Group Life & AnnuitiesQuestion 111 of 315
Which statement best describes a single premium annuity?
a.It is funded by ongoing flexible payments over many years
b.It is funded by both an initial premium and required annual top-ups
c.It is funded by one lump-sum payment
d.It cannot accept any premiums after the first year of the contract
Explanation
A single premium annuity is purchased with one lump-sum payment. A flexible premium annuity, by contrast, allows the owner to make additional contributions over time within contract limits.
Law Reference: Cal. Ins. Code §10127.13Practice all 315 questions free — no signup required.
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