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This question belongs to Commerce Insurance

Insurance

?

Who bears the investment risk in a fixed benefit annuity?

A) Insurer B) Insured C) State D) Risk pool

Answer & Solution

Correct Answer: Option A

Insurer bears the investment risk in a fixed benefit annuity. The annuitant bears the investment risk in a variable annuity, whereas the insurer bears the investment risk in a fixed annuity.

Question posted by Examveda

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