瑞达 Rejda 保险教材英文练习题14.docx

瑞达 Rejda 保险教材英文练习题14.docx

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瑞达Rejda保险教材英文练习题14

PrinciplesofRiskManagementandInsurance,11e（Rejda）

Chapter14AnnuitiesandIndividualRetirementAccounts

1）Whichofthefollowingstatementsis（are）truewithrespecttoannuities?

I.Annuitiesaretheoppositeoflifeinsurance.

II.Thefundamentalpurposeofannuitiesistoreplacelostincomeincaseofprematuredeath.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

A

QuestionStatus:

PreviousEdition

2）Whensellinglifeannuities,whatriskistheinsurerpooling?

A）badinvestmentperformance

B）prematuredeath

C）badexpenseexperience

D）excessivelongevity

Answer:

D

QuestionStatus:

PreviousEdition

3）LifeannuitypaymentsaremadeupofallofthefollowingEXCEPT

A）returnofpremiums.

B）interestearnings.

C）unliquidatedprincipalofannuitantswholivetoolong.

D）unliquidatedprincipalofannuitantswhodieearly.

Answer:

C

QuestionStatus:

PreviousEdition

4）Stanpaidaninsurancecompany$50,000foranannuitywhenhewas50yearsold.Atage62,Stanplanstobegintoreceivepaymentsfromtheinsurer.Basedonthedescriptionprovided,thisannuitycanbedescribedasa（n）

A）deferredannuity.

B）lifeannuitywithguaranteedpayments.

C）immediateannuity.

D）variableannuity.

Answer:

A

QuestionStatus:

PreviousEdition

5）Cassie,age62,paidalifeinsurer$100,000inexchangeforalifeannuity.IfCassiediesbeforereceiving120monthlypaymentsfromtheinsurer,theremainingpaymentswillbemadetoabeneficiary.IfCassiediesafterreceiving120payments,noadditionalpaymentsaremadebytheinsurer.Cassiehaspurchaseda

A）variableannuity.

B）lifeannuitywithguaranteedpayments.

C）installmentrefundannuity.

D）cashrefundannuity.

Answer:

B

QuestionStatus:

PreviousEdition

6）Whichofthefollowingstatementsis（are）truewithrespecttoajoint-and-survivorannuity?

I.Somejoint-and-survivorannuitiesreducetheincomepaymentafterthefirstannuitantdies.

II.Nopaymentsaremadeafterthefirstannuitantdies.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

A

QuestionStatus:

PreviousEdition

7）Duringthefundingperiod,thepremiumspaidforavariableannuityareusedtopurchase

A）annuityunits.

B）immediateparticipationshares.

C）mutualfundshares.

D）accumulationunits.

Answer:

D

QuestionStatus:

PreviousEdition

8）Bradfundedalifeannuitythroughinstallmentpayments.Atage60,hedecidedtoelectanannuitysettlementoptionandtobegintoreceivepayments.WhichofthefollowinglifeincomeoptionswillprovideBradwiththehighestmonthlyincome?

A）lifeannuity（norefund）

B）lifeincomewithpaymentsguaranteedfor5years

C）lifeincomewithpaymentsguaranteedfor10years

D）installmentrefundannuity

Answer:

A

QuestionStatus:

PreviousEdition

9）Whichofthefollowingstatementsis（are）truewithrespecttothecash（lumpsum）annuitysettlementoption?

I.Thetaxableportionofthedistributionissubjecttofederalandstateincometaxes.

II.Theoptionresultsinadverseselectionagainsttheinsurerasthoseinpoorhealtharemorelikelytotakecashthantoannuitizethefunds.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

C

QuestionStatus:

PreviousEdition

10）Whichofthefollowingstatementsis（are）truewithrespecttovariableannuities?

I.Thepriceatwhichaccumulationunitscanbepurchasedfluctuatesduringthefundingperiod.

II.Thevalueofannuityunitsfluctuatesovertime.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

C

QuestionStatus:

PreviousEdition

11）Bridgetstartedtofundavariableannuity.Threeyearslater,sheexperiencedfinancialdifficulty.Shecalledheragentandcancelledthecontract.Theinsurerreturnedallbut4percentoftheaccountbalance.The4percentkeptbytheinsurerisa（n）

A）accountadministrationfee.

B）investmentmanagementfee.

C）front-endload.

D）surrendercharge.

Answer:

D

QuestionStatus:

PreviousEdition

12）Insurersofferingvariableannuitieschargeanumberofexpenses.Onecategoryofexpensesistopaythefundmanagerandtopaybrokeragefees.Thisexpenseisthe

A）investmentmanagementcharge.

B）administrativecharge.

C）surrendercharge.

D）front-endload.

Answer:

A

QuestionStatus:

PreviousEdition

13）Insurersofferingvariableannuitieschargeanumberoffeesandexpenses.Onecategoryoffeesandexpensesischargedtocoverthecostofrecordkeeping,paperwork,andperiodicreportstoannuityowners.Thisexpenseisthe

A）investmentmanagementcharge.

B）surrendercharge.

C）administrativecharge.

D）front-endload.

Answer:

C

QuestionStatus:

PreviousEdition

14）AllofthefollowingstatementsaboutvariableannuitiesaretrueEXCEPT

A）Theperiodicpaymentsreceivedbytheannuitantfluctuate.

