AffordableEducators — www.CEclass.com — (800) 498-5100 Start Here 198 California Annuity 2004 $32 Web / $37 Book Discounts Available 8 Hours Instructions Fill-in information below if you plan to fax or mail answers. Or, Submit Answers & get Certificates online at CEclass.com—click My Account More Exams STEP 1: CLICK HERE TO PRINT EXAM AND ANSWER SHEET & Books at Name ________________________________________________________ E-Mail __________________________________ CEclass.com Address: ____________________________________________________ Phone (________ ) _______________________ STEP 2: CLICK HERE TO OPEN TEXTBOOK. THEN, SAVE IT 1. Review book. City ____________________________________________________ State _______ Zip ________________________ 2. Fill-in answers DEMO HERE below. 3. Choose How To Calif. License # ___________________________ Type: ___ Life ___ CLICK THEM IN Date ________________ STEP 3: FINISH ANSWERS OFFLINE,Health ___P&C RenewalHERE Send below. 4. 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A B C D A B C D A B C D A B C D A B C D 1 O O O O 9 O O O O 17 O O O O 25 O O O O 33 O O O O 2 O O O O 10 O O O O 18 O O O O 26 O O O O 34 O O O O Mark 3 O O O O 11 O O O O 19 O O O O 27 O O O O 35 O O O O Your 4 O O O O 12 O O O O 20 O O O O 28 O O O O Answers NOT CLICK IN ANSWERS NOW. See instructions above to print this exam, mark answers and submit them later. DO With a 5 O O O O 13 O O O O 21 O O O O 29 O O O O Dark 6 O O O O 14 O O O O 22 O O O O 30 O O O O Pencil 7 O O O O 15 O O O O 23 O O O O 31 O O O O 8 O O O O 16 O O O O 24 O O O O 32 O O O O If You Mail This Sheet, Make a Copy Before Sending 198 FINAL EXAM – Annuity 2004 California CE 1. How do immediate and deferred annuities 8. The Rule of 72 is useful to quickly tell how differ? long it will take invested money to double with _________. A. In the timing of benefit payments B. Only deferred contracts are guaranteed A. Taxes already removed C. Immediate plans offer long-term growth B. No tax or deferred tax D. Deferred plans create current income C. Capital gains applied D. Double digit interest rates 2. Concerning the risk of variable annuities, which of the following are important to keep 9. Advertising to seniors is defined as the use of in mind envelopes, stationary, business cards or other materials designed to A. The insurance company ____________________. B. The fluctuating nature of investments C. The guaranteed death benefit A. Attract attention D. A&B B. Mislead consumers C. Describe or encourage the purchase of 3. In owner-driven annuity contracts, benefits an annuity are based on something happening to the D. Tell a story ____________. 10. Disadvantages of owning annuities for people A. Annuitant over 60 years include: B. Owner C. Beneficiary A. They have less time for tax-deferred D. Insurance Company growth to work B. They are closer to the age when they 4. The downside of buying annuities in may need to withdraw funds retirement is ____________. C. They are not subject to the IRS 10% penalty A. Too many could negatively effect D. A&B liquidity B. Scams may convince seniors they 11. Which of the following are symptoms that a are safer than bank CDs senior's judgment and mental capacity is C. Solicitors often pose as experts to sell reduced or impaired: what a senior doesn't need D. All of the above A. Problems remember recent events B. Difficulty following simple directions C. Disorientation of time and place 5. Knowing the difference between two products D. All you sell is a legal responsibility as proved in 12. A refund option provides that the company A. Acme v. Bolter will pay out an amount equal to B. Benton V. Paul Revere _____________. C. Sargent v. Rollins D. Jason v. Conner A. $10,000 B. Total dollars paid as premiums 6. In a fixed annuity, investment authority and C. One-half the death benefit risk are the responsibility of D. Double the death benefit A. The agent 13. Agents advertising a seminar or class about B. The annuitant annuities must also add the words C. The insurance company ____________. D. The owner A. Free lunch 7. When the owner of a non-qualified annuity B. Free advice dies, his entire death benefit must be C. And insurance sales presentation distributed within _______ years. D. No investment required A. 3 Years B. 5 Years C. 7 Years D. 9 Years FINAL EXAM – Annuity 2004 California CE 14. Gain from variable annuities, like mutual 21. The Rule of 108 calculates the amount of time funds, is kept by the owner. If investments it takes for _________________. plummet then _________. A. A non-taxable account to double A. No one makes up the difference B. A taxable account to double B. The state guaranty fund kicks in C. A taxable account to triple C. The insurance company chips in D. A non-taxable account to triple D. The annuitant must resign 22. To justify the replacement of a contract, 15. Portfolio annuity renewal rates are based on experts believe there should be _______________. _____________ because of the associated costs. A. Earnings of the portfolio B. A pre-determined rate A. No commissions involved C. The prevailing prime rate B. No tax D. Whatever is agreed between the parties C. Multiple reasons and benefits D. An escrow 16. The exclusion ratio computes the amount of each annuity payment that ____________. 