Q563
Liquidation period refers to
A.
Time taken to build up a corpus
B.
Period during which Annuity payments are made by the insurer
AnswerC.
Insolvency period
D.
Time between purchase of annuity and start of payment of annuity payments by the insurer
Answer: Option B
Solution
Answer: Option B
Solution:
Liquidation period refers to Period during which Annuity payments are made by the insurer. Liquidation period is time frame during which an annuitant receives income payments from the insurance company, usually on a monthly basis. The obligations of the company to the annuitant during the liquidation period depend on whether it is a pure or refund annuity.