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Certified Financial Services Auditor (CFSA) Questions 106–110 (page: 23)

Updated On: 10-Feb-2026
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If participation rate in an equity indexed entity is 80% and the index increases 9%, the return credited to the annuity would be:

  1. 7.1%
  2. 7.2%
  3. 7.25%
  4. 7.3%

Answer(s): B



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In case of an annuity with a spread of 3%, if the index gained 9%, the return credited to the annuity would be:

  1. 11%
  2. 27%
  3. 6%
  4. 3%

Answer(s): C



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Which one of the following does NOT depicts a common indexing method?

  1. The annual ratchet
  2. The point to point method
  3. The high water mark method
  4. The low water mark method

Answer(s): D



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An index method that credits index-linked interest based on any increase in index value from the index level at the beginning of the contract's term to the highest index value at various points during the contract's term is called:

  1. Point to point method
  2. Annual retuned
  3. The high watermarks method
  4. The low water mark method

Answer(s): C



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Which one of the annuities, mentioned below, is not regulated by the SEC:

  1. Fixed annuities
  2. Variable annuities
  3. Mixed annuities
  4. Expired annuities

Answer(s): A



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