Types of Policies
What feature of a Market Value Adjusted (MVA) annuity alters early surrender values based on interest rate shifts?
Answer and explanation
Answer: B. MVA adjusts surrender value based on interest rate changes: rising market rates lower surrender payouts; falling rates raise payouts.Source: NAIC Annuity Buyer's Guide — PDF page 4, Market Value Adjustment
More types of policies questions
- A prospect wants permanent insurance with adjustable policy elements and cash value allocated to insurer-managed separate-account investments. Which product is the best fit?
- A prospect wants permanent life insurance, wants to choose among stock and bond investment options, and accepts possible cash-value loss. Which product best fits?
- A renewable term policy states that renewal rights end at a specified age. The insured reaches that age and wants another term. Which statement is most accurate?
- A retiree hands an insurer a single premium and wants income payments to start about one month later. Which annuity fits?
- A retiree makes one annuity purchase payment and wants income payments to begin within the next year. Which classification applies?
- A return-of-premium term policy reaches the end of its stated term and the insured is alive. What does the policy pay and what happens to coverage?
590 Texas questions like this one.
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