Question 1

Which of the following statements regarding variable contracts are TRUE?

Accepted Answer

All of the statements are true

Answer

The company cannot guarantee a specific interest yield from investments

Answer

Product and unit values fluctuate

Answer

Investment results principally derive from stock portfolios

Question 2

After retirement starts, which of the following is TRUE?

Accepted Answer

The number of annuity unit stays the same

Answer

The dollar amount of monthly payments stays the same

Answer

The value is adjusted to accommodate cost-of-living changes

Answer

The value of each annuity unit stays the same

Question 3

Which of the following statements is(are) TRUE?

Accepted Answer

All of the statements are true

Answer

The common stock and other assets of a separate account are under the supervision of the Securities and Exchange Commission (SEC)

Answer

Insurers selling VA are subject to regulation by the state Office of Insurance Regulation (OIR)

Answer

Variable annuities and variable life insurance policies are considered investments

Question 4

An application for a variable annuity must show which of the following on the first page?

Accepted Answer

All of the statements are true

Answer

Agent’s name

Answer

Name of the insurer

Answer

Agent’s insurance license identification number

Question 5

Are investment gains in the separate account (and variable annuity and variable life accumulation values) subject to current income taxation?

Accepted Answer

No, they are not currently taxable

Answer

Yes, but only to the extent of the gain

Answer

Yes, but taxable gains may be offset by losses

Answer

Yes, but the gain is paid by the insurer

Question 6

Before proposing any variable product the agent must provide the prospect with the

Accepted Answer

Prospectus

Answer

Consumer buyer’s guide

Answer

Outline of coverage

Answer

Table of guaranteed values

Question 7

A variable contracts agent must notify the Department of Financial Services within 30 days of any of the following changes EXCEPT

Accepted Answer

The agent’s insurer

Answer

The agent’s mailing address

Answer

The agent’s name

Answer

The agent’s residence address

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