If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer, it is a(n):
A) guaranteed-minimum annuity.
B) equity annuity.
C) variable annuity.
D) uncertain annuity.
E) temporary annuity.

Question

Quizplus · Accepted Answer

A variable annuity is designed to provide payments that are adjusted based on the investment experience of the insurer. This means that if the insurer's investments perform well, the payments may increase, but if they perform poorly, the payments may decrease. Variable annuities are often considered higher risk than other annuity types because of the potential for payment fluctuations.

If an Annuity Plan Is Designed So That the Monthly