🧪 Series 6 Exam Simulation – Variable Products Section

The Series 6 exam heavily features questions on variable products, including variable annuities and variable life insurance. This simulation focuses on this core section to help you practice real exam-style questions and improve both speed and accuracy.

📘 Instructions

• Total Questions: 10
• Time Limit: 15 minutes
• Format: Multiple Choice (1 correct answer per question)
• Passing Score: 70% (7/10)

✅ Question 1

Which of the following characteristics is unique to a variable annuity compared to a fixed annuity?
A. Guaranteed minimum interest rate
B. Payments tied to investment performance
C. Issued by insurance companies
D. Tax-deferred growth

Correct Answer: B

✅ Question 2

A registered representative selling a variable annuity must be licensed with:
A. The SEC only
B. FINRA only
C. FINRA and the state insurance department
D. The Federal Reserve and the NAIC

Correct Answer: C

✅ Question 3

Which of the following is located in the separate account of a variable annuity?
A. Treasury bonds
B. General insurance reserves
C. Subaccounts tied to mutual fund performance
D. Cash value from fixed annuities

Correct Answer: C

✅ Question 4

What document must be delivered to a customer before or at the time of sale of a variable annuity?
A. Insurance license
B. SEC registration statement
C. FINRA rulebook
D. Prospectus

Correct Answer: D

✅ Question 5

An advantage of a variable annuity over a mutual fund is:
A. Guaranteed annual return
B. Tax-deferred growth
C. Lower expenses
D. Ability to withdraw funds at any time without penalty

Correct Answer: B

✅ Question 6

Variable life insurance policyholders bear which of the following risks?
A. Risk of insurer default
B. Risk of fixed payout
C. Investment performance risk
D. Risk of premium increase

Correct Answer: C

✅ Question 7

Which of the following determines the number of accumulation units credited to a variable annuity contract?
A. Age of the investor
B. Performance of the general account
C. Amount of premium and unit price at time of purchase
D. Type of insurance license held

Correct Answer: C

✅ Question 8

Once the annuitization phase of a variable annuity begins, the contract is converted into:
A. Mutual fund shares
B. Fixed death benefits
C. Annuity units
D. Accumulation units

Correct Answer: C

✅ Question 9

During the accumulation phase, a variable annuity’s investment returns are based on:
A. The insurer’s general account
B. A fixed schedule set by the contract
C. The performance of selected subaccounts
D. Market interest rates

Correct Answer: C

✅ Question 10

Which of the following is true regarding the death benefit in a variable life insurance policy?
A. It fluctuates daily with market changes
B. It is fixed and cannot increase
C. It may increase based on investment performance but will not drop below a guaranteed minimum
D. It is only paid if the insured reaches age 65

Correct Answer: C

📊 Scoring

• 9–10 correct: Excellent – strong command of variable products
• 7–8 correct: Pass – solid grasp with minor gaps
• 5–6 correct: Needs improvement – review suitability and contract structure
• Below 5: High risk – revisit variable product fundamentals and prospectus rules

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