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

Question

Quizplus · Accepted Answer

A variable annuity is designed so that the monthly payment is adjusted by the actual investment experience of the insurer. The amount of the monthly payment varies depending on the performance of the underlying investments chosen by the annuity holder. This differs from a guaranteed-minimum annuity where the payments are fixed, and an equity annuity which is a type of variable annuity but with a specific focus on equity-based investments. An uncertain or temporary annuity are not recognized terms in the insurance industry.

If an Annuity Plan Is Designed So That the Monthly