Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Variable Annuities & Variable Life Products Flashcards
6 cards from real Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Variable Annuities & Variable Life Products flashcards as text
A variable annuity contract is considered a security because:
Answer: Its value fluctuates based on the performance of underlying investment subaccounts
Variable annuities are classified as securities because contract values fluctuate with the investment performance of the chosen subaccounts.
Which of the following is a key difference between the accumulation units and annuity units in a variable annuity?
Answer: Accumulation units represent the investor's interest during the savings phase; annuity units determine payment amounts during the payout phase
During the accumulation phase the investor holds accumulation units; upon annuitization these convert to annuity units that determine periodic payment amounts.
An assumed interest rate (AIR) in a variable annuity payout is best described as:
Answer: A benchmark rate used to determine whether annuity payments increase, decrease, or stay the same
The AIR is the hurdle rate; if subaccount performance exceeds the AIR, payments rise, and if it falls short, payments decrease.
Which suitability consideration is MOST important when recommending a variable annuity to a client?
Answer: Whether the client has a long investment time horizon and can tolerate market risk
Variable annuities are long-term, market-linked products best suited for investors who can tolerate investment risk over an extended horizon.
The free-look period in a variable annuity contract allows the purchaser to:
Answer: Cancel the contract and receive a full refund within a specified number of days after delivery
The free-look period (typically 10–30 days) gives new contract owners the right to rescind the contract and receive a full premium refund.
Which of the following variable annuity charges compensates the insurer for providing the death benefit guarantee?
Answer: Mortality and expense (M&E) risk charge
The M&E risk charge covers the insurer's cost of guaranteeing the death benefit and certain annuitization options.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- finra.org — Renewal, score validity, retake policy, score release, test dates, eligibility, fees, exam format, passing score · verified Oct 2026
- prometric.com — Test delivery · verified Oct 2026