Q326
Who bears the investment risk in a fixed benefit annuity?
A.
Insurer
AnswerB.
Insured
C.
State
D.
Risk pool
Answer: Option A
Solution
Answer: Option A
Solution:
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.