Annuities
What does a nonforfeiture provision give an annuity owner who stops paying?
Answer and explanation
Answer: B. A nonforfeiture provision preserves the owner's right to the value built up in the contract, which may be taken subject to any surrender charge that still applies. It does not start income, does not guarantee a full refund of payments, and does not convert the contract.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, nonforfeiture in annuities
More annuities questions
- A deferred annuity stops building value for future income and begins making scheduled income payments. Which phase has begun?
- A fixed annuity states a minimum rate and a current rate. What is the difference?
- A married couple wants annuity income to continue while either of them lives. Which option fits?
- A worker buys an annuity at age 45 and plans to begin income at age 65 after years of tax-deferred accumulation. Which classification best fits?
- An annuitant wants income for life but wants a minimum amount to reach heirs if she dies early. Which option fits?
- An annuity is owned by a parent and measured on a child's life. Who may surrender the contract?
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