AIUL

Question 1

The lock in date for allocations to new segments for AIUL 17 is the 15^th of each month.

True or False

Answer 1

FALSE

The lock in date is close of day (4 pm EST) 3 business days prior to the 15^th of each month

Question 2

The persistency bonus is not guaranteed.

True or False

Answer 2

TRUE

Question 3

The persistency bonus is applied to the fixed account interest rate beginning in year 10+.

True or False

Answer 3

FALSE

It begins in year 11+.

Question 4

A Cumulative Guarantee ensures a minimum average annualized rate of return of 2% (less policy charges) over the life of the policy, upon surrender.

True or False

Answer 4

TRUE

Question 5

Up to 12 Index Segments can exist in each Indexed Account – 1 for each month.

True or False

Answer 5

TRUE

Question 6

The guaranteed participation rate on the Hi Par account is 160%.

True or False

Answer 6

FALSE

The current rate is 160%, the guaranteed participation rate is 140%.

Question 7

The threshold rate for the Uncapped Index Account is:

A) 0%

B) 6%

C) 6.5%

D) 3%

Answer 7

C) 6.5%

Question 8

Index loans are available after which policy year?

A) 1st policy year

B) Immediately

C) 5th policy year

D) 3rd policy year

Answer 8

D) 3rd policy year

Question 9

To avoid a lock-out period, clients can schedule systematic withdrawals.

True or False

Answer 9

TRUE

Question 10

Withdrawals are deducted proportionately from the Fixed Account and the Index Appreciation Accounts.

True or False

Answer 10

FALSE

Withdrawals are deducted from the Fixed Account first and then proportionately from the Index Appreciation Accounts.

Question 11

The Capped Hang Seng Indexed Account is designed for clients who seek unlimited upside potential.

True or False

Answer 11

FALSE

The Capped Hang Seng Indexed Account is designed for clients who want greater growth potential with exposure to diversified markets

Question 12

The guaranteed rate on the Fixed Account is:

A) 2%

B) 0%

C) 3%

D) 1%

Answer 12

A) 2%

Question 13

The Plus Capped Index Account will offer a slightly higher cap rate in exchange for a guaranteed monthly charge.

True or False

Answer 13

TRUE

Question 14

The current cap rate for the Plus Capped Index Account is:

A) 9%

B) 13.5%

C) 10.5%

D) 14.5%

Answer 14

D) 14.5%

Question 15

The current cap rate for the Capped Hang Seng Index Account is:

A) 9%

B) 10%

C) 10.5%

D) 13.75%

Answer 15

D) 13.75%

Question 16

The current cap rate for the Uncapped Index Account is:

A) 13.5%

B) 10%

C) 20%

D) none

Answer 16

D) none

Question 17

The current cap rate for the Hi Par Index Account is:

A) 8%

B) 9%

C) 9.5%

D) 10%

Answer 17

C) 9.5%

Question 18

The current cap rate for the Capped Index Account for the S & P 500 is:

A) 9.5%

B) 10.75%

C) 10%

D) 13.5%

Answer 18

B) 10.75%

Question 19

For the Uncapped Index Account, the segment threshold rate is guaranteed to never be greater than:

A) 10%

B) 13.5%

C) 20%

D) 9.5%

Answer 19

C) 20%

Question 20

For the Capped Index Account, the cap rate is guaranteed to never be less than:

A) 0%

B) 3%

C) 4.5%

D) 2%

Answer 20

B) 3%

Question 21

For the Hi Par Index Account, the cap rate is guaranteed to never be less than:

A) 2.5%

B) 3%

C) 2%

D) 4.5%

Answer 21

A) 2.5%

Question 22

For the Plus Capped Index Account, the cap rate is guaranteed to never be less than:

A) 3%

B) 2.5%

C) 4.5%

D) 2%

Answer 22

C) 4.5%

Question 23

Except in NY, standard loans are secured by a loan account that guarantees the net cost of the loan will not exceed ____ annually:

A) 0%

B) 2%

C) 1.25%

D) 2.5%

Answer 23

B) 2%

Question 24

The Segment Cap Rate is established at the beginning of a Segment Term and will not be changed for an existing Segment.

True or False

Answer 24

TRUE