Skillset Development: How Indexing Works

Quiz Questions

1.
What is the most commonly tracked index in indexed UL and indexed Annuity sales?
- A.
  Dow Jones Industrial Average
- B.
  NASDAQ
- C.
  S&P 500
- D.
  Bloomberg Barclays US Aggregate Bond Index
2.
Participation Rates and Cap Rates can change at the end of each segment period.
- A.
  True
- B.
  False
3.
The Participation Rate is:
- A.
  Locked in for the life of the Annuity.
- B.
  The percentage of the Index Gain applied to the Interest Credit calculation
- C.
  Can be changed at any time by the carrier during the segment period
- D.
  Can only be changed at the end of each segment period
- E.
  Both B and D
4.
Participation rates can reach as high as 150% and higher.
- A.
  True
- B.
  False
5.
To gain in the good years and not lose in the bad years, approximately ______% of the client’s money is invested in high quality, low-risk investment vehicles, such as corporate bonds and government securities, and the balance is invested in option contracts on the various Indexes.
- A.
  50%
- B.
  75%
- C.
  90-95%
- D.
  20%

Quiz Outcomes

1.
So Close!
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2.
Way to go!
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