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  2. West Virginia
  3. Life, Accident & Health
  4. Annuities

Free Annuities Practice Questions

West Virginia Life, Accident & Health exam — 37 practice questions.

Subtopics: Annuity purpose, Single premium immediate, Annuitization, Period certain, Annuity parties, Qualified annuity, Exclusion ratio, Flexible premium, 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, Early withdrawal penalty, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

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Sample questions & answers

1. The principal purpose of an annuity is to:

Provide a stream of income, often for retirement

An annuity is primarily designed to liquidate a sum of money into a stream of income, commonly for retirement.

2. A single premium immediate annuity (SPIA) is funded by:

A lump sum, with income beginning within about one payment period

A SPIA is purchased with a lump sum and begins paying income within roughly one payment period of purchase.

3. The annuity period (annuitization phase) is the time during which the contract:

Pays income to the annuitant

The annuity period is the payout phase during which the insurer pays income to the annuitant.

4. A 'period certain' annuity payout option guarantees payments:

For a stated number of years, to a beneficiary if the annuitant dies early

A period certain option guarantees payments for a set number of years, continuing to a beneficiary if the annuitant dies within that 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.