23. Post-retirement planning doesn't end when a client retirees, because he must A. Must be taxed _____________. B. Won't be taxed C. Receives capital gains A. Maximize income D. Is distributed at death B. Refine goals C. Minimize taxes and withdrawal penalties 17. The concept behind dollar cost averaging is D. All of the above that spreading purchases over time will average out __________________. 24. Needs analysis helps the agent sell the right amount of insurance or product A. The payout _______________. B. Potential highs and lows C. Tax deductions A. For the right amount of commission D. The mix B. In the least amount of time C. For the right reasons 18. A crisis waiver allows the waiver of D. With little resistance ______________ should an owner illness develop. 25. Variable annuity free look provisions require that premiums during the first 30 days should A. Taxes owed be _________________. B. All surrender charges C. Certain fees A. Placed in a trust D. Nonforfeiture B. Held by the owner C. Invested in fixed-income investments 19. Reasonable expectation theory states that if D. Invested for maximum return coverage or benefits are implied to a reasonable person, but not in the language of 26. An annuitant-driven contract bases benefits the policy, then ______________. on something happening to the death, disability or age of the _______________. A. Coverage / benefits extend to the policyholder A. Annuitant B. Only the attorneys get paid B. Owner C. A lawsuit can commence C. Beneficiary D. The insurance company wins D. Insurer 20. The distribution of an annuity contract owned 27. The NAIC recommends that annuities sold inside a qualified plan __________________. into a qualified retirement plan include a disclosure that ___________________. A. Is the same as other qualified plan distributions A. The tax-deferred feature is unnecessary B. Allows for special tax breaks B. All proceeds could be lost C. Is not allowed C. Annuities are high-risk investments D. Must occur over five years D. Double taxation could result FINAL EXAM – Annuity 2004 California CE 28. A misleading advertisement might include 34. One investor consideration of variable which of the following: annuities is the fact that they have the potential to be ____________________ than A. Coverage is somehow associated with a conventional savings or fixed annuities. government agency B. Wording that implies the reader might A. Safer lose a right unless he acts B. More liquid C. Use of an address that disguise the true C. More responsive to economic trends identity of the agent D. Easier to buy D. All of the above 35. A typical living benefit guarantee from an 29. Direct mailers designed to produce leads insurer might promise to _______________ from seniors must now disclose that regardless of how the investment account __________________ if it is the case. performs. A. An agent may contact the applicant A. Pay a reduced death benefit B. All annuities are purchased on a buyer B. Pay a guaranteed retirement income beware basis C. Pay all associated taxes C. Annuities are risky investments D. Refund any surrender charges D. Annuities are not liquid 30. A period certain annuity option refers to a --END EXAM-- guarantee of payments for _______________, even if the annuitant dies before the end of this period. A. Long period of time B. Undetermined time frame C. Specified number of years D. Less than five years 31. New, in-home solicitation rules require agents to ______________________. A. Give written notice 24 hours before visiting B. Notify the senior that a sales presentation will be given C. End a meeting when requested D. All of the above 32. A death waiver passes on the full account value if an owner dies _______________. A. Without warning B. Before annuitizing C. Without a will D. During the first year 33. A banded or new money annuity company is described by which of the following: A. Segregates different bands of contracts assigning different rates to each B. Old contracts earn one rate, new contracts another C. More advantageous in a rising rate market D. All of the above Affordable Educators 41890 Enterprise Cir So #100, Temecula, Ca 92590 (800) 498-5100 Back To Front Page WHY PRINT THE EXAM & DOWNLOAD BOOKS? Short Answer: Compared to other web systems, with our method you finish the course quicker, spend less time online, get a copy of the book for reference and have a paper back-up of your answers . . . just in case! 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