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  4. Annuities

Free Annuities Practice Questions

South Carolina Life, Accident & Health exam — 37 practice questions.

Subtopics: Deferred annuity, Single premium, Annuitant, Life with period certain, Joint and survivor, Surrender charge, Indexed annuity, 1035 exchange, 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. A deferred annuity is one in which income payments:

Begin at a future date after an accumulation period

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, with income deferred to a later date

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 is used to measure the income 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:

Income for life, but at least a guaranteed minimum number of years to a beneficiary

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

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 Insurance Department and the exam administrator before relying on it.