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  4. Annuities

Free Annuities Practice Questions

Texas Life Agent exam (series InsTX-Life01) — 25 practice questions.

Subtopics: Right to rescind, Annuity training, Suitability, Purpose, Accumulation period, Annuitant, Immediate annuity, Deferred annuity, Fixed annuity, Variable annuity, Variable annuity licensing, 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

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. The basic purpose of an annuity is to:

Liquidate a sum of money into a stream of income, often for retirement

An annuity systematically converts a principal sum into income payments and protects against outliving one's money.

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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 Pennsylvania Insurance Department and the exam administrator before relying on it.