Types of Policies
What indexed feature defines a Fixed Indexed Annuity (FIA)?
Answer and explanation
Answer: D. FIAs link returns to an equity index performance while protecting principal from negative market performance.Source: NAIC Annuity Buyer's Guide — PDF page 4, Fixed Indexed Annuities
More types of policies questions
- How does the premium for a joint life (first-to-die) policy compare to buying two separate individual policies of the same face amount?
- How is interest credited to cash values in an interest-sensitive whole life policy?
- How is single-premium whole life ordinarily funded?
- How is the payout phase (annuitization) structured under a straight life income annuity settlement option?
- If current interest rates exceed expectations in an interest-sensitive whole life policy, what options may the insurer offer the owner?
- If the reference equity index suffers a severe negative loss (-20%) during a policy year, what protects the equity-indexed policyowner's cash value?
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