Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
All of the following statements about fixed annuities are true EXCEPT:
The annuitant assumes investment risk
A
Payments are funded with after-tax dollars
B
Payments are invested in the general account
C
The rate of return is guaranteed
D
Explanations
In a fixed annuity, the insurance company assumes investment risk, not the annuitant.