Series 7 - General Securities Representative Exam
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Which of the following is TRUE of variable annuities?
Income generated is tax deferred
A
Guaranteed rate of return
B
Insurer assumes all investment risk
C
There are no surrender charges
D
Explanations
The income generated is tax deferred until withdrawals or a death benefit is paid. The investor assumes all investment risk. There is no guaranteed rate of return. Surrender charges exist and can be 7% or more