Life Annuity Payments Are Made Up of All of the Following

question 13

Multiple Choice

Life annuity payments are made up of all of the following EXCEPT

• A)return of premiums.
• B)interest earnings.
• C)unliquidated principal of annuitants who live too long.
• D)unliquidated principal of annuitants who die early.

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Definitions:

S&P 500

A stock market index tracking the performance of 500 of the largest companies listed on stock exchanges in the United States.

DJIA

Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Lloyds of London

A British insurance and reinsurance market, where members join together as syndicates to insure and spread risks.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency insuring deposits in banks and thrift institutions, offering depositors protection against bank failure.