- Exam Prep
- Arizona
- Life, Accident & Health
- Annuities
Free Annuities Practice Questions
Arizona Life, Accident & Health exam — 35 practice questions.
Subtopics: Annuity purpose, Accumulation phase, Fixed annuity, Variable annuity, Payout phase, Life with period certain, 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
Read the Annuities study guide
Sample questions & answers
1. An annuity is primarily designed to:
Provide income, often for retirement, by liquidating a sum over time
An annuity systematically liquidates a sum into income payments, frequently used for retirement.
2. During the accumulation phase of a deferred annuity:
Funds are paid in and grow tax-deferred
In the accumulation phase, contributions are made and earnings grow tax-deferred until payout begins.
3. In a fixed annuity, the insurer:
Credits a guaranteed minimum interest rate
A fixed annuity credits at least a guaranteed minimum interest rate, with the insurer bearing investment risk.
4. In a variable annuity, investment risk is generally borne by:
The contract owner
In a variable annuity the owner bears investment risk, and these products are also regulated as securities.
All Life, Accident & Health topics
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 Insurance Department and the exam administrator before relying on it.