Group Life & AnnuitiesQuestion 112 of 716
By definition, a single premium immediate annuity (SPIA) must begin making payouts to the annuitant no later than:
a.One year from the date of purchase
b.The annuitant's 65th birthday
c.The annuitant's 59½ birthday
d.Five years from the date of purchase
Explanation
An immediate annuity, including a SPIA, must begin making periodic payouts within one year of purchase, which is what distinguishes it from a deferred annuity. The 59½ rule is a tax rule about early-withdrawal penalty, not a payout-start rule.
Law Reference: Cal. Ins. Code §10168.2This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)