Which of the following statements is true regarding the concept of an annuity contract?
a) Payouts of an investment in a nonqualified annuity are all income tax-free
b) The kind of annuity selected partly determines th
...
Which of the following statements is true regarding the concept of an annuity contract?
a) Payouts of an investment in a nonqualified annuity are all income tax-free
b) The kind of annuity selected partly determines the payment amounts to the annuitant
c) In the case of life annuity contracts, the age and sex of the annuitant do not affect the
payment amounts
d) The amounts of the periodic payments to the annuitant are determined by the
performance of the insurance company's investment returns - ✔✔b) The kind of annuity
selected partly determines the payment amounts to the annuitant
Which of the following Form U4 reportable events results in a statutory disqualification?
a) A personal bankruptcy filing
b) A written customer complaint alleging misappropriation of assets
c) A felony theft charge
d) A felony conviction for a driving under the influence (DUI) charge - ✔✔d) A felony
conviction for a driving under the influence (DUI) charge
Under SEC Regulation S-P (Consumer Privacy), which of the following information must
a firm include in its customer privacy and opt-out notices?
a) The addresses of the firm's website
b) The fee and opt out from the privacy program
c) The deadline by which to out from the privacy program
d) The policies to protect the security of nonpublic information - ✔✔d) The policies to
protect the security of nonpublic information
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is
valid for what maximum period of time?
a) 3 months
b) 6 months
c) 13 months
d) 24 months - ✔✔c) 13 months
No-load mutual funds may have lower expense than load mutual funds for which of the
following reasons?
a) No-load funds do not charge 12b-1 fees
b) No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points
c) Sales charges for load mutual funds increase their annual expense ratios
d) Fund management fees for no-load funds are always lower than load funds - ✔✔b)
No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points
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