Series 6 - Investment Company And Variable Contracts Products Representative Exam

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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.

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