question 21 of 60 an equity indexed annuity a. does not guarantee interest rates. b. is a variable annuity…

question 21 of 60 an equity indexed annuity a. does not guarantee interest rates. b. is a variable annuity. c. associates interest rates with a stock index. d. does not allow annuitants to share in excess interest

question 21 of 60 an equity indexed annuity a. does not guarantee interest rates. b. is a variable annuity. c. associates interest rates with a stock index. d. does not allow annuitants to share in excess interest

Answer

Brief Explanations:

An equity - indexed annuity links its interest rate to a stock market index like the S&P 500. It has a guaranteed minimum interest rate, so option A is incorrect. It is not a pure variable annuity as it has some guarantees, so option B is incorrect. Annuitants can share in excess interest based on the performance of the linked index, so option D is incorrect.

Answer:

C. Associates interest rates with a stock index.