Answered

Which assumption concerning a Fixed annuity is correct?
O Annuitant assumes no inflation risk
O Insurer assumes the inflation risk
O Annuitant assumes the investment risk
O Insurer assumes the investment risk



Answer :

GinnyAnswer

Final answer:

In a Fixed annuity, the annuitant assumes no inflation risk as the insurer guarantees fixed payments, protecting against the effects of inflation.


Explanation:

An annuitant assumes no inflation risk in a Fixed annuity. In this type of annuity, the insurer guarantees a fixed stream of payments, protecting the annuitant from the impact of inflation eroding the value of their payments. Therefore, the annuitant is shielded from the risk of inflation.


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