Finra Exam Series-6 Topic 9 Question 71 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 71
Topic #: 9

Mr. R. Retired recently turned 61 and has decided to annuitize a variable annuity contract in which he had been investing. When he does so:

Ahe will have to pay a 10% penalty for annuitizing the contract before he turned 62 .

Bhis accumulation units will be converted into a fixed number of annuity units.

Cthe value of his annuity units becomes fixed.

DBoth B and C are true statements.

Show Suggested Answer

Suggested Answer: B

When Mr. R. Retired decides to annuitize his variable annuity contract at the age of 61, his accumulation units will be converted into a fixed number of annuity units. The value of these units will depend on the actual returns earned by the account and the actuarially-determined assumed interest rate; it is not fixed. Mr. Retired will not be subject to a 10% penalty since he is over 59 years old.

by Alyce at Feb 13, 2024, 02:41 AM

Limited Time Offer

25%

7 months ago

I think Mr. R. should go with option B.

upvoted 0 times

...