Quiz question: Criteria for index annuities

January 9, 2010 by Linda Koco

Published 2/20/2008 

The question was: Which of the following criteria apply in determining whether an index annuity qualifies as insurance?

a) The annuity is issued by an insurance company, subject to the supervision of the insurance commissioner or any state or territory of the U.S. or District of Columbia
b) The insurer must assume the investment risk under the contract
c) The contract is not marketed primarily as an investment
d) All of the above
 
The answer is: d), all of the above, according to a summary of the definition in Safe Harbor Rule 151 of the Securities Act of 1933, as provided by Sheryl Moore, president of AnnuitySpecs.com, Des Moines, Iowa.

Originally Posted at National Underwriter on February 20, 2008 by Linda Koco.