Investment VehiclesPregunta 28 de 110
A fixed annuity differs from a variable annuity primarily because a fixed annuity:
a.Places investment risk on the contract owner
b.Provides returns tied to separate account subaccounts
c.Is regulated as a security requiring a prospectus
d.Guarantees a stated rate of return with the insurer bearing investment risk
Explicación
A fixed annuity guarantees a set rate of return, and the insurance company bears the investment risk. A variable annuity's value fluctuates with separate account subaccounts, placing investment risk on the owner and requiring securities registration and a prospectus. That risk shift is the central distinction.
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