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- Life, Accident & Health
- Annuities
Free Annuities Practice Questions
New Jersey Life, Accident & Health exam — 32 practice questions.
Subtopics: Annuity vs life, Annuitant, Surrender charge, 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
Read the Annuities study guide
Sample questions & answers
1. Compared with life insurance, an annuity primarily protects against the risk of:
Outliving one's income
Annuities protect against living too long (outliving income); life insurance protects against dying too soon.
2. The person whose life expectancy determines annuity payments is the:
Annuitant
The annuitant is the measuring life on whose lifespan annuity payments are based.
3. A surrender charge on a deferred annuity is:
A fee for withdrawing funds early in the contract
Surrender charges are fees applied to early withdrawals during the contract's surrender charge period.
4. 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.
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Practice: Annuities
Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored
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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.