In the separate account of a variable
annuity, which of the following characteristics apply
to annuity units, but not accumulation units?
I. Fixed number of units
II. Actuarial factors have been applied
III. Variable number of units
IV. Loss of control by investor
a) III, IV
b) I, II, IV
c) I, II
d) II, III, IV
The correct answer is b.
When the holder of a variable annuity contract annuitizes the contract, he/she is asking that the insurance company pay him/her for life. The company applies the actuarial factors for life expectancy and payout option to the value of the account and computes a fixed number of units to be cashed in each month. At the point of annuitization, the annuitant relinquishes all control of the account.
The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
The correct answer is b. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ...
The correct answer is: a) The proper course of action would simply be to place Universal Airlines on a restricted list until ...
The correct answer is c. Current yield compares the current price of acquiring the stock to the income from the stock, the ...
A examination to ensure a candidate is qualified to become a ...
A person who prepares investigative reports on equity securities. ...
An exam required for individuals seeking to engage in off-exchange ...
One who provides financial advice or guidance to customers for ...
An exam offered by the Financial Industry Regulatory Authority ...
An exam given by the Financial Industry Regulatory Authority ...