Annuity Basics 101 -session 1

15 Questions | Total Attempts: 54

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Annuity Basics 101 -session 1

Thank you for taking session 1-Annuity Basics. Please take a few minutes to complete this Check for understatning. If you filled out your activity sheet with the lesson please use that for help. You will be given a certificate at the end for your participation. Good Luck!


Questions and Answers
  • 1. 
    Which one is NOT a key advantage of an annuity?
    • A. 

      No underwriting required

    • B. 

      Guaranteed Life Income

    • C. 

      Tax Deferral

    • D. 

      No minimum premium required to start a policy

  • 2. 
    The minimum premium on a Single Premium Deferred Annuity is?
    • A. 

      $15,000

    • B. 

      $25,000

    • C. 

      $12,000

    • D. 

      $10,000

  • 3. 
    What is the issue ages on all Annuities?
    • A. 

      0-100 years

    • B. 

      10-90 years

    • C. 

      0-90 years

    • D. 

      0-70 years

  • 4. 
    True or False: Erie currently offers on a Single Premium Annuity with 3, 5, and 9 year guaranteed interest rate periods?
    • A. 

      True

    • B. 

      False

  • 5. 
    Individual Flexible Premium Annuities (not on group billing) require $______ with the application?
    • A. 

      $300.00

    • B. 

      $400.00

    • C. 

      $500.00

    • D. 

      $100.00

  • 6. 
    What is the surrender charge period on a Flexible Premium Annuity?
    • A. 

      6 years

    • B. 

      5 years

    • C. 

      7 years

    • D. 

      8 years

  • 7. 
    Single Premium Immediate Annuities must generate an amount that is at least $_________ per modal payment?
    • A. 

      $25.00

    • B. 

      $100.00

    • C. 

      $150.00

    • D. 

      $75.00

  • 8. 
    True or False: IRA stands for Individual Retirement Accumulation.
    • A. 

      True

    • B. 

      False

  • 9. 
    RMD must be taken on all types of IRA's except_______.
    • A. 

      Traditional's

    • B. 

      SEP's

    • C. 

      SIMPLE's

    • D. 

      ROTH's

  • 10. 
    True or False: On a Traditional IRA you cannot contribute after age 70 1/2
    • A. 

      True

    • B. 

      False

  • 11. 
    Who can contribute to a SEP?
    • A. 

      Employers and Employees

    • B. 

      Employers

    • C. 

      Employees

    • D. 

      Nobody can

  • 12. 
    A SIMPLE IRA is eligible for employers with less than _____ employees? 
    • A. 

      150

    • B. 

      200

    • C. 

      300

    • D. 

      100

  • 13. 
    ERIEFamily Life allows an annual policy year contibution of $_______ on non qualified Flexible Premium Annuities?
    • A. 

      $25,000

    • B. 

      $6,000

    • C. 

      $6,500

    • D. 

      $20,000

  • 14. 
    On a Single Premium Immediate Annuity payouts must last at least how many years?
    • A. 

      5 years

    • B. 

      15 years

    • C. 

      10 years

    • D. 

      20 years

  • 15. 
    Single Premium Deferred Annuities allow for one 10% preferred withdrawal each calendar year.
    • A. 

      True

    • B. 

      False

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