Group Life & AnnuitiesQuestion 108 of 315
In a fixed annuity, who bears the investment risk on the funds the owner has paid in?
a.The contract owner
b.Both the owner and the annuitant equally
c.The annuitant only
d.The insurance company
Explanation
A fixed annuity credits a declared current rate that is never less than the guaranteed minimum stated in the contract. The insurer bears the investment risk and must credit at least the minimum even if its own investments perform poorly.
Law Reference: Cal. Ins. Code §10168.25Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)