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Free Annuities Practice Questions

Texas Life Agent exam (series InsTX-Life01) — 51 practice questions.

Subtopics: Right to rescind, Annuity training, Suitability, Variable annuity licensing, Period certain, 1035 exchange, Purpose, Accumulation period, Annuitant, Immediate annuity, Deferred annuity, Fixed annuity, Variable annuity, 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, 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, Annuity exclusion ratio

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Sample questions & answers

1. A Texas fixed annuity contract must give the purchaser a right to rescind and receive a full refund for at least:

20 days

Texas requires a fixed annuity contract to provide at least a 20-day rescission (free-look) period.

2. Before selling annuities in Texas, an agent must complete:

A one-time annuity training course

Texas requires a one-time annuity training course before an agent may sell annuity products.

3. When recommending an annuity in Texas, an agent must:

Act in the consumer's best interest based on the consumer's financial situation and needs

Texas's best-interest annuity standard requires recommendations consistent with the consumer's needs and objectives.

4. To sell variable annuities in Texas, a producer must hold a life license and also:

A securities registration such as FINRA

Variable products are securities, so the producer must be registered with FINRA in addition to holding a life and annuity license.

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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.