Free Annuities Practice Questions
Arizona Life, Accident & Health exam (series 13-33) — 72 practice questions.
Subtopics: Annuity purpose, Accumulation phase, Fixed annuity, Variable annuity, Payout phase, Life with period certain, Annuity free look, Variable annuity refund, Annuity grace period, Best interest standard, Best interest obligations, Annuity replacement review, Annuity disclosure, Consumer refusal, Annuity records, Annuity training, Annuity training verification, 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, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio, Indexed annuities, Market value adjustment, Variable annuities, Payout options, Bonus annuities, Annuity death benefit, Annuity taxation, 1035 exchanges, Surrender charges, Parties, Suitability
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Sample questions & answers
1. An annuity is primarily designed to:
Provide income, often for retirement
Annuities convert a sum into periodic income.
2. During the accumulation phase of a deferred annuity:
Funds are paid in and grow tax-deferred
Accumulation precedes the payout period.
3. In a fixed annuity, the insurer:
Credits a guaranteed minimum interest rate
Fixed annuities guarantee a minimum rate; the insurer bears investment risk.
4. In a variable annuity, investment risk on separate-account values is borne by:
The contract owner
The Arizona guaranty fund does not cover portions where the risk is borne by the contract owner (A.R.S. 20-682(D)(1)).
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Practice: Annuities
Answer choices are shuffled every time, and every question comes with an explanation.
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.
