Which of the following is true regarding a market value adjusted annuity?

Which of the following is true regarding a market value adjusted annuity?


A. It provides a level benefit payment

B. The owner is guaranteed a fixed interest rate for a specific period of time

C. The insurer bears all the market risk of changing interest rates

D. There are no penalties for a premature surrender of the annuity


Answer: B. The owner is guaranteed a fixed interest rate for a specific period of time

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