Free Annuities Practice Questions
California Life, Accident & Health exam (series Life, Accident & Health) — 66 practice questions.
Subtopics: Surrender charge notice, Liquidation disclosure, Medi-Cal sales, Senior variable annuity, Unnecessary replacement, Best interest obligations, Best interest effective date, Annuity records, Annuity training deadline, Best interest exemptions, Consumer profile, Not fiduciary, Annuity training renewal, 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 disclosure, Annuity death benefit, Annuity taxation, 1035 exchanges, Surrender charges, Parties, Suitability
Read the Annuities study guide
Sample questions & answers
1. An individual life policy or annuity with surrender charges sold to a California senior citizen must include:
A bold 12-point cover notice locating the surrender charges
Section 10127.13 requires a bold 12-point notice on the policy jacket or cover page disclosing the location of surrender charges, charge periods, and penalties.
2. A life agent offering a life or annuity product to a person age 65 or older must advise in writing that:
Liquidating assets to fund it may trigger taxes or penalties
Section 789.8 requires a written advisory about possible tax consequences, early withdrawal penalties, and the option to seek independent advice.
3. A life agent who sells a financial product to a person age 65 or older based on its treatment under Medi-Cal must:
Provide the statutory written Medi-Cal disclosure and not misrepresent asset treatment
Section 789.8 requires a specified written Medi-Cal disclosure and bars negligent misrepresentation of how assets are treated.
4. During the 30-day free look for a variable annuity sold to a buyer age 60 or older, the premium must be invested in:
Fixed-income and money-market funds, unless the owner directs otherwise
Section 10127.10 limits the premium to fixed-income and money-market investments during the free look unless the owner specifically directs otherwise.
All Life, Accident & Health topics
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.
