Free Annuities Practice Questions
Nevada Life, Accident & Health exam — 70 practice questions.
Subtopics: Immediate annuity, Flexible premium, Annuitant, Joint and survivor, Surrender charge, Equity-indexed annuity, Annuitization phase, Refund annuity, Annuity replacement, Annuity free look, Annuity suitability, Annuity records, Annuity disclosure, Group annuities, Guaranty annuity limit, 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 purchased with a single premium that begins paying income within about a year is a(n):
Immediate annuity
An immediate annuity is bought with a single premium and starts income payments shortly after purchase, usually within a year.
2. An annuity that allows the owner to make varying contributions over time during the accumulation period is a:
Flexible premium annuity
A flexible premium annuity lets the owner contribute varying amounts over time during accumulation.
3. In an annuity contract, the person whose life expectancy is used to determine the income payments is the:
Annuitant
The annuitant is the person whose life and life expectancy are used to calculate annuity income payments.
4. An annuity payout that continues income to a surviving spouse after the first annuitant dies is a:
Joint and survivor annuity
A joint and survivor annuity continues payments, sometimes at a reduced level, to a surviving annuitant after the first dies.
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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.
