CE 118: PART 7 KEY TERMS

T	F	1.	Although a business entity can own an annuity, it cannot enjoy the tax-deferred inside build-up.
T	F	2.	The greater the degree of security provided to an annuity’s benefit payments, the lower the cost of its "premiums."
T	F	3.	IRC Sec. 1035 exchanges can be made by an annuity owner even though benefit payments have begun.
T	F	4.	The best way to view a fixed annuity is to consider it a debt instrument with the annuity owner as a lender of money to an insurance company.
T	F	5.	Dollar-cost averaging is an effective long-term method to utilize interest earnings paid to a variable annuity guaranteed interest account.
T	F	6.	Mortality and expense charges can be regarded as a management fee and operating expense charges.
T	F	7.	Under federal tax laws, it makes little difference whether the owner/annuitant of an annuity is married or single, young or old, or alive or dead.
T	F	8.	The aggregation rule under federal tax laws is used to monitor multiple annuity purchases by the same person during the same taxable year.
T	F	9.	Qualified annuities are annuities purchased by individuals using post-tax income
T	F	10.	In order to qualify for the $10,000-per-year-per-individual gift tax exemption, the payment of the premium into the annuity contract must create a gift of a present interest for the contract owner.