SIE practice questionhardVariable Annuities - Fees
Variable annuities typically include which of the following cost structures?
- AFixed guaranteed fees only
- BOnly back-end sales loads
- CNo charges beyond fund NAV
- DMortality and expense risk charges, administrative fees, and fund management fees✓ Correct answer
Explanation
Why D — Mortality and expense risk charges, administrative fees, and fund management fees
Variable annuities charge for insurance risks and administration, in addition to underlying fund costs. B, C, and D underestimate or mischaracterize the fee structure.
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