瑞达 Rejda 保险教材英文练习题14.docx

1、瑞达 Rejda 保险教材英文练习题14Principles of Risk Management and Insurance, 11e (Rejda)Chapter 14 Annuities and Individual Retirement Accounts1) Which of the following statements is (are) true with respect to annuities?I. Annuities are the opposite of life insurance.II. The fundamental purpose of annuities is

2、to replace lost income in case of premature death.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition2) When selling life annuities, what risk is the insurer pooling?A) bad investment performanceB) premature deathC) bad expense experienceD) excessive long

3、evityAnswer: DQuestion Status: Previous Edition3) Life annuity payments are made up of all of the following EXCEPTA) return of premiums.B) interest earnings.C) unliquidated principal of annuitants who live too long.D) unliquidated principal of annuitants who die early.Answer: CQuestion Status: Previ

4、ous Edition4) Stan paid an insurance company $50,000 for an annuity when he was 50 years old. At age 62,Stan plans to begin to receive payments from the insurer. Based on the description provided, this annuity can be described as a(n)A) deferred annuity.B) life annuity with guaranteed payments.C) im

5、mediate annuity.D) variable annuity.Answer: AQuestion Status: Previous Edition5) Cassie, age 62, paid a life insurer $100,000 in exchange for a life annuity. If Cassie dies before receiving 120 monthly payments from the insurer, the remaining payments will be made to a beneficiary. If Cassie dies af

6、ter receiving 120 payments, no additional payments are made by the insurer. Cassie has purchased aA) variable annuity.B) life annuity with guaranteed payments.C) installment refund annuity.D) cash refund annuity.Answer: BQuestion Status: Previous Edition6) Which of the following statements is (are)

7、true with respect to a joint-and-survivor annuity?I. Some joint-and-survivor annuities reduce the income payment after the first annuitant dies.II. No payments are made after the first annuitant dies.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition7) D

8、uring the funding period, the premiums paid for a variable annuity are used to purchaseA) annuity units.B) immediate participation shares.C) mutual fund shares.D) accumulation units.Answer: DQuestion Status: Previous Edition8) Brad funded a life annuity through installment payments. At age 60, he de

9、cided to elect an annuity settlement option and to begin to receive payments. Which of the following life income options will provide Brad with the highest monthly income?A) life annuity (no refund)B) life income with payments guaranteed for 5 yearsC) life income with payments guaranteed for 10 year

10、sD) installment refund annuityAnswer: AQuestion Status: Previous Edition9) Which of the following statements is (are) true with respect to the cash (lump sum) annuity settlement option?I. The taxable portion of the distribution is subject to federal and state income taxes.II. The option results in a

11、dverse selection against the insurer as those in poor health are more likely to take cash than to annuitize the funds.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition10) Which of the following statements is (are) true with respect to variable annuities

12、?I. The price at which accumulation units can be purchased fluctuates during the funding period.II. The value of annuity units fluctuates over time.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition11) Bridget started to fund a variable annuity. Three ye

13、ars later, she experienced financial difficulty. She called her agent and cancelled the contract. The insurer returned all but 4 percent of the account balance. The 4 percent kept by the insurer is a(n)A) account administration fee.B) investment management fee.C) front-end load.D) surrender charge.A

14、nswer: DQuestion Status: Previous Edition12) Insurers offering variable annuities charge a number of expenses. One category of expenses is to pay the fund manager and to pay brokerage fees. This expense is theA) investment management charge.B) administrative charge.C) surrender charge.D) front-end l

15、oad.Answer: AQuestion Status: Previous Edition13) Insurers offering variable annuities charge a number of fees and expenses. One category of fees and expenses is charged to cover the cost of record keeping, paperwork, and periodic reports to annuity owners. This expense is theA) investment managemen

16、t charge.B) surrender charge.C) administrative charge.D) front-end load.Answer: CQuestion Status: Previous Edition14) All of the following statements about variable annuities are true EXCEPTA) The periodic payments received by the annuitant fluctuate.B) Variable annuities typically provide a guarant

17、eed death benefit payable to a beneficiary if the annuitant dies prior to retirement.C) Insurers offering variable annuities charge a variety of fees and expenses.D) Although the value of annuity units fluctuates, accumulation units have a fixed value.Answer: DQuestion Status: Previous Edition15) Wh

18、ich of the following statements is (are) true with respect to an equity-indexed annuity?I. The maximum percentage gain is usually capped.II. There is no downside protection against loss of principal if the annuity is held to term. A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuesti

19、on Status: Previous Edition16) With an equity-indexed annuity, what name is given to the method of crediting excess interest to the annuity?A) the capitation methodB) the indexing methodC) the distribution methodD) the earnings methodAnswer: BQuestion Status: Previous Edition17) Under an equity-inde

20、xed annuity, what name is given to the percentage increase in the stock index that is credited to the contract?A) the expense rateB) the exclusion ratioC) the indexing rateD) the participation rateAnswer: DQuestion Status: Previous Edition18) Which of the following statements regarding the taxation

21、of individual annuities is (are) true? I. The exclusion ratio is the percentage of the annuity income that is taxable. II. After the net cost of the annuity has been paid to the annuitant, the total annuity payment is taxable. A) I only B) II only C) both I and IID) neither I nor II Answer: BQuestio

22、n Status: Previous Edition19) Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy is 15 years (180 months). What is the exclusion ratio in this case?A) 33.33 percentB) 40.00 percentC) 50.00 perce

23、ntD) 66.67 percentAnswer: CQuestion Status: Previous Edition20) Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy is 15 years (180 months). Assume that Juanita receives 12 monthly payments of $

24、500 the first year. How much taxable income must she report?A) $3,000B) $4,000C) $4,500D) $6,000Answer: AQuestion Status: Previous Edition21) Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy i

25、s 15 years (180 months). If Juanita is alive 20 years later, how much of the $6,000 received during the year is taxable?A) nothingB) $3,000C) $4,500D) $6,000Answer: DQuestion Status: Previous Edition22) Which of the following statements is (are) true regarding the taxation of distributions from indi

26、vidual 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 onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition23) All

27、of the following are permissible IRA investments EXCEPTA) mutual funds.B) life insurance.C) individual stocks.D) bonds.Answer: BQuestion Status: Previous Edition24) Which of the following statements is (are) true regarding the Roth IRA?I. Roth IRA contributions are tax deductible.II. Roth IRA invest

28、ment income accumulates income-tax free.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition25) Rita is 66 years old. She earned $20,000 this year working part-time at a store and her modified adjusted gross income was $28,000. Rita is considering making a

29、 $3,000 contribution to her traditional IRA. Which of the following statements is true regarding this contribution? A) Rita cannot contribute to her traditional IRA because she is over age 65. B) Rita can make a $3,000 contribution to her traditional IRA, but it is not tax deductible. C) Rita can ma

30、ke a $3,000 contribution to her traditional IRA, but it is only partially tax deductible.D) Rita can make a $3,000 contribution to her traditional IRA, and it is fully tax deductible. Answer: DQuestion Status: Previous Edition26) Daryl, age 42, quit his job. His employer offered a defined contributi

31、on pension plan, and the balance in the account was $30,000 when Daryl quit. He can avoid immediate taxation of these funds byA) taking a lump-sum distribution.B) using an IRA rollover account.C) receiving the money through four equal installments.D) using the funds to purchase common stock issued by the former employer.Answer: BQuestion Status: Previous Edition27) Which of the following statements is (are) true with regard to Roth IRAs?I. The portion of a Roth IRA distribution that is attributable to investment income is taxable.II. There is a maximum income level above which