LESSON 7: ANNUITIES - FIXED AND VARIABLE

Section 7.7 Review

A variable annuity offers a plan:

	a)	for a lifetime annuity income.
	b)	that should be undertaken only as a long-term program.
	c)	based primarily on equity investments.
	d)	to provide payments that can change monthly in dollar amount.
	e)	All of the above.
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Since variable annuities are primarily based on equity investments, monetary benefits can change monthly.

	a)	True
	b)	False
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At the time of presentation for a variable annuity, the client must be given a prospectus.

	a)	True
	b)	False
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At the time of retirement, the variable annuity unit calculation is made and from then on the number of annuity units _______________ for that annuitant.

	a)	increases annually
	b)	decreases annually
	c)	remains the same
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Insurers are required by law to provide annuity owners with an annual report which states the units credited to the contract and the dollar value of a unit. The data must be updated no more than __________ prior to the date the report is mailed.

	a)	one month
	b)	two months
	c)	six months
	d)	12 months
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Florida law specifies that every applicant form for an individual contract on a variable basis contain a specific question as to any amount of fixed dollar income receivable by the prospective annuitant as well as whether the variable annuity in question would replace any fixed dollar annuity or any other life insurance policy.

	a)	True
	b)	False
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