Which of the following is a definition of an annuity contract under the rule? Select one: A. Any agreement between the insurer and the contract owner whereby the insurer promises to pay out a variable income stream for a period of time. B. An agreement that contains a cash value or investment element and that obligates the insured to indemnify or to confer a benefit upon the beneficiary. C. An agreement that contains a cash value that obligates the insurer to indemnify or to confer a benefit upon the insured or beneficiary to the agreement contingent upon the death of the insured. D. Any agreement between the insurer and the contract owner whereby the insurer promises to pay out a fixed or variable income stream for a period of time.
Added by M-Nica A.
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An annuity contract is primarily an agreement between an insurer and a contract owner where the insurer provides a series of payments over time, which can be either fixed or variable. Show more…
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17. Lila invested $10,000 in one of Long Life Insurance Company's annuity contracts. When issued, the contract was paying a 5 percent rate of return. Two years later, Long Life increased this rate to 7 percent. Underlying Lila's contract is a 3 percent rate of return, guaranteed for the life of the contract. What kind of annuity does Lila own? a. a fixed immediate annuity b. a variable immediate annuity c. a fixed deferred annuity d. a variable deferred annuity 19. Long Life Insurance Company offers a fixed annuity that includes a standard death benefit provision, a seven-year surrender charge period, the option to annuitize at the annuitant's age 65, and a free withdrawal period. What is the length of the free withdrawal period? a. until the contract owner dies b. until the annuitant's age 65 c. ten years d. seven years 20. What is the duration of an annuity's free withdrawal period? a. It is the same as its surrender charge period. b. It is based on the amount of the initial premium. c. It is longer for nonqualified contracts than for qualified contracts. d. It is left to the discretion of the contract owner.
Supreeta N.
Matthew W.
Rashmi S.
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