epts, $2$nd Edition, Revised Online Certification Exam

Annuity Concepts, $2$nd Edition, Revised Online Certification Exam

$00$:$52$:$40$

Test Id: $2873380$

Question #$22$ of $50$

Question ID: $54396$

You are marketing an annuity with a $5-$year interest bonus of $10\%$ per year, a $3\%$ minimum interest guarantee, and a $10-$year surrender period. The contract has a bailout provision that becomes effective in the sixth year. A prospect who buys this annuity will experience which of the following?

A$)$ Waiver of surrender charges in the event of the death of the annuitant prior to the expiration of surrender period

B$)$ The insurance company will pay tax penalties for a contract owner under age $59\frac{1}{2}$ who must surrender her contract due to extreme financial hardship

C$)$ The right to terminate or exchange the contract without penalty if interest crediting rates fall below a certain threshold

D$)$ A refund of all sales charges or other expenses charged against the purchase price if the contract is cancelled after the third year