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  4. Annuities

Free Annuities Practice Questions

Illinois Life, Accident & Health exam — 34 practice questions.

Subtopics: Annuitant, Indexed annuity, Period certain, Joint and survivor, Surrender charge, 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. In an annuity contract the annuitant is the person:

Whose life determines the income payments

The annuitant is the person whose life expectancy is used to determine annuity payments.

2. An equity-indexed annuity credits interest based on:

The performance of a stock market index subject to limits

An indexed annuity credits interest tied to a market index subject to caps participation rates and floors.

3. A period-certain annuity option guarantees payments:

For a set number of years even if the annuitant dies

A period-certain option pays for a guaranteed number of years even if the annuitant dies during that period.

4. A joint and survivor annuity continues income:

To a surviving annuitant after the first dies

A joint and survivor annuity continues payments to a surviving annuitant after the first annuitant dies.

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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 Insurance Department and the exam administrator before relying on it.