Free Annuities Practice Questions
Montana Life, Accident & Health exam — 67 practice questions.
Subtopics: Immediate annuity, Single premium, Surrender charge, Annuitant, Joint and survivor, Equity-indexed annuity, Suitability, Free look, Annuities, Best interest, Annuity disclosure, Funeral insurance, 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
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Sample questions & answers
1. An immediate annuity differs from a deferred annuity in that it:
Begins paying income within one payment period
An immediate annuity begins income payments within roughly one payment period after purchase.
2. A single-premium annuity is funded by:
one lump-sum payment
A single-premium annuity is funded with one lump-sum payment.
3. A surrender charge on a deferred annuity is:
A charge for withdrawing funds early
A surrender charge is a penalty for withdrawing funds early in the annuity contract.
4. In an annuity, the person whose life expectancy is used to determine income payments is the:
annuitant
The annuitant is the person whose life expectancy measures the income payments.
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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.
