Which of the Below Statements Is TRUE

question 28

Multiple Choice

Which of the below statements is TRUE?

• A) An insured plan is always safer than a noninsured plan.
• B) A federal agency, the Pension Benefit Guaranty Corporation (PBGC) does not insure the vested benefits of participants.
• C) Defined benefit plans that are guaranteed by life insurance products are called insured benefit plans.
• D) A plan sponsor establishing a defined-benefit plan cannot use the payments made into the fund to purchase an annuity policy from a life insurance company.

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Definitions:

Relevant

Being closely connected or appropriate to the matter at hand.

Authoritative

Describes a commanding and self-confident approach; often considered respected and having expertise in a particular area.

Unbiased

Having no prejudice or favoritism towards someone or something, ensuring fairness.

Citing Sources

Citing sources is the practice of acknowledging and giving credit to the original authors of the information used in one's work.