Series 65 Exam Lesson 29 Annuities Quiz

This is a Series 65 Exam Lesson 29 Annuities Quiz: a free quiz for Series 65 Exam Lesson 29 Annuities Quiz which is covering the unit investment trust . Try it and see how you do if you need help listen the lesson over.

Series Series 65 Exam Lesson 29 Annuities Quiz

Series 65 Exam Lesson 29 Annuities Quiz  is covering the Annuities information you need to understand for the Series 65 Exam

Below are questions based on Series 65 Exam Lesson 29 Annuities lesson of the series. Choose the letter of the correct answer.

Series 65 Exam Lesson 29 Annuities Quiz

1. It is a contract wherein the buyer make payments and after some time, the insurance company will make a series of payments back to the buyer.

A. annuity contract

B. bond contract

C. option contract

D. variable contract

2. Which of the following is NOT true regarding the selling of an annuity contract?

A. The seller of an annuity contract has to have an insurance license.

B. The insurance license for selling an annuity contract is regulated at the national level.

C. The insurance license for selling an annuity contract is issued by the state.

D. All of the above are true regarding the selling of an annuity contract.

3. The earnings on the accumulated funds in an annuity grow tax-deferred.

A. True

B. False

4. Annuity contracts are sold by investment advisors.

A. True

B. False

5. Insurance company accounting is quite different from generally accepted accounting principles.

A. True

B. False

6. Which is the correct formula for a combined ratio?

A. (earned premiums – insured losses) ÷ expense of the company

B. (insured losses + expense of the company) ÷ earned premiums

C. earned premiums ÷ (insured losses + expense of the company)

D. expense of the company ÷ (earned premiums – insured losses)

7. An insurance company had an insurance losses of $10 million, expenses of $3.5 million, and an earned premium of $9 million. What is the combined ratio?

A. 29%

B. 67%

C. 150%

D. 350%

8. An insurance company is paying out more money than it earns when the combined ratio is ___.

A. a negative percentage

B. above 100%

C. below 100%

D. equal to 100%

9. Which of the following is true about a long tail business?

A. It happens when insurance premiums are collected over the years while it takes a long time before a claim arrives (e.g. medical malpractice insurance).

B. It happens when the combined ratio is greater than 100%.

C. It happens when the interest rates are low causing a higher investment income.

D. It happens when there is an investment profit that is not calculated in the combined ratio.

10. In a variable annuity, the insurance company guarantees the annuitant a specific rate of return on his investment over a certain period of time.

A. True

B. False

11. In a fixed annuity, if interest rates are low, the offer of the insurance company would be ___.

A. high

B. low

C. fixed regardless of the interest rates

D. The offer of the insurance company may vary but is independent from the interest rate.

12. In calculating how much a life annuity is going to pay an annuitant, an insurance company takes into consideration the annuitant’s ___.

(Select all that apply.)

A. age

B. financial status

C. gender

D. health

13. It is an annuity wherein a beneficiary could still receive the monthly payments even if the owner of the annuity has already died.

A. joint and last survivor annuity

B. life annuity

C. life annuity with a period certain

D. unit refund life annuity

14. Which of the following is true about joint and last survivor annuity? (Select all that apply.)

A.