Multiple choice

Who bears the investment risk in a fixed benefit annuity?

  1. Insurer

  2. Insured

  3. State

  4. Risk pool
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A Correct answer
Explanation

A fixed benefit annuity is where the insurer guarantees a defined amount of monthly annuity benefit for each rupee applied to purchase an annuity. The guarantee implies that the insurer bears the investment risk.

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