1. Exam Prep
  2. Colorado
  3. Life, Accident & Health
  4. Annuities

Free Annuities Practice Questions

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

Subtopics: Deferred annuity, Flexible premium, Surrender charge, Annuitant, Joint and survivor, Indexed annuity, Free withdrawal, 1035 exchange, 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. A deferred annuity differs from an immediate annuity in that it:

Delays income payments until a future date while value accumulates

A deferred annuity accumulates value over time and begins income payments at a future date, unlike an immediate annuity.

2. A flexible premium deferred annuity allows the owner to:

Make varying contributions over time within limits

A flexible premium deferred annuity permits the owner to contribute varying amounts over time during the accumulation phase.

3. A surrender charge in a deferred annuity is:

A fee deducted if the owner withdraws funds early in the contract

A surrender charge is assessed on early or excess withdrawals, typically declining over the surrender charge period.

4. In an annuity contract, the annuitant is the person:

Whose life expectancy is used to determine income payments

The annuitant is the measuring life whose age and life expectancy determine the amount and duration of income payments.

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.