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Free Annuities Practice Questions

North Dakota Life exam — 44 practice questions.

Subtopics: Purpose, Accumulation period, Annuitant, Immediate annuity, Deferred annuity, Fixed annuity, Variable annuity, Variable annuity licensing, Equity indexed annuity, Pure life option, Life with period certain, Refund annuity, Joint and survivor, Annuity certain, Tax-deferred growth, Exclusion ratio, Surrender charge, Retirement income use, Structured settlement, Owner rights, Early withdrawal penalty, Annuity vs life insurance, Single vs flexible premium annuity, Annuity surrender charge period, Bailout provision, Market value adjustment, Annuitization vs surrender, Annuity death benefit, Free withdrawal provision, Cash refund vs installment refund, Joint life annuity, 1035 exchange, Qualified annuity funding, Accumulation vs annuity units, Assumed interest rate, Guaranteed minimum income benefit, Guaranteed minimum withdrawal benefit, Qualified longevity annuity contract, Split-annuity concept, Annuity suitability standard, Nonqualified withdrawal taxation, Owner's death before annuitization, Two-tier annuity, Annuity guaranteed minimum value

Read the Annuities study guide

Sample questions & answers

1. The basic purpose of an annuity is to:

Liquidate a sum of money into a stream of income, often for retirement

An annuity systematically converts a principal sum into income payments and protects against outliving one's money.

2. The accumulation period of a deferred annuity is the time during which:

Funds are paid in and grow tax-deferred

During accumulation, premiums are paid and earnings grow tax-deferred before the payout (annuity) period begins.

3. The person whose life expectancy determines the annuity payments is the:

Annuitant

The annuitant is the measuring life on whom payout calculations are based; the owner controls the contract.

4. An immediate annuity begins income payments:

Within about one payment period after purchase with a single premium

A single-premium immediate annuity (SPIA) starts payments within one payment interval of purchase.

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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.