Types of Policies
In a fixed annuity contract, where are the contract funds invested by the insurance company?
Answer and explanation
Answer: B. Fixed annuity assets are held in the insurer's general account to support interest and principal guarantees.Source: NAIC Annuity Buyer's Guide — PDF page 3, General Account
More types of policies questions
- A client wants permanent life insurance but wants all required premiums completed within 20 years. Which policy best matches that goal?
- A consumer compares traditional whole life with a current-assumption whole life contract. The insurer says premiums may later be reevaluated based on current mortality, expense, and investment experience, while minimum cash value and a nonfluctuating death benefit remain guaranteed. Which conclusion is best?
- A convertible term policy says conversion is available only under the policy's stated conversion provision. The owner asks for permanent coverage beyond the policy's allowed conversion amount without underwriting. What is the best response?
- A couple wants one policy whose death benefit becomes payable only after both insureds have died. Which structure meets that objective?
- A deferred annuity stops building value for future income and begins making scheduled income payments. Which phase has begun?
- A homeowner wants life coverage designed to decline roughly as a repayment mortgage balance declines. Which type is most directly suited to that pattern?
590 Texas questions like this one.
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