Free Annuities Practice Questions
South Dakota Life, Accident & Health exam — 69 practice questions.
Subtopics: Annuity parties, Payout phase, Variable annuity licensing, Single premium annuity, Annuity death benefit, Period certain, Annuity free look, Annuity best interest, Annuity replacement, Annuity training, Annuity disclosure, Annuity documentation, Variable products, 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 taxation, 1035 exchanges, Surrender charges, Parties, Suitability
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Sample questions & answers
1. In an annuity contract, the party who funds the contract and holds its rights is the:
Owner
The annuity owner funds the contract and holds its rights, while the annuitant is the measuring life for payments.
2. The phase of an annuity during which the insurer pays income to the annuitant is the:
Annuitization (payout) phase
The annuitization or payout phase is when the accumulated value is converted into a stream of income payments.
3. Because a variable annuity's values depend on securities performance, the producer selling it generally must hold:
A life license and a passed FINRA securities exam
ARSD 20:06:07:08 requires a person selling variable contracts in South Dakota to pass the life exam and hold a life license, pass a Series 6, 7, 63, or 66 exam, and add the variable line to the license.
4. A single premium deferred annuity is funded by:
One lump sum, with income starting later
A single premium deferred annuity is funded with one lump sum and begins income payments at a later, deferred date.
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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.
