NEBRASKA LIFE AND HEALTH EXAM
2025 QUESTIONS AND ANSWERS
A deferred annuity is surrendered prior to annuitization. Which of the following best describes
the nonforfeiture value of the annuity? a. The surrender value should be equal to 100% of the
premium paid, minus any prior withdrawals and surrender charges. b. A deferred annuity
cannot be surrendered prior to annuitization. The owner must wait until the annuitization
period begins to receive any payments. - ANS The surrender value should be equal to 100%
of the premium paid, minus any prior withdrawals and surrender charges.
Who bears the investment risk for fixed annuities? - ANS insurer
The president of a company is starting an annuity and decides that his corporation will be the
annuitant. Which of the following statements is true? - ANS The annuitant must be a natural
person.
An insurance company forwards fixed annuity premiums to their general account, where the
money is invested. The guaranteed minimum interest rate is 3%. During an economic
downswing, the investment only drew 2.5%. What interest rate will the insurer pay to its
policyholders? - ANS 2.5%
Your client's employer does not offer a company wide annuity contract. What type of annuity
contract could your client obtain? - ANS Individual.
If an annuitant selects the straight life annuity settlement option, in order to receive all of the
money out of the contract, it would be necessary to... - ANS Live at least to his life
expectancy.
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,A prospective deferred annuity owner is concerned about what would happen if he
surrendered the annuity before the annuitization period. The agent most likely explained which
of the following - ANS Nonforfeiture option guarantees that the owner will receive a
surrender value of the contract.
Why is an equity indexed annuity considered to be a fixed annuity? A. It is not tied to an index
like the S&P 500. B. It has a guaranteed minimum interest rate. C. It has modest investment
potential. D. It has a fixed rate of return. - ANS B. It has a guaranteed minimum interest rate
Which two terms are associated directly with the way an annuity is funded? - ANS Single
payment or periodic payments
Which two terms are associated directly with the way an annuity is funded? - ANS Single
payment or periodic payments
what form of the annuity settlement options provides payment to an annuitant for the rest of
the annuitant's life and ceases and the annuitant's death? - ANS pure life
which of the following is NOT true regarding equity indexed annuities? 1. they earn lower
interest rates than fixed annuities 2. the insurance company keeps a percentage of the returns
3. they have guaranteed minimum interest rates 4. they are less risky than variable annuities -
ANS they earn lower interest rates than fixed annuities
Which of the following is true of a qualified plan? A) It does not need to have a vesting
schedule? B) It may discriminate in favor of highly paid employees. C) It may allow unlimited
contributions. D) It has a tax benefit for both employer and employee - ANS D) It has a tax
benefit for both employer and employee
An employer has sponsored a qualified retirement plan for its employees where the employer
will contribute money whenever a profit is realized. What is this called? - ANS Profit sharing
plan
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, For a retirement plan to be qualified, it must be designed for the benefit of A) Employees B) Key
employee C) Employer D) IRS - ANS A) Employees
an IRA purchased by a small employer to cover employees is known as a 1. 403(b) plan 2.
simplified employee pension plan 3. 401(k) plan 4. defined contribution plan - ANS simplified
employee pension plan
Ted and Fred are attorneys at law and operate their practice as a partnership. They want to
start a program through their practice that will provide retirement benefits for themselves and
three employees. They would likely choose A) HR10 (Keogh Plan). B) Section 457 Deferred
Compensation Plan. C) 403(b) PLAN. D) 401(k) plan. - ANS A) HR-10 (Keogh Plan). HR-10
(Keogh Plans) are plans specifically for self-employed and their employees.
Which type of retirement account allows contributions to continue beyond age 70 1/2 and does
not force distributions to start at age 70 1/2? - ANS Roth IRA
which of the following is not a characteristic of a single (k) plan? - ANS Unlimited
contributions
How are contributions to a tax-sheltered annuity treated with regards to taxation? -
ANS they are not included as income for the employee, but are taxable upon distribution
Which of the following applicants would NOT qualify for a Keogh Plan? - ANS Someone who
works 400 hours per year
If a retirement plan or annuity is "qualified", this means - ANS It is approved by the irs
tax sheltered annuity is a special tax favored retirement plan available to - ANS Certain
groups of employees only
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2025 QUESTIONS AND ANSWERS
A deferred annuity is surrendered prior to annuitization. Which of the following best describes
the nonforfeiture value of the annuity? a. The surrender value should be equal to 100% of the
premium paid, minus any prior withdrawals and surrender charges. b. A deferred annuity
cannot be surrendered prior to annuitization. The owner must wait until the annuitization
period begins to receive any payments. - ANS The surrender value should be equal to 100%
of the premium paid, minus any prior withdrawals and surrender charges.
