Security Exam Chapter 8

True or False: In a straight-life annuity payout option, no beneficiary will receive payments at the annuitant's death.

• True. All payments cease upon the annuitant's death.

• False

True or False: If client suitability for a variable annuity is determined, an RR signs and documents the recommendation.

• True

• False

____________________ is the payout option that provides payments for the annuitant's whole life and will cease at death.

All variable contract premiums are placed in the insurance company's ___________account.

True or False: Variable annuities are subject to registration requirements of the Act of 1933 and sold by prospectus.

• True

• False

At annuitization (payout), accumulation units are exchanged for ________________ units.

Variable contract assets are placed in the insurance company's _______________account,

The money invested in a variable annuity is used to buy ________________.

True or False: Variable products are mutual funds.

• True

• False

The annuity with growth dependent on the performance of securities in a separate account is called a ______________ annuity.