4-HOUR ANNUITY SUITABILITY
AND BEST INTEREST STANDARD
EXAM WebCE
• For whom is joint ownership of an annuity often
reserved?ANSWER spouses
• At what point does the beneficiary to an annuity
acquire rights in the contract?ANSWER (Wrong) upon
contract issue and throughout the life of the contract, until the
death of the contract owner or annuitant
, • Generally speaking, how long is the accumulation
period for immediate annuities?ANSWER one month to
one year
• For which of the following needs are traditional
deferred annuities best suited?ANSWER retirement
planning
• For what reason would an individual choose a variable
annuity over a fixed annuity?ANSWER for the potential to
earn greater contract growth
• 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?ANSWER -
$7,500
• For most indexed annuities, what is the specified
floor?ANSWER 0 percent
AND BEST INTEREST STANDARD
EXAM WebCE
• For whom is joint ownership of an annuity often
reserved?ANSWER spouses
• At what point does the beneficiary to an annuity
acquire rights in the contract?ANSWER (Wrong) upon
contract issue and throughout the life of the contract, until the
death of the contract owner or annuitant
, • Generally speaking, how long is the accumulation
period for immediate annuities?ANSWER one month to
one year
• For which of the following needs are traditional
deferred annuities best suited?ANSWER retirement
planning
• For what reason would an individual choose a variable
annuity over a fixed annuity?ANSWER for the potential to
earn greater contract growth
• 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?ANSWER -
$7,500
• For most indexed annuities, what is the specified
floor?ANSWER 0 percent
