4/11/25, 9:23 Annuity - WebCE Flashcards |
PM
ANNUITY – WEBCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
5.0 ( review)
Annuitization is Accumulated values are converted into a stream of periodic income payments.
How often can payments of annuities be A specified term of years, for life, or a combination of the two.
paid out?
What is the reason (how has a consumer's When a consumer priorities and needs typically shift from asset accumulation to
priorities and needs shifted) that annuities income distribution
are well suited for late-life retirement
planning?
What is the start date range for deferred Anywhere from 13 months to 40 years in the future.
income annuities?
What is the age that Deferred Income 85 years old.
Annuities' income start date cannot
extend past?
What are Surrender Charges? Fees the insurer assess for early withdrawals or contract surrenders.
What is a Withdrawal Fee? when less than the full contract value is taken.
1) Account Value Method
What are the two approaches for insurers
2)Premium Deposit Method
to determine the surrender charge?
3) Market Value Adjustments
What are other ways?
4) Premium Tax
What is the Premium Deposit Method of The charge on the amount of the contract's invested premium, applying a
determining the surrender charge? percentage that usually declines annually over the surrender charge period.
What is the Account Value Method of Assess a surrender charge equal to some percentage of the contract's
determining the surrender charge? accumulated value.
What is Premium Tax in relation to the A number of states impose a tax on annuity premiums.
annuity?
Assessed against the values of the separate subaccounts and is deducted before
accumulation unit values are calculated.
It helps ensure that the insurer can meet its contractual obligations for annualized
What does the Mortality and Expense
income payments and a minimum death benefit.
(M&E) charge?
The cost of a variable annuity's death benefit and annuity charge plus related
insurer costs (such as agent commissions and overhead)
Which expense of a Variable Annuity, The Mortality and Expense.
which is the most criticized? And why?
The Commissions it pays to its producers and distributors, its operational costs
and reserve requirements, and generates profits.
What fees are built into the Fixed Annuity
Contract's interest rate? 1) Commissions
2)Operational costs
3) Profits
1/
3
PM
ANNUITY – WEBCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
5.0 ( review)
Annuitization is Accumulated values are converted into a stream of periodic income payments.
How often can payments of annuities be A specified term of years, for life, or a combination of the two.
paid out?
What is the reason (how has a consumer's When a consumer priorities and needs typically shift from asset accumulation to
priorities and needs shifted) that annuities income distribution
are well suited for late-life retirement
planning?
What is the start date range for deferred Anywhere from 13 months to 40 years in the future.
income annuities?
What is the age that Deferred Income 85 years old.
Annuities' income start date cannot
extend past?
What are Surrender Charges? Fees the insurer assess for early withdrawals or contract surrenders.
What is a Withdrawal Fee? when less than the full contract value is taken.
1) Account Value Method
What are the two approaches for insurers
2)Premium Deposit Method
to determine the surrender charge?
3) Market Value Adjustments
What are other ways?
4) Premium Tax
What is the Premium Deposit Method of The charge on the amount of the contract's invested premium, applying a
determining the surrender charge? percentage that usually declines annually over the surrender charge period.
What is the Account Value Method of Assess a surrender charge equal to some percentage of the contract's
determining the surrender charge? accumulated value.
What is Premium Tax in relation to the A number of states impose a tax on annuity premiums.
annuity?
Assessed against the values of the separate subaccounts and is deducted before
accumulation unit values are calculated.
It helps ensure that the insurer can meet its contractual obligations for annualized
What does the Mortality and Expense
income payments and a minimum death benefit.
(M&E) charge?
The cost of a variable annuity's death benefit and annuity charge plus related
insurer costs (such as agent commissions and overhead)
Which expense of a Variable Annuity, The Mortality and Expense.
which is the most criticized? And why?
The Commissions it pays to its producers and distributors, its operational costs
and reserve requirements, and generates profits.
What fees are built into the Fixed Annuity
Contract's interest rate? 1) Commissions
2)Operational costs
3) Profits
1/
3
