MICHIGAN VARIABLE ANNUITIES NEWEST ACTUAL

MICHIGAN VARIABLE ANNUITIES NEWEST ACTUAL /

EXAM WITH QUESTIONS AND 100% CORRECT ANSWERS

GRADED A+/VERIFIED

Expense Guarantee - ---Answers---a guarantee made by an insurer that expenses for a variable product will not exceed certain maximum levels

Fixed Amount Option - ---Answers---an insurance or annuity settlement option in which a chosen amount is paid out for an approximate length of time when principal and interest are exhausted

Fixed Annuity - ---Answers---an annuity providing that the insurer will pay the annuitant a guaranteed, fixed amount during the annuity phase

Fixed Period Option - ---Answers---an insurance or annuity settlement option in which an approximate amount is paid out for a chosen length of time when principal and interest are exhausted

Flexible Premium Deferred Annuity (FPDA) - ---Answers---a deferred annuity purchased with a series of payments, which may be irregular as to amount or timing

flexible premium variable life - ---Answers---a type of life insurance, also known as variable universal life, which is 1 / 3

characterized by flexible premiums, adjustable death benefit, and the ability of the owner to mae partial surrenders

General Account - ---Answers---the account that holds all of the assets of an insurer other than those in the separate accounts; holds the premiums for all fixed life and annuity products and is typically conservatively invested in bonds and commercial real estate to produce a relatively stable return

growth - ---Answers---an investment objective that focuses on long-term capital appreciation rather than immediate income

Immediate Annuity - ---Answers---an annuity, purchased with a single premium payment, in which annuity payments begin the next period (one month to one year) after purchase

income - ---Answers---an investment objective that focuses on dividends and interest to produce income rather than capital appreciation

indirect method - ---Answers---an approach to managing a variable products separate account that uses a unit investment trust contract with an investment company external to the insurer

Interest Only Option - ---Answers---an insurance or annuity settlement option in which the insurer holds the principal and 2 / 3

pays interest to the beneficiary with a guaranteed minimum rate

Investment Company Act of 1940 - ---Answers---a federal statute requiring insurer separate accounts to be registered as investment companies with the securities industry

investment management fee - ---Answers---with a variable life insurance or variable annuity contract, this is the amount paid to an investment advisor for providing professional investment advice for an insurer separate account

Joint Life Income - ---Answers---an insurance or annuity settlement option in which payments continue for as long as both of two annuitants are living

joint and survivor life income - ---Answers---an insurance or annuity settlement option in which payments continue for as long as either of two annuitants are living

Life Income - ---Answers---an insurance or annuity settlement option in which payments are based on mortality and interest calculations and continue for as long as the annuitant lives

Life income with period certain - ---Answers---an insurance and annuity settlement option in which payments continue to the longer of the life of the annuitant or the selected certain

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