Annuity Sales Best Interest Practices FINAL EXAM (WI 6000126749)

Which of the following is generally considered a liquid asset when determining if an annuity is suitable for or in the best interest of a prospect?

Which of the following is/are normally considered an annuity recommendation for which Regulation Best Interest imposes an obligation on a producer?

1. Advice intended to result in a purchase of an annuity but fails to do so
2. Advice resulting in the purchase of an annuity

All of the following are considered replacements or exchanges under Regulation Best Interest EXCEPT

Jamal wants to replace his client’s existing annuity with a newer annuity. Which of the following does Regulation Best Interest require he consider before recommending the replacement?

Information about a consumer a producer is required to possess under Regulation Best Interest before recommending an annuity is referred to as

Which one of the following client factors is NOT normally considered in determining the suitability of an annuity recommendation?

Why is an annuity generally unsuitable to meet a consumer’s short-term objectives?

Aaron took a cash value withdrawal from his deferred annuity when he was age 44. What tax penalty will be imposed if he must include $15,000 of the withdrawal in his income and no exception to the tax penalty applies?

Why must a producer consider the age of the consumer before recommending a deferred annuity to him?

Which of the following results in an annuity’s limited liquidity?

When an annuity is recommended for use in a tax-qualified account, the producer must disclose that:

Which of the following is a significant shortcoming of a fixed annuity?

Which of the following statements concerning the tax-deductibility of non-qualified annuity premiums is correct?

When an annuity is surrendered, the gain on the contract receives the following tax treatment:

What tax treatment generally applies to cash value withdrawals taken from a deferred annuity contract?

What is the tax penalty, if any, that applies to premature distributions from a non-qualified annuity if no exception to the penalty applies?

What is the function of sales charges in an annuity contract?

What are the principal sales charges incurred by an insurer in the sale of annuities?

In a/an ______ annuity, the risk of principal loss is borne by the insurer.

What is the traditional death benefit in a fixed annuity that guarantees a death benefit if the contract owner dies before the annuity starting date?

All of the following written disclosures must be made to an annuity purchaser pursuant to Regulation Best Interest EXCEPT

Under what Regulation Best Interest obligation is the requirement that a producer exercise reasonable diligence, care and skill in making an annuity recommendation imposed?

Arthur, an annuity prospect, refused to provide information upon which the producer could make a suitability assessment. What, if anything, should the producer do?

When are annuity surrender charges zero?

What type of deferred annuity may impose a limitation on the maximum rate at which interest would be credited on cash value?