Disbursement Rules For Annuities! Trivia

Finance

Investment Management

FINRA

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| By Frank07171983

Frank07171983

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Quizzes Created: 2 | Total Attempts: 746

| Attempts: 680 | Questions: 16 | Updated: Nov 16, 2023

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1. If the annuitant passes away the spouse can take over ownership on the policy only if the spouse is listed as the sole primary beneficiary on the policy. What department would handle this process?

P and C

Death Claims

Underwriting

Office of the President

The spousal continuation can be done when the annuitant passes away the spouse can take over ownership of the policy only if the spouse is listed as the sole primary beneficiary on the policy. This whole process is handled through the claims department.

Explanation

Submit

About This Quiz

Disbursement Rules For Annuities! Trivia - Quiz

Quiz: disbursement rules for annuities! Disbursement rules for annuities are put in place to ensure that someone is not shortchanged when it comes to getting your money. It is therefore important that one check what each type of annuity offers on maturity either you risk to lose your money o... see moregain more. Either you will be paid in lump sum or in bits. Take the quiz and see what you know about the techniques through which annuities are paid. see less

2. What's your name?

We’ll put your name on your report, certificate, and leaderboard.

2. Systematic withdrawals can be started or stopped at any time, subject to policy provisions and IRS regulations. This is also true with annuitized policies.

True

False

Systematic withdrawals can be started or stopped at any time, subject to policy provisions and IRS regulations. This is unlike annuitized policies as you cannot stop payments once the first payout has begun.

Explanation

Submit

3. ____________ is the IRS form with which individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions.

1099 R

5498

1099 INT

W-4P

1099 R is Ithe IRS form with which individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions.

Explanation

1099 R is Ithe IRS form with which individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions.

Submit

4. If the RMD letter is not sent back to set up initial RMD when will the annual default check be sent?

April 15

November 1

October 31

November 15

The default for RMD is to send an annual check on November 1st each year.

Explanation

The default for RMD is to send an annual check on November 1st each year.

Submit

5. _______________ is the amount that Traditional, SEP and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5.

SEP

SIMPLE

RMD

1099 R

RMD is the amount that Traditional, SEP, and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5.

Explanation

Submit

6. Box 1 of the 1099 R is for the total gross distributions.

True

False

Box 1 of the 1099 R is where the insured will be able to see the gross distributions.

Explanation

Box 1 of the 1099 R is where the insured will be able to see the gross distributions.

Submit

7. On an FDPA, there is an 8-year surrender charge period. At the start of the 8th year, there is no surrender charge.

True

False

On an FPDA there is an 8-year surrender charge period and grades down to 0% starting in year 9 and going forward.

Explanation

On an FPDA there is an 8-year surrender charge period and grades down to 0% starting in year 9 and going forward.

Submit

8. When is the RMD letter sent on existing policies?

Notification is sent by January 31st of the current year to all policy owners who will attain age 70 by... Notification is sent by January 31st of the current year to all policy owners who will attain age 70 by December 31st of the current year.

Notification is sent by January 31st of the current year to all policy owners who will attain age 59 1/2... Notification is sent by January 31st of the current year to all policy owners who will attain age 59 1/2 by December 31st of the current year.

Notification is sent by January 31st of the current year to all policy owners who will attain age 70 ½... Notification is sent by January 31st of the current year to all policy owners who will attain age 70 ½ by December 31st of the current year.

Notification is sent by January 31st of the current year to all policy owners who will attain age 68 1/2... Notification is sent by January 31st of the current year to all policy owners who will attain age 68 1/2 by December 31st of the current year.

Notification is sent by January 31st of the current year to all policy owners who will attain age 70 ½ by December 31st of the current year.

Explanation

Notification is sent by January 31st of the current year to all policy owners who will attain age 70 ½ by December 31st of the current year.

Submit

9. What is the Supplementary Contract Request Form number?

EFL-741

EFL-930

EFL-7514

EFL-2332

EFL-930 is the Supplementary Contract Request Form.

