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

Free Annuities Practice Questions

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

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

Read the Annuities study guide

Sample questions & answers

1. In an annuity contract, the person whose life expectancy is used to determine the income payments is the:

Annuitant

The annuitant is the person on whose life the annuity income payments are based.

2. An immediate annuity begins making income payments to the annuitant:

Within about one payment interval after purchase with a single premium

An immediate annuity is bought with a single premium and begins paying income within one payment period.

3. A deferred annuity is one in which income payments:

Begin at a future date after an accumulation period

A deferred annuity accumulates value and begins income payments at a future date selected by the owner.

4. A fixed indexed annuity credits interest based on:

The performance of a stated market index subject to a floor and cap

An indexed annuity credits interest linked to a market index while typically guaranteeing a minimum floor.

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.