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

Free Annuities Practice Questions

North Dakota Life, Accident & Health exam — 28 practice questions.

Subtopics: 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

Read the Annuities study guide

Sample questions & answers

1. The primary purpose of an annuity is to:

Provide income, often for retirement, and protect against outliving one's assets

Annuities are designed to liquidate a sum into income, protecting against the risk of outliving assets.

2. The period during which the annuity owner pays into the contract and it grows is the:

Accumulation phase

The accumulation phase is when funds are paid in and grow tax-deferred before annuitization.

3. An annuity bought with a single premium that begins income payments within about one year is a(n):

Immediate annuity

A single premium immediate annuity (SPIA) starts income payments shortly after purchase.

4. An annuity that delays income payments until a future date is a:

Deferred annuity

A deferred annuity accumulates value and begins payments at a later, chosen date.

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 Pennsylvania Insurance Department and the exam administrator before relying on it.