Annuities Are an Important Product Sold by Life Insurance Companies

question 7

Multiple Choice

Annuities are an important product sold by life insurance companies. Which of the following statements is correct as of 2012?

• A)Life insurance contracts continue to dominate premiums written while annuities are of less importance.
• B)The value of annuity sales are more than double those of traditional life insurance lines.
• C)Retirement accounts and private pension plans are not allowed access to the annuities of life insurance companies.
• D)The funds in an annuity can only be invested in guaranteed investment contracts (GICs).
• E)All annuities are listed as separate accounts business on the life insurer's balance sheet.

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