B）Variableannuitiestypicallyprovideaguaranteeddeathbenefitpayabletoabeneficiaryiftheannuitantdiespriortoretirement.

C）Insurersofferingvariableannuitieschargeavarietyoffeesandexpenses.

D）Althoughthevalueofannuityunitsfluctuates,accumulationunitshaveafixedvalue.

Answer:

D

QuestionStatus:

PreviousEdition

15）Whichofthefollowingstatementsis（are）truewithrespecttoanequity-indexedannuity?

I.Themaximumpercentagegainisusuallycapped.

II.Thereisnodownsideprotectionagainstlossofprincipaliftheannuityisheldtoterm.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

A

QuestionStatus:

PreviousEdition

16）Withanequity-indexedannuity,whatnameisgiventothemethodofcreditingexcessinteresttotheannuity?

A）thecapitationmethod

B）theindexingmethod

C）thedistributionmethod

D）theearningsmethod

Answer:

B

QuestionStatus:

PreviousEdition

17）Underanequity-indexedannuity,whatnameisgiventothepercentageincreaseinthestockindexthatiscreditedtothecontract?

A）theexpenserate

B）theexclusionratio

C）theindexingrate

D）theparticipationrate

Answer:

D

QuestionStatus:

PreviousEdition

18）Whichofthefollowingstatementsregardingthetaxationofindividualannuitiesis（are）true?

I.Theexclusionratioisthepercentageoftheannuityincomethatistaxable.

II.Afterthenetcostoftheannuityhasbeenpaidtotheannuitant,thetotalannuitypaymentistaxable.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

B

QuestionStatus:

PreviousEdition

19）Juanitapaidalifeinsurer$45,000inexchangeforanimmediatelifeannuity.Juanitawillreceive$500permonthfromtheinsurer,andherlifeexpectancyis15years（180months）.Whatistheexclusionratiointhiscase?

A）33.33percent

B）40.00percent

C）50.00percent

D）66.67percent

Answer:

C

QuestionStatus:

PreviousEdition

20）Juanitapaidalifeinsurer$45,000inexchangeforanimmediatelifeannuity.Juanitawillreceive$500permonthfromtheinsurer,andherlifeexpectancyis15years（180months）.AssumethatJuanitareceives12monthlypaymentsof$500thefirstyear.Howmuchtaxableincomemustshereport?

A）$3,000

B）$4,000

C）$4,500

D）$6,000

Answer:

A

QuestionStatus:

PreviousEdition

21）Juanitapaidalifeinsurer$45,000inexchangeforanimmediatelifeannuity.Juanitawillreceive$500permonthfromtheinsurer,andherlifeexpectancyis15years（180months）.IfJuanitaisalive20yearslater,howmuchofthe$6,000receivedduringtheyearistaxable?

A）nothing

B）$3,000

C）$4,500

D）$6,000

Answer:

D

QuestionStatus:

PreviousEdition

22）Whichofthefollowingstatementsis（are）trueregardingthetaxationofdistributionsfromindividualannuities?

I.Individualannuitydistributionsarenevertaxable.

II.Oncetheannuitanthasrecoveredthepremiumsheorshepaidfortheannuity,theentireannuitydistributionistaxable.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

B

QuestionStatus:

PreviousEdition

23）AllofthefollowingarepermissibleIRAinvestmentsEXCEPT

A）mutualfunds.

B）lifeinsurance.

C）individualstocks.

D）bonds.

Answer:

B

QuestionStatus:

PreviousEdition

24）Whichofthefollowingstatementsis（are）trueregardingtheRothIRA?

I.RothIRAcontributionsaretaxdeductible.

II.RothIRAinvestmentincomeaccumulatesincome-taxfree.

A）Ionly

B）IIonly

C）bothIandII

D）neitherInorII

Answer:

B

QuestionStatus:

PreviousEdition

25）Ritais66yearsold.Sheearned$20,000thisyearworkingpart-timeatastoreandhermodifiedadjustedgrossincomewas$28,000.Ritaisconsideringmakinga$3,000contributiontohertraditionalIRA.Whichofthefollowingstatementsistrueregardingthiscontribution?

A）RitacannotcontributetohertraditionalIRAbecausesheisoverage65.

B）Ritacanmakea$3,000contributiontohertraditionalIRA,butitisnottaxdeductible.

C）Ritacanmakea$3,000contributiontohertraditionalIRA,butitisonlypartiallytaxdeductible.

D）Ritacanmakea$3,000contributiontohertraditionalIRA,anditisfullytaxdeductible.

Answer:

D

QuestionStatus:

PreviousEdition

26）Daryl,age42,quithisjob.Hisemployerofferedadefinedcontributionpensionplan,andthebalanceintheaccountwas$30,000whenDarylquit.Hecanavoidimmediatetaxationofthesefundsby

A）takingalump-sumdistribution.

B）usinganIRArolloveraccount.

C）receivingthemoneythroughfourequalinstallments.

D）usingthefundstopurchasecommonstockissuedbytheformeremployer.

Answer:

B

QuestionStatus:

PreviousEdition

27）Whichofthefollowingstatementsis（are）truewithregardtoRothIRAs?

I.TheportionofaRothIRAdistributionthatisattributabletoinvestmentincomeistaxable.

II.Thereisamaximumincomelevelabovewhich