Series 6 - Investment Company And Variable Contracts Products Representative Exam

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All of the following statements about variable annuities are true EXCEPT:

Payments are funded with after-tax dollars
A
Payments are invested in a separate account
B
The insurance company assumes investment risk
C
Monthly payments may fluctuate up or down
D

Explanations

In a variable annuity, the annuitant assumes investment risk, not the insurer.