With an Equity-Indexed Annuity, What Name Is Given to the Method

question 40

Multiple Choice

With an equity-indexed annuity, what name is given to the method of crediting excess interest to the annuity?

• A) the capitation method
• B) the indexing method
• C) the distribution method
• D) the earnings method

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Definitions:

Major Modification

A significant change or alteration to the original terms, structure, or conditions of an agreement or object.

Assignment

Shifting the possession of property, the burden of obligations, or rights from one side to another.

Consignment

An arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Positive Assurance

Certification or guarantee often required in auditing, indicating that financial statements and records accurately reflect the entity's financial status.