B) taxed as ordinary income. B)Universal variable life policy. B) II and IV. A registered representative explaining variable annuities to a customer would be CORRECT in stating that: A) 4000. The value of the separate account is now $30,000. The nature of the securities invested in-bonds and growth stocks-makes it necessary that sales representatives and their principals be licensed in securities as well as insurance. These contracts cover both lives and will continue to make payments until the last spouse dies. Nicks Enterprises has purchased a new machine tool that will allow the company to improve the efficiency of its operations. A customer has an investment objective of keeping pace with inflation while assuming moderate risk. The income was deferred from tax over the plan's life, so it is taxable as ordinary income once distributed. MetLife offers a comprehensive benefits program, including healthcare benefits, life insurance, retirement benefits, parental leave, legal plan services and paid time off. D) I and III. The earnings are taxable but the cost basis is returned tax free. B)II and III. A) There is no risk in a variable annuity. guarantees payments for a certain period of time. have investment risk that is assumed by the investor Based only on these facts, the variable annuity recommendation is The number of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. Fixed annuities, on the other hand, provide a guaranteed return. Consequently, the client pays taxes only on the growth portion of the withdrawal ($10,000). A demonstrated ability to quickly learn and continuously develop functional knowledge and an understanding of company products as well as administrative, claims, underwriting and marketing functions. c. The separate account provides for a guaranteed minimum return. B) a variable annuity contract is not required to be sold by prospectus because it is an insurance contract The holder of a variable annuity receives the largest monthly payments under which of the following payout options? If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding: A) I and II A) a minimum rate of return is guaranteed. e) Are From the United States and Log on every day independently? B) The proceeds minus John's cost basis taxed as ordinary income at Sue's tax rate. *Variable annuity contracts must be sold by prospectus due to the characterization of the separate accounts as securities, which must be registered under the Securities Act of 1933 and the Investment Company Act of 1940. a. it performs a single task b. it is self-contained and independent of other modules c. it is relatively short d. all of the above are chamcleristics of a program module 7. A)100% tax free. IBM is a global brand and has its presence in 170 countries and operates . Variable annuities involve underlying equity investments in a separate account. Life annuity has the largest payout because less risk is assumed by the insurance company; there is no beneficiary in the event the annuitant dies. Question #40 of 48Question ID: 606800 B) fixed payments for 10 years, followed by variable payments for life. *Insurance companies introduced the variable annuity as an opportunity to keep pace with inflation. Distributed along a dermatome. A)variable annuities may only be sold by registered representatives. (The exception is the fixed income annuity, which has a moderate to high payout that rises as the annuitant ages). A joint life with last survivor contract covers multiple annuitants and ceases payments at the death of the last surviving annuitant. But again, the need to designate beneficiaries is not an issue for this annuitant. Variable annuities gave buyers a chance to benefit from rising markets by investing in a menu of mutual funds offered by the insurer. An individual retirement annuity is an investment vehiclesimilar to an individual retirement accountthat is offered by insurance companies. The largest monthly check an annuitant can receive for the rest of his life is generated by a straight life (life income or life only) payout option. Fixed annuities typically earn at a lower, stable rate. B) I and III. C) Corporate bonds. Find the per-day expense for one of these travelers who had a z-score of -1.6. c. A Bargain Times Vacation Blog writer claimed to have done this vacation for a cost of$710 per person. Before the contract is annuitized, your client, currently age 60, withdraws some funds for personal purposes. Once the cost basis is reached, any further withdrawals are a nontaxable return of principal. A passion for serving customers and a personal commitment to following through in a dynamic, fast-paced environment. D) payments continue until age 70-. D) variable annuities may only be sold by registered representatives. *Contributions to a nonqualified annuity are made with the owner's after-tax dollars. Licensed to sell Variable Annuities in the following state(s): FL, TX . A)II and III. C) 10% penalty plus payment of ordinary income tax on all funds withdrawn exceeding basis. Question #33 of 48Question ID: 606832 used for the investment of funds paid by contract holders. The growth portion is subject to a 10% penalty. Variable annuities provide protection from inflation because their monthly income can increase depending on the separate account's performance. All of the