Annuity Basics 102 - The Application Processs

15 Questions | Total Attempts: 48

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Annuity Basics 102 - The Application Processs

Please complete the following Check for Understanding. Feel free to use your activity sheet to help you along. With a passing score you will be given a certificate at the end.


Questions and Answers
  • 1. 
    This is a method of moving assets from one IRA to another IRA at a different financial institution where the check is made payable to the receiving IRA trustee, custodian or issuer.
    • A. 

      Conversion

    • B. 

      Transfer

    • C. 

      Rollover

    • D. 

      1035 Exchange

  • 2. 
    What is the process called when assets from an IRA at another financial institution are withdrawn, the check is made payable to the account holder, and reinvested in an EFL IRA?
    • A. 

      Rollover

    • B. 

      Transfer

    • C. 

      Conversion

    • D. 

      1035 Exchange

  • 3. 
    A _________________ allows you to treat certain IRA contributions made to one type of IRA as having been made to a different type of IRA.
    • A. 

      Conversion

    • B. 

      Transfer

    • C. 

      Rollover

    • D. 

      Recharacterization

  • 4. 
     A ____________ is the replacement of an annuity or life insurance policy for a new one without incurring tax consequences for the exchange.
    • A. 

      Rollover

    • B. 

      1035 Exchange

    • C. 

      Transfer

    • D. 

      Conversion

  • 5. 
    All of the following are true about UTMA except?
    • A. 

      The child must be named BOTH annuitant and owner.

    • B. 

      The beneficiary must be the estate of the child.

    • C. 

      UTMA gives control of the annuity to minor with federal income tax liability remaining with the custodian.

    • D. 

      The custodian (an adult) must sign the application for the child.

  • 6. 
    ______________ Inocme benefits are paid only while the annuitant is living.
    • A. 

      Guaranteed

    • B. 

      Life

  • 7. 
    ____________ Income Benefits are Paid whether or not the annuitant is living or to the beneficiary for the remainder of the guaranteed period if there was one.
    • A. 

      Guaranteed

    • B. 

      Life

  • 8. 
    If systematic withdrawals of interest credited are requested how are they available?
    • A. 

      Check

    • B. 

      Wire Transfer

    • C. 

      Direct Deposit

  • 9. 
    Ron is taking systematic withdrawals of interest only. He is getting $1000 a year in interest. Can he choose his payments to be monthly?
    • A. 

      NO

    • B. 

      YES

  • 10. 
    You have a period of ___________  days from the date you receive your IRA contract and Disclosure Statement to revoke your enrollment for your IRA.
    • A. 

      15

    • B. 

      10

    • C. 

      20

    • D. 

      25

  • 11. 
    True or False. A SPIA has payment methods of direct deposit and check.
    • A. 

      True

    • B. 

      False

  • 12. 
    True or False. Interest only payments are available by check or direct deposit.
    • A. 

      True

    • B. 

      False

  • 13. 
    The ________  ________ defines how qualified funds are moved from one IRA or employer plan to another and what transaction type it would be considered.
    • A. 

      Annuity Reference Chart

    • B. 

      Annuity Suitabilty

    • C. 

      IRA Reference Chart

    • D. 

      Portability Grid

  • 14. 
    True or False. The annuity suitability regulation has two main components. 1. Required Agent training which consists of a 4 hour state CE annuity course and company (EFL) specific training. 2. A suitability component whereby the Customer must determine if an annuity purchase is suitable for the agent. This includes a   company review of the Agents recommendation.
    • A. 

      True

    • B. 

      False

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