1. Jodys financial affairs are not in good shape and she is concerned that if she should lose her job for even a short period of time, her creditors would force her into bankruptcy and take over her assets. She wants to try and preserve the value of her inheritance for Fred particularly if she invests it in a GIC or deferred annuity. Which statements is correct in Jodys case? (A) Since Fred could be the named beneficiary under either plan, the account value will be protected from Jodys creditors during her lifetime. (B) Although Fred could be the named beneficiary under either plan, the account value will not be protected from Jodys creditors while she is alive, but could be protected at her death. (C) Only the deferred annuity could preserve the account value from Jodys creditors during her lifetime, but neither plan could protect this asset at her death. (D) Only the deferred annuity could preserve the account value from Jodys creditors during her lifetime and at her death. Please use the following information to answer questions 2-3. Janet meets with her client, Justin. Justin is 56 years old and has $100,000 to invest. He is a conservative investor and thinks a guaranteed investment certificate (GIC) would be appropriate. Janet is of the opinion that Justin should consider investing the money in a deferred annuity instead of a GIC. She prepares to list the merits of that alternative for Justin. 2. Which of the following would correctly appear in Janets list? (A) A deferred annuity is available for a wide variety of terms unlike a GIC. (B) Rates offered on deferred annuities are generally much higher than those offered on GICs. (C) The investor in a deferred annuity owns the deposit directly unlike the investor in a GIC. (D) Deferred annuities offer protection from creditors of a deceased annuitant as long as a beneficiary has been named under the contract. 3. Assume that Justin is impressed with the advantages listed by Janet and invests the $100,000 in a 5% deferred annuity for five years. Lets say that Justin seeks to withdraw the funds at the end of three years because he is going on a year-long around-the-world cruise. Which of the following is likely to happen? 1 Justin will have to pay an early withdrawal charge because the funds are being withdrawn from the contract prior to maturity. 2 Justin will face a term rate adjustment to reflect the interest rate that would have been used had the funds been originally invested for the term that they actually remained on deposit. 3 Justin may be assessed with an interest rate penalty in addition to an early withdrawal charge or a term rate adjustment. (A) 1 only. (B) 2 only. (C) 1 and 2 only. (D) 1, 2 and 3. 4. Robin is reviewing the information folder that his agent just handed to him, for his review before completing an application for an individual variable insurance contract (IVIC). What kind of information can Robin expect to receive through the Summary Information Folder that will provide him with pertinent details about the product he is about to purchase? 1 The benefits under the contract that are guaranteed and the benefits under the contract that are not guaranteed but fluctuate with the market value of the assets of the segregated fund supporting them. 2 Charges on withdrawal , for full or partial surrender, and retention charges in dollars and units or as a percentage of premiums, as of the first, third and fifth year that the contract is in effect. 3 The tax status of the segregated fund and tax status of the contractholders, 4 A listing of all of the investments held by the segregated funds and their current fair market value. (A) 1 and 2 only. (B) 1, 2 and 3 only. (C) 2 and 3 only (D) 2 and 4 only.