TEXAS LIFE HEALTH CE : KEY TERMS DEFINITIONS

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TEXAS LIFE & HEALTH CE : KEY TERMS & DEFINITIONS

EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -43 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: True

Answer:

Each sub account in the company separate account has an investment management fee, which pays for the professional investment management of the sub account. This is a true or false statement about variable annuity charges.

Question 2: Deferred Annuity

Answer:

Characterized by a much longer period of time before payouts are scheduled to begin this time period is known as the accumulation phase during rich funds in the form of premium payments are deposited into the contract and accumulated interest sometimes is several years Question 3: Whether the statement could have affected the insurance decision to issue the policy

Answer:

Which of the following statements determines whether or not a statement is material Question 4: If the client is likely to need the funds before he retires, or before, the end of the surrender.

Answer:

You are working with a John doe, a client for whom you going to recommend a deferred variable annuity. You have a question about his existing investments and his insurance holdings. You have also

determine he wants to use the annuity to accumulate more fines for retirement what else should you

Question 5: Traditional fixed contracts very from variable contracts in that

Answer:

Traditional fixed contract requires a company to assume the investment risk Raz variable contracts, pass the investment, rest of the contract owner Question 6: Annuity purchasers transfer to an an insurance company their risk of

Answer:

Outliving their financial resources Question 7: How long much an agent, maintain records of the information collected and used in the making a recommendation for an annuity purchase

Answer:

Until the fifth anniversary of the date on which the transaction is completed by the insurer Question 8: The most appropriate annuity for a client who has a current need for a structured, systematic income flow?

Answer:

Immediate annuity

Question 9: Dolly has no obligation to this client

Answer:

Hey, Insurnace , client, refused to provide relevant, complete, or accurate information to Dolly, his agent, during an annuity sell, and he decides to purchase an annuity that dolly does not recommend.Which of the following statements is true.

Question 10: 4%

Answer:

Bethany purchases a fixed annuity that will pay a guaranteed minimum interest rate of 4% for the next five years. At that time the insurance company will be paying a monthly benefit for the remainder of Bethany's life. Now, suppose that during one year, the insurer actually earns only 3%. The insurance company is responsible for crediting what percentage of Bethany's fixed annuity policy?

Question 11: The customers age, the customers annual income, the customers financial status

Answer:

Underworld 2330 when we're making a recommendation to purchase or exchange a deferred verbal annuity you must make a reason where ever to a certain all of the following except the customers vacation plans, but you must do the following in above Question 12: Review the documentation and decide whether or not to approve the transaction

Answer:

Under FINRA rule 2330, what must registered principles do when they receive a recommendation from a registered representative for the purchase of a deferred variable annuity

Question 13: Indexed annuity

Answer:

This type of annuity would be most suitable for your client who wishes to earn a return linked to the market performance, but does not want to risk losing any principal

Question 14: Committed a state, jail felony

Answer:

Fake complete a life insurance application, and, because she is concerned about insurability, failed to disclose several serious health problems. She also indicates that she is a non-smoker win, in fact, she has been a heavy smoker for many years. Faith has.

Question 15: Which of the following is true of the joint and survivor annuity

Answer:

If one of the joint annuitant dies, the surviving annuitant continues to receive payments for life.Question 16: FINRA rule 2330 places mini requirements on farms in registered reps which of the following is not a requirement of raw 2330

Answer:

A customer must agree to purchase any riders that are recommended

Question 17: Periodic purchase payments

Answer:

All of the following are characteristics of a single premium, immediate annuity contract, except

• periodic purchase payments

• generally no access to cash value

• lump sum purchase

• immediate payout

Question 18: College savings

Answer:

All of the following are uses of a deferred annuity

• Death benefit, heirs.

• Income protection.

• Tax deferred accumulation.

• College savings.

Question 19: Sally could take out only did $200,000 without any surrender charges

Answer:

Sally owns a variable annuity with a living benefit rider that has a 7% surrender charge for contracts surrender in the in the first year, 6% charge for the contracts surrendered the second year, and so on.And the contract for eight year Sally wants to cash out her annuity, which has a $200,000 contract value in a $250,000 benefit base which of the following statements is true?

Question 20: Recommendation

Answer:

Advice provided by insurance, producer, or an insurer, when no producer is involved, to an individual consumers that results in a purchase, exchange, or replacement of an annuity in accordance with such advice is known as which of the following Question 21: Consumers investment, facts that consumers disclose about their financial situation, and needs, and consumers insurance products

Answer:

When recommending an annuity, an insurance, producer, or insure, when no producer is involved, must have a reasonable basis to believe that recommendations are suitable for consumers based on which of the following