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GMWB Part 2 During Withdrawal Phase

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

When withdrawing the GWA , the full GWA must always be taken.

a)

True

b)

False

2.

Permitted excess withdrawals reduce the existing term faster.

a)

True

b)

False

3.

GWA deferral can only accumulate in a year where the client has not received bonus.

a)

True

b)

False

4.

There is no limit on how much can accumulate for the GWA deferral.

a)

True

b)

False

5.

An excess withdrawal on the 2007 folder will automatically reset all the buckets to the market value regardless of the value.

a)

True

b)

False

6.

During the withdrawal period, if a subsequent deposit is made, it will increase all the buckets dollar for dollar.

a)

True

b)

False

7.

Any time a deposit or excess withdrawal reset occurs, all or part of the GWA will be prorated for the remainder of the year.

a)

True

b)

False

8.

Once the withdrawal period has begun, bonus can no longer be received.

a)

True

b)

False

9.

During the withdrawal period, automatic resets will always follow the same calculation in determining the new GMWB values.

a)

True

b)

False

10.

What happens if the MAP is greater than the GWA on a RIF/LIF/LRIF account?

a)

GWA is increased to the MAP (Considered Permitted Excess Withdrawal)

b)

MAP is decreased to the GWA to comply with the GMWB Rider rules

c)

If the client takes the MAP they will trigger an excess withdrawal reset as the value exceeds the client's GWA

11.

What happens if the GWA is greater than the MAX on a LIF/LRIF account?

a)

GWA is decreased to the MAX with the difference being treated as GWA deferral

b)

The MAX will increase to the GWA so that the client can receive their full GWA.

c)

The client will pay withholding tax on the amount of the GWA withdrawn that exceeds the MAX.

12.

Spousal continuance is available on a SunWise Elite Plus registered contract where the spouse is listed as primary beneficiary for 50% of the account.

a)

True

b)

False

13.

At contract maturity the RGWB gets paid out along with the Maturity Guarantee.

a)

True

b)

False

14.

On a non-registered account, spousal rollover can occur on the death of the annuitant (single annuitant).

a)

True

b)

False

15.

A full GWA withdrawal will reduce the clients term by 1.

a)

True

b)

False