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Kentucky Life Insurance Exam (New Update) Questions and Verified ANSWERs| 100 % Correct| Grade A
Question: Which event triggers a deferred annuity to start
making benefit payments to the annuitant?
ANSWER: When the contract is annuitized
Question: The contractual rights that allow the owner of a
deferred annuity to surrender the cash value several years before the annuity date are called
ANSWER: Nonforfeiture options
Question: Which of these annuity features is meant to
discourage withdrawals and exchanges?
ANSWER: Surrender charges
Question: What happens to the purchasing power of benefit
payments from a fixed life annuity when the cost of living goes up?
ANSWER: Decreases
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Question: How do benefit payments fluctuate over time in a
variable life annuity?
ANSWER: Reflects changes in the market value of assets in a
separate account
Question: Ron recently purchased an immediate, straight life
fixed annuity. His benefit payments will
ANSWER: Remain a constant dollar amount for the duration of
the annuity period
Question: What determines how much an annuitant is paid for a
variable annuity?
ANSWER: The market value fluctuations of the securities
backing it
Question: Which statement concerning a deferred annuity is
correct?
ANSWER: The owner can be the beneficiary, annuitant, or
neither
Question: Which of the following normally pertains to an
immediate annuity?
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ANSWER: Lack of an accumulation period
Question: The interest paid during an annuity's payout period is
considered
ANSWER: Taxable as ordinary income
Question: What does a fixed life annuity offer protection
against?
ANSWER: Savings depletion because of longevity
Question: Tori has an annuity that pays her a $500 per month
income benefit for life or for ten years, whichever is longer.What kind of annuity is this?
ANSWER: Fixed life annuity with period certain
Question: Which of the following is NOT an intended use of an
annuity?
ANSWER: Create new funds upon the death of a wage-earner
Question: The owner of a single premium deferred annuity is
entitled to do all of these EXCEPT
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Options: [Implied: Make multiple premium payments, Withdraw funds, Name a beneficiary, Surrender the contract]
ANSWER: Make multiple premium payments
Question: An individual, age 45, would like to help pay for his
daughter's college expenses in 10 years. Which annuity would be appropriate for this individual?
ANSWER: Deferred annuity
Question: Which of the following contracts offer deferred
taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?
ANSWER: Flexible premium fixed annuity
Question: During an annuity's liquidation phase, the annuitant
normally
ANSWER: Receives benefit payments at regular intervals
Question: When a deferred annuity is surrendered, who must
sign the authorization to do so?