Life · Chapter 9 · Fixed, Variable & Indexed
Variable Annuity
Definition
Premiums are invested in securities through the insurer's SEPARATE account, so the OWNER assumes the investment risk — payments rise and fall with performance. Created to fight inflation. It's a security: regulated by the SEC and FINRA plus state insurance law, a prospectus must be delivered, and selling one requires a life license + FINRA Series 6 or 7 registration.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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