State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under the California licensing examination objectives, for a contract to qualify as an immediate annuity, the first income payment must begin within:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An immediate annuity is one whose first income payment begins within one payment interval, which the official examination objectives state is within 12 months of the contract date. It is typically purchased with a single premium. Any annuity whose payments begin later than that is classified as a deferred annuity, because funds accumulate for a period before the income stream starts.
Why the other options are wrong
- B) Thirty days is the senior citizen cancellation window under Section 10127.10, not the immediate annuity payment timing.
- C) A single quarter is shorter than the 12-month test and is not the standard used in the objectives.
- D) Five years is not a statutory threshold; payments delayed that long clearly describe a deferred annuity.
Memory hook
Immediate = first check inside 12 months. Miss that window and the product is deferred.