4-Hour Annuity Suitability And Best Interest Standards Already Passed

"Using capital to purchase income" defines which of the following? a. annuitization b. asset allocation c. tax deferral d. market timing {Ans: a. annuitization; The concept of annuitization is applying capital to purchase income-changing a principal amount of money into a series of ongoing, periodic income payments.}Which of the following best defines the annuity purchase rate? a. the amount of monthly income that each $1,000 of the contract's values will generate b. the average interest rate that the contract earned between the issue date and the annuitization date c. the initial premium necessary to produce $1,000 of monthly income d. the guaranteed minimum rate of return that will be credited to the contract during its accumulation phase {Ans: a. the amount of monthly income that each $1,000 of the contract's values will generate; The annuity purchase rate is the amount of monthly income that each $1,000 of the contract's values will generate based on specified rates of interest and the annuity payout option (term, straight life, joint life, etc.).}All of the following are common conditions for which an annuity's surrender charge is waived EXCEPT: a. financial hardship b. death c. entry into a nursing home d. disability