I swear I got a practice question implying that it’s okay to sell fixe...

It is never okay to sell something fraudulently. Some state criminal codes refer to this as “theft by deception,” which would include, for example, rolling back the odometer on a used car before selling it or trading it in to a dealer. The point of such an exam question is to point out that only securities are subject to the Uniform Securities Act. That includes securities that are exempt from registration, too, such as T-notes or municipal bonds. A fixed annuity, however, is an example of an investment of money that is not a security. It is an insurance product. Therefore, it is outside the scope of the Uniform Securities Act, even the anti-fraud statute.