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1) You own an annuity plan that gives you the freedom to change the amount of co

ID: 2753398 • Letter: 1

Question

1)

You own an annuity plan that gives you the freedom to change the amount of contributions, stop contributions, and resume them at will. This plan is called:

single premium deferred annuity.

single premium immediate annuity.

flexible premium deferred annuity.

accumulation annuity.

variable premium annuity.

2)

Carelessness or lack of concern can be categorized as a:

causal hazard.

collective hazard.

physical hazard.

morale hazard.

3)

The health savings account can be part of a health maintenance organization, preferred provider organization, or indemnity plan, as long as it has a:

100 percent reimbursement guarantee.

second surgical opinion provision.

stop-loss limit.

high deductible.

coordination of benefits provision.

Explanation / Answer

1.A flexible-premium deferred annuity offers guaranteed retirement income with the flexibility to make contributions as frequently or infrequently as you wish, within certain limits. Therefore, an annuity plan that gives you the freedom to change the amount of contributions, stop contributions, and resume them at will is called flexible premium deferred annuity.

2. Carelessness or lack of concern can be categorized as morale hazard.

3. The health savings account can be part of a health maintenance organization, preferred provider organization, or indemnity plan, as long as it has a high deductible.