Finance

James is concerned that if he purchases a fixed immediate annuity his

James is concerned that if he purchases a fixed immediate annuity his funds will be tied-up and not accessible if an emergency arises. His insurance agent said that a rider could be attached to his annuity to address this concern. The rider is a(n) A) partial cash withdrawal rider. B) return of premium rider. C) […]

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Date: September 19th, 2020

Which statement is true regarding IRA distributions? A) The minimum d

Which statement is true regarding IRA distributions? A) The minimum distribution rules apply to Roth IRAs, but not to traditional IRAs. B) Distributions from a Roth IRA are taxed at the individual’s marginal tax rate. C) The IRA penalty tax applies to all traditional IRA distributions before age 59.5 with no exceptions. D) Unless a […]

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Date: September 19th, 2020

Carl is concerned that if he purchases an equity indexed annuity, he w

Carl is concerned that if he purchases an equity indexed annuity, he will lose money long-term if the stock index declines. Which equity indexed annuity provision assures Carl that he will not lose money if he holds the equity indexed annuity to term? A) the indexing method B) the participation rate C) the guaranteed minimum […]

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Date: September 19th, 2020

Under the Affordable Care Act, which of the following statements are t

Under the Affordable Care Act, which of the following statements are true? I. Health insurers cannot use pre-existing conditions exclusions. II. Health insurers cannot impose annual benefit limits and lifetime benefit limits. A) I only B) II only C) both I and II D) neither I nor II     ANSWER Answer: C

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Date: September 19th, 2020

Which of the following statements is (are) true concerning the joint a

Which of the following statements is (are) true concerning the joint and survivor annuity settlement option? I. Under this option, payments begin after the first annuitant dies. II. This settlement option is often selected by married couples. A) I only B) II only C) both I and II D) neither I nor II     […]

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Date: September 19th, 2020

Which of the following statements is (are) true regarding the taxation

Which of the following statements is (are) true regarding the taxation of distributions from individual annuities? I. Individual annuity distributions are never taxable. II. Once the annuitant has recovered the premiums he or she paid for the annuity, the entire annuity distribution is taxable. A) I only B) II only C) both I and II […]

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Date: September 19th, 2020

Which of the following statements about converting a traditional IRA t

Which of the following statements about converting a traditional IRA to a Roth IRA is (are) true? I. Such conversions can be done with no income tax consequences. II. Qualified distributions from a Roth IRA after a conversion are received tax-free. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020