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Details Title: Series 6 Description: Variable Contracts and Retirement Plans Total Flash Cards: 15 Created: 12/04/2004 17:59:54	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term 1) The securities held in the account 2) Policies for transferring between different investment selections 3) Sales charges and other expenses. Definition The prospectus of a separate account in a variable contract must include what material information? Term Payments made by the issuer to a annuitant vary in dollar amount in accordance with the performance of the separate account. Definition What are variable annuity contracts? Term Payments Fixed - Provides fixed payments of specified amount ofr the contract term Variable - Provides variable dollar payments at regular interval for the contract term. Rate of Return Fixed - Guarantees a minimum rate of return Variable - Provides Definition What are the differences between fixed and variable annuities in regard to payments, rate or return, and risk? Term 1) Tax-Deferred Accumulation 2) Voting Rights 3) Settlement Options 3a) Straight-Life Annuity 3b) Life annuity with period certain 3c) Unit refund life annuity 3d) Joint and last survivor life annuity 3e) Installments for a designated amount 3f) C Definition What are some features that may be found in annuity contracts? Term 1) Calculate the annuitant's interest in the separate account 2) Calculate the first monthly payment 3) Calculate the value of future payments. Definition By what method may accumulation units be converted into annuity units? Term Term covers a specificed period of time and provides only a death benefit. Permanent provides a death benefit and an accumulation of cash value. Definition What is the primary difference between term life insurance and permanent life insurance policies? Term 1) Interest Option 2) Fixed-period Option 3) Fixed-amount Option 4) Life income option 4a) Straight life 4b) Cash refund 4c) Life income with period certain 4d) Joint and last survivor income Definition What are the various settlement options of a variable life insurance contract? Term 1) Maximum sales charge - 9% computed over a period of up to 20 years 2) Maximum sales charge - 50% of the premium paid during the 1st year of the policy 3) If a policy owner surrenders a variable life policy during the first two policy years, the owner Definition What sales charges are allowable on a variable life insurance policy? Term Lesser of 100% of annual compensation or 3000 for 2002 - 2004 4000 for 2005 - 2007 5000 for 2008 Definition With an individual retirement account (IRA) what is the maximum amount an individual may contribute annually? Term 10 Definition What are the differences between a Traditional IRA and a Roth IRA? Term 1) Funds can be used within 120 days to pay qualified acquisition costs for the purchase of a first home. 2) Funds can be withdrawn for certain educational expenses - without the 10% early withdrawal tax. Definition When may an early withdrawal from a Traditional IRA be made penalty free? Term 1) Profit-Sharing Plans 2) 401K Plans 2a) Employee Pays all Plans 2b) Matching Contribution Plans 3) 403(b) - Tax-Deferred Annuity Plans Definition What are common types of defined contribution plans? Term 13 Definition An individual may transfer or rollover the assets in an IRA or qualified plan without incurring a tax liability under what conditions? Term 14 Definition What are some of the ERISA standards that a qualified retirement plan must meet to be eligible for favorable tax treatment? Term 15 Definition What are the general participation rules of qualified retirement plans for employees?