Free Annuities Practice Questions
South Carolina Life, Accident & Health exam — 65 practice questions.
Subtopics: Deferred annuity, Single premium, Annuitant, Life with period certain, Joint and survivor, Surrender charge, Indexed annuity, 1035 exchange, Annuity best interest, Annuity training, Annuity records, Annuity training verification, 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, Indexed annuities, Market value adjustment, Variable annuities, Payout options, Bonus annuities, Annuity disclosure, Annuity death benefit, Annuity taxation, 1035 exchanges, Surrender charges, Parties, Suitability
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Sample questions & answers
1. A deferred annuity is one in which income payments:
Begin at a future date
A deferred annuity accumulates value and begins income payments at a future date selected by the owner.
2. A single premium deferred annuity is funded by:
One lump-sum payment
A single premium deferred annuity is purchased with one lump sum and defers income to a later date.
3. The annuitant in an annuity contract is the person:
Whose life sets the payments
The annuitant is the individual whose life expectancy is used to determine the annuity's income payments.
4. A life income with period certain option guarantees:
Lifetime income with a minimum period
This option pays for the annuitant's life and, if death occurs early, continues payments to a beneficiary for the remainder of the certain period.
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Practice: Annuities
Answer choices are shuffled every time, and every question comes with an explanation.
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.
