Series 65 Practice 2

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Series 65 Variable Annuity Quiz

Test your knowledge about variable annuities and related financial concepts with our Series 65 Practice Quiz. This interactive quiz includes questions on various topics to help you prepare for your certification and enhance your understanding of investment products.

Whether you are a student or a professional looking to refresh your skills, this quiz covers essential areas:

Variable Annuities
Investment Advisers
Life Insurance Policies
Tax Implications

14 Questions4 MinutesCreated by CalculatingFox531

The AIR for a variable annuity is 3.5%. Last month, your client received a check for $1,000 based on actual performance of 6%. If the actual performance is 5% next month, your client

Will receive slightly less than $1,000

Will receive $1,000

Will receive more than $1,000

AIR will be increased

Annuities may be purchased in all the following ways except

Single premium immediate

Single premium deferred

Periodic deferred

Periodic immediate

The major difference between variable annuities and mutual funds involves

Tax deferral

Investment objectives

Bonds vs. stock

EPS

An annuitant requiring the largest possible monthly check should choose

Life only (straight life)

Periodic immediate

Period certain

Joint and last survivor

Your 60-year-old client contributed $10,000 to a non-qualified variable annuity many years ago. Now that the account is worth $40,000, the client takes a lump sum withdrawal of $35,000. If his ordinary income rate is 28%, he will pay

No taxes until age 65

No taxes

$8,400 in taxes

$9,800 in taxes

The AIR for a variable life policy is 4%. If the separate account grows at an annualized rate of 3% next month

Cash value will increase

Cash value will decrease

Death benefit will increase

Death benefit will decrease

Which of the following are taxable to the beneficiary?

Portion of death benefit payable to the wife of a deceased annuitant representing cost basis

Portion of death benefit payable to the wife of a deceased annuitant representing earnings from the separate account

portion of death benefit payable to the beneficiary representing premiums paid on whole life policy

Portion of death benefit payable to the beneficiary representing excess over premiums paid on whole life policy

Which of the following investment advisers would not have to register in the state?

Adviser with no office in the state who advises 7 high net-worth individuals who are residents of the state

Adviser with an office in the state who advises 5 non-institutional clients who are residents of the state

Adviser with an office in the state who advises 11 pension funds located in the state

Adviser with no office in the state who advises 11 pension funds located in the state

Which of the following persons are excluded from the definition of “investment adviser”?

Certified financial planners

Sports agents

Banks

Broker-dealers

All of the following are investment adviser representatives except

Individual hired by an IA to help determine recommendations to clients

Individual hired by an IA to sell the advisory services

Individual hired by an IA to do filing and clerical work

Individual who supervises a staff of solicitors for the firm

Series 65 Practice 2

Series 65 Variable Annuity Quiz

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