Types of Policies
An owner of a flexible-premium deferred annuity wants to know if they can continue making purchase payments in the future. Which statement is most accurate?
Answer and explanation
Answer: A. A flexible-premium deferred annuity may accept more than one purchase payment, but the contract defines when payments are accepted and how the payout period operates.Source: National Association of Insurance Commissioners — Buyer's Guide to Fixed Deferred Annuities — Guide pages 1–2, accumulation and payout periods; one or more premium payments; contract controls
More types of policies questions
- A 20-year level term policy allows conversion only during the first 10 policy years and renewal only until age 65. In policy year 9 the insured wants permanent coverage without risking later evidence-of-insurability problems. Which advice best protects the contractual right?
- A 20-year term policy allows conversion only during its first 12 years. What happens to the conversion privilege after year 12?
- A 20-year term policy permits conversion only during its first 12 years. Which statement correctly describes the feature?
- A 45-year-old buys an annuity intending to take income at 65. Which annuity classification describes the contract during those twenty years?
- A buyer wants a deferred annuity funded entirely with one lump-sum purchase payment. Which funding form should be selected?
- A buyer wants lifetime life insurance funded by one lump-sum payment and wants cash value available immediately. Which policy fits?
590 Texas questions like this one.
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