Free Annuities Practice Questions
Virginia Life, Accident & Health exam (series 11-01) — 77 practice questions.
Subtopics: Purpose, Accumulation period, Annuitization, Fixed annuity, Variable annuity licensing, Annuity best interest, Immediate annuity, Tax deferral, Annuity training, Annuity training verification, Best interest obligations, Annuity disclosure form, Annuity replacement review, Best interest is not fiduciary, Consumer refusal, Annuity records, Sales contests, Annuity rule exemptions, Annuity advertising, Charitable gift annuities, Market value adjusted annuities, Variable contract agent license, Annuity disclosures, 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, 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
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Sample questions & answers
1. An annuity is primarily designed to:
Provide income and guard against outliving assets
An annuity liquidates a sum into income and protects against the risk of outliving one's assets.
2. The accumulation period of an annuity is when:
Money is paid in and grows
During the accumulation period premiums are paid in and earnings build; payout occurs in the annuity period.
3. Annuitizing a contract means:
Converting the value into income payments
Annuitization converts the accumulated value into a stream of income payments under a chosen benefit payment option.
4. The premiums for a fixed annuity are invested in the insurer's:
General account
Fixed annuity premiums go into the insurer's general account, which supports the guaranteed minimum interest rate; variable annuities use separate accounts.
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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.