Explanation

EFL-930 is the Supplementary Contract Request Form.

Submit

10. Joint and survivor life income benefits with ____% continuing to the survivor.

Payments will be made as long as either the annuitant or the joint annuitant is alive. upon the death of... Payments will be made as long as either the annuitant or the joint annuitant is alive. upon the death of either annuitant, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

Payments will be made for the period selected. payments will cease at the end of the guaranteed period. the payment... Payments will be made for the period selected. payments will cease at the end of the guaranteed period. the payment amount is based on the guarantee period selected.

Payments will be made as long as the annuitant is alive. upon the annuitant’s death, payments will cease. the amount... Payments will be made as long as the annuitant is alive. upon the annuitant’s death, payments will cease. the amount of each payment is based on the annuitant’s sex and age at the time the option is selected.

Payments will be made for the specified guaranteed period. if the annuitant is living at the end of the guaranteed... Payments will be made for the specified guaranteed period. if the annuitant is living at the end of the guaranteed period, payments will continue until the annuitant’s death. the payment amount is based on the guaranteed period and the annuitant’s sex and age at the time the option is selected.

payments will be made as long as either the annuitant or the joint annuitant is alive. upon the death of either annuitant, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

Explanation

Submit

11. Check all the ways that we will waive full surrender charges.

Death of Annuitant or owner

Terminal illness of Annuitant

Confinement in a long term care facility of the annuitant

Annuitization by the owner after one year and for a minimum 5-year payout

We will waive full surrender charges if the annuity is annuitized by the owner after one year and for a minimum 10-year payout.

Explanation

We will waive full surrender charges if the annuity is annuitized by the owner after one year and for a minimum 10-year payout.

Submit

12. You can take systematic payments of a fixed amount even if you are in the surrender charge period.

True

False

You can only take systematic withdrawals after you are out of the surrender charge period.

Explanation

You can only take systematic withdrawals after you are out of the surrender charge period.

Submit

13. The insured will get an RMD withholding reminder each year to give them an option to change the federal withholding election.

True

False

Not only will the insured get an initial RMD notice to set it up, but they will also get an annual withholding reminder for RMD. This letter simply states that it is their right to change the federal withholding election.

Explanation

Submit

14. Only the interest credited before the date you make the request for Interest Only withdrawals is available for systematic withdrawal.

True

False

Only the interest credited after the date you make the request is available for systematic withdrawal.

Explanation

Only the interest credited after the date you make the request is available for systematic withdrawal.

Submit

15. If the insured is taking Interest Only withdrawals in the surrender period they cannot also take a 10% preferred withdrawal.

True

False

If the insured is taking Interest Only withdrawals in the surrender period they cannot also take a 10% preferred withdrawal.

Explanation

If the insured is taking Interest Only withdrawals in the surrender period they cannot also take a 10% preferred withdrawal.

Submit

16. Joint and survivor life income benefits with ____ years guarantee (specificity between 10 and 30 years) and ____% continuing to the survivor.

Guaranteed income benefits for a fixed period of ___ years

Payments in the amount selected will be made for a guaranteed period. payments will cease at the end of the... Payments in the amount selected will be made for a guaranteed period. payments will cease at the end of the guaranteed period. the length of the guaranteed period will depend upon the fixed amount selected.

Payments will be made for the specified guaranteed period and for as long thereafter as either the annuitant or the... Payments will be made for the specified guaranteed period and for as long thereafter as either the annuitant or the joint annuitant is alive. following the guaranteed period, payments will continue at the original amount as long as both the annuitant and the joint annuitant are alive. if only one annuitant is alive at the end of the guaranteed period or upon the death of either annuitant after the guaranteed period, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

payments will be made for the specified guaranteed period and for as long thereafter as either the annuitant or the joint annuitant is alive. following the guaranteed period, payments will continue at the original amount as long as both the annuitant and the joint annuitant are alive. if only one annuitant is alive at the end of the guaranteed period or upon the death of either annuitant after the guaranteed period, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

Explanation

Submit

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