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  2. South Dakota
  3. Life, Accident & Health
  4. Annuities

Free Annuities Practice Questions

South Dakota Life, Accident & Health exam — 35 practice questions.

Subtopics: Annuity parties, Payout phase, Variable annuity licensing, Single premium annuity, Annuity death benefit, Period certain, 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. In an annuity contract, the party who funds the contract and holds its rights is the:

Owner

The annuity owner funds the contract and holds its rights, while the annuitant is the measuring life for payments.

2. The phase of an annuity during which the insurer pays income to the annuitant is the:

Annuitization (payout) phase

The annuitization or payout phase is when the accumulated value is converted into a stream of income payments.

3. Because a variable annuity's values depend on securities performance, the producer selling it generally must hold:

Both an insurance license and a securities registration

Variable annuities are securities, so the producer must hold both an insurance license and the required securities registration.

4. 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 funded with one lump sum and begins income payments at a later, deferred date.

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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.