Which of the Following Is a Weakness of a Traditional

question 29

Multiple Choice

Which of the following is a weakness of a traditional annuity?

• A)You cannot outlive your annuity payments
• B)A payout guarantee from a company which itself is subject to bankruptcy risk
• C)Lack of liquidity once you annuitize
• D)Both a and b
• E)Both b and c

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Definitions:

Product Liability

The legal obligation of manufacturers and sellers to compensate for injuries or losses caused by defective or unsafe products.

Assumption Of Risk

This is a legal doctrine where an individual knowingly exposes themselves to danger and is thus responsible for any resulting injuries.

Strict Product Liability

A legal doctrine holding manufacturers and sellers accountable for distributing defective goods, regardless of fault.

Product Liability

Product liability refers to the legal responsibility of a manufacturer or vendor for selling a faulty product that causes injury or harm to a consumer.