Types of Policies
A buyer wants a deferred annuity funded entirely with one lump-sum purchase payment. Which funding form should be selected?
Answer and explanation
Answer: A. A single-premium deferred annuity is funded with one purchase payment before its later payout period.Source: National Association of Insurance Commissioners — Buyer's Guide to Fixed Deferred Annuities — Guide page 2, How Deferred Annuities Are Different — one premium payment
More types of policies questions
- What indexed feature defines a Fixed Indexed Annuity (FIA)?
- What is an immediate annuity (SPIA) designed to do upon single-premium purchase?
- What key feature distinguishes a variable annuity from a fixed annuity?
- What primary guarantee is provided to the owner of a fixed annuity contract during the accumulation phase?
- What primary need is decreasing term life insurance specifically designed to cover?
- What surrender charge feature is common in fixed annuity contracts during early policy years?
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