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FLORIDA INSURANCE LIFE AND VARIABLE ANNUITY
EXAM - ACTUAL EXAM A & B QUESTIONS AND
ANSWERS ALREADY GRADED A
FLORIDA INSURANCE LIFE AND VARIABLE ANNUITY EXAM A
variable annuity - ANSWER-there is no guarantee of the dollar amount of the payments, they fluctuate according to the value of an account vest primarly in common stocks
join and survivor annuity - ANSWER-covers two or more lives and contiunes in force so long as any one of them survives
period certain annuity - ANSWER-annuity imcome option that guarantees a definite minimum peroid of payments
life annuity - ANSWER-payable during the continued life of the annuitant. No provision is made for the guaranteed return of the unused portion of the premium
installment refund annuity - ANSWER-annuity income option that provies for the funds remaing at the annuiants death to be paid to the beneficiary in the form of continued annity payments
immediate annuity - ANSWER-only be purchased with single payment. provides payment of annuity benefit at one payment interval from date of purchase 1 / 4
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equity indexed annuities (EIA) - ANSWER-fixed annuity that offers the potential for higher credited rates of return that their traditional counterparts but also guarantee the owners principal
deferred annuity - ANSWER-provides postponment of the commencemnt of an annity until after a specified peroid or until the annuiant attains a certain age.
annuiant - ANSWER-one to who an annuity is payable, or a person upon the contiuance of whoes life further payment depends
accumulation period of an annuity - ANSWER-the time during which funds are being paid into the annuity
payout (annuity period) - ANSWER-the point at which the annuity ceases to be an accumulation vehicle and beings to generate benefit payments on a regular basis.
funding method of annuity - ANSWER-single lump-sum payment or periodic payment over time
principal sum - ANSWER-beginning sum of money
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3 single-premium deferred annuities - ANSWER-annuities funded with single premiums
assigment provision - ANSWER-sets forth the procedure necessary for ownership transfer *transfer is known as assignment *new owner is the assignee *insureable interest does not have to exist between the insured and the asignee *asignee granted all rights of policy ownership, including right to name beneficiary.
preferred risk - ANSWER-exceptionally good risk *lower preimums *personal characteristics-non smoker, weight within ideal range, favorable cholestrol levels
standard risk - ANSWER-individuals who fit in the insurers guidlines for policy issue without special restrictions or additional ratings
substandard risk - ANSWER-one below the insurer's standard or average risk guidelines *poor health, dangerous occupations, or attributes or habits that could be hazardous
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4 Fair Credit Reporting Act (FCRA) - ANSWER-established procedures for the collection and disclosure of information obtained on consumers through investigation and credit reports.Seeks to insure fairness with the regards to confidentiality, accuracy, and disclosure.
avoidance - ANSWER-simply avoiding as many risks as possible
underwriting - ANSWER-term for risk selection *the process of reviewing the many characteristics that make up the risk profile of an applicant to determine if the applicant is insurable, and if so, at standard or substandard rates
insurable interest - ANSWER-exists when the death of the insured would have a clear financial impact on the policyowner
payor rider - ANSWER-under juvenile life insurance policies with payment of extra preimum *prodies for the waiver of future premiums if the person responsible for paying them dies or is disabled before the policy becomes fully paid or matures as a death claim or as an endowment, or the child reaches a specific age.
accelerated benefits rider - ANSWER-life insurance rider that allows for the early payment of some portion of the policy's face amount should the insured suffer from a termial illness or injury.
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