Chapter Exam Annuities Questions
and Answers.
Variable annuities may invest premiums in each of the following, EXCEPT: - Answer Insurer's
corporate business account
An immediate annuity consists of a - Answer Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? -
Answer Deferred
Which of these statements concerning an Individual Straight Life annuity is accurate? - Answer
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against: - Answer the risk of
living longer than expected
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for
life. What type of annuity did N purchase? - Answer Fixed Deferred
W is a 39-year old female who just purchased an annuity to provide income for life starting at
age 60. All of these would be acceptable annuity choices, EXCEPT a(n): - Answer Immediate
annuity
The type of annuity that can be purchased with one monetary deposit is called a(n): - Answer
Immediate annuity
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - Answer Single Premium
What is considered to be a characteristic of an immediate annuity? - Answer Benefit
payments start within one payment period of purchase
Which of these is an element of a Single Premium annuity? - Answer Lump-sum payment
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? -
Answer The income from the TSA is received income tax-free
and Answers.
Variable annuities may invest premiums in each of the following, EXCEPT: - Answer Insurer's
corporate business account
An immediate annuity consists of a - Answer Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? -
Answer Deferred
Which of these statements concerning an Individual Straight Life annuity is accurate? - Answer
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against: - Answer the risk of
living longer than expected
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for
life. What type of annuity did N purchase? - Answer Fixed Deferred
W is a 39-year old female who just purchased an annuity to provide income for life starting at
age 60. All of these would be acceptable annuity choices, EXCEPT a(n): - Answer Immediate
annuity
The type of annuity that can be purchased with one monetary deposit is called a(n): - Answer
Immediate annuity
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - Answer Single Premium
What is considered to be a characteristic of an immediate annuity? - Answer Benefit
payments start within one payment period of purchase
Which of these is an element of a Single Premium annuity? - Answer Lump-sum payment
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? -
Answer The income from the TSA is received income tax-free
