214 FLORIDA INSURANCE LIFE AND VARIABLE ANNUITY ACTUAL EXAM UPDATED
214 FLORIDA INSURANCE LIFE AND
VARIABLE ANNUITY ACTUAL EXAM
UPDATED
variable annuity - CORRECT ANSWER-there is no guarantee of the dollar amount of
the payments, they fluctuate according to the value of an account vest primarly in
common stocks
join and survivor annuity - CORRECT ANSWER-covers two or more lives and contiunes
in force so long as any one of them survives
period certain annuity - CORRECT ANSWER-annuity imcome option that guarantees a
definite minimum peroid of payments
life annuity - CORRECT ANSWER-payable during the continued life of the annuitant.
No provision is made for the guaranteed return of the unused portion of the premium
installment refund annuity - CORRECT ANSWER-annuity income option that provies for
the funds remaing at the annuiants death to be paid to the beneficiary in the form of
continued annity payments
immediate annuity - CORRECT ANSWER-only be purchased with single payment.
provides payment of annuity benefit at one payment interval from date of purchase
equity indexed annuities (EIA) - CORRECT ANSWER-fixed annuity that offers the
potential for higher credited rates of return that their traditional counterparts but also
guarantee the owners principal
deferred annuity - CORRECT ANSWER-provides postponment of the commencemnt of
an annity until after a specified peroid or until the annuiant attains a certain age.
annuiant - CORRECT ANSWER-one to who an annuity is payable, or a person upon
the contiuance of whoes life further payment depends
accumulation period of an annuity - CORRECT ANSWER-the time during which funds
are being paid into the annuity
payout (annuity period) - CORRECT ANSWER-the point at which the annuity ceases to
be an accumulation vehicle and beings to generate benefit payments on a regular basis.
funding method of annuity - CORRECT ANSWER-single lump-sum payment or periodic
payment over time
principal sum - CORRECT ANSWER-beginning sum of money
single-premium deferred annuities - CORRECT ANSWER-annuities funded with single
premiums
assigment provision - CORRECT ANSWER-sets forth the procedure necessary for
ownership transfer
*transfer is known as assignment
*new owner is the assignee
*insureable interest does not have to exist between the insured and the asignee
*asignee granted all rights of policy ownership, including right to name beneficiary.
preferred risk - CORRECT ANSWER-exceptionally good risk
*lower preimums
*personal characteristics-non smoker, weight within ideal range, favorable cholestrol
levels
standard risk - CORRECT ANSWER-individuals who fit in the insurers guidlines for
policy issue without special restrictions or additional ratings
substandard risk - CORRECT ANSWER-one below the insurer's standard or average
risk guidelines
*poor health, dangerous occupations, or attributes or habits that could be hazardous
Fair Credit Reporting Act (FCRA) - CORRECT ANSWER-established procedures for the
collection and disclosure of information obtained on consumers through investigation
and credit reports. Seeks to insure fairness with the regards to confidentiality, accuracy,
and disclosure.
avoidance - CORRECT ANSWER-simply avoiding as many risks as possible
underwriting - CORRECT ANSWER-term for risk selection
*the process of reviewing the many characteristics that make up the risk profile of an
applicant to determine if the applicant is insurable, and if so, at standard or substandard
rates
insurable interest - CORRECT ANSWER-exists when the death of the insured would
have a clear financial impact on the policyowner
payor rider - CORRECT ANSWER-under juvenile life insurance policies with payment of
extra preimum