Author Question: Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. ... (Read 54 times)

809779 · **on:** Jul 11, 2018

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