Which TWO of the following statements are TRUE regarding the contract holder of a variable annuity?
I. The investor buys into the variable annuity at current market value plus commission
II. The investor buys into the variable annuity at net asset value plus a sales charge
III. The investor bears all the associated investment risk
IV. The investor is provided with the same dollar payments at regular intervals for the contract term
A. I & III
B. I & IV
C. II & III
D. II & IV
Answer: C
Investment
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