SIE practice questioneasyVariable Annuities
A variable annuity differs from a fixed annuity because its value is primarily based on:
- AFDIC insurance protection
- BA fixed interest rate set by the insurance company
- CGovernment guarantees
- DThe performance of the chosen investment subaccounts✓ Correct answer
Explanation
Why D — The performance of the chosen investment subaccounts
A is correct; the value of a variable annuity fluctuates based on investment performance. B describes fixed annuities. C and D are incorrect—variable annuities are not government-guaranteed or FDIC-insured.
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