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1. In California for agents, an advertisement includes all of the following, except:

A. File folders
B. Envelopes
C. Stationary
D. Business cards

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2. Most Americans use annuities to give them a(n):

A. Income stream of retirement income
B. Tax deduction
C. Emergency fund
D. Income in the event of disability

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3. If the participation rate is 70% and the index-linked interest calculated in an Equity Indexed Annuity policy is 6%, how much will be credited to the policy?

A. 4.4%
B. 2.4%
C. 4.2%
D. 6.0%

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4. Effective January 2005, all insurance licensees will have to put what on their business cards?

A. Email address
B. Toll free phone number
C. Their website URL
D. The word insurance

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5. Ads for events where insurance products will be offered for sale cannot use any of the terms, except:

A. Seminar
B. Class
C. Informational meeting
D. Insurance sales presentation

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6. Unlike other savings vehicles, the growth inside an annuity is:

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7. An agent meeting a senior age 60 and over at their home must deliver a notice to them no less than ____ prior to the meeting.

A. 12 hours
B. 24 hours
C. 48 hours
D. 72 hours

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8. The period of time during which build up in an annuity at interest is called the:

A. Gross up phase
B. Deferral phase
C. Accumulation phase
D. Interest phase

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9. Periodic payments that begin within one year after purchase is a characteristic of a(n):

A. Immediate Annuity
B. Deferred Annuity
C. Tax Sheltered Annuity
D. Qualified Annuity

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10. Deferred annuities provide a great deal of flexibility in the _____ and _____ of payout benefits.

A. timing and type
B. amount and type
C. timing and amounts
D. growth and determination

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11. A Variable Annuity fluctuates in accordance with the _________ of its investment.

A. origin
B. performance
C. diversification
D. expense loads

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12. All of the following are phases of an annuity, except:

A. Accumulation
B. Contribution
C. Distribution
D. Interpretation

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13. Premiums in fixed annuities are either ________ or _________.

A. high or low
B. fixed or variable
C. single or flexible
D. taxable or deductible

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14. The IRS specifies age ______ as the maximum payout age for fixed annuities:

A. 59-1/2
B. 70-1/2
C. 100
D. no specific age

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15.Generally, companies charge a _______ surrender fee.

A. level
B. increasing
C. decreasing
D. fluctuating

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16. If an annuitant dies or becomes disables, most companies ___________ the surrender charges.

A. increase
B. average
C. freeze
D. waive

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17. The IRS imposes a _____% penalty on withdrawals prior to age 59-1/2.

A.   5
B. 10
C. 15
D. 20

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18. Some companies allow for withdrawals of _____% of their account value each year without a surrender penalty.

A.   5
B. 10
C. 15
D. 20

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19. Loans from non-qualified annuities are generally __________ allowed.

A. not
B. always
C. sometimes
D. annually

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20. Companies allow for an annuitant to "bail out" if their interest rate is ________ a pre-determined level.

A. more than
B. less than
C. unchanged from
D. one half of

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22. The difference between the actual rate and the projected rate of interest in an annuity is called the _______  rate.

A. base
B. current
C. bonus
D. annual

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23. An annuity that has all the guarantees of an annuity contract plus the potential for stock market returns is a(n):

A. Interest Sensitive Annuity
B. Bond Index Annuity
C. Equity Index Annuity
D. Market Specific Annuity

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25. All