瑞达 Rejda 保险教材英文练习题14.doc

Principles of Risk Management and Insurance, 11e (Rejda) Chapter 14 Annuities and Individual Retirement Accounts 1) Which of the following statements is (are) true with respect to annuities? I. Annuities are the opposite of life insurance. II. The fundamental purpose of annuities is to replace lost income in case of premature death. A) I only B) II only C) both I and II D) neither I nor II Answer: A Question Status: Previous Edition 2) When selling life annuities, what risk is the insurer pooling? A) bad investment performance B) premature death C) bad expense experience D) excessive longevity Answer: D Question Status: Previous Edition 3) Life annuity payments are made up of all of the following EXCEPT A) return of premiums. B) interest earnings. C) unliquidated principal of annuitants who live too long. D) unliquidated principal of annuitants who die early. Answer: C Question Status: Previous Edition 4) Stan paid an insurance company $50,000 for an annuity when he was 50 years old. At age 62,Stan plans to begin to receive payments from the insurer. Based on the description provided, this annuity can be described as a(n) A) deferred annuity. B) life annuity with guaranteed payments. C) immediate annuity. D) variable annuity. Answer: A Question Status: Previous Edition 5) Cassie, age 62, paid a life insurer $100,000 in exchange for a life annuity. If Cassie dies before receiving 120 monthly payments from the insurer, the remaining payments will be made to a beneficiary. If Cassie dies after receiving 120 payments, no additional payments are made by the insurer. Cassie has purchased a A) variable annuity. B) life annuity with guaranteed payments. C) installment refund annuity. D) cash refund annuity. Answer: B Question Status: Previous Edition 6) Which of the following statements is (are) true with respect to a joint-and-survivor annuity? I. Some joint-and-survivor annuities reduce the income payment after the first annuitant dies. II. No payments are ma