Free Annuities Practice Questions
New Jersey Life, Accident & Health exam — 79 practice questions.
Subtopics: Annuity vs life, Annuitant, Surrender charge, Annuity free look, Immediate annuity defined, Fixed annuity defined, Annual report, Consumer defined, Excluded annuities, Best interest standard, Best interest obligations, No fiduciary duty, Consumer profile, Annuity replacement review, Producer disclosure form, Compensation disclosure, Refusal form, Non-recommended sale, Annuity training, Annuity training update, Insurer verification, Sales contests, Safe from care duty, Designations, Designation organizations, Buyer's guide, 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. Compared with life insurance, an annuity primarily protects against the risk of:
Outliving one's income
Annuities protect against living too long (outliving income); life insurance protects against dying too soon.
2. The person whose life expectancy determines annuity payments is the:
Annuitant
The annuitant is the measuring life on whose lifespan annuity payments are based.
3. A surrender charge on a deferred annuity is:
A fee for withdrawing funds early in the contract
Surrender charges are fees applied to early withdrawals during the contract's surrender charge period.
4. A fixed annuity directly solicited to a New Jersey consumer must let the initial owner cancel for a refund of the account value, including fees and charges, during a period of at least:
10 days after receipt
Covered annuities must include or attach a notice that for at least 10 days after receipt the owner may cancel and receive a prompt refund of the account value, including fees and charges.
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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.
