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4-HOUR ANNUITY SUITABILITY AND BEST
INTEREST STANDARDS EXAM WEBCE|
ACTUAL Q&A 2026-27
Darcy owns an indexed annuity. The index that supports her annuity was at 1000
when the contract's interest crediting period began and 1200 when the crediting
period ended. What is the index increase? - correct-answer - 20 percent
What covers the cost of a variable annuity's death benefit? - correct-answer - the
mortality and expense charge
Ten years ago, John purchased a deferred annuity and named his daughter,
Suzanne, as beneficiary. Over the years, John invested $50,000 in the contract;
upon his death, the contract was valued at $118,000. Assuming that John died
without annuitizing and the contract contained the standard death benefit
provision, how much will Suzanne receive? - correct-answer - $118,000
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At what point are a nonqualified annuity's earnings subject to income tax? -
correct-answer - when they are withdrawn from the contract
All of the following are common modal annuitization payout options EXCEPT: -
correct-answer - lump-sum
Troy purchased a deferred annuity for $100,000, naming himself and his wife as
joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the
contract had grown to $235,000, and Troy decided to annuitize under a joint and
survivor life payout. He and his wife had received income totaling $50,000 when
Troy died. How much will daughter Trudy receive at Troy's death? - correct-
answer - (Wrong) $180,000
4-HOUR ANNUITY SUITABILITY AND BEST
INTEREST STANDARDS EXAM WEBCE|
ACTUAL Q&A 2026-27
Darcy owns an indexed annuity. The index that supports her annuity was at 1000
when the contract's interest crediting period began and 1200 when the crediting
period ended. What is the index increase? - correct-answer - 20 percent
What covers the cost of a variable annuity's death benefit? - correct-answer - the
mortality and expense charge
Ten years ago, John purchased a deferred annuity and named his daughter,
Suzanne, as beneficiary. Over the years, John invested $50,000 in the contract;
upon his death, the contract was valued at $118,000. Assuming that John died
without annuitizing and the contract contained the standard death benefit
provision, how much will Suzanne receive? - correct-answer - $118,000
, 2|Page
At what point are a nonqualified annuity's earnings subject to income tax? -
correct-answer - when they are withdrawn from the contract
All of the following are common modal annuitization payout options EXCEPT: -
correct-answer - lump-sum
Troy purchased a deferred annuity for $100,000, naming himself and his wife as
joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the
contract had grown to $235,000, and Troy decided to annuitize under a joint and
survivor life payout. He and his wife had received income totaling $50,000 when
Troy died. How much will daughter Trudy receive at Troy's death? - correct-
answer - (Wrong) $180,000
