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  4. Annuities

Free Annuities Practice Questions

Arkansas Life, Accident & Health exam — 37 practice questions.

Subtopics: Immediate annuity, Deferred annuity, Single premium, Annuitant, Surrender charge, Indexed annuity, Joint and survivor, Free withdrawal, Principles, Immediate vs deferred, Products, Payment options, Uses, Taxation, Parties to an annuity, Flexible premium annuity, Cash refund option, Installment refund option, Period certain option, Annuity units, Separate account, Tax-deferred accumulation, Exclusion ratio, Early withdrawal penalty, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

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Sample questions & answers

1. An immediate annuity begins making income payments:

Generally within about one payment period after purchase

An immediate annuity typically begins income payments within about one payment period after it is purchased.

2. A deferred annuity:

Delays income payments until a future date, allowing tax-deferred growth

A deferred annuity postpones income to a future date, allowing the value to grow tax-deferred in the meantime.

3. A single premium annuity is funded by:

One lump-sum payment

A single premium annuity is funded with one lump-sum payment.

4. The annuitant in an annuity contract is the person:

Whose life expectancy is used to determine income payments

The annuitant is the person whose life expectancy is used to calculate the income payments.

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Practice: Annuities

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Pennsylvania Insurance Department and the exam administrator before relying on it.