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Free Annuities Practice Questions

Wyoming Life exam — 57 practice questions.

Subtopics: Accumulation phase, Annuitization, Life-only payout, Deferred annuity, Fixed annuity, Tax deferral, 1035 exchange, Owner versus annuitant, Period certain, Single premium immediate annuity, Annuity taxation, Surrender charge, Purpose, Accumulation period, Annuitant, Immediate 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, 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. The period during which an annuity owner pays into the contract and interest accrues is the:

Accumulation phase

The accumulation phase is the period during which contributions are made and interest builds before payout begins.

2. The process of converting an annuity's accumulated value into a stream of income payments is called:

Annuitization

Annuitization is the conversion of the accumulated value into a series of income payments.

3. A straight life (life-only) annuity payout option carries the risk that:

The annuitant could die after only a few payments, leaving nothing to a beneficiary

The life-only option pays for the annuitant's lifetime but stops at death, risking loss of the balance if the annuitant dies early.

4. A deferred annuity is one in which income payments:

Begin more than one payment period after purchase

A deferred annuity delays the start of income payments until a future date beyond one payment period after purchase.

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Practice: Annuities

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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.