following are characteristics of Variable Annuity contracts EXCEPT The possibility of higher returns and greater income than fixed annuities, but there's also a risk that the account will fall in value A There are no surrender fees B Guaranteed death benefit C Tax deferred growth D Training Explanations Reference: 12.2.1 in the License Exam, Question #48 of 48Question ID: 606835 A) A 75 year old women, who is a former executive retired for over ten years who wants to preserve as much capital as she can to leave to her two grandchildren. The value of a variable annuity is based on the performance of an underlying portfolio of sub accounts selected by the annuity owner. C) II and III. *Fixed income instruments, like bonds and fixed annuities, are subject to purchasing power risk. Here is how guaranteed lifetime annuities work. B. C) Universal variable life policy. Universal variable life policies A)an accounting measure used to determine the contract owner's interest in the separate account. C) I and IV. Reference: 12.3.4 in the License Exam. Reference: 12.1.4.2 in the License Exam. C)the number of annuity units is fixed, and their value remains fixed. D) II and IV. If this client is in the payout phase, how would his April payment compare to his March payment? C) There is no tax as the withdrawal is considered return of capital. Immediate life annuity. Her agent recommended she choose a variable annuity as a safe haven for the funds. A)the state banking commission. C)none of these. The funds in an annuity are off-limits to creditors and other debt collectors. Surrender fees and penalties for early withdrawal. The number of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. can be sold by someone with only an insurance license The $30,000 contract value represents $10,000 of contributions and $20,000 of earnings. Among annuities, variable annuities differ from fixed annuities, which provide a specific and guaranteed return. Variable annuities operate in similar ways to . When the first party dies, the annuity payment is made to the survivor. A) Money market fund. *An immediate annuity has no accumulation period. D)I and IV. If you need to withdraw money from the account because of a financial emergency, you may face surrender fees. Refinancing a home to draw out equity has been identified by FINRA as an abusive sales tactic regarding the sales of VAs. An annuity is a continuous stream of equal periodic payments from one party to another for a specified period of time to fulfill a financial obligation. A) Ordinary income tax on earnings exceeding basis. Question #18 of 48Question ID: 606827 All of the following statements regarding variable annuities are true EXCEPT: There are two elements that contribute to the value of a variable annuity: the principal, which is the amount of money you pay into the annuity, and the returns that your annuitys underlying investments deliver on that principal over the course of time. A) 2800. D)Investment risk. The investor has already paid tax on the contributions but the earnings have grown tax-deferred. B) accumulation units. C)the SEC. Your client has a large sum of money to invest from the proceeds of the sale of his home. Ideally they should be funded with readily available cash rather than using funds liquidated from existing investments. Therefore, ordinary income taxes will apply to the entire $10,000. How is the distribution taxed? The fees on variable annuities can be quite hefty. A) waiver of premium a variable annuity does not guarantee an earnings rate of return. D) Age 27, saving for first home. A) periodic payment immediate annuity. b) What probability is the 20%20 \%20% mentioned above? can be sold by someone with only an insurance license B)Two-thirds of the withdrawal is taxable as ordinary income. The number of annuity units is fixed at the time of annuitization. Of the 4 client profiles below, which might be the best suited for a variable annuity recommendation? A)III and IV. D)the rate of return is determined by the underlying portfolio's value. C) value of underlying securities held in the separate account. A)IPO. Therefore, variable annuities must be registered with the state insurance commission and the Securities and Exchange Commission. A registered representative recommends a variable annuity with an income rider to a client. C) II and III. D) accumulation shares. Because common stocks are not fixed dollar investments, they have the opportunity to keep pace with inflation. B) Exchange traded Funds (ETFs) or Exchange traded Notes (ETNs) Bear in mind that between the numerous feessuch as investment management fees,mortality fees, and administrative feesand charges for any additional riders, a variable annuitysexpenses can quickly add up. The time period depends on how often the income is to be paid. B)I and II A client has purchased a nonqualified variable annuity from a commercial insurance company. Question #16 of 48Question ID: 606807 A)each annuity unit's value and the number of annuity units vary with time. A)2800. Prudential Retirement Security Annuity VI is a group variable annuity (GVA) issued by Prudential Retirement Insurance and Annuity Company (PRIAC) which utilizes a Separate Account offered

Troy, Ny Police Blotter 2020, Standardized Tests A Good Indicator Of Intelligence, Articles A