Bridget started to fund a variable annuity. Three years later, ...

[809779]

Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. She called her agent and cancelled the contract. The insurer returned all but 4 percent of the account balance. The 4 percent kept by the insurer is a(n)
 
  A) account administration fee.
  B) investment management fee.
  C) front-end load.
  D) surrender charge.

Question 2

Which of the following statements is (are) true with respect to a joint-and-survivor annuity? I. Some joint-and-survivor annuities reduce the income payment after the first annuitant dies. II. No payments are made after the first annuitant dies.
 
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

[aadams68]

Answer to Question 1

Answer: D

Answer to Question 2

Answer: A

[809779]

Excellent

[Sarahjh]

TYSM