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Free Annuities Practice Questions

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

Subtopics: Single premium annuity, Surrender charge, Annuitant, Straight life payout, Joint and survivor, Refund annuity, Equity indexed annuity, 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

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Sample questions & answers

1. A single premium annuity is funded how?

With one lump sum payment

A single premium annuity is funded with one lump-sum payment rather than a series of premiums.

2. A surrender charge on a deferred annuity is generally what?

A penalty applied for early withdrawal during the surrender period

A surrender charge is a fee the insurer applies when the owner withdraws more than allowed during the contract's surrender period.

3. In an annuity contract the person whose life expectancy is used to determine income payments is the what?

The annuitant

The annuitant is the person on whose life the annuity income payments are based, similar to the insured in a life policy.

4. A straight life annuity payout option provides what?

Income for life with no payments to anyone after the annuitant dies

A straight life payout provides the highest periodic income for the annuitant's life but stops at death with no further payments.

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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.