1. Identify the primary difference between the guaranteed lifetime withdrawal benefit (GLWB) and the guaranteed minimum withdrawal benefit (GMWB).

A. The key difference between a GMWB and a GLWB is that the GMWB is not guaranteed for the life of the contract owner.

B. The key difference between a GMWB and a GLWB is that the GMWB is guaranteed for a joint life.

C. The key difference between a GMWB and a GLWB is that the GMWB is guaranteed for up to three lives.

D. The key difference between a GMWB and a GLWB is that the GMWB is only guaranteed for the life of the contract owner.

2. Select the CORRECT statement regarding variable annuities owned by individuals.

A. A variable annuity has lower fees and expenses than a mutual fund.

B. A variable annuity is entitled to a step-up in basis at the owner's death.

C. A gain from a variable annuity may be taxed at favorable capital gains rates.

D. A variable annuity may avoid probate as long as an appropriate beneficiary has been designated

3. Choose the exchange transaction that will qualify under IRC Section 1035 to provide the postponement of taxes.

A. One cash value life insurance policy for another cash value life insurance policy

B. An annuity for a universal life insurance policy

C. An annuity for a variable life insurance policy

D. An annuity for a universal life insurance policy