Which of the following statements is (are)true with respect to variable annuities?
I.The price at which accumulation units can be purchased fluctuates during the funding period.
II.The value of annuity units fluctuates over time.

Question

Quizplus · Accepted Answer

I) The price at which accumulation units can be purchased fluctuates during the funding period: This is true. The price of accumulation units may increase or decrease depending on the performance of the underlying investments in the annuity. Therefore, the price can fluctuate during the funding period.

II) The value of annuity units fluctuates over time: This is true. The value of annuity units is based on the performance of the underlying investments. Therefore, the value of the annuity units can fluctuate over time.

Which of the Following Statements Is (Are)true with Respect to Variable