Annuities
How does a fixed indexed annuity credit interest?
Answer and explanation
Answer: C. A fixed indexed annuity credits interest by reference to an external index, with contractual features such as participation rates, caps, and a floor that prevents a negative credit. Separate account pass-through describes a variable annuity, and dividends belong to participating life contracts.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed indexed annuities
More annuities questions
- What does selling a variable annuity require beyond a New York life license?
- What happens during the accumulation period of a deferred annuity?
- What is the tax feature that makes annuities attractive for retirement saving?
- What risk does a life annuity protect the annuitant against?
- Where are the assets backing a fixed annuity held?
- Which payout option produces the largest periodic income for a given sum, and why?
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