Free Annuities Practice Questions

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

Subtopics: Immediate annuity, Single premium, Surrender charge, Annuitant, Joint and survivor, Equity-indexed annuity, Suitability, Free look, 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. An immediate annuity differs from a deferred annuity in that it:

begins income payments within about one payment period of purchase

An immediate annuity begins income payments within roughly one payment period after purchase.

2. A single-premium annuity is funded by:

one lump-sum payment

A single-premium annuity is funded with one lump-sum payment.

3. A surrender charge on a deferred annuity is:

a penalty for withdrawing funds early in the contract

A surrender charge is a penalty for withdrawing funds early in the annuity contract.

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

annuitant

The annuitant is the person whose life expectancy measures the income 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 Pennsylvania Insurance Department and the exam administrator before relying on it.