Knowledge Check - Acronyms + Definitions

What does ACATS stand for?

• Automated Customer Account Transfer Service

• Account Customer Automated Transfer System

• Automated Customer Account Transfer System

• Automated Client Account Transfer Service

What is a 401K?

• a retirement plan for certain employees of public schools, certain tax-exempt organizations, and certain ministers

• a profit sharing retirement plan that allows employees to make elective salary deferrals while avoiding current taxes on that portion of their incomes

• an employer funded retirement plan that allows employers to make pre-tax contributions into a participant’s (eligible employee’s) IRA. Distributions from the IRAs can occur at any time at the participants request and are considered taxable income when distributed. 

• a defined contribution plan featuring a fixed employer contribution. This pre-tax contribution from the employee is mandatory and established by the plan sponsor each year.

Which of the following define an account type?

• The primary identifier for ownership of an account.

• The owner information of an account.

• A periodic summary of account activity with a beginning date and an ending date

• Indicates the account’s purpose, such as an individual, joint, corporation, or retirement.

The owner information of an account is known as the?

• Account Registration

• Account Number

• Account Type

• Account Statement

Select the abbreviation for annuity

• AN

• ANT

• ANN

• ANNY

Which party is entitled to receive benefits from an annuity?

• Shareholder

• Annuitant

• Beneficiary

• Custodian

A person designated as the recipient of assets under a will, trust, insurance policy, etc. after an individual passes away is known as the... ?

• Annuitant

• Custodian

• Advisor

• Beneficiary

What does the following acronym stand for - R/T:

• Retransmit

• Resubmit

What does the following acronym stand for - R/S:

• Resubmit

• Retransmit

Name the product - this is a financial contract in the form of an insurance product according to which a seller (issuer), typically a financial institution such as a life insurance company, makes a series of future payments to a annuitant in exchange for the immediate payment of a lump sum or a series of regular payments