Term
1) The securities held in the account
2) Policies for transferring between different investment selections
3) Sales charges and other expenses. |
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Definition
| The prospectus of a separate account in a variable contract must include what material information? |
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Term
| Payments made by the issuer to a annuitant vary in dollar amount in accordance with the performance of the separate account. |
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Definition
| What are variable annuity contracts? |
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Term
Payments
Fixed - Provides fixed payments of specified amount ofr the contract term
Variable - Provides variable dollar payments at regular interval for the contract term.
Rate of Return
Fixed - Guarantees a minimum rate of return
Variable - Provides |
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Definition
| What are the differences between fixed and variable annuities in regard to payments, rate or return, and risk? |
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Term
1) Tax-Deferred Accumulation
2) Voting Rights
3) Settlement Options
3a) Straight-Life Annuity
3b) Life annuity with period certain
3c) Unit refund life annuity
3d) Joint and last survivor life annuity
3e) Installments for a designated amount
3f) C |
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Definition
| What are some features that may be found in annuity contracts? |
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Term
1) Calculate the annuitant's interest in the separate account
2) Calculate the first monthly payment
3) Calculate the value of future payments. |
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Definition
| By what method may accumulation units be converted into annuity units? |
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Term
| Term covers a specificed period of time and provides only a death benefit. Permanent provides a death benefit and an accumulation of cash value. |
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Definition
| What is the primary difference between term life insurance and permanent life insurance policies? |
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Term
1) Interest Option
2) Fixed-period Option
3) Fixed-amount Option
4) Life income option
4a) Straight life
4b) Cash refund
4c) Life income with period certain
4d) Joint and last survivor income |
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Definition
| What are the various settlement options of a variable life insurance contract? |
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Term
1) Maximum sales charge - 9% computed over a period of up to 20 years
2) Maximum sales charge - 50% of the premium paid during the 1st year of the policy
3) If a policy owner surrenders a variable life policy during the first two policy years, the owner |
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Definition
| What sales charges are allowable on a variable life insurance policy? |
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Term
Lesser of 100% of annual compensation or
3000 for 2002 - 2004
4000 for 2005 - 2007
5000 for 2008 |
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Definition
| With an individual retirement account (IRA) what is the maximum amount an individual may contribute annually? |
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Term
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Definition
| What are the differences between a Traditional IRA and a Roth IRA? |
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Term
1) Funds can be used within 120 days to pay qualified acquisition costs for the purchase of a first home.
2) Funds can be withdrawn for certain educational expenses - without the 10% early withdrawal tax. |
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Definition
| When may an early withdrawal from a Traditional IRA be made penalty free? |
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Term
1) Profit-Sharing Plans
2) 401K Plans
2a) Employee Pays all Plans
2b) Matching Contribution Plans
3) 403(b) - Tax-Deferred Annuity Plans |
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Definition
| What are common types of defined contribution plans? |
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Term
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Definition
| An individual may transfer or rollover the assets in an IRA or qualified plan without incurring a tax liability under what conditions? |
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Term
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Definition
| What are some of the ERISA standards that a qualified retirement plan must meet to be eligible for favorable tax treatment? |
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Term
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Definition
| What are the general participation rules of qualified retirement plans for employees? |
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