Which of the following statements is (are) TRUE regarding variable annuity contracts?

Which of the following statements is (are) TRUE regarding variable annuity contracts?


I The principal amount is guaranteed prior to annuitization by the insurance company that issues the contract

II The principal amount is guaranteed after annuitization by the insurance company that issues the contract

III The contract holder loses control of the principal amount prior to annuitization

IV The contract holder loses control of the principal amount after annuitization



A. I and III only

B. II and IV only

C. IV only

D. I, II, III, IV


Answer: C.

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