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SIE Exam Lesson 22 Annuities Quiz
SIE Exam Lesson 22 Annuities Quiz
This is a SIE Exam Lesson 22 Annuities Quizz , See how you do if you need help listen to the lesson over.
Questions covered include
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. It would pay the annuitant until he dies.
B. It would pay the annuitant’s spouse until the spouse dies.
C. It would pay the annuitant’s children until the last child dies.
D. It would pay the annuitant’s estate until a certain period of time.
15. In a unit refund life annuity, if the annuitant and the beneficiary dies before receiving the total investment back, the annuitant’s estate gets a refund of ___.
A. half the remaining investment value of the contract
B. quarter of the remaining investment value of the contract
C. the remaining investment value of the contract
D. twice the remaining investment value of the contract
16. Which of the following is true in an annuity that pays for a specified period of time?
(Select all that apply.)
A. If the annuitant dies before the specified period of time is up, the annuity continues paying the beneficiaries.
B. If the annuitant dies before the specified period of time, the annuity does not pay the beneficiaries.
C. If the annuitant lives longer than the specified period of time, the annuity continues paying the annuitant.
D. If the annuitant lives longer than the specified period of time, the annuity stops paying the annuitant.
17. In a variable annuity, which of the following is allowed as a choice of investment?
A. large capital investment
B. small capital investment
C. utility fund investment
D. all of the above
18. The rate of return on a variable annuity product is determined by ___.
A. interest rate offers
B. the amount of premium collected
C. the combined ratio
D. the investment performance held in the annuity contract
19. With installments for a designated amount in a variable annuity, the annuitant receives a specific dollar amount until the principal expires.
A. True
B. False
20. Which of the following is true about a combined fixed and variable annuity?
(Select all that apply.)
A. The annuitant could change the amount of payment he wants to receive monthly through the duration of the contract.
B. The annuitant might take a portion of his annuity in a lump sum and buy a fixed annuity with that money.
C. The annuitant would get a fixed return on the immediate fixed annuity.
D. The annuitant would get a variable return on the remaining portion of the variable annuity.
We hope you did well on this SIE Exam Lesson 22 Annuities Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf
Here is what my customers say about my audio lessons
Testimonials
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View all episodes
By Franz
4.1
6060 ratings
SIE Exam Lesson 22 Annuities Quiz
This is a SIE Exam Lesson 22 Annuities Quizz , See how you do if you need help listen to the lesson over.
Questions covered include
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. It would pay the annuitant until he dies.
B. It would pay the annuitant’s spouse until the spouse dies.
C. It would pay the annuitant’s children until the last child dies.
D. It would pay the annuitant’s estate until a certain period of time.
15. In a unit refund life annuity, if the annuitant and the beneficiary dies before receiving the total investment back, the annuitant’s estate gets a refund of ___.
A. half the remaining investment value of the contract
B. quarter of the remaining investment value of the contract
C. the remaining investment value of the contract
D. twice the remaining investment value of the contract
16. Which of the following is true in an annuity that pays for a specified period of time?
(Select all that apply.)
A. If the annuitant dies before the specified period of time is up, the annuity continues paying the beneficiaries.
B. If the annuitant dies before the specified period of time, the annuity does not pay the beneficiaries.
C. If the annuitant lives longer than the specified period of time, the annuity continues paying the annuitant.
D. If the annuitant lives longer than the specified period of time, the annuity stops paying the annuitant.
17. In a variable annuity, which of the following is allowed as a choice of investment?
A. large capital investment
B. small capital investment
C. utility fund investment
D. all of the above
18. The rate of return on a variable annuity product is determined by ___.
A. interest rate offers
B. the amount of premium collected
C. the combined ratio
D. the investment performance held in the annuity contract
19. With installments for a designated amount in a variable annuity, the annuitant receives a specific dollar amount until the principal expires.
A. True
B. False
20. Which of the following is true about a combined fixed and variable annuity?
(Select all that apply.)
A. The annuitant could change the amount of payment he wants to receive monthly through the duration of the contract.
B. The annuitant might take a portion of his annuity in a lump sum and buy a fixed annuity with that money.
C. The annuitant would get a fixed return on the immediate fixed annuity.
D. The annuitant would get a variable return on the remaining portion of the variable annuity.
We hope you did well on this SIE Exam Lesson 22 Annuities Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf
Here is what my customers say about my audio lessons
Testimonials
Loading…
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