LESSON 7: ANNUITIES - FIXED AND VARIABLE

Section 7.6 Review

The designated time period for an equity indexed annuity is ______ years.

	a)	3
	b)	5
	c)	7
	d)	10
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The indexing method means the approach used to measure the amount of change, if any, in the index.

	a)	True
	b)	False
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The participation rate decides how much of the increase in the index will be used to calculate index-linked interest. If the participation rate is 80% and the stock market moves up 10%, the amount credited to the cash value is 8%. If the participation rate is 90% and the stock market moves up 10%, the amount credited to the cash value is:

	a)	8%
	b)	9%
	c)	10%
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