Series 7 practice questioneasyPackaged Securities 180
In a variable annuity, the separate account’s performance primarily affects:
- Athe insurer’s corporate tax rate only
- Bthe value of the contract owner’s accumulation units or annuity units✓ Correct answer
- Cthe coupon on Treasury securities
- Dthe principal guarantee of a fixed annuity
Explanation
Why B — the value of the contract owner’s accumulation units or annuity units
Variable annuity contract values fluctuate with the performance of the separate account investments. That is why variable annuities are considered securities products.
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