12-GA-62 VARIABLE PRODUCTS LATEST UPDATED
2026 ACTUAL FINAL EXAM WITH COMPLETE 100
PRACTICE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH VERIFIED EXPLANATIONS A+
GRADED MOST RECENT!!!
1. A variable annuity is best described as a
contract in which the issuer agrees to make
periodic payments that
a) Remain fixed for the entire payout period
b) Vary based on the investment performance
of a separate account
c) Are guaranteed by the FDIC
d) Decrease each year regardless of market
returns
Explanation: Variable annuities pass investment
risk to the contract owner; payments fluctuate
with underlying investments.
2. Which of the following is a key characteristic of
a “separate account” in a variable life insurance
policy?
a) It is part of the insurer’s general account
, b) It is segregated from the insurer’s general
account and invested in securities
c) It guarantees a minimum interest rate of 5%
d) It cannot contain common stocks
Explanation: Separate accounts allow
policyholders to choose investment options and
bear investment risk.
3. The primary risk borne by the owner of a
variable annuity is:
a) Insolvency of the insurance company
b) Investment risk
c) Interest rate risk only
d) Longevity risk
Explanation: Unlike fixed annuities, variable
annuity values fluctuate with market
performance.
4. A prospectus for a variable product must be
provided to the investor:
a) Only upon request
b) Before or at the time of application
c) Only after the first payment
, d) Never, if it is a replacement
Explanation: Securities laws require delivery of a
prospectus prior to or at sale of variable
products.
5. Which of the following is NOT a type of variable
life insurance?
a) Variable whole life
b) Variable universal life
c) Term variable life
d) Variable survivorship life
Explanation: Term life is typically not offered as
a variable product; variable life includes whole,
universal, and survivorship.
6. The “death benefit” in a variable life insurance
policy:
a) Is always fixed at the face amount regardless
of investment performance
b) May vary but typically has a guaranteed
minimum
c) Is never less than the total premiums paid
d) Is guaranteed to increase every year
, Explanation: Variable life death benefit may
fluctuate but usually has a floor equal to face
amount.
7. In a variable universal life policy, the
policyowner can:
a) Only pay a fixed premium each year
b) Adjust premium payments and death
benefit amounts
c) Never change investment allocations
d) Only invest in money market funds
Explanation: Variable universal life combines
investment choice with premium and death
benefit flexibility.
8. A “surrender charge” in a variable annuity is:
a) A fee paid to the policyowner for
surrendering
b) A penalty imposed for early withdrawal
from the contract
c) A guaranteed return bonus
d) An annual administrative fee only
Explanation: Surrender charges typically
2026 ACTUAL FINAL EXAM WITH COMPLETE 100
PRACTICE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH VERIFIED EXPLANATIONS A+
GRADED MOST RECENT!!!
1. A variable annuity is best described as a
contract in which the issuer agrees to make
periodic payments that
a) Remain fixed for the entire payout period
b) Vary based on the investment performance
of a separate account
c) Are guaranteed by the FDIC
d) Decrease each year regardless of market
returns
Explanation: Variable annuities pass investment
risk to the contract owner; payments fluctuate
with underlying investments.
2. Which of the following is a key characteristic of
a “separate account” in a variable life insurance
policy?
a) It is part of the insurer’s general account
, b) It is segregated from the insurer’s general
account and invested in securities
c) It guarantees a minimum interest rate of 5%
d) It cannot contain common stocks
Explanation: Separate accounts allow
policyholders to choose investment options and
bear investment risk.
3. The primary risk borne by the owner of a
variable annuity is:
a) Insolvency of the insurance company
b) Investment risk
c) Interest rate risk only
d) Longevity risk
Explanation: Unlike fixed annuities, variable
annuity values fluctuate with market
performance.
4. A prospectus for a variable product must be
provided to the investor:
a) Only upon request
b) Before or at the time of application
c) Only after the first payment
, d) Never, if it is a replacement
Explanation: Securities laws require delivery of a
prospectus prior to or at sale of variable
products.
5. Which of the following is NOT a type of variable
life insurance?
a) Variable whole life
b) Variable universal life
c) Term variable life
d) Variable survivorship life
Explanation: Term life is typically not offered as
a variable product; variable life includes whole,
universal, and survivorship.
6. The “death benefit” in a variable life insurance
policy:
a) Is always fixed at the face amount regardless
of investment performance
b) May vary but typically has a guaranteed
minimum
c) Is never less than the total premiums paid
d) Is guaranteed to increase every year
, Explanation: Variable life death benefit may
fluctuate but usually has a floor equal to face
amount.
7. In a variable universal life policy, the
policyowner can:
a) Only pay a fixed premium each year
b) Adjust premium payments and death
benefit amounts
c) Never change investment allocations
d) Only invest in money market funds
Explanation: Variable universal life combines
investment choice with premium and death
benefit flexibility.
8. A “surrender charge” in a variable annuity is:
a) A fee paid to the policyowner for
surrendering
b) A penalty imposed for early withdrawal
from the contract
c) A guaranteed return bonus
d) An annual administrative fee only
Explanation: Surrender charges typically
