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Free Annuities Practice Questions

Wisconsin Life, Accident & Health exam — 37 practice questions.

Subtopics: Annuitant, Annuitization, Single premium, Surrender charge, Straight life payout, Joint and survivor, Indexed annuity, Annuity suitability, 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, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

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Sample questions & answers

1. In an annuity contract, the annuitant is the person:

Whose life determines the income payments

The annuitant is the individual whose life expectancy is used to calculate the annuity income payments.

2. Annuitization refers to:

Converting the accumulated value into a stream of income

Annuitization is the process of converting the contract's accumulated value into periodic income payments.

3. 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 income begins at a future date.

4. A surrender charge on a deferred annuity applies when the owner:

Withdraws more than allowed during the early years

Surrender charges are fees for early or excess withdrawals during the contract's surrender charge 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.