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Annuities Practice Questions — Page 2 of 2

68 free annuities questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.

  1. 19.In a variable annuity, the assumed interest rate (AIR) is used to:
    Difficulty 3/5
  2. 20.During the accumulation phase of a variable annuity, the owner's premiums are converted into:
    Difficulty 2/5
  3. 21.A single premium deferred annuity (SPDA) is characterized by:
    Difficulty 1/5
  4. 22.Which statement is generally correct regarding a deferred annuity after the surrender charge period has ended?
    Difficulty 2/5
  5. 23.Which statement about required minimum distributions (RMD) and annuities is correct?
    Difficulty 2/5
  6. 24.A key difference between a nonqualified annuity and an IRA is that a nonqualified annuity:
    Difficulty 1/5
  7. 25.An annuity payout option that pays income for a fixed number of years and does NOT provide lifetime income …
    Difficulty 1/5
  8. 26.In a joint and survivor annuity, the provision that "payments reduce to two-thirds after the first death" m…
    Difficulty 2/5
  9. 27.The difference between a cash refund annuity and an installment refund annuity is that:
    Difficulty 2/5
  10. 28.An annuity owner dies during the accumulation phase and the beneficiary receives the contract's accumulatio…
    Difficulty 2/5
  11. 29.A beneficiary who receives the death proceeds of a deferred annuity chooses to receive the value over time …
    Difficulty 3/5
  12. 30.An annuitant chooses a "life with 10-year period certain" option and dies 3 years after payments begin. Wha…
    Difficulty 2/5
  13. 31.Under IRC Section 1035, which of the following exchanges is NOT eligible for tax-free treatment?
    Difficulty 2/5
  14. 32.In a tax-free Section 1035 exchange of an annuity, the owner's cost basis in the old contract:
    Difficulty 2/5
  15. 33.Which statement about Section 1035 exchanges and qualified plans is correct?
    Difficulty 3/5
  16. 34.If a life insurance policy becomes a Modified Endowment Contract (MEC), the death benefit paid to the benef…
    Difficulty 2/5
  17. 35.A policyowner increases the death benefit on an existing policy, which may cause the policy to become a MEC…
    Difficulty 3/5
  18. 36.Once a life insurance policy has become a Modified Endowment Contract, its MEC status:
    Difficulty 2/5