Show:
What's an Uity?
Fed Regs
Christmas Shopping
Save 15% or more on Life Insurance
Handle Dem Accounts
100
Annuity payout option that provides for the greatest monthly payment?
What is Straight-Life
100
Underwriters operating under a best-efforts agreement with an issuer are acting in a ________________ capacity.
What is agency/broker
100
According to industry rules, 8.5% is the maximum sales charge on mutual funds.
What is 8.5%
100
Are variable life policies subject to IRS early withdrawal penalties?
No, but variable annuities would be subject to the penalty.
100
Protects a brokerage client from theft or embezzlement
What is a fidelity bond
200
What is the dollar limit that may be contributed annually to a non-qualified annuity?
There is no contribution limit.
200
The federal law that created the NASD
The Maloney Act of 1938
200
Price is paid for mutual fund shares
What is The Public Offering Price (POP). POP = NAV + Sales Charge (if applicable).
200
What is the effect of an outstanding loan at the death of the insured?
The death benefit will be reduced by the loan amount.
200
What may an RR do with full discretion, but not with limited discretion?
Withdraw money from the account
300
Is the death benefit of an annuity included in the estate of a deceased client?
Yes. Additionally, any amount over the cost basis may be taxable to the beneficiary.
300
The IA Act of '40 requires a fund with more than _____ shareholders to register with the SEC.
What is 100
300
What does the following quote indicate about the fund? NAV: $9.20 POP: $9.20
It's a no-load fund.
300
Common time frame for calculating the cash value on a variable life insurance policy
What is monthly
300
If a BD goes bankrupt, what happens to securities registered in the customer’s name?
They are returned to the customer without regard to SIPC limitations.
400
Is switching between annuity sub-accounts taxable?
No
400
Four categories of professionals that would not be considered investment advisers?
What is Lawyers, accountants, teachers, and engineers provided the advice given is incidental to their profession. (Remember L, A, T, E)
400
What two terms are synonymous with a mutual fund's Net Asset Value (NAV)?
What is Bid price and Redemption price
400
What is the maximum period to be able to convert a VLI policy to a whole life contract?
What is two years
400
What triggers a BD’s filing of a Currency and Monetary Instrument Report (CMIR)?
When anyone physically transports or receives cash (or equivalents) exceeding $10,000 into, or out of, the U.S.
500
Fee charged by a variable annuity company that guards against client longevity
What is Mortality fee
500
How often must a client receive reports from her mutual fund?
What is Semi-annually
500
To calculate the sales charge percentage for a mutual fund, the formula is: (______-______) ÷ ______
(POP - NAV) ÷ POP
500
On what factor are voting rights in a variable life (VL) policy based?
One vote is afforded for every $100 of cash value.
500
What is the tax implication of a person-to-person gift of $100,000?
Tax-free to the recipient, but any amount in excess of $14,000 per year is taxable to the donor