Retirement and Other Insurance Concepts
What disclosure document must be delivered to a consumer prior to or at the time of purchase of a variable annuity under federal securities law?
Answer and explanation
Answer: B. Federal securities laws mandate delivering a prospectus detailing subaccount investments, fees, and risks before or during a variable annuity sale.Source: SEC Investor Bulletin — Variable Annuities — PDF page 4, Prospectus Delivery
More retirement and other insurance concepts questions
- Because variable annuity contracts involve investment risk in underlying securities subaccounts, what licenses must an agent hold to sell variable annuities in Texas?
- Four equal partners fund a cross-purchase buy-sell agreement with individual life policies. How many policies are required?
- How are contributions and qualified distributions structured for a Roth IRA?
- How are premium payments and death benefits typically split between an employer and employee in an economic benefit split-dollar arrangement?
- How are premium payments made by an employer for employee group life insurance treated on the employer's corporate tax return?
- How does a business use the death benefit it receives from a key person policy?
590 Texas questions like this one.
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