buyer make payments and after some time, the insurance company will make a series of payments back to the buyer.
A. annuity contract
B. bond contract
C. option contract
D. variable contract

2. Which of the following is NOT true regarding the selling of an annuity contract?
A. The seller of an annuity contract has to have an insurance license.
B. The insurance license for selling an annuity contract is regulated at the national level.
C. The insurance license for selling an annuity contract is issued by the state.
D. All of the above are true regarding the selling of an annuity contract.

3. The earnings on the accumulated funds in an annuity grow tax-deferred.
A. True
B. False

4. Annuity contracts are sold by investment advisors.
A. True
B. False

5. Insurance company accounting is quite different from generally accepted accounting principles.
A. True
B. False

6. Which is the correct formula for a combined ratio?
A. (earned premiums – insured losses) ÷ expense of the company
B. (insured losses + expense of the company) ÷ earned premiums
C. earned premiums ÷ (insured losses + expense of the company)
D. expense of the company ÷ (earned premiums – insured losses)

7. An insurance company had an insurance losses of $10 million, expenses of $3.5 million, and an earned premium of $9 million. What is the combined ratio?
A. 29%
B. 67%
C. 150%
D. 350%

8. An insurance company is paying out more money than it earns when the combined ratio is ___.
A. a negative percentage
B. above 100%
C. below 100%
D. equal to 100%

9. Which of the following is true about a long tail business?
A. It happens when insurance premiums are collected over the years while it takes a long time before a claim arrives (e.g. medical malpractice insurance).
B. It happens when the combined ratio is greater than 100%.
C. It happens when the interest rates are low causing a higher investment income.
D. It happens when there is an investment profit that is not calculated in the combined ratio.

10. In a variable annuity, the insurance company guarantees the annuitant a specific rate of return on his investment over a certain period of time.
A. True
B. False

11. In a fixed annuity, if interest rates are low, the offer of the insurance company would be ___.
A. high
B. low
C. fixed regardless of the interest rates
D. The offer of the insurance company may vary but is independent from the interest rate.

12. In calculating how much a life annuity is going to pay an annuitant, an insurance company takes into consideration the annuitant’s ___.
(Select all that apply.)
A. age
B. financial status
C. gender
D. health

13. It is an annuity wherein a beneficiary could still receive the monthly payments even if the owner of the annuity has already died.
A. joint and last survivor annuity
B. life annuity
C. life annuity with a period certain
D. unit refund life annuity

14. Which of the following is true about joint and last survivor annuity? (Select all that apply.)
A. It would pay the annuitant until he dies.
B. It would pay the annuitant’s spouse until the spouse dies.
C. It would pay the annuitant’s children until the last child dies.
D. It would pay the annuitant’s estate until a certain period of time.

15. In a unit refund life annuity, if the annuitant and the beneficiary dies before receiving the total investment back, the annuitant’s estate gets a refund of ___.
A. half the remaining investment value of the contract
B. quarter of the remaining investment value of the contract
C. the remaining investment value of the contract
D. twice the remaining investment value of the contract

16. Which of the following is true in an annuity that pays for a specified period of time?
(Select all that apply.)
A. If the annuitant dies before the specified period of time is up, the annuity continues paying the beneficiaries.
B. If the annuitant dies before the specified period of time, the annuity does not pay the beneficiaries.
C. If the annuitant lives longer than the specified period of time, the annuity continues paying the annuitant.
D. If the annuitant lives longer than the specified period of time, the annuity stops paying the annuitant.

17. In a variable annuity, which of the following is allowed as a choice of investment?
A. large capital investment
B. small capital investment
C. utility fund investment
D. all of the above

18. The rate of return on a variable annuity product is determined by ___.
A. interest rate offers
B. the amount of premium collected
C. the combined ratio
D. the investment performance held in the annuity contract

19. With installments for a designated amount in a variable annuity, the annuitant receives a specific dollar amount until the principal expires.
A. True
B. False

20. Which of the following is true about a combined fixed and variable annuity?
(Select all that apply.)
A. The annuitant could change the amount of payment he wants to receive monthly through the duration of the contract.
B. The annuitant might take a portion of his annuity in a lump sum and buy a fixed annuity with that money.
C. The annuitant would get a fixed return on the immediate fixed annuity.
D. The annuitant would get a variable return on the remaining portion of the variable annuity.

 We hope you did well on this Series 65 Exam Lesson 29 Annuities Quiz

 

 

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Series 65 vs Series 66 Exam

The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.

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