Types of Policies
What type of annuity permits the owner to make periodic premium contributions of varying amounts over time before payouts begin?
Answer and explanation
Answer: B. FPDAs allow flexible recurring or sporadic premium contributions prior to the payout phase.Source: NAIC Annuity Buyer's Guide — PDF page 3, FPDA Definition
More types of policies questions
- Two business owners need one life policy to provide funds when the first of them dies. Which policy trigger is required?
- Two business partners purchase a joint life policy to fund a buy-sell agreement. Partner A dies. What happens to the policy after the death benefit is paid?
- Under a fixed indexed annuity’s basic index-crediting structure, what interest is added for an index term with a negative result?
- Under IRC § 7702 corridor rules, what must an insurer do if cash value growth in a universal life policy threatens to breach the statutory life insurance definition ratio?
- What benchmark rate is used in variable annuity payout calculations to determine whether monthly annuity payment amounts increase or decrease?
- What benefit does a joint and survivor annuity payout option provide to two annuitants (such as a married couple)?
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