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Your client bought a variable annuity contract that has a 5% contingent deferred sales charge with a
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A. that he'll have to pay the 5% deferred sales charge if he executes the exchange.
B. both B and C.
C. that it's a great idea, and you plan on how you're going to spend the unexpected income.
D. that although the exchange doesn't have any tax consequences, he'll be looking at a new, longer,
surrender period.
Answer: B
Explanation:
If your client bought a variable annuity contract with a 7-year surrender period four years ago,
you can tell him that even though there will be no tax consequences associated with the exchange, he'll
have to pay the 5% deferred sales charge if he executes the exchange, and he'll be looking at a new,
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Answer: A
Explanation:
Explanation

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