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

Free Annuities Practice Questions

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

Subtopics: Immediate annuity, Deferred annuity, Equity-indexed annuity, Surrender charge, Joint and survivor, Exclusion ratio, Annuitant, Installment refund, 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, 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 immediate annuity is one that:

Begins income payments within about one payment interval after purchase

An immediate annuity is bought with a single premium and starts income payments very soon after purchase.

2. A deferred annuity differs from an immediate annuity because it:

Delays the start of income payments to a future date

A deferred annuity accumulates value and postpones income payments until a later selected date.

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

The performance of a stated market index, subject to a guaranteed floor

An equity-indexed annuity ties interest to a market index while guaranteeing a minimum floor.

4. A surrender charge on a deferred annuity is:

A fee deducted if the contract is cashed in during the early years

A surrender charge is a declining fee the insurer deducts when an annuity is surrendered during the early contract years.

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.