Who bears the investment risk for fixed annuities? - ANS insurer
The president of a company is starting an annuity and decides that his corporation will be the
annuitant. Which of the following statements is true? - ANS The annuitant must be a natural
person.
An insurance company forwards fixed annuity premiums to their general account, where the
money is invested. The guaranteed minimum interest rate is 3%. During an economic
downswing, the investment only drew 2.5%. What interest rate will the insurer pay to its
policyholders? - ANS 2.5%
Your client's employer does not offer a company wide annuity contract. What type of annuity
contract could your client obtain? - ANS Individual.
If an annuitant selects the straight life annuity settlement option, in order to receive all of the
money out of the contract, it would be necessary to... - ANS Live at least to his life
expectancy.
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
,A prospective deferred annuity owner is concerned about what would happen if he
surrendered the annuity before the annuitization period. The agent most likely explained which
of the following - ANS Nonforfeiture option guarantees that the owner will receive a
surrender value of the contract.
Why is an equity indexed annuity considered to be a fixed annuity? A. It is not tied to an index
like the S&P 500. B. It has a guaranteed minimum interest rate. C. It has modest investment
potential. D. It has a fixed rate of return. - ANS B. It has a guaranteed minimum interest rate
Which two terms are associated directly with the way an annuity is funded? - ANS Single
payment or periodic payments
Which two terms are associated directly with the way an annuity is funded? - ANS Single
payment or periodic payments
what form of the annuity settlement options provides payment to an annuitant for the rest of
the annuitant's life and ceases and the annuitant's death? - ANS pure life
which of the following is NOT true regarding equity indexed annuities? 1. they earn lower
interest rates than fixed annuities 2. the insurance company keeps a percentage of the returns
3. they have guaranteed minimum interest rates 4. they are less risky than variable annuities -
ANS they earn lower interest rates than fixed annuities
Which of the following is true of a qualified plan? A) It does not need to have a vesting
schedule? B) It may discriminate in favor of highly paid employees. C) It may allow unlimited
contributions. D) It has a tax benefit for both employer and employee - ANS D) It has a tax
benefit for both employer and employee
An employer has sponsored a qualified retirement plan for its employees where the employer
will contribute money whenever a profit is realized. What is this called? - ANS Profit sharing
plan
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, For a retirement plan to be qualified, it must be designed for the benefit of A) Employees B) Key
employee C) Employer D) IRS - ANS A) Employees
an IRA purchased by a small employer to cover employees is known as a 1. 403(b) plan 2.
simplified employee pension plan 3. 401(k) plan 4. defined contribution plan - ANS simplified
employee pension plan
Ted and Fred are attorneys at law and operate their practice as a partnership. They want to
start a program through their practice that will provide retirement benefits for themselves and
three employees. They would likely choose A) HR10 (Keogh Plan). B) Section 457 Deferred
Compensation Plan. C) 403(b) PLAN. D) 401(k) plan. - ANS A) HR-10 (Keogh Plan). HR-10
(Keogh Plans) are plans specifically for self-employed and their employees.
Which type of retirement account allows contributions to continue beyond age 70 1/2 and does
not force distributions to start at age 70 1/2? - ANS Roth IRA
which of the following is not a characteristic of a single (k) plan? - ANS Unlimited
contributions
How are contributions to a tax-sheltered annuity treated with regards to taxation? -
ANS they are not included as income for the employee, but are taxable upon distribution
Which of the following applicants would NOT qualify for a Keogh Plan? - ANS Someone who
works 400 hours per year
If a retirement plan or annuity is "qualified", this means - ANS It is approved by the irs
tax sheltered annuity is a special tax favored retirement plan available to - ANS Certain
groups of employees only
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