Detailed Answer
Correct answer: (A)
Minimum guaranteed rate of interest
A Variable Annuity enjoys tremendous flexibility, the cost being the sacrifice of a number of guarantees, one of which is a minimum guaranteed rate of interest. Having multiple investment options, a Variable Annuity is regarded as a security, subject to the regulations of the SEC. Balances are held in a separate account since the owner of the annuity, not the insurer, is assuming all